SAP ERP (Enterprise Resource Planning) is business software that combines all the data in a singular software, analyzing multiple determinants such as time and cost. Organizations can swiftly satisfy their business needs with the aid of SAP. Materials Management module in SAP comprises of various elements and sub-elements, including Purchasing, Master Data, and Inventory. In this training, you will study the fundamental abilities and theories of SAP MM.
SAP Business Process
SAP MM is the abbreviated form for the SAP Material Management system. The functions of SAP MM in a business process are as follows −
- A business process in SAP is called a “module”.
- SAP MM is a division of logistics functions, and it assists in maintaining the acquisition exercises of an organization.
- It encourages every feature of material management (planning, control, etc.).
- It is the backbone of logistics that includes modules such as Production Planning, Sales and Distribution, Project Systems, Plant Maintenance, and Warehouse Management.
Features of SAP MM
The features of an SAP MM system are as mentioned below:
- SAP MM is an integral module of SAP that handles material management and inventory management.
- Material Management as a process assures no deficit of materials or any cracks in the supply chain process of the company. SAP MM advances up the acquisition and material management activities, shaping the business to operate efficiently with full time and cost-efficiency.
- It administers with handling the materials (products or services) and resources of an institution to quicken productivity and decrease costs. Simultaneously, SAP MM is quite adaptable to accept changes that are common in every business environment.
- It deals with the Procurement Process, Inventory Management, Master Data (Material & Vendor Master), Account Determination and Valuation of Material, Invoice Verification, Material Requirement Planning, etc.
Some of the essential characteristics of the SAP MM Module are as follows:
- It administers with inventory management and material management.
- It is a process that keeps in control the inadequacy or violation in the supply chain of an industry.
- It maintains acquisition activities.
- To expedite the productivity and lower the cost, it handles material (products/services) and resources of an organization.
- It deals with Master Data, Valuation of Material, Material Requirement, Invoice Verification, etc.
Benefits of SAP MM Module
- It decreases the cost of operations.
- It reduces inventory losses by eliminating useless or out-of-date material.
- Automated material management and procurement activities direct to a more regular and effective process.
Before moving further, let us see the topics covered in this SAP MM tutorial:
- What is SAP MM Module?
- Features of SAP MM Module
- Advantages of SAPMM Module
- Procurement Process
- Types of Procurement
- Basic Procurement
- Special Procurement
- Structure of an Organization
- SAP R/3
- Procurement Cycle
- Inventory Management
SAP MM Sub Modules
SAP MM’s functions are inclusive of procurement process management, material management, inventory management, master data management (material and vendor master), material requirements planning and invoice verification.
All these MM sub-modules have functions that perform certain business processes for those modules. These are accomplished through transactions, the method that SAP ECC uses total business processes. MM also backs other logistics functions that require materials information, such as plant maintenance and project management.