|Posted by sapides on October 25, 2013 at 1:20 PM|
Material Management is a functionalmodule that belongs to SAP AG that is used for Procurement Handling andInventory Management. SAP MM is one the largest functional modulein SAP. This module mainly deals with the Procurement Process, Master Data(Material & Vendor Master), Inventory Management, Valuation of Material& Account Determination, Material Requirement Planning, Invoice Verificationetc.SAP Materials management is integratedwith other modules such as SD, PP and QM. Materials managementis used for procurement and inventory management.
The SAP MM module has two importantmaster data - material and vendor. Broadly, the various levelsthat can be defined for a SAP MM implementation are: Client, Company Code,Plant, Storage Location and Purchase Organization.
The SAP MM module covers alltasks within the supply chain, including consumption-based planning, planning,vendor evaluation and invoice verification. It also includesinventory and warehouse management to manage stock until usage dictatesthe cycle should begin again. Electronic Kanban/Just-in-Time delivery issupported.
It can be divided into five majorcomponents. They are:
- materials management,
- plant maintenance,
- quality management,
- production planningand control, and a
- project managementsystem.
Each is divided into number of subcomponents.
SAP MM module is a part of logistics and it helps in managingend to end procurements and logistics business process. The main featuresyou can find in the MM module are requisitions, purchase orders, goodsreceipt, accounts payable, inventory management, BOM's and master raw material,finished goods etc.
Requisitions in SAP MM module is a document created forpurchase of goods or services, it is sent to procurement office for theissuance of purchase orders. Requisitions exceeding certain amount needvendor verification in SAP MM module. There are two ways of placing requisitioneither through SAPGUI or SAP web.
Purchase orders are the legal document issued as commitmentto the vendor to supply mentioned material in the specified quantity alongwith shipping details and specification. The authorized vendors list isdisplayed while creating purchase order as per material and plant of theorganization.