What is SAP MM?
SAP MM (Material Management) is one of the most important modules in SAP ERP software program. SAP MM software module supports the procurement and stock capabilities going on in each day organization operations.
This MM module incorporates many elements consisting of shopping, goods receiving, cloth storage, consumption-based plans, and stock.
It supports all levels of materials control, substances making plans and control, purchasing, goods receiving, stock control, and invoice verification.
SAP Business Process:
SAP MM is known as SAP Material Management system. SAP MM function in the commercial enterprise procedure is as follows:
- A business manner in SAP is termed as “Module”.
- SAP Materials Management (MM) is part of the Logistics location and enables to control the procurement hobby of an organization from procurement.
- It supports all aspects of cloth management (making plans, manage and so on).
Features of SAP MM:
The features of SAP MM system are as follows:
- Material Management and Inventory Management are dealt by SAP MM module which comes under SAP.
- Material Management method ensures that there’s never a shortage of materials or any gaps in the delivery chain manner of the organization. SAP MM hastens the procurement and fabric control activities making the enterprise run smoother with complete time and cost performance.
- It deals with maintaining the substances resources of an organization with the purpose of accelerating productiveness, decreasing charges and growth improvement and at a comparable time are flexible to accommodate modifications in everyday existence.
SAP MM Modules:
Materials Management module in SAP consists of several components and sub-components.
SAP R/3 works on real-time record that is there’s no time lag between statistics access and facts availability.
Data saved in SAP R/3 are categorized as
- Master Data and
- Transactional Data
Material Master Data:
The key points about material master are as follows:
- This is the company major source of material particular information. This statistics will encompass data at the materials that an employer can procure, or produce, or store or promote.
- Since there are various departments in the company and every branch works on a few unique materials. So they will enter unique facts regarding their material. So each consumer department has its personal view of material grasp file. So, the information screens that are used to create material master may be divided into two categories:
- Main Data: This will encompass basic data (base unit of degree, weight), shopping records (over tolerance and beneath tolerance), accounting facts (fashionable rate, moving price).
- Additional Data: This will consist of extra information like a short description of fabric, forex etc.
Examples of Master Data:
- Material master data
- Customer master data
- Vendor master data
- Pricing/conditions master data
- Warehouse management master data (storage bin master data)
The mixed facts of material and vendor altogether are saved in a file that we name as purchasing info record. The key factors about purchase data report are as follows:
- Purchasing data record stores statistics on material and seller providing that fabric.
- Information on material and vendor supplying that material information was stored in purchasing info record.
- Purchase info record can be maintained at shopping business enterprise degree.
Info file can be maintained for 4 procurement kinds which might be as follows:
- Standard: Standard data report has information on well-known orders (orders include details of dealer and material). This information record will encompass carrier’s fee for imparting the specific material.
- Subcontracting: Subcontracting info file has information on subcontract orders. This information report will encompass charge for assembling the raw material that is furnished by the ordering party.
- Pipeline: Pipeline data document has information on material that is supplied by using seller through pipes. For Example: like water, electricity.
- Consignment: Consignment data document has facts on material that is stored at ordering birthday party premises. This info record incorporates vendor’s rate that is to be paid for withdrawing material from consignment stock.
There are a number of functions and transactions used in the Inventory management processes. The key points about inventory management are as follows:
- Inventory control offers with the control of stock both on the price or quantity basis.
- Planning, access and maintaining records of all goods movement come beneath inventory management.
- Goods movement will create a file with a purpose to update all inventory quantity and value in the stock that is known as a material record.
- The material document could be referred to by a reported range and document year.
It is also based on several key processes like
- Definition of movement types
- Goods issue
- Goods receipt
This aspect is to store the pricing stipulations agreed with the Vendor (like discounts, surcharges or charge of freight and many others.) in the system.
You can input those situations in
– Outline Agreements (Contracts and Schedule Agreements)
– Purchase Info Records
Following are some of the things that we need to know to understand the pricing procedure:
- Condition Table
- Access Sequence
- Condition Type
- Condition Record.
- Schema Group
- Calculation Schema
- Schema Determination