MATERIALS

MANAGEMEN
 MATERIALS
DEFINITION:
MANAGEMENT
Material management is concerned
with planning, organizing and
controlling the flow of materials from
their initial purchase through internal
operations to the service point throughAim
SCOP
distribution.
Emphasis on the acquisition
To GET
The Right quality
5R
E
aspect
supplies
Right quantity of
Inventory control and stores
At the Right time
management At the Right place
Material logistics, movement At the Right cost
control and Handling aspect
Purchasing, supply ,
transportation , materials
 MM in SAP
The Materials management (MM)
function of SAP is part of
the logistics area. It is one of the important modules
in SAP ERP software and MM
application module supports
the procurement and inventory
functions occurring in day-to-day
business operations.
The Materials Management module
consists of all master data, system
configuration, and transactions to
complete the Procure to Pay process.

This process map spans from MRP

generated procurement proposals
through final invoice receipt and
verification.
 Purchasing
External procurement of materials and
services
And Determination of possible sources
of supply for a requirement identified
by the materials planning and control
Valuation system or arising directly within a user
It includes material price department
Inventory
change, balance sheet management
valuation, actual
costing/material ledger It deals with
Management of
material stocks on a
Foreign trade quantity and value
Manage import and export Material master
basis
processes, integrating them It information on all the
materials that a company
efficiently into the supply procures or produces, stores,
chain and sells.
Logistic invoice verification MRP
It is situated at the end of the logistics It includes, Reorder po
supply chain that includes Purchasing, procedure
Inventory Management, and Invoice Forecast-based plann
Time-phased material
Verification. planning
Service master
It provides a basic process for th
Product catalog procurement of externally
The materials and prices in the performed services.
product catalog
 ORGANIZATIONAL STRUCTURE

The organizational structures

form a framework of a company
in which business is conducted.

A hierarchy in which the

organizational units in an
enterprise are arranged
according to tasks and
functions

MM module is fully integrated with other modules in the SAP R/3

System such as Finance (FI), Controlling (CO), Sales and Distribution (SD),
Quality Management (QM), Plant Maintenance (PM), Production Planning
(PP), and Warehouse Management(WM).
 ORGANIZATIONAL STRUCTURE
CLIENT

Company code Company code

MM
STRUCTURE
Client Plant Plant Plant
Company code STORAGE STORAGE STORAGE
Plant LOCATION LOCATION LOCATION

Storage location
Sub Modules of
Purchasing
organization MM••Material Planning
Purchasing
Purchasing group •Inventory Managem
•Vendor Valuation
•Invoice Verification
•Statutory Requirem
 Client:
Represents a grouping or combination of legal,
organizational, business and/or administrative
units with a common purpose.

Company Code:
Company Code represents an independent accounting unit within a client. Each
company code has its own balance sheet and its own profit and loss statement.
Plant:
Operational unit within a
Storage Location: company code.
This level contains the data specific to a
storage location. Stock levels are an example of
the data maintained for each storage location.

Purchasing Organization:
An organizational unit responsible for procuring materials or
services for one or more plants and for negotiating general
conditions of purchase with vendors. The purchasing organization
assumes legal responsibility for all external purchase transactions.
Purchasing Group:
The purchasing organization is further subdivided into purchasing
groups, which are responsible for day-to-day buying activities. A
purchasing group can also act for several purchasing organizations
 Determine
requirements

Invoice
verificatio
n
Source
determinati
on

goods Materials
receipt and managem
inventory ent
managemen
t

Vendor
selection

Order-
follow up

Order
processing
 JOB roles of SAP MM consultant

Role during implementation of the project

Understand the business requirements, Setting up
organization structure of MM and relevant
configuration like Purchase organization, valuation
area plants, storage location, and warehouse
structure etc.
Finalization of material groups, purchasing groups,
payment terms, Inco terms, material master, vendor
master and all purchasing and inventory documents,
Pricing Procedure, Purchase requisition and purchase
orderRole during
and set support
up of Indian project
taxation structure.
Interaction with client through net meetings, calls & emails.
Handling Tickets & Tasks and responsible for closing the same
within defined SLAs, and troubleshooting the issues in the
system and providing support, Executing the needed changes
in configuration, analysis and resolution of production support
calls
Raising Change Requests (CRs) and writing functional
specifications for them and Preparing test data for testing CRs,
 Reaching SAP
Menu Path:
implementation
SAP Easy
guide(IMG)
Access

Tools

Customizin
g

IMG
click on “SAP Reference IMG”
Configuration
nodes related to
MM & other
Modules
 Creating plant

Menu Path:

SAP IMG

Enterprise
Structure

Definition

Logistics-
general

Define, Copy
Delete, Check
 Creating storage
location
Menu Path:

SAP IMG

Enterprise
Structure

Definition

Materials
management

Maintain
Creating
purchase
order
Invoice
verification
Materi
als
manag
ement
 • Invoicing
Invoice Posting
Variances and Blocking
Reasons
Release Blocked Invoices

SYLLAB Automatic Settlements -

Evaluated Receipt
Settlement (ERS)

US
• Basic overview
• Valuation and accounts
SAP overview
assignment
SAP MM overview
Materials Price Change
• Procurement process in SAP MM
Materials Valuation Type
Master Data
Configure Automatic
Materials Master
Account Determination
Vendor Master
• Materials Requirements
purchasing
Planning (MRP)
Special stocks and special procurement types
Planning Requirements
source determination
Over All Procedures
release procedures for purchasing documents
Planning Run
• Inventory management
• Reporting in SAP MM
Goods Receipt
Reporting at Document
Goods Issue
Level
Transfer Posting
Reporting with the
Reservation
Logistics Information
Physical Inventory
System
 Salary range
for SAP MM
consultant
freshers

lessthan 1 year

1-4 years

5-9 years

10-15 years

15 years and more

0 2 4 6 8 10 12 14
 CONCLUSION
• SAP SD module is the one which is very interesting
and important module in SAP compare to other
modules.
• This includes the material management in industry, it
is responsible for all the steps during the purchase of
materials and maintaining that materials.
• MM module is integrated with other SAP modules such
as controlling(CO), sales and distribution(SD), quality
management(QM), plant maintenance(PM), production
planning(PP), warehouse management(WM) and
financial accounting(FI).
• This module has a great impact on every industry
because every industry works on this, so demand for
this module is more compare to other modules in SAP.
• The opportunities in MM module are more, every time
it has bull run demand.