MM stands for Material Management in SAP. Procure to payment business process is handled by SAP MM Module.It has sub components which are created based on different processes. Followings are the functionality of SAP MM Module;
- Goods Receiving
- Inventory storage
- Invoice verification
- Physical Inventory
- Inventory Valuation
- Material Requirement Planning
SAP MM Module is highly integrated with Finance, controlling, Production planning, sales and distribution, Quality management and some other modules. All accounting documents generated through SAP MM module is transmitted to Finance (FI). Material master is a key master which is maintained in this module and connected to all other module.
Steps Carried on in a SAP MM Module;
- Generate procurement proposal
- Covert planned order to purchase requisition
- Assign source to purchase requisition
- Release purchase requisition
- Manually enter PO or convert the purchase requisition to PO
- Send PO to the vendor
- Receive Goods from Vendor
- Perform Invoice receipt
Material Management is an integral part of the logistic system of SAP and one of the most important module in logistic functions. In material management module we have different movement types of materials by which material flows. With this functionality the customer or vendor can see such movement at real time on there system.
How MM Module is integrated with other module
Like discussed above MM is highly integrated with other modules of SAP. Through followings steps we can understand how MM module is integrated with other modules;
- Material need is to be created in the first step either in Production planning (PP) module by creating a material requirement planning or though sales and distribution (SD) module by creating a sales order.
- With this need created, a purchase requisition has been sent to vendor with all the instructions by using MM module purchase creation function.
- Based on the purchase requisition vendor sends goods to you. You may carry out the quality check of the goods by using quality management module.
- Now material can be stored in a warehouse by using warehouse management module of SAP.
- Material available with you will be sent for use in production order created with the help of production planning module.
- Finally when finished goods is ready it will be sent to customer by using Sales and Distribution (SD) Module of SAP.
As discusses above to get all these modules involved with MM we need to configure MM module by keeping in mind all such requirements.