SAP MM module: What is, Material Management Process Flow

Introduction:

SAP MM Module stands for SAP material management System. In general material management is a process that looks after a shortage of the material of an organization and it ensures the supply chain for the same. SAP MM Module helps in warehouse management, inventory management, and material management.

Functions of SAP MM Module:

• SAP MM manages the procurement activity of an organization and it also involves the logistics functions.
• It is helpful in maintaining the records regarding the material sold recently.
• It also helps in warehouse management.
• SAP MM helps to seek out the problems of material management like planning and controlling etc.
• It deals with the problems of material management, inventory management, and also in product service resources to increase high productivity at low cost.

At the same time SAP MM is quite versatile to accommodate any changes that are frequent in any business environment. And it deals with procurement process master data or vendor master, account determination and valuation of materials, inventory management, invoice verification, material requirement planning, etc

SAP MM Module contains several components and sub-components in it the most prominent and widely used are,

• Master data
• Purchasing
• Inventory management
• Pricing procedure

All of these components have their subcomponent that is essential in the specific business processes but all these processes are executed by using transactions.

Transaction in SAP means the processing of certain information in order to complete business process requirements.

Example:

If you have purchased 10 pieces of little buckets you can perform a particular transaction code be it ‘t-code’ that reflects those changes in SAP. Most of the business process involves multiple sap transactions to accomplish and are spread over one two or more modules.

Sub Components in SAP MM:

Master data:

Data stored in SAP is either master data or transaction data. Master is the core data that is used as a base for any transaction if you are producing, transferring stocks, selling, purchasing, doing a physical inventory, or whatever your activity maybe it requires a certain amount of data to be maintained

Example of Master data:

• Material master data
• Customer master data
• Vendor master data
• Pricing or conditions master data
• Warehouse management master data

Purchasing:

Purchasing as a component of the SAP MM Module can be depicted as follows:

MRP(material resource planning) creates procurement proposal and later gets converted into PR (purchase requisition) Next step is to assign a source to purchase requisition and release of purchase requisition the PR gets converted to PO (purchasing order) and upon goods receipt and invoice accept can be done to complete the purchasing process additionally payment is processed finance module

Inventory Management:

To start a business every company or organization needs some goods to be preserved on the premises inventory management helps in placing and handling the material which was received from the vendors.

The points of inventory management:

• Inventory management helps in maintaining the quality and quantity of a product.
• It keeps records about the movement of the goods.
• All records about the stocks are recorded in a document called a material document in inventory management.

There are several key processes from which Inventory management manages the goods they are:

1. Definition of movement type
2. Reservations
3. Goods issue
4. Goods receipts.

Pricing procedure in SAP MM:

The pricing procedure in MM Module is a way to determine prices in a purchasing document. It gives us the functionality to assign different calculation types for different needs. Now defining the pricing procedure can be done by creating an access sequence and assigning condition types. Access sequence tells the system where to look for condition values.

Logon Procedure of SAP

SAP Material Management is all about managing the material purchased to produce the productivity of an organization to manage the whole running of an organization it is essential to have software that manages the procurement and sale activity of an organization.  The SAP MM operates only when the user has his User Id and password. SAP MM Module software also has a standard toolBar Icon that contains the Back key, Exit key, and the log off-key. It also has a command field that directly executes Transactions.

• To open a new page in sap enter /o followed by Transaction code.
• To open a new page or to close the current page in SAP enter /n followed by Transaction code.

SAP MM Organization Structure

To run an organization smoothly It’s mandatory to record the structure of organization.  It can be in the form of recorded used materials, procurement activity, profit, and loss of an organization.

Organizational levels in SAP Material Management:

There are different organizational levels in SAP MM Module suppose You want to run a business Your business will have different levels like the client occupies the topmost position in the organizational level in SAP MM Module and the client will have a different company code.  The company code may have different plants, the plants in SAP MM has storage location, the storage may have different organization and at last, the organization may have different purchasing groups. let understand this in a chart.

Client:

The client occupies the top position in the organizational level of SAP MM Module.  It is considered as a synonym to the group.  The client contains several company codes.  A client is a commercial unit in SAP MM.  It creates its own set of master data.  The Data maintained in client is valid for all the levels that occur in the organizational levels of SAP Material Management.

Company Code:

Company code in SAP is an organizational unit, which is created in SAP FI (Finance) module and at the same time, it is linked with SAP MM (Material Management). Within the client, the Company code is an independent accounting group that represents its organization.  Company code maintains the records regarding profit, loss of an organization.  It is the smallest account of an organization.

Plant:

A Plant is an organizational unit of a company where different activities take place.  It produces the goods for the company.  The plant looks after the stored material of a company. Plant in SAP MM is helpful in manufacturing the goods.  It has a warehouse distribution center and a regional sales office within logistics.

Storage Location:

The storage location is nothing but a place where stocks are kept physically.  A Plant consists of many storage locations within it.  The storage location is a logistics unit assigned to the plant where stocks are kept physically and where inventory takes place.   The storage location can be characterized based on its properties like Finished good storage location, raw material storage location, Return Sale Storage location, Spare storage location, etc.

Purchasing Organization:

A Purchasing Organization under a company in SAP MM manages the procurement activity of a company based on requirements.  It also manages the external procurement works of a company.  The Purchasing organization is also known as a centralized purchasing organization.  There are different forms of purchasing organization they are:

Centralized Purchasing:

Centralized Purchasing manages the procurement activity of all company codes which belong to the different clients. It is not assigned to any company codes.

Company-Specific Purchasing: 

The existing plant in a company code purchases the materials through this purchasing organization.  It is not assigned to all the company codes.

Plant Specific Purchasing:

Plant Specific Purchasing is assigned to a plant.  Here only the specific plant can manage the purchasing activity of the company through this purchasing organization.

Purchasing Group:

Purchasing Group manages the daily procurement activity of a company.  A buyer or a group of buyers run this procurement activity in Purchasing Organization.

What is Material Master?

 Material master is an important element in SAP MM (Material Management).  Material Master is an element that is widely used throughout the process of material Management.  It manages the procurement, inventory, and sale activity of an organization. To Understand the concept of material master one should first understand the characteristics of Material Master.  There are 4 characteristics in Material Master namely-

1. Material Types.
2. Material Group.
3. Number range.
4. How to create, edit, and display Material.

Let us understand each characteristic briefly:

Material Types:

Material Type is the first characteristic of Material Master. Material Type helps manage the two different materials that come together to form common productivity. Let us understand the concept of Material type by an example: Suppose we have wool and woolen clothes.  Wool is raw material and woolen cloth is a finished product so in Material type we can manage the record of such materials which is essential in the smooth running of a business. 

Material Group:

Material Group manages the records about some common attributes that come together to form productivity for example Materials used in packaging the products.

Number Range:

It’s another characteristic of the material master which defines the recorded materials by the numbers.  There are two types of Number range material master namely:

External Number assignment: If you want to define a material then you can define it by providing a number to that material.

Internal Number assignment: In the Internal Number assignment the system itself generates the number of the recorded material. 

How to Create, edit, and display Material 

In Material Master you can also create, edit and display material, We can do this by adding the suffix to Trans codes for example, 

• Transcode to create Material is mm01
• Transcode to edit material is mm02
• Transcode to display the material is mm03

Top 5 Institutions that provide SAP MM Course:

Every person who is interested in the SAP MM Module course definitely looks for a good institute where they can learn more about SAP MM techniques. There are many institutions that guide you to build your career in SAP MM stream.

1. Henry Harvin:

Henry Harvin is one of the best institutions where you can learn SAP MM Module. Henry Harvin gives golden membership to those who joined the course. It conducts a Bootcamp session every week.

      It is an organization where you can learn SAP MM courses by sitting in the comfort of your house. Henry Harvin also has several Educational branches in many states of India. It is among the top hundred ed-tech companies around the globe.

Examination:

After finishing the SAP MM Course the institution conducts an examination where you will be asked the question which is related to your stream. When you will be done with your SAP MM course Henry Harvin provides you with a certificate that is widely recognized and helps you to get a job.

     Henry Harvin has qualified trainers with 12+ years of working experience. The trainers of Henry Harvin are experts in teaching because they have given more than 500+ lectures before becoming the trainer in Henry Harvin.

Internships:

Henry Harvin not only provides you with the education but it will also give you an opportunity to work in its institution. Henry Harvin gives you guidelines about how to work as an SAP Material Management consultant by providing Internships for learners. Here is the link where you can know more about Henry Harvin SAP MM Course

Check Henry Harvin  SAP Courses 

SAP FICO Course | SAP MM COURSE | SAP HR Course | SAP Hana Course | SAP ABAP Course | SAP Ariba Training |

Cities in India where Henry Harvin SAP FICO Course is provided:

Delhi, Hyderabad, Mumbai, Gurgaon, Pune, Indore, Online, Bangalore, Kolkata, Chennai

2. AIMS Institute of Management:

AIMS is an institution from which learners not only gain knowledge but the candidate can live a better life in the future by getting a good job. AIMS provides everything to the candidate from learning to getting a good job. It plays a very bold role in various factors. The candidate can learn and complete his learning duration quickly and the AIMS Institute of Management also allows jobs for the learner who has completed his course.
AIM Institute of Management offers a 52-week learning duration for the learner.

• After the completion of the course, the AIM Institute of Management provides a course completion Certificate so the candidate can get the job easily.
• AIM Institute of Management also provides internships to it’s learners.
• AIM Institute of Management provides the placement opportunity to the candidate.
• In addition, the student can gain a scholarship during the duration of the course.
• A learner can also get the opportunities to learn case studies, practical business lessons, and many more.

3. ACTE: 

ACTE is an Institution that provides you SAP MM course with advanced techniques.  It claims 100% placement assurance.  ACTE Hire experienced trainers and its also lab facilities for its learners.  Concepts that ACTE completes during the duration of the course is,

• SAP MM, Master Data, Source Determination, Purchasing, Documents, Conditions or Pricing Procedure or Price Determination, External Services Management (ESM), Procedure for Services, Inventory Management (IM), Physical Inventory (PI), Special Stocks and Special Procurement Types, Valuation and Account Determination, Integration with other modules.
• ACTE Training course focuses on quality education of Trainees.  ACTE provides you with a certificate after the completion of the course.  The Trainer of ACTE Training course has more than 15 years of working experience.
• ACTE is Associated with the top organizations like HCL, Wipro, Dell, Accenture, IBM, Google, TCS, CTS, etc. This helps the trainee to work for multinational companies in the future. 
• ACTE creates a separate student portal for placement, and it provides the interview schedules to the trainee by notifying them through Emails.
• ACTE arranges the interviews after giving 70% of SAP MM training to the trainee.
• ACTE helps trainees to build their resume by matching the current industry needs.
• ACTE also helps you by providing mock exams and mock interviews to its students.

4. TUTORIALSPOINT:

Tutorialspoint is another institution that provides SAP MM courses with the course completion certificate.  This tutorial is very useful to those who want to learn more about the supply chain in SAP MM.

     Tutorialspoint starts its course with the basic information about SAP MM so the candidate can get a clear vision about the SAP mm course.  The coaches of it are the experienced ones. The candidates of Tutorialspoint are provided with the latest study material, project, assignment, and various other guidelines by the trainer which is important to understand the course better.

• It is an E-learning platform where you can learn about SAP MM with easy tricks.
• The course consists of 14 lectures.  The learner of tutorialspoint can get an opportunity to be a certified learner after the completion of the course. 
• Just in case the learner is not satisfied with the teaching method of the coach, Tutorialspoint is providing 30 days money-back guarantee to its candidate. 

5. ERPROOF:

ERProof is a free E-learning platform where you can learn about material management with the latest tools and technology.  ERProof provides 7 modules in the SAP MM course which has its own importance in SAP Material Management.  The 7 modules in the SAP MM course are:

• Getting started with SAP MM.
• SAP MM Master data.
• Procurement process.
• Procurement of external services.
• Reporting.
• Material requirement.
• Integration with other modules.

Any interested person can learn about the SAP MM course because ERProof is providing free sessions to its candidate.  Any person who is interested in learning SAP Material Management can learn just by clicking the links which are provided by ERProof itself on its website.  

     Any graduate or postgraduate can apply for this course.  Even though the session is free of cost the coaches try their best to give the student fair knowledge about the course.

What should be the second step after the completion of the SAP MM Course?

There are many things you can do after the completion of the course like you can continue your learning in SAP MM or else you can do MBA after the SAP MM course.  After the completion of MBA, You may work as

• System Analyst
• Financial Analyst

SAP MM course is one of the most demanded courses in India.  Many companies are looking for a person who is efficient in SAP MM. 

Many other SAP courses with details: 

1. SAP MM: It is one among the SAP Courses which help you in managing the manufactured module.
2. SAP FI: It is another SAP course which deals with the problems of finance and accounting.
3. SAP SD Training: It is one of the specialized SAP Courses that deal with the tasks of sales and distribution.
4. SAP BO Training: It is another SAP Course where you learn about analytical and reporting tools.
5. SAP HR Training: With gaining full knowledge about this software one can manage to work as HR (Human Resource) related works.
6. SAP FICO Training: With the help of SAP FICO Training you can manage the financial and Accounting task of the business.
7. SAP ABAP Training: It is one of the Important course in SAP which will help the candidate to learn more about programming.

Curriculum of SAP MM Course:

1. Overview of SAP MM and Procurement process.
2. Purchasing and inventory management.
3. Invoicing, valuation, and Accounting Assignments
4. MRP, Reporting, and configuration.
5. Material Master, Integration of MM various Modules.

Conclusion:

SAP MM Module manages the business system of an organization or company by providing information about materials used in creating productivity.

SAP MM Module also manages the procurement activity of an organization and it ensures the supply chain for the same. SAP MM Module is also helpful in warehouse management, inventory management, and material management of the company.

 it is also helpful in maintaining the records of the stocks of an organization.  SAP MM contains many components and sub-component in it.  Some of them are 

1. Master Data
2. Purchasing 
3. Inventory Management
4. Pricing procedure

Every component of SAP MM has its own role and importance in SAP Material Management. 

Recommended Reads

• 10 Best SAP Training Institutes in India
• Top 15 SAP FICO Courses in Hyderabad with SAP Jobs for Freshers
• Top 35 SAP FICO Interview Questions and Answers
• 15 Best SAP HR Courses In India 
• Best 10 SAP Training Institutes in Delhi

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