SAP MM

A Comprehensive Guide to
SAP MM (Material Management)

Capabilities Included in SAP MM

The SAP MM (Management) module helps organisations with all aspects of inventory management, procurement, and material management. It simplifies the procurement process to guarantee that the appropriate materials are accessible when needed, and it covers the entire process from inventory to final invoice receipt and verification.

keeping an eye on the processes of consumption-based planning, material management, warehouse management, and material storageUtilise all-inclusive software to handle physical inventory, invoice verification, material appraisal, and service management.

Sub-Components of SAP MM

Master Data Management

In order to administer, manage, and optimise data management operations inside a corporate firm, master data—which includes customer information, product information, supplier locations, and chart of accounts—is essential non-transactional data.

Purchasing Management

In SAP MM, purchasing is the process of acquiring the goods or services needed to run a business. It involves obtaining product details, searching for vendors, assessing them to compare performance and enhance sourcing, preparing purchasing documents, and handling payments and invoices for the entire company.

Service Management

Since it deals with managing services intended for direct consumption as well as generating service master records and purchase orders for external services, service management is a crucial part of SAP MM.connections between the SAP apps Sales and Distribution and Inventory Management and the Service Management module

Material Valuation

Using the material master record to assign a valuation class to a material and the transaction code MR21 to modify prices, material valuation in SAP MM is used to control material prices. Split valuation can be used to track material costs for many types of materials, and it can be tailored to a company’s individual needs.

Key Features of SAP MM

The material requirements that result from the material requirement planning process are identified by the MM module.

The module offers a framework for procurement activities by facilitating the formulation and execution of contracts with sellers.

The establishment of request inquiries to get price quotes from suppliers is made possible by the MM module.

Main Advantages of SAP MM

Centralized Procurement

offers a centralised system for procurement that enables a company to optimise its procurement procedures

Real-time Data

gives businesses access to real-time data on purchase orders, material requirements, and inventory levels so they can act quickly.

Improved Inventory Management

Efficiently manages inventory levels, monitors stock movements, and optimizes inventory to minimize stock-outs