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2. MATERIALS MANAGEMENT
DEFINITION:
Material management is concerned with planning,
organizing and controlling the flow of materials
from theirinitial purchase through internal
operations to the service point through
distribution.
To GET
The Right quality
Right quantity of suppl
At the Right time
At the Right place
At the Right cost
5R
Emphasis on the acquisition aspect
Inventory control and stores
management
Material logistics, movement control
and Handling aspect
Purchasing, supply , transportation ,
materials handling etc.
Supply management orlogistics
SCOPE
Ai
m
3. MM in SAP
TheMaterialsmanagement (MM) function
of SAPispart of the logisticsarea.
TheMaterialsManagement moduleconsistsof
all master data, system configuration, and
transactionsto completetheProcureto Pay
process.
It isoneof theimportant modulesin SAP
ERP softwareand MM application module
supportsthe procurement and inventory
functionsoccurring in day-to-day business
operations.
Thisprocessmap spansfrom MRPgenerated
procurement proposalsthrough final invoice
receipt and verification.
4. Purchasing
External procurement of materialsand services
And Determination of possiblesourcesof supply
for arequirement identified by thematerials
planning and control system or arising directly
within auser department
Valuation
It includesmaterial pricechange,
balancesheet valuation, actual
costing/material ledger
Inventory
management
It dealswith Management
of material stockson a
quantity and valuebasis
Foreign trade
Manageimport and export
processes, integrating them
efficiently into thesupply chain
Material master
It information on all thematerials
that acompany procuresor
produces, stores, and sells.
Logistic invoice verification
It issituated at theend of thelogisticssupply chain
that includesPurchasing, Inventory Management,
and InvoiceVerification.
MRP
It includes, Reorder point
procedure
Forecast-based planning
Time-phased materials
planning
Service master
It providesabasic processfor the
procurement of externally performed
services.
Product catalog
Thematerialsand pricesin theproduct
catalog
5. The organizational structures form a
framework of a company in which
business is conducted.
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
A hierarchy in which the organizational units in an
enterprise are arranged according to tasks and
functions
6. ORGANIZATIONAL STRUCTURE
MMSTRUCTURE
• Material Planning
• Purchasing
• Inventory Management
• VendorValuation
• Invoice Verification
• Statutory Requirements
Client
Company code
Plant
Storage location
Purchasing
organization
Purchasing group
Sub Modules of MM
Client
Company codeCompany code
Plant
Storage
location
PlantPlant
Storage
location
Storage
location
7. Client:
Represents a grouping or combination of legal,
organizational, business and/or administrative
units with a common purpose.
Storage Location:
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
Plant:
Operational unit within a
company code.
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.
9. JOB roles of SAP MM consultant
Understand the business requirements, Setting up organization
structure of MM and relevant configuration like Purchase
organization, valuation area plants, storage location, and warehouse
structureetc.
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
purchaseorder and set up of Indian 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, Testing CRs (Change Requests) and
preparing test results
Role during implementation of the project
Role during support project
18. • Basic overview
SAP overview
SAP MM overview
• Procurement process in SAP MM
Master Data
Materials Master
Vendor Master
purchasing
Special stocks and special procurement types
source determination
release procedures for purchasing documents
• Inventory management
Goods Receipt
Goods Issue
Transfer Posting
Reservation
Physical Inventory
• Invoicing
Invoice Posting
Variances and Blocking Reasons
Release Blocked Invoices
Automatic Settlements - Evaluated
Receipt Settlement (ERS)
• Valuation and accounts assignment
Materials Price Change
Materials Valuation Type
Configure Automatic Account
Determination
• Materials Requirements Planning (MRP)
Planning Requirements
Over All Procedures
Planning Run
• Reporting in SAP MM
Reporting at Document Level
Reporting with the Logistics
Information System
• Configuration
Enterprise Structure in MM
Materials Master
Purchase Requisition
• Integration of MM with various modules
Overview of integration of MM with other
SYLLABUS
19. 15 years and more
10-15 years
5-9 years
1-4 years
lessthan 1 year
freshers
0 2 4 6 8 10 12 14
Salary range for SAP MM
consultant
20. • 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.
• More of this module is related for MBA professionals in any specialization but it is related
to who did specialization in Marketing and finance, even for others also it is very good as
we can observe in many job portals and other sources.
• In Mm module salaries providing by companies are huge and compare to previous years
the salaries are increased 3-4 % according to payscale.com and ITJOBSWATCH.com.
CONCLUSION
