![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1Zc71bzDnbzWqdZQv3B1fivhnSyuTmreWJpZMTdpB41G3ys5LzxLnNHYN2xL4tVrhxYIL2sLs4e-kcJlbTFwpMNTnnkbdvYVGvqiBT-cLHCe2mEjiaDT_yp4agBfVYcl3gYT5AtTWvpBk/s1600/download+%25288%2529.jpg)
Materials
Management (MM)
Starting with procuring
materials for the organization via a purchase order, materials management also
deals with the movement of materials within and between various departments. MM supplies raw materials and other components for production. Once products are
produced, the software enables stocking the materials in the warehouse, ready
to ship when there is a need. The SAP software records a financial transaction
(most of the time) when goods are moved into/within/outside the organization.
Vendors submit invoices and are paid at a later date (depending on the payment
terms), thereby completing the procure-to-pay cycle. Alex recalled that they
called it a source-to-pay cycle at FLW.
SAP MM Module Process
Flow
- Determination of Requirements
- Source Determination
- Vendor Selection
- PO Processing
- PO Follow-up
- Goods Receiving and Inventory Management
- Invoice Verification
SAP Business Process
The features of SAP MM system are as follows:
·
SAP MM is one of themodules of SAP that deals with material management and inventory management.
·
Material Management
process ensures that there is never a shortage of materials or any gaps in the
supply chain process of the organization. SAP MM speeds up the procurement and
material management activities making the business run smoother with complete
time and cost efficiency.
·
It deals with managing
the materials (products and or services) resources of an organization with the
aim of accelerating productivity, reducing costs and increase improvement and
at a similar time be versatile to accommodate changes in day to day life.
·
It deals with the
Procurement Process, Master Data (Material & Vendor Master), Account
Determination & Valuation of Material, Inventory Management, Invoice
Verification, Material Requirement Planning etc.
Introduction to Master Data in SAP
What is Master Data?
Data stored in SAP R/3 is categorized as
- Master
Data and
- Transactional
Data.
Master
data is the core data that is used as a base for any transaction. If you are producing,
transferring stock, selling, purchasing, doing physical inventory, whatever
your activity may be, it requires certain master data to be maintained.
Example
of Master Data
- Material
master data
- Customer
master data
- Vendor
master data
- Pricing/conditions
master data
- Warehouse
management master data (storage bin master data)
The ones we will
focus in MM module are material master and purchase info record.
Organizational
Structure of SAP MM
· Client
· Company Code
· Purchase Organization
· Storage Location
· Purchasing Group
SAP MM Organization
Structure
Client
It is a highest of
organization unit that contains of tables, master data, etc. In real time Sap
basis consultant creates new SAP clients other than existing clients.
Company
Code
Company code is a
separate legal entity or separate accounting department of an
Organization. All the
financial statements like profit and loss account, business
Balance sheets, etc.. Are prepared at company
code level.
Plant
Plant is a location
where the logistics activities such as production, services and maintenance
facilities are performed.
Purchasing
Organization
Purchase organization
is a physical organization unit which is responsible of goods and services for
an organization from the vendors.
Storage
Location
Storage location is the
sub division of plant where the materials are maintained and stored.
Purchasing
Group
It is a groups of
persons or employees who are responsible with the materials that are being
purchased in the organization. Purchase groups are assigned to a respective
material master.
How to Change Material Master Data (MM02, MM03) in SAP
It may be needed to change certain option in our material
master (due to the organizational changes, or changes in processes). We cannot
use MM01 as that is the transaction code used only for creating views that are
not maintained for certain material. In this case, we need to use MM02and MM03 transaction
codes.
In SAP transactions ending with 01 are for creating, ending
with 02 for editing/changing, and the ones ending in 03 are used for viewing
data without possibility to change it.
Introduction to Purchasing & Purchase Requisition in SAP
Purchasing is a
component of SAP MM module and its process can be roughly depicted in below
diagram.
For more details about sap erp training and sap MM training please visit : www.asipt.net/sap-erp-training
0 comments:
Post a Comment