Enterprise Resource Planning
  Home ERP Benefits Features Selection Implementation SAP Oracle Microsoft Dynamics Books
ERP Guide
Business One vs GP
Causes of Failures
Choose Best Software
Choosing the Software
Companies and Providers
Consultants Role
Cost of Software
Dynamics Selection
Errors in Implementation
For Large Corporation
For Real Estate
For Small Business
For Health Care Industry
How to Choose ERP
How to Sell Software
Implementation Challenge
Implementation Cost
Implementation Methods
Implementation Troubles
Importance in Small Business
Increase Productivity
Market in India
Purpose of Software
Open Source Technologies
Selection of Software
Success Factors
System Implementation
Training for Jobs
Troubles and Solutions
Why Implement ERP
Wireless Technology
SAP Section
ABAP Developer
ABAP Performance Tuning
ABAP Programming
ABAP Programming Language
Advanced Planner Optimizer
Basic Modules
Business Intelligence
Business One
Business Warehouse
BW Module
CO Module
Data Warehousing
Different Components
FI Module
HR Module
MM Module
Module Introduction
Online Training Program
Performance Tuning
SD Module
Strategic Management
Web Application Server
What Is SAP

SAP MM Module - Material Management Module

SocialTwist Tell-a-Friend

SAP MM module is a part of logistics and it helps in managing end to end procurements and logistics business process. Main features of this module are requisitions, purchase orders, goods receipt, accounts payable, inventory management, BOM's and master raw material, finished goods etc.

Requisitions in SAP MM module is a document created for purchase of goods or services, it is sent to procurement office for the issuance of purchase orders. Requisitions exceeding certain amount need vendor verification in SAP MM module. There are two ways of placing requisition either through SAPGUI or SAP web.

Purchase orders are legal document issued as commitment to the vendor to supply mentioned material in the specified quantity along with shipping details and specification. The authorized vendors list is displayed while creating purchase order as per material and plant of the organization.

Goods receipt in SAP MM module is made against the purchase order issued to the vendor. The goods receipt affects warehouse, inventory management, and FI and CO modules of SAP.

Accounts payable component of SAP MM module handles accounting data of all vendors by recording the transaction of goods. Deliveries and invoices are managed according to vendors and this component is an integral part of sales management and cash management, it keeps them updated by making automatic postings of all the transactions. Inventory management helps the user in managing inventory as per items purchased, manufactured, sold and kept in stock. It provides optimum support for business processes and handles creation of orders, delivery notes and outgoing invoices. It also automatically updates price, create sales units and calculating gross profit.

Three types of bill of material is supported by SAP MM module, these are production bill of material which describes components used in making the finished product or hour's of labor required for making the product. Sales bill of material describes finished product which is ready to be sold and third is assembled bill of material which also describes finished product ready to be sold, the difference between sales BOM and assembled BOM is that sales bill contains description of finished product as well as its components while assembled BOM contains only one single entry of finished product.

Material master or finished product master is integrated with all the sub modules of SAP logistics including SAP MM. The single database of SAP supports easy data access, storage and retrieval. The master is required for purposes like purchasing for ordering, inventory management for goods movement postings and physical inventory, invoice verification for postings, sales order processing and for material requirement planning, work scheduling and scheduling.

SAP MM module is integrated with other SAP modules like FI, information related to vendors and purchasing details are directly updated and retrieved, SD or sales and distribution module also interacts with SAP MM via bill of material and invoices, SAP plant maintenance controls the activities related to plant management, maintenance and material required for running them smoothly, PPC or production planning and control module of SAP and project management system also interact in real time with MM module for updated information and proper functioning.

 Read Related Articles

ERP SoftwareSAP FI (Financial) Module
ERP SystemHuman Resource Management Module
Enterprise SystemSAP Data Warehousing Solution
Enterprise SoftwareSAP Modules Introduction

  SocialTwist Tell-a-Friend
Review Section
Business One  
Dynamics AX  
Dynamics CRM  
Sage MAS 90