SAP MM (Material Management) is one of the important modules in SAP ERP software and the MM application module supports the procurement and inventory functions occurring in day-to-day business operations. This MM module consists of many facets such as purchasing, goods getting, material storage, consumption-based planning, and inventory. SAP MM module is completely 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).It supports all phases of materials management materials planning and control, buying, items getting, inventory management, and invoice verification.
ORGANIZATIONAL STRUCTURE
- Plant
- Buying organizations
- Storage locations
- Assessment location
- Purchasing groups
SAP MM SUB MODULES
- Material Planning.
- Stock Management.
- Buying.
- Invoice Verification.
- Procurement Process.
- Vendor Valuation.
- Statutory Requirements.
One of the important procedures in the SAP MM module is Purchasing/Procurement. The purchasing procedure is at first started when there is a requirement of material/service for the organization. If the material/service can not be obtained from the business's internal resource, the liable individual of that company has to discover the vendor/supplier which can offer it on the necessary date. The purchasing process is Started with the production of Purchase Requisition (PR), Purchase Order (PO), Goods Receipt/Services, Invoice Verification, Payment to vendors.
Benefits of SAP MM
Customer demands are shifting rapidly, an organization's effectiveness is measured essentially by its ability to cater to the market demands in the shortest time possible. For this to happen, the business has to have stock of the required raw materials at the right time and must be able to use it efficiently A proper Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. The SAP MM automates the procurement and material management activities to make the processes smoother and effective.
Some prominent benefits of SAP MM are:
· Decreases material costs by avoiding stocking of unnecessary or obsolete materials.
· Inventory losses are minimized.
· Direct labor costs are decreased and labor can be used efficiently.
· Manufacturing cycle times are decreased and can be controlled effectively.
· Effective inventory management and decreases expenditure on unwanted material storage.
· Enhances delivery time and increases transparency across the organization.
Disadvantages of SAP MM
· More complicated and less intuitive user interface, placing a greater burden on training.
· Requires the installation of the Windows-based SAP GUI application on the user's PC.
· No catalog-based procurement, and no ability to connect to supplier-maintained catalogs.
· Workflows can be tough and complicated for a user to understand.
Features of SAP MM
SAP MM is one of the modules of SAP that deals with material management and inventory management.
Material Management as a process ensures no 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 smoothly with complete time and cost-efficiency.
It deals with managing the materials (products and/or services) and resources of an organization to accelerate productivity and reduce costs. At the same time, SAP MM is quite versatile to accommodate changes that are frequent in any business environment.
It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning, etc.
SUMMARY
SAP MM module is a part of logistics and it helps in managing end to end procurements and logistics business process. The main features you can find in the MM module are requisitions, purchase orders, goods receipt, accounts payable, inventory management, BOM's and master raw material, completed goods, etc.
Requisitions in SAP MM module is a document created for the purchase of goods or services, it is sent out to the procurement office for the issuance of the order. Appropriations surpassing specific quantities need vendor confirmation in the SAP MM module. There are two means of placing requisition either with SAPGUI or SAP web.
Order is the legal document released as a commitment to the vendor to supply discussed material in the specified quantity together with shipping information and requirements. The licensed vendor's list is displayed while creating purchase orders as per the material and plant of the organization.
 |
| SAP MM Online Training |
SAP MM Online Training at Best Online Career
Learn SAP MM at Best Online Career. We have designed the SAP MM Course Content and Syllabus based on industry expectations to achieve your career goals. Take up the SAP MM Online Training to seek your dream career. Best Online Career offers SAP MM Online Training through various online technologies. These classes are for those who are working professionals. Take the benefits of SAP MM and start your career in SAP.
Best Online Career also offers SAP MM Training Videos. Learn SAP MM Online through our self-paced videos which are focused on the concepts, webinars, case studies, and much more. Our SAP Online courses give you the flexibility to learn from where ever you want. Take SAP MM Online Course and upgrade your knowledge on SAP MM.
