Mm module sap

MATERIALS MANAGEMENT

MATERIALS MANAGEMENT

DEFINITION:Material management is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. To GET

The Right quality Right quantity of suppliesAt the Right timeAt the Right placeAt the Right cost

5REmphasis on  the acquisition aspect

Inventory control and stores management

Material logistics, movement control and Handling aspect

Purchasing, supply , transportation , materials handling etc.

Supply management or logistics management

SCOPE

Aim

MM in SAPThe Materials management (MM) function of SAP is part of the logistics area.

The Materials Management module consists of all master data, system configuration, and transactions to complete the Procure to Pay process.

It is one of the important modules in SAP ERP software and MM application module supports the procurement and inventory functions occurring in day-to-day business operations. 

This process map spans from MRP generated procurement proposals through final invoice receipt and verification.

PurchasingExternal procurement of materials and servicesAnd Determination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly within a user department

ValuationIt includes material price change, balance sheet valuation, actual costing/material ledger

Inventory managementIt deals with Management of material stocks on a quantity and value basis

Foreign tradeManage import and export processes, integrating them efficiently into the supply chain

Material masterIt information on all the materials that a company procures or produces, stores, and sells. Logistic invoice verification

It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification.

MRPIt includes, Reorder point procedure Forecast-based planning Time-phased materials planning

Service masterIt provides a basic process for the procurement of externally performed services.

Product catalogThe materials and prices in the product catalog

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

ORGANIZATIONAL STRUCTURE

MM STRUCTURE

•Material Planning•Purchasing•Inventory Management•Vendor Valuation•Invoice Verification•Statutory Requirements

ClientCompany codePlant Storage locationPurchasing organization Purchasing group

Sub Modules of MM

CLIENT

Company codeCompany code

Plant

STORAGE LOCATION

Plant Plant

STORAGE LOCATION

STORAGE LOCATION

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. Eachcompany code has its own balance sheet and its own profit and loss statement.

Materials managem

ent

Determine requirements

Source determinati

on

Vendor selection

Order processing

Order-follow up

goods receipt and inventory

management

Invoice verificatio

n

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 structure etc.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 purchase order 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 callsRaising 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

Reaching SAP implementation guide(IMG)

Menu Path:

SAP Easy Access

Tools

Customizing

IMG

Execute Project

click on “SAP Reference IMG”

Configuration nodes related to MM & other Modules

Menu Path:

SAP IMG

Enterprise Structure

 Definition

Logistics- general

Define, Copy Delete, Check plant

Creating plant

Menu Path:

SAP IMG

Enterprise Structure

 Definition

Materials management

Maintain storage location

Creating storage location

Creating purchase order

Invoice verification

Materials

management

• Basic overviewSAP overviewSAP MM overview

• Procurement process in SAP MMMaster Data

Materials MasterVendor Master

purchasingSpecial stocks and special procurement typessource determinationrelease procedures for purchasing documents

• Inventory managementGoods ReceiptGoods IssueTransfer PostingReservationPhysical Inventory

• InvoicingInvoice PostingVariances and Blocking ReasonsRelease Blocked InvoicesAutomatic Settlements - Evaluated Receipt Settlement (ERS)

• Valuation and accounts assignment

Materials Price ChangeMaterials Valuation TypeConfigure Automatic Account Determination

• Materials Requirements Planning (MRP)

Planning RequirementsOver All ProceduresPlanning Run

• Reporting in SAP MMReporting at Document LevelReporting with the Logistics Information System

• ConfigurationEnterprise Structure in MMMaterials MasterPurchase Requisition

• Integration of MM with various modules

Overview of integration of MM with other modules FICO, SD and PP

SYLLABUS

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

• 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