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SAP MM (Material Management) is a module in SAP ECC (ERP Central Component) that contains many aspects such as material storage, purchasing, goods receiving, consumption-based planning, and inventory. The purpose of SAP MM is to manage the warehouse data in the organization to make sure there are no shortages or gaps in the organization’s supply chain. This also helps SAP users to deal with purchasing goods and day-to-day changes in the processes in a timely and cost-effective way. SAP MM is a part of SAP ECC’s logistics function which plays a vital role in the manufacturer’s supply chain.
SAP ERP (Enterprise Resource Planning) is a business software that integrates all data in a single software. It is easy for organizations to meet their business demands with SAP.
SAP MM is integrated with other modules in the SAP R/3 System such as FICO(Finance and Controlling), SD(Sales Distribution), PP(Production Planning), PM(Plant Maintenance), QM(Quality Management), WM(Warehouse Management), and HCM(Human Capital Management).
SAP MM supports all phases of materials management, planning, controlling, purchasing, goods receiving, inventory management, and invoice verification.
Benefits of SAP MM
SAP MM revolves around data that is stored and managed by master data tables. This master data is used to create transactional data in SAP ECC.
For example: when the production order is created in PP, it uses master data from MM to retrieve information about the raw materials needed to produce the finished product, which will subsequently be used to create a sales order in SD.
SAP MM Data
Data in SAP R/3 is classified as
- Master Data
- Transactional Data
Master Data is the core data used as a base for any transaction. Every activity requires certain master data to be maintained. For example transferring stock, purchasing, or creating a physical inventory. All the master data can be altered and all the transaction executions are based on SAP Master Data.
Transactional Data is a result of a user completing a business transaction such as creating a Purchase Order (MM), Creating a Process Order(PP), and Creating a GL journal entry (FI). Transactional data is dependent on Master Data and these data can be reversed or canceled but cannot be changed.
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Manage the inventory of the goods and is based on several key processes like:
Definition of movement types:
- Goods issue
- Goods receipt
This is the way to manage prices in purchasing documents. You can assign different calculation types for different needs. Determining a pricing procedure can be done by creating an access sequence, and assigning it to condition types. Access sequence tells the system where to look for the condition values.
Features of SAP MM
- SAP MM can deal with both material management and inventory management.
- Ensures that there is no shortage of material in the supply chain process.
- Speeds up the MM and procurement activities
- It helps to fasten productivity and reduce costs while maintaining services for frequent changes in a business environment.
- It also helps to deal with various business aspects like Procurement, Master data, Material valuation, Inventory management, Invoice verification, Material requirement planning, etc.
Who Can Take Up SAP MM Course?
Anybody who is keen to learn about SAP can take up the SAP MM course. No matter what degree you have taken in college, you have no restrictions to do the SAP MM course. If you are a Mechanical Engineer then SAP MM will be an added benefit for your job. Thinking about the institute to join the course? Then Softgen Infotech’s SAP MM course will provide you in-depth knowledge on the course with 100% placement. It is one of the best SAP training institutes in Bangalore.