SAP MM (Materials Management)

Introduction to SAP MM

Gain a fundamental understanding of SAP MM, its significance, and its role in managing procurement and materials within organizations. SAP MM is a core module in SAP ERP systems that supports various functions such as purchasing, inventory management, and material valuation. It integrates seamlessly with other SAP modules like SAP SD (Sales and Distribution) and SAP PP (Production Planning) to streamline end-to-end business processes.

Procurement Processes

Explore procurement processes in SAP MM, including purchase requisition, request for quotation (RFQ), purchase order (PO), and goods receipt. In SAP MM, procurement starts with creating a purchase requisition to request materials or services. RFQs can be sent to vendors to solicit bids, and POs are generated to formalize purchase agreements. Goods receipt is recorded upon delivery of materials, indicating that the ordered items have been received and can be moved into inventory.

Inventory Management

Dive into inventory management processes in SAP MM, which involve managing stock levels, goods movements, and inventory valuation. SAP MM provides features for real-time tracking of inventory levels, including both goods receipts and goods issues. Goods movements such as transfers between storage locations or plants are recorded in SAP MM to ensure accurate inventory management. Inventory valuation methods such as moving average price and standard price are used to determine the value of inventory items.

Master Data Management

Learn how to manage master data in SAP MM, including material master, vendor master, and purchasing info records. Material master records contain information about materials such as descriptions, dimensions, and units of measure. Vendor master records store information about suppliers, including contact details and payment terms. Purchasing info records maintain data related to procurement, such as source lists and info records for pricing and conditions.

Logistics Execution

Explore logistics execution processes in SAP MM, including inbound and outbound logistics, warehouse management, and transportation management. Inbound logistics involves receiving goods into the warehouse or production facility, while outbound logistics covers the shipment of finished products to customers. Warehouse management functionalities in SAP MM include storage bin management, picking, and packing. Transportation management features facilitate the planning and execution of transportation activities, including route optimization and carrier selection.

Invoice Verification

Understand invoice verification processes in SAP MM, which involve matching invoices with purchase orders and goods receipts. In SAP MM, invoice verification ensures that vendor invoices are accurate and match the terms of the purchase order and goods receipt. Any discrepancies between the invoice and the purchase order or goods receipt are identified and resolved through the invoice verification process. Once invoices are verified, payments are processed to vendors based on agreed-upon terms.

Material Requirements Planning (MRP)

Gain insights into material requirements planning (MRP) processes in SAP MM for managing material demand and supply. MRP helps organizations ensure that they have the right materials available at the right time to meet production and customer demand. SAP MM uses MRP to calculate material requirements based on demand forecasts, sales orders, and inventory levels. MRP runs periodically to generate procurement proposals, which include recommendations for purchasing or producing materials to maintain optimal inventory levels.

Vendor Evaluation and Management

Explore vendor evaluation and management processes in SAP MM for assessing vendor performance and maintaining vendor relationships. Vendor evaluation involves measuring key performance indicators (KPIs) such as delivery reliability, quality of goods, and pricing competitiveness. SAP MM provides tools for scoring vendors based on performance metrics and identifying areas for improvement. Effective vendor management helps organizations optimize their supply chains and ensure the timely delivery of goods and services.

Material Valuation and Pricing

Dive into material valuation and pricing processes in SAP MM for determining the value of materials and calculating material prices. Material valuation methods such as moving average price and standard price are used to assign values to inventory items. SAP MM also supports various pricing conditions for purchase documents, including discounts, surcharges, and taxes. Pricing conditions can be configured based on factors such as quantity breaks, delivery dates, and payment terms to accurately reflect negotiated prices and conditions in purchase transactions.

SAP MM Configuration

Learn how to configure SAP MM module to meet organizational requirements. SAP MM configuration involves setting up organizational structures, master data, and process settings to align with business processes. Configuration settings include defining purchase organizations, plant locations, storage locations, and procurement document types. Hands-on exercises will involve configuring MM settings in SAP ERP systems using the SAP IMG (Implementation Guide) and SPRO (SAP Project Reference Object) transactions.

SAP MM End User Training

Provide end user training for SAP MM functionalities. End user training covers key tasks and transactions performed by procurement, inventory management, and logistics professionals in day-to-day operations. Training topics include creating purchase requisitions, processing purchase orders, receiving goods, managing inventory, and executing logistics activities. Hands-on exercises will involve simulating real-world scenarios and workflows in SAP ERP systems to familiarize users with SAP MM processes.

SAP MM Certification Preparation

Prepare for SAP MM certification exams, such as the SAP Certified Application Associate - Procurement with SAP ERP 6.0 certification. Certification preparation includes reviewing exam topics, studying relevant SAP MM documentation, and practicing sample exam questions. Gain the confidence and knowledge needed to pass the certification exams and advance your career in SAP MM. Discuss strategies for exam preparation and effective study habits to maximize your chances of success.