Download - 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