SAP MM (Materials Management) is a SAP ERP Central Component (ECC) module that allows firms to manage materials, inventory, and warehouses. SAP MM’s main purpose is to ensure that materials are constantly available in sufficient amounts, with no shortages or holes in the organization’s supply chain. It also aids supply chain experts and other SAP users in swiftly and cost-effectively completing goods acquisitions, as well as coping with day-to-day changes in these activities.
SAP MM is one of SAP ECC’s most important modules, as it is part of SAP ECC’s logistics function and plays a crucial role in a manufacturer’s supply chain. It connects to other ECC modules such as Production Planning (PP), Sales and Distribution (SD), Plant Maintenance (PM), Quality Management (QM), Finance and Controlling (FICO), and Human Capital Management (HCM) (HCM).
SAP MM Online Training covers various SAP MM’s capabilities include material management, procurement process management, master data management (material and vendor master), inventory management, material requirements planning, and invoice verification.
Functions in all of these MM sub modules perform unique business operations for those modules. These are carried out through transactions, which are the means by which SAP ECC completes business processes. Other logistics operations that require materials information, such as plant maintenance and project management, are also supported by MM.
Business Benefits of SAP MM:
Everything in MM revolves around master data, which is stored in master-data tables and is centralized. Master data types include materials master, work centre, bill of materials, and routing. Master data is responsible for the creation of SAP ECC transactional data.
What is a Transaction?
A transaction in SAP is defined as the processing of specific data to meet a business process need. If you’ve purchased ten litter buckets, for example, you can describe such modifications in SAP using a specific transaction code (t-code). The bulk of business procedures necessitate the completion of multiple SAP transactions, which are spread out across one, two, or more modules.
Components of SAP MM
The SAP MM system is made up of multiple interconnected components. This interface allows each department to easily share information with other departments, allowing data to be updated in real time. SAP MM is divided into five main components, each of which contains a number of sub-modules. SAP MM Online Course completely covers five of the SAP MM software suite’s most important components:
1. MM – CBP (Consumption-Based Planning):
Consumption-based planning use statistical algorithms to estimate future requirements based on past consumption data. The MM-CBP component’s principal function is to keep track of inventory and automatically generate production and purchasing bids. The proposal is triggered when stock levels fall below a pre-determined reorder point or when requirements are forecasted based on past consumption data.
2. MM – PUR (Purchasing)
The purchasing component ensures that all parties in the procurement process communicate effectively, ensuring that an organization’s purchasing unit runs efficiently. The purchasing element’s main responsibilities include:
- Managing external material and service procurement
- Monitoring vendor delivery
- Tracking vendor payments
- Identifying potential sources of supply for a necessity
3. MM – SRV (External Services Management)
Bid invitations, order/award placements, service acceptance, and invoice verification are all supported by this component. It serves as a management and coordination platform for external services. External services are supported in two ways:
- Planned services, in which the type and breadth of the requirement are known before the procurement step begins.
- Unanticipated services where the scope of the requirement is unknown and procurement is based on a price limit.
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4. MM – IV (Inventory Management)
The following tasks are handled by this component:
- Keeping track of and managing physical (material) stock in terms of quantity and value
- Keeping track of physical inventory of commodities
- Planning, entering, and recording all commodities movement
5. MM – IV (Logistics Invoice Verification)
The logistics invoice verification is a step in the logistics supply chain that occurs at the end. Purchases, inventory management, and invoice verification are all part of it. This component assists in the pricing, content, and quantity verification of incoming invoices. This component enters a purchasing invoice into the system as soon as it is sent by a vendor, and then transmits it to financial accounting and other materials management parts.
Features of SAP MM:
- It has the ability to handle both material and inventory management.
- Ensures that there are no material shortages in the supply chain.
- Assists in the expediting of material management and procurement processes.
- It aids in increasing productivity and lowering expenses while allowing for frequent changes in a company setting.
- It aids businesses in dealing with a variety of business issues such as procurement, master data, material value, inventory management, invoice verification, and material requirement planning, among others.
Is it a good career option?
SAP MM is unquestionably a wonderful career choice for a long-term and rewarding career. SAP MM fresher’s jobs are a great chance because SAP is the most common ERP software, and the majority of ERP-based organisations prefer SAP. The scope for SAP MM is growing, and it is becoming a requirement in the rapidly changing IT world. It now controls more than 67 percent of the IT industry.
Which is best institute for Sap mm placements?
In India, Igrowsoft is the leading provider of top-notch SAP MM Course training. In terms of organization and training facilities. Igrowsoft’s SAP MM Course curriculum is excellent. They offer hands-on interactive live and interactive online training. Enroll today for the best training at low SAP MM Course Fees.