SAP MM (Materials Management)

Definition - What is SAP MM (Materials Management)?

SAP Materials Management module (MM) – one of the most popular SAP modules, is an integral part of modern day ERP systems and helps the other SAP modules in covering all the primary departments of a client enterprise. It is specifically designed to automate and streamline the processes of procurement, Inventory Management, valuation and invoice verification. Ranking high in the list of larger sized modules of SAP, these materials manufacturing components are attracting professionals from all across the globe and are helping them build up their career paths as SAP analysts, trainers, functional coordinators or consultants.

The MM application module is totally compatible with the SAP ERP software and manages the procurement as well as other inventory functions that keep taking place in day-to-day business operations. It encompasses all master data, transactions for completing all the procurement processes, system configuration and so forth. The SAP MM (Materials Management ) module is responsible for many varied functions like goods receiving, purchasing, consumption-based planning, material storage and inventory and is well integrated with other modules belonging to the SAP R/3 System like:

• Finance (FI)
• Controlling (CO)
• Sales and Distribution (SD)
• Quality Management (QM)
• Plant Maintenance (PM)
• Production Planning (PP)
• Warehouse Management (WM) and so forth.

According to professionals in the field, one of the most useful sub-modules of SAP MM module is Purchasing and procurement. In most organizations, the purchasing process begins when there is a requirement for materials/services for the smooth functioning of its various processes. If these materials/services are incapable of being obtained from the company’s internal resources, then it becomes important for the management to seek vendors and/ or suppliers who can provide the same in a reliable fashion and in accordance to predefined deadlines. The ensuing purchasing process involves:

• Creation of Purchase Requisition (PR)
• Generation of Purchase Order (PO)
• Receipt of goods/ services
• Invoice Verification
• Payment to vendors.

Related: Movement Types in SAP MM Inventory Management

SAP MM also supports the features and functionalities of the organizational structure, plant, valuation areas, storage locations, vendors and purchasing organizations/ groups. It goes a long way in supporting the different phases of materials management like:

• Materials planning and control
• Purchases and procurement processes
• Receiving of goods
• Inventory management and
• Invoice verification.
• Vendor valuation
• Statutory Requirements

Read Next

• SAP MM (Materials Management ) Course

• Scope and Opportunity of a Career in SAP MM (Materials Management )

• Become a Certified SAP MM (Materials Management ) Consultant