Organizations that manufacture products have to handle a lot of aspects. Their materials management phases include materials planning, control, inventory management, and invoice management. Handling all these tasks may require a lot of manpower and software solutions.
That’s why companies choose SAP MM. This software module helps them in tackling daily inventory and procurement tasks. In this article, we will learn the features, components, and advantages of using SAP MM.
Full form or SAP MM stands for (Materials Management)
SAP MM is an important module of the SAP ERP CC. It offers warehouse and inventory management facilities. These activities are important to any company. This is because materials management is a key function needed to sustain their supply chain. The main aim of this software is to ensure that the supply chain has no gaps. Plus, the software assists employees to make sure that the materials are available in appropriate quantities.
The SAP MM works along with other modules of the SAP R/3 system. These are –
The most important organizational units of SAP MM are –
Some important features of SAP MM are –
The important components of SAP MM modules are –
This data is used for any transaction. Whether you are transferring stock or creating a physical inventory, it requires some master data. The end-user can track every transaction with it. Types of master data are –
This is processed as per the bills of the materials. The requirement of these materials will be determined according to these bills.
The main objective of this task is to obtain materials and services. Purchasing tasks include buying materials, determining supply sources, and monitoring vendor payments. These tasks help employees to fulfil the requirements of the material planning department.
This component of SAP MM deals with managing the inventory of goods. It contains many key processes such as movement type definition, goods receipt, movement of goods, and issuing goods.
This determines the stock value of a particular material. The material price and stock quantity determine the stock value. Valuation activities such as LIFO & FIFO and material price range are also associated with Material Valuation.
When an invoice is posted in the SAP system, it updates that invoice data in the MM module. After analyzing the invoice details, it is sent for further processing. Activities such as Automatic Invoice and Invoice Receipt from Vendor fall under this component.
The different activities under physical inventory are
Activities such as service entry sheet and service master fall under this component.
The procurement process is a key process under the SAP MM module. The process starts when there is a need for material. If the materials are not available within the company, the employees have to look for a vendor. The different steps in this process following:
The two main types of procurement are –
The benefits of using the SAP MM module are
A bright future lies ahead for candidates with a certification in SAP MM. This certification will be good for candidates with degrees such as B.A, B.Sc, B.Tech, MBA, and M.Tech. They must have basic computer knowledge.
There is a lot of scope in the Materials and Manufacturing sector with SAP MM knowledge. Candidates may be appointed in the following roles –
Prior knowledge of processes such as production management, planning/ material management, Inventory Management, and plant management is important.
SAP MM Consultants and SAP MM Associates are offered high salary packages. For career growth, you can upgrade to SAP EWM (Extended Warehouse Management) or SAP WM (Warehouse Management).
The salary of an SAP MM Consultant ranges from INR 307 K to 1076 K. The salary increases when you develop skills and gain industrial experience. Additionally, You must know one life cycle implementation in SAP.
The major companies hiring SAP MM Consultants are –
Over the years, SAP MM has become extremely popular among organizations. More companies are adopting SAP MM to enhance their supply chain activities. It has helped them handle business transactions and control the manufacturing processes. All this will positively impact their product development process.