Introduction to SAP MM Module
SAP MM (Materials Management) is a module in SAP ERP Central Component (ECC) that provides companies with materials, inventory and warehouse management capabilities. SAP MM can be divided into five major components. These are:
- materials management,
- plant maintenance,
- quality management,
- production planning and control, and
- Project management system.
Purpose of Material Management
The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for customers. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. SAP MM is a part of logistics functions and it helps in managing the procurement activities of an organization. It supports all aspects of material management (planning, control, etc.).
Difference between Material Management and Inventory Management
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination. Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise.
Activities in Material Management (MM) Module of SAP
Let us understand the activities that you will be doing while working in Material Management (MM) module of SAP –
- Create company structure
- Create plant, storage, Purchase org, company code,
- Create master data
- Create Material master records
- Create vender master records
- Create info records
- Create source list
- Create contracts / agreements
- Create PR (Purchase Requisition)
- Create RFQ (Request for Quotation)
- Create PO (Purchase Orders)
- Create Good Issue
