Last Updated on January 10, 2023 by Pradeep
What is SAP MM?
SAP MM – Material Management is one of the very important modules of SAP® which is used by a large number of companies. It deals with procurement of material, storage of inventory and their efficient usage in the business. Its main aim is to enhance productivity & reduce costs. It takes care of the supply chain in such a nice manner that there would never be any shortage of material and the whole inventory system runs smoothly.
In short, SAP MM handles Procurement Process, Material Valuation, Invoice Verification, Purchase Orders, supply chain, Master Data Management, Accounts Payable, Raw Material & Finished goods management, and In-time availability of material and cost-effectiveness.
Considering this, here in this article we have provided an overview of SAP MM by describing its key components.
Read: FI MM Integration Interview Questions
Data Stored in SAP R/3 is categorized as:
Master Data
Where there is production, stock transfer, inventory management, sales & purchase activities involved, Master data is required to be maintained. In other words, Master Data is the core data in the procurement process. Examples are –
- Vendor master Data
- Customer Master data
- Material Master Data
- Pricing Master Data
Transactional Data
Data that is associated with the processing of business transactions is called Transactional data.
Organizational Structure of SAP MM
- Plant
- Valuation Area
- Storage Location
- Purchasing Organizations
- Purchase Groups
- SAP MM Sub Modules
- Material Planning
- Purchasing
- External Service Management
- Inventory Management
- Valuation & Account Assignment
- Inventory Verification
- Consumption-based Planning
- Excise Duty
Now SAP has launched SAP S4HANA Logistics which covers the full product life cycle of a business. Starting from procurement of raw materials to the sale of finished products. Material Management is one of the vital processes of SAP S4 HANA Logistics. Due to its high popularity and usage, a lot of people are choosing SAP S4 HANA Logistics as their career option. As they need to learn this subject to work on, there are many institutions providing SAP training online or through the classroom. Even after the launch of S4HANA Logistics, SAP MM training is still one of the highly searched and demanded queries in search engines as people wanted to learn this subject either to get a decent job in the SAP sector or to take the next step towards learning and working on SAP S4 HANA Logistics.
Also Read: SAP FI – MM Integration Interview Questions
