SAP MM – An Overview to Material Management

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 –

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

Pradeep