Materials Management is a robust module in SAP that deals with purchasing, material masters, inventory management and physical inventory. In this video, analyze the high-level materials management processes.
- [Instructor] The SAP Materials Management module, often abbreviated as SAP MM is the logistics module that ensures the right materials and the right quantity are available at the right time and place for an organization. There are four key components of the Materials Management module. First is master data. As in other SAP modules, accurate master data is required to drive all other transactional processes. MM master data includes material master records, which must be set up before materials can be purchased externally. Supplier master records have all the physical and financial information about a vendor that a company can buy from. Purchasing information records merge material and supplier information and streamline the purchasing process. The second component of the MM module is purchasing. Purchasing includes activities like getting quotes from vendors, creating purchase requisitions, and creating formal requests for goods or services called purchase orders. The third component of Materials Management is inventory management. Inventory management deals with materials once they have been received. Important inventory management functions include goods receipts, which records delivery of outside goods and stock transfers, which move materials from one storage location to another. Finally, the fourth major component of MM is physical inventory. Physical inventory determines if inventory quantities in the system are correct and flags any discrepancies. Common transactions in physical inventory are entering inventory counts and posting any inventory differences. The key benefit of Materials Management is an efficient supply chain that increases productivity and reduces costs by handling materials efficiently.
- How SAP MM integrates with other modules
- Creating and extending material master records
- Maintaining a source list in SAP
- The SAP purchasing process
- Creating purchase orders and contracts
- Running purchasing reports
- Inventory management
- Creating a physical inventory document