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Title: sap material management online training


1
MATERIALS MANAGEMENT
2
MATERIALS MANAGEMENT
DEFINITION Material management is concerned with
planning, organizing and controlling the flow of
materials from their initial purchase through
internal operations to the service point through
distribution.
Aim
To GET The Right quality Right
quantity of supplies At the Right time At the
Right place At the Right cost
 
SCOPE
Emphasis on  the acquisition aspect Inventory control and stores management Material logistics, movement control and Handling aspect Purchasing, supply , transportation , materials handling etc. Supply management or logistics management
5R
3
MM in SAP
The Materials management (MM) function of SAP is
part of the logistics area.
It is one of the important modules in SAP
ERP software and MM application module supports
the procurement and inventory functions occurring
in day-to-day business operations. 
The Materials Management module consists of all
master data, system configuration, and
transactions to complete the Procure to Pay
process.
This process map spans from MRP generated
procurement proposals through final invoice
receipt and verification.
4
Purchasing External procurement of materials and
services And Determination of possible sources of
supply for a requirement identified by the
materials planning and control system or arising
directly within a user department
Valuation It includes material price change,
balance sheet valuation, actual costing/material
ledger
Inventory management It deals with Management of
material stocks on a quantity and value basis
Foreign trade Manage import and export processes,
integrating them efficiently into the supply chain
Material master It information on all the
materials that a company procures or produces,
stores, and sells.
Logistic invoice verification It is situated at
the end of the logistics supply chain that
includes Purchasing, Inventory Management, and
Invoice Verification.
MRP It includes, Reorder point procedure
Forecast-based planning Time-phased materials
planning
Service master It provides a basic process for
the procurement of externally performed services.
Product catalog The materials and prices in the
product catalog
5
ORGANIZATIONAL STRUCTURE
The organizational structures form a framework of
a company in which business is conducted.
A hierarchy in which the organizational units in
an enterprise are arranged according to tasks and
functions
MM module is fully integrated with other modules
in the SAP R/3 System such as Finance
(FI), Controlling (CO), Sales and Distribution
(SD), Quality Management (QM), Plant Maintenance
(PM), Production Planning (PP), and Warehouse
Management(WM).
6
ORGANIZATIONAL STRUCTURE
Client
Company code
Company code
MM STRUCTURE
Plant
Plant
Plant
Client Company code Plant Storage
location Purchasing organization Purchasing
group
Storage location
Storage location
Storage location
Sub Modules of MM
  • Material Planning
  • Purchasing
  • Inventory Management
  • Vendor Valuation
  • Invoice Verification
  • Statutory Requirements

7
Client Represents a grouping or combination of
legal, organizational, business and/or
administrative units with a common purpose.
Company Code Company Code represents an
independent accounting unit within a client.
Each company code has its own balance sheet and
its own profit and loss statement.
Plant Operational unit within a company code.
Storage Location This level contains the data
specific to a storage location. Stock levels are
an example of the data maintained for each
storage location.
Purchasing Organization An organizational unit
responsible for procuring materials or services
for one or more plants and for negotiating
general conditions of purchase with vendors. The
purchasing organization assumes legal
responsibility for all external purchase
transactions.
Purchasing Group The purchasing organization is
further subdivided into purchasing groups, which
are responsible for day-to-day buying activities.
A purchasing group can also act for several
purchasing organizations
8
Determine requirements
Invoice verification
Source determination
Materials management
goods receipt and inventory management
Vendor selection
Order-follow up
Order processing
9
JOB roles of SAP MM consultant
Role during implementation of the project
  • Understand the business requirements, Setting up
    organization structure of MM and relevant
    configuration like Purchase organization,
    valuation area plants, storage location, and
    warehouse structure etc.
  • Finalization of material groups, purchasing
    groups, payment terms, Inco terms, material
    master, vendor master and all purchasing and
    inventory documents, Pricing Procedure, Purchase
    requisition and purchase order and set up of
    Indian taxation structure.

Role during support project
  • Interaction with client through net meetings,
    calls emails.
  • Handling Tickets Tasks and responsible for
    closing the same within defined SLAs, and
    troubleshooting the issues in the system and
    providing support, Executing the needed changes
    in configuration, analysis and resolution of
    production support calls
  • Raising Change Requests (CRs) and writing
    functional specifications for them and Preparing
    test data for testing CRs, Testing CRs (Change
    Requests) and preparing test results

10
Reaching SAP implementation guide(IMG)
Menu Path SAP Easy Access Tools Customizin
g IMG Execute Project
11
click on SAP Reference IMG
12
Configuration nodes related to MM other Modules
13
Creating plant
Menu Path SAP IMG Enterprise Structure
Definition Logistics- general Define, Copy
Delete, Check plant
14
Creating storage location
Menu Path SAP IMG Enterprise Structure
Definition Materials management Maintain
storage location
15
Creating purchase order
16
Invoice verification
17
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18
  • Invoicing
  • Invoice Posting
  • Variances and Blocking Reasons
  • Release Blocked Invoices
  • Automatic Settlements - Evaluated Receipt
    Settlement (ERS)
  • Valuation and accounts assignment
  • Materials Price Change
  • Materials Valuation Type
  • Configure Automatic Account Determination
  • Materials Requirements Planning (MRP)
  • Planning Requirements
  • Over All Procedures
  • Planning Run
  • Reporting in SAP MM
  • Reporting at Document Level
  • Reporting with the Logistics Information System
  • Configuration
  • Enterprise Structure in MM
  • Materials Master

SYLLABUS
  • Basic overview
  • SAP overview
  • SAP MM overview
  • Procurement process in SAP MM
  • Master Data
  • Materials Master
  • Vendor Master
  • purchasing
  • Special stocks and special procurement types
  • source determination
  • release procedures for purchasing documents
  • Inventory management
  • Goods Receipt
  • Goods Issue
  • Transfer Posting
  • Reservation
  • Physical Inventory

19
Salary range for SAP MM consultant
20
CONCLUSION
  • SAP SD module is the one which is very
    interesting and important module in SAP compare
    to other modules.
  • This includes the material management in
    industry, it is responsible for all the steps
    during the purchase of materials and maintaining
    that materials.
  • MM module is integrated with other SAP modules
    such as controlling(CO), sales and
    distribution(SD), quality management(QM), plant
    maintenance(PM), production planning(PP),
    warehouse management(WM) and financial
    accounting(FI).
  • This module has a great impact on every industry
    because every industry works on this, so demand
    for this module is more compare to other modules
    in SAP.
  • The opportunities in MM module are more, every
    time it has bull run demand.
  • More of this module is related for MBA
    professionals in any specialization but it is
    related to who did specialization in Marketing
    and finance, even for others also it is very good
    as we can observe in many job portals and other
    sources.
  • In Mm module salaries providing by companies are
    huge and compare to previous years the salaries
    are increased 3-4 according to payscale.com and
    ITJOBSWATCH.com.

21
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