SAP MM Quick Guide - Tutorialspoint

1 MM - Quick GUIDESAP MM - Quick GUIDESAP MM - OVERVIEWSAP MM - OVERVIEWSAP ERP EnterpriseResourcePlanning is commercial software that will integrate all informationaltogether in a single software considering various factors like time and cost. Organizations caneasily meet their business demands with the help of Business ProcessSAP MM is known as SAP Material Management system. SAP MM role in business process is asfollows:A business process in SAP is termed as Module .SAP Materials Management MM is a part of Logistics area and helps to manage theprocurement activity of an organization from supports all aspects of material management planning, is the backbone of the Logistics area which incorporates modules like Sales andDistribution, Production Planning, Plant Maintenance, Project Systems, WarehouseManagement which are extremely obsessed on Materials Management of SAP MMThe features of SAP MM system are as follows.

2 SAP MM is one of the modules of SAP that deals with material management and Management process ensures that there is never a shortage of materials or anygaps in the supply chain process of the organization. SAP MM speeds up the procurementand material management activities making the business run smoother with complete timeand cost deals with managing the materials productsandorservices resources of an organization with theaim of accelerating productivity, reducing costs and increase improvement and at a similartime be versatile to accommodate changes in day to day deals with the Procurement Process, Master Data Material & Vendor Master, AccountDetermination & Valuation of Material, Inventory Management.

3 Invoice Verification, MaterialRequirement Planning MM - SCREEN NAVIGATIONSAP MM - SCREEN NAVIGATIONThe first step to understand SAP is to have basic knowledge of screens like Login screen, Logoutscreen and so on. Following screens will describes about the screen navigation and thefunctionalities of standard ScreenLog on to SAP ERP server. SAP login screen will prompt for User ID and Password. Provide the validuser ID and Password and press enter. The user id and password is provided by systemadministrator. Following is the login screen:Standard Tool-bar IconSAP screens tool-bar are shown in the following image:SAP screen tool-bars are briefly described as:Menu Bar - Menu bar is the top line of dialog window in the SAP Toolbar - Standard functions like save, top of page, end of page, page up, pagedown, print, etc.

4 Are available in Bar - Title Bar displays the name of the application/business process you are Toolbar - Application specific menu options are available on this Field - To start a business application without navigating through the menutransaction, some logical codes are assigned to the business processes. Transaction codesare entered in the command field to directly start the Exit KeysExit keys are used to exit the module or to log off. They are used to go back to the last accessedscreen. Following are the standard exit keys used in SAP:New Session IconFor creating a new session we use the following keys shown in the below image:Log OffIt is a good practice to log off from the SAP system when you finish your work.

5 There are severalways of login off from the system but it can be done using following instructions as shown inimage:SAP MM - PROCUREMENT PROCESSSAP MM - PROCUREMENT PROCESSE very organization acquires material or services to complete its business needs. The process ofbuying materials and obtaining services from vendors or dealers is procurement. Procurementprocess should be done in such a way that it is ordered in correct quantity, with a proper value atthe proper time. It is subdivided into following parts:Basic ProcurementSpecial ProcurementBasic ProcurementIt is a process of acquiring goods or services in the right amount, at the right price at the right the method of getting services, supplies, and equipment from a vendor seller, at the right priceat the right time in right amount is termed as Procurement.

6 The quality of procurement isattempting to get the right balance , consider the following example:Organizations try and keep inventory levels at a minimum due to the prices associated withhigh levels of inventory; however at identical time it is very expensive to prevent productiondue to shortages in raw the minimum price for a product or service is often necessary, however the balancebetween product availability, quality, and vendor seller relations is also LifecycleMost modern organizations procurement follow some sequential steps which are described below:Requirement and Information GatheringProcurement process starts with gathering information about product and its quantity.

7 Then forrequired products and services, it is necessary to look for suppliers who can satisfy ContactAfter gathering requirements one will look for the suppliers who can fulfill the requirements. Basedon that quotation request or information request can be made to suppliers or direct contact can bemade with ReviewOnce the supplier is known product/service quality is checked, and any necessities for servicessuch as installation, warranty and its maintenance are investigated. Some samples of the productscan be obtained for quality negotiations with suppliers is made regarding price, availability and delivery schedule of theproducts/services.

8 After this a contract is signed that is a binding legal document between supplierand ordering party. A contract will include all necessary information like price and quantity ofmaterial, delivery date, fulfillmentOrdered material will be shipped, delivered to the ordering party and supplier is paid and Installation of product or services may also be , Maintenance and DisposalAs the products/service is consumed the performance of the products or services is evaluated andany follow up service support if required is RenewalOnce the product or services are consumed or contract expires and needs to be renewed.

9 Or theproduct or service is to be re-ordered, company experience with vendors and service provider isreviewed. If the products or services are to be re-ordered, the company decides whether to orderfrom previous supplier or think about new Procurement ActivitiesBasic Procurement activities flow is given in the following image:A brief introduction of Procurement activities is given below:ProcurementActivitiesDescriptionDe termination ofrequirementIt is the logical subdivision where it is determined that what material orservices are required to company, and which supplier can fulfill PurchaseRequisitionIt is the phase in which purchasing department is informed about therequirement of items or services required for business purpose.

10 Arequisition is a internal PurchaseOrderIt is the phase when order is created from requisition and it is approvedand assigned to a receipt/Invoice ReceivedIt is the phase in which the material is received by the company and thecondition and quality are verified. In this phase Invoice is received fromthe vendor verification/Vendor PaymentIt is the phase in which the vendor seller is paid from the company andreconciliation of the invoice and PO is of Basic ProcurementThere are 2 types of Basic procurement which are shown below:Procurement for Stock vs ConsumptionExternal vs Internal ProcurementProcurement for Stock vs ConsumptionThe following points show the difference of Procurement for Stock vs.