What is the Use of SAP MM Module?

SAP Materials management look after all the tasks happening within the supply chain. It includes planning on different matters, consumption-based planning, vendor evaluation, and also invoice verification.

Introduction

It additionally manages the inventory and warehouse capabilities to manage stock before usage dictates the cycle to begin again. Materials management however does not work alone but rather integrates with other modules like SAP SD, SAP PP, or SAP QM. Indeed, inventory and procurement are essential tasks for all businesses. Handling it carefully requires a brief understanding of all its functions. SAP MM Training in Noida helps you prepare for the role under expert guidance. Let’s understand its areas of functionalities in the following paragraphs.

The division of Modules in the SAP MM

SAP MM is responsible for procurement and inventory management. It mainly comprises two major components. 

MM Stocks: Responsible for Stock management

MM Purchasing: Manages Purchasing and supply management

Understanding MM Stocks

The MM Stocks feature enables you to;

Handle material stocks in the correct quantity and value: It monitors each entry, exit, or any transfer increments or decrements of the overall stock.

Recording all necessary stock movements, that is entry, exits, and transfers and integration with other respective areas such as purchasing and accounting. The MM module offers complete traceability of any movement that is taking place. It may cancel under a counter entry but never delete.

Reserve stock quantities for necessarily required material in the ERP like the component necessary for production orders or completed goods reservations for managing customer orders.

Manage stocks by material by batch process. It further meets a requirement for fine traceability and enables upward or downward traceability of material supplies up to the delivery of the complete product to the customer.

Understanding the MM Purchasing

The MM Purchasing component enables you to;

• Precision planning of the requirements
• Controlling adequate supplies
• Manage purchases like ordering stock items, ordering non-stock items like office supplies, printing orders or even sending via EDI, price lists, and sources of supply.
• Manage supplies, like stock monitoring, analysis, and in-progress monitoring
• Checking integration of invoices with accounting)
• Manage to subcontract, that is the provision of components and display of stocks at subcontracting partners
• Manage supplier payments and further the valuation of goods via SAP FI
• The Purchasing and Procurement process follows the given system; 
• Identifies the requirements
• A purchase requisition enters into SAP
• After validating the request, a purchase order is made on the basis of the selection of earlier referenced sources of supply and suppliers
• Further, it tracks the order
• It also checks the delivery against the order
• Creates goods receipts at MM Stocks level and then looks after supplier payments

Sub-Components of MM

Master Data

The end-user stores master data that monitors every transaction within the data. It includes vendor master, material master, and purchasing master. 

Purchasing

Purchasing is a crucial component of Materials Management. MM Purchasing tasks comprise external procurement of materials and services, identification of possible sources of supply, and also monitoring of supply and payment to vendors.

Inventory Management

Inventory Management activities consist of inventory receipt, internal transition, inventory, and reservations.

Invoicing Verification

All activities relating to the invoicing processes like Invoice Receipt from Vendors, Automatic Invoices, and another Direct posting for materials.

Physical Inventory

The activities like physical inventory creation, post difference, counting cycle, inventory session, and count area are all taking place as physical inventory in the storage area.

Material Valuation

All activities like material price change, and various kinds of valuation like LIFO, FIFO, and lowest value relating to material valuation.

Service Management

Service management comprises activities like service master and service entry sheet.

Conclusion

Inventory and procurement management is an important section and requires undivided attention. It would be beneficial to go for a professional training medium to acquire this learning. However, SAP MM Certification Cost do not cost high and you can easily start your preparations now. Hence make fair use of this opportunity and start your training and get your certification. 

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