Purchasing is a component of Materials Management (MM).The Materials Management (MM) module is fully integrated withthe other modules of the SAP System. It supports all the phasesof materials management: materials planning and control,purchasing, goods receiving, inventory management, and invoiceverification.The tasks of the MM Purchasing component are as follows:• External procurement of materials and services• Determination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly within a user department• Monitoring of deliveries from and payments to vendors• Good communication between all participants in the procurement process is necessary for Purchasing to function smoothly.
Inventory Management and PhysicalInventory (MM-IM)PurposeThis component deals with the following tasks:Management of material stocks on a quantityand value basisPlanning, Entry, and Documentation of allGoods MovementsCarrying out the Physical InventoryFeatures
MRP Procedures in Consumption-BasedPlanningUseIn consumption-based planning, the followingMRP procedures are available:Reorder point procedureForecast-based planningTime-phased materials planning
Logistics Invoice Verification (MM-IV-LIV)PurposeLogistics Invoice Verification is a part ofMaterials Management (MM). It is situated atthe end of the logistics supply chain thatincludes Purchasing, Inventory Management,and Invoice Verification. It is in Logistics InvoiceVerification that Incoming Invoices are verifiedin terms of their content, prices andarithmetic. When the invoice is posted, theinvoice data is saved in the system. The systemupdates the data saved in the invoicedocuments in Materials Management andFinancial Accounting.
Product CatalogA number of media can be used as vehicles forpresentations, including:Print mediaCD-ROMOnline services (such as internet, T-Online, CompuServe, AOL)Information kiosks at the point of purchaseThe Product Catalog functionality comprises aprogramming interface (Business API) foraccessing the data and integrated maintenanceof product catalog-related data. This datacomprises:The layout of the product catalogThe materials and prices in the product catalogTextsMulti-media objects (graphics, sounddocuments, video clips etc.).Service MasterMM External Services Management provides abasic process for the procurement of externallyperformed services. This basic processcomprises the following functionality:
Foreign TradeOfficial customs brokers are licensed by thecustoms service to assist you with import andexport transactions. They have theresponsibility to ensure that all foreign tradecustoms procedures are followed completelyand comply to legal regulations. They alsoensure that the duties collected from yourcompany are turned over to the governmentwhen they become due.Although the services of a customs brokerreplace the need for your company to handlethe necessary tasks associated with foreigntrade, they can be very costly.SAPs FT system incorporates all of thenecessary checks and balances necessary toensure that your import and exporttransactions are handled lawfully and that theduties owed to the customs authorities arecalculated instantly and accurately.