Procurement in Materials Management

1. Sunday, January 14, 2018 Prepared By Ramesh Kamishetty

2. Sunday, January 14, 2018
What is SAP?
* SAP Stands for Systems applications and products in
Data processing, SAP is the 4th Largest software
company in the world.
•SAP is the Largest ERP Solution Software Provider.
•SAP Main Product is SAP R/3
•R stands for Real time data processing
•3 Relates to three – tier Architecture
Prepared By Ramesh Kamishetty

3. Sunday, January 14, 2018
Presentation Layer
SAP ECC Real Time 3 Tire Architecture
Application Layer
Database Layer
Prepared By Ramesh Kamishetty

4. Sunday, January 14, 2018
Landscape is like a server system or like a
layout of the servers or some may even call it
the architecture of the servers. SAP is
divided into three different landscape DEV,
QAS and PROD.
-DEV would have multiple clients for ex: 190- Sandbox, 100- Golden, 180- Unit
Test.
- QAS may again have multiple clients for ex: 300- Integration Test, 700 to 710
Training.
- PROD may have something like a 200 Production.
System Landscape
Prepared By Ramesh Kamishetty

5. Sunday, January 14, 2018
SYSTEM LAND SCAPE
Development
Server
Quality / Testing
Server
Production
Server
Golden
client
Test client
Prepared By Ramesh Kamishetty

6. Sunday, January 14, 2018
Company
Company code Company code
Plant 1 Plant 2 Plant 1 Plant 2
Storage Storage Storage Storage
Purchase org Purchase org
Ref Purchase
PGR
Organization Structure
Prepared By Ramesh Kamishetty

7. Sunday, January 14, 2018
Over view of SAP MM Module:
Material management deals with managing
the materials(products & services) resources
of an organization with the aim of increasing
Productivity, reducing costs and increase
Optimization and at the same time be flexible
to accommodate changes.
Prepared By Ramesh Kamishetty

8. Sunday, January 14, 2018
A Business Process in SAP is termed as “Module”
SAP Materials Management is a part of Logistics area
and helps to manage the Procurement activity of an
Organization from procurement process, Inventory
Management, invoice verification and Material
planning.
Material management is the backbone of the logistic
area which includes modules like 1) SD 2)PP 3)PM 4)
PS 5)WM which are highly dependent on Material
management Module.
Material management is highly integrated with other
Modules like FI,SD,PP,QM,PM.
Prepared By Ramesh Kamishetty

9. Sunday, January 14, 2018
Payment Processing
Goods
Receipt
Invoice
Verification
PO
Processing
Vender
Selection
Source
Determination
Determination of
Requirements
PO
Follow up
Procurement
Procurement process flow
Prepared By Ramesh Kamishetty

10. Sunday, January 14, 2018
SAP MM Procurement Cycle
1).Determination of requirement
2).Source determination
3).Vendor selection
4).Purchase order processing
5).Purchase order Follow up
6).Goods Receipt
7).Invoice Receipt
8).Payment processing
Prepared By Ramesh Kamishetty

11. Sunday, January 14, 2018
Prepared By Ramesh Kamishetty

12. Sunday, January 14, 2018
Master data in SAP MM
Material Master
Vendor Master
Source list
Purchasing info record
Quota arrangement
Service Master
Prepared By Ramesh Kamishetty

13. Sunday, January 14, 2018
Purchsing data in SAP MM
Internal Documents
External Documents
Prepared By Ramesh Kamishetty

14. Sunday, January 14, 2018
Internal Documents :
• Purchase Requisitions
External Documents:
• Request For Quotation
• Purchase Order
• Contract
• Scheduling Agreement
Prepared By Ramesh Kamishetty

15. Sunday, January 14, 2018
Types of Purchase Orders:
•Standard Purchase Orders
•Frame work Purchase Orders
•Subcontracting Purchase Orders
•Third Party Purchase Orders
•Consignment Purchase Orders
•Stock Transport Purchase Orders
Prepared By Ramesh Kamishetty

16. Sunday, January 14, 2018
Inventory Management
•Goods Receipts
•Goods Issues
•Transfer Posting
Prepared By Ramesh Kamishetty

17. Sunday, January 14, 2018
Goods Receipts
•Goods Receipts Against Purchase Orders
•Goods Receipts Against Productions Orders.
•Goods Receipts Legacy Stock.
Goods Issues
•Goods Issue to Cost center
•Goods Issue to Production Order
•Goods Issues to Sales Order
Prepared By Ramesh Kamishetty

18. Sunday, January 14, 2018
Invoice verification
•Invoice Entry (MIRO)
•Invoice Parking (MIR7)
•Invoice Blocking
•Debit Memo
•Credit Memo
Prepared By Ramesh Kamishetty

19. Sunday, January 14, 2018
Prepared By Ramesh Kamishetty
Thank you