SAP MATERIAL MANAGEMENT(MM) ONLINE TRAINING IN USA|AUSTRALIA

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SAP MM ONLINE TRAINING IN USA
SAP MM Online Training
Overview of SAP MM:
SAP MM (Materials Management) is of the Largest and
Important Module in SAP. It consists of all master
information (Material and Seller Master), Procurement
Method, Stock Management, Valuation of Material and
Account Determination, Bill Verification, Material
Requirement Planning, process configuration and
transactions to complete the Procure to pay method.

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SAP MM Training Objectives:
The main aim of the SAP MM (also often called SAP
Supply Chain Management- Procurement) is to
provide students with a complete knowledge of
Warehouse & Stock Management & Procurement
Supply Chain Method implementation using SAP
ERP. Project Management & some background of the
SAP Transportation Method is also part of this
Module.

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Target Students & Prerequisites:
Basic Knowledge Necessary on SAP ERP and Students also
needs to learn how to generate and personalize master
information related to the SAP Supply Chain Management
Procurement module.

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Introduction to ERP
ERP Packages
Introduction to SAP
Functions and Objectives of MM
SAP Real Time Project Team Structure and Business
Process
SAP R/3 Architecture
SAP Navigation
Organizational structure of an Enterprise in the SAP
R/3 System

SAP MM ONLINE TRAINING PUNE
Introduction
Why Material Management ???
Process Flow
Material Management Integration
Material Management Component
Benefits of Material Management
Implementation Challenges
Q&A
Thank you !!!
Appendix A - MM Definition
Appendix B – Material Type
Appendix C – MM Terms & Definition
Appendix D – Important MM Tables

Introduction
SAP MM Module is one of the most important SAP Modules where MM
stands for Materials Management - underpins the supply chain,
including
 Requisitions
 Purchase orders
 Goods receipts
 Accounts payable
 Inventory management
 BOM’s
 Master raw materials, finished goods etc

Why Need MM ???
 amount spend on material is higher
than other inputs
 material offer considerable scope for
reducing cost and improving profit
 material add value to the product
 quality of end product depend on
material
 efficiency of any organization depend
upon the availability of right material, in
right quantity at right time and at right
place.

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Purchasing
Raw
Material
Storage
Transformation
Processes
In Process
Storage
Finish
Goods
Storage
orders
Process Flow

MM Integration
SD
PP
QM
PM
FI
AM
CO
PS
MM
Material Management
Sales & Distribution
Production Planning
Quality Management
Production Management
Financial Accounting
Asset Management
Controls
Project System

Material Management Component
 Consumption based planning (MM-CBP)
 Purchasing (MM-PUR)
 External Service Management (MM- SRV)
 Inventory Management (MM-IM)
 Logistic Invoice Verification (MM - IV)
 Vendor Evaluation Management

Consumption based planning
CBP is based on the past consumption values and uses the forecast or
other statistical procedure to determine future requirements. It gets
trigger when stock level falls below pre-defined reorder points.
Procedure available for MRP :-
 Reorder point procedure
 Forecast based planning
 Time-phased materials planning

Purchasing
Purchasing is a component of Material
Management.
Task of Purchasing as following :-
 External procurement of material &
services
 Determination of possible source of
supply
 Monitoring deliveries from and payment
to vendors.
Integration with :- SD, FI & CO

External Service Management
SRV is a MM component. It supports the
complete cycle of bid invitation, award /
order placement & acceptance of
services.
Task of Purchasing as following :-
 External procurement of material &
services
 Determination of possible source of
supply
 Monitoring deliveries from and
payment to vendors.
Integration with :- PM & PS

Inventory Management
Task of SAP-IM as following :-
 Management of material stocks on a
quantity and value basis
 Planning, entry and documentation of all
goods movement
 Carrying out the physical inventory
Integration with :- SD, PP, QM & PM
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Logistic Invoice Verification :-
It is a component of MM. It is in the logistic
invoice verification that incoming invoice are
verified in terms of content, price and
arithmetic.
Task of SAP-IV-LIV as following :-
 It completes material procurement process,
which start with purchase requisition & result in
goods receipts.
 It allows invoices, that do not generate in
material procurement like expenses to be
processed.
It allows credit memo to be processed.
Integration with :- FI & CO

Vendor Evaluation :-
The Vendor Evaluation component supports
you in optimizing your procurement processes
in the case of both materials and services.
Task of SAP-IV-LIV as following :-
 Helps you to select source of supply &
monitoring of existing supply relationships
 Vendor reliability
Criteria :- Price / Quantity / Delivery /
General Service Support
Integration with :- QM & MM

Benefits of MM
 Material cost can be lowered
down
 Controlling of indirect cost
 Risk of Inventory loss
minimized
 Reduction in loss of time of
direct labor
 Control of manufacturing cycle
 Material congestion in storage
places avoided
 Improvement in delivery of the
product

Implementation Challenges
Selection
of
appropriate
vendors
Management
of
information
Optimizing
time and
quality for
product
Difficulty in
forecast
accurate
demand

Q&A
I hate
it.

Appendix I – MM Definition
• “Material management is the grouping of management functions
supporting the complete cycle of material flow, from the purchase and
the internal control of production material to the planning and control of
work in process to the warehouse shipping and distribution of the
finished product”. – Thomas f Wallance.
• “Material management is the management of the flow of materials
into an organization to the point, where those material are converted
into firm's end products”.

Appendix II Material Type
 DIEN ---- Services
 FERT ---- Finished Product
 FHMI ---- Production Resources / tools
 HALB ---- Semi finished Products
 HAWA ---- Trading Tools
 HIBE ---- Operating Supplies
 NLAG ---- Non-stock material
 ROH ---- Row Material
 UNBH ---- Non Valuated Material
 VERP ---- Packaging material
 WETT ---- Competitive product

• Material Master Record
Data record contain all the basic information required to manage a
material.
• Material Requirement Planning
Term for requirement planning that take into account and plan every
future requirement during the creation of order proposal.
• Plant
An organization unit for dividing enterprise according to production,
procurement, maintenance & material planning.
• Storage Location
Warehouse Stock Location
• Vendor Master
Contains details about all the vendors within a company.
• Goods Receipts
Term for inventory management denoting a physical inward movement
of goods or material.
Appendix III – MM Terms Definition

Appendix III – MM Terms Definition
• Material Group
Grouping of material and services according to their characteristics.
• Material Master Record
Data contains all the basic information required to manage a material.
• Release Strategy
Plan define the release code with which a purchase requisition item, a
complete purchase requisition or a complete external purchasing
document must be release.

Appendix IV – MM Tables
EINA Purchasing info record – general data
EINE Purchasing info/organization record
MAKT Material description
MARA General material data
MARC Plant data for material
MARD Storage location data for material
MAST Material to BOM link
MBEW Material consumption
RKPF Document header
T156 Movement type
T024 Purchasing group

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Material Management
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SAP MATERIAL MANAGEMENT(MM) ONLINE TRAINING IN USA|AUSTRALIA

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