SAP stands for Systems, Applications and Products in Data Processing. It is the largest ERP software provider and its main product is SAP R/3. SAP uses a three-tier architecture with presentation, application and database layers. It divides systems into different landscapes for development, testing and production. The document then describes the procurement cycle and master and transactional data in SAP's Materials Management module, which handles procurement and inventory management.

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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
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Presentation Layer
SAP ECC Real Time 3 Tire Architecture
Application Layer
Database Layer
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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
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SYSTEM LAND SCAPE
Development
Server
Quality / Testing
Server
Production
Server
Golden
client
Test client
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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
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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.
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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.
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Payment Processing
Goods
Receipt
Invoice
Verification
PO
Processing
Vender
Selection
Source
Determination
Determination of
Requirements
PO
Follow up
Procurement
Procurement process flow
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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
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Master data in SAP MM
Material Master
Vendor Master
Source list
Purchasing info record
Quota arrangement
Service Master
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Purchsing data in SAP MM
Internal Documents
External Documents
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Internal Documents :
• Purchase Requisitions
External Documents:
• Request For Quotation
• Purchase Order
• Contract
• Scheduling Agreement
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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
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Inventory Management
•Goods Receipts
•Goods Issues
•Transfer Posting
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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
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Invoice verification
•Invoice Entry (MIRO)
•Invoice Parking (MIR7)
•Invoice Blocking
•Debit Memo
•Credit Memo
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Thank you