SAP MM stands for Materials Management, which is a module in the SAP ERP (Enterprise Resource Planning) system. It is a part of the logistics function and focuses on managing the procurement and inventory of materials within an organization.
The SAP MM module supports various functions related to materials management, including:
- Master Data Management: It involves creating and maintaining master data for materials, vendors, and purchasing information.
- Purchasing: SAP MM enables the creation and management of purchase orders, request for quotations, and purchase requisitions. It also facilitates the evaluation of quotations and vendor selection.
- Inventory Management: It covers the management of stock levels, goods receipts, goods issues, and stock transfers. SAP MM allows tracking and valuation of materials in different storage locations.
- Material Valuation: It provides mechanisms to assign values to materials and determine their accounting and inventory costs. This includes various valuation methods such as standard price, moving average price, and FIFO (First-In, First-Out).
- Invoice Verification: SAP MM allows for the verification and processing of vendor invoices and manages the payment process. It integrates with other modules like Financial Accounting (FI) for seamless financial transactions.
- Logistics Invoice Verification: This functionality ensures that the goods received match the purchase order and invoice details, allowing for efficient invoice verification and payment.
- Material Requirement Planning (MRP): SAP MM supports MRP to determine the material requirements based on demand and inventory levels. It assists in generating procurement proposals for efficient planning and procurement processes.
The SAP MM module integrates with other SAP modules such as Sales and Distribution (SD), Production Planning (PP), and Financial Accounting (FI), among others, to ensure smooth flow of information across different business functions.
Overall, SAP MM plays a crucial role in managing the end-to-end procurement and materials management processes, helping organizations optimize their supply chain and improve operational efficiency.