SAP Materials Management streamlines procurement cycle, Material Ledger, Material Valuation, General ledger inventory posting and purchase posting, Invoice Verification, purchase deviation , purchase tax compliance , Service management, Inventory Management, Material Requirement Planning, Master Data like BOM, Material, Supplier Master, Account determination, Service Master and etc .
Sub-Components of MM
The Materials Management (MM) module is an important part of the SAP Logistics application. The Logistics part of the SAP application is the one with the most functionality and features, including MM, PP, PM, PS, QM, and SD. It is also the most extensive area.
Since MM is intimately connected with all of the other components of SAP Logistics, it is considered to be a very vital part of the Logistics process.
- Master data : Data that keeps track of every other data’s transactions
- Purchasing : Consist of the acquisition of goods and services. either a source that is external to the company or a source that is intercompany
- Inventory management : Tracking inventory from manufacturers to warehouses and to consumers. tracking stock, issuing, and receiving goods.
- Invoicing verification: Incorrect postings may result in business losses.
- Physical inventory: Inventory levels and discrepancies between actual stock and in-house data are checked often.
- Material valuation: Material valuation includes LIFO, FIFO, and lowest value.
- Service management : Procurement of Service : Purchase Order (Service Order) , Service Entry Sheet and Invoice Verification Process.
