SAP MM OVERVIEW
◼ Materials Management deals with materials part
in the business
◼ It consists of material purchasing , material
movement within /across the organization
◼ Procurement of raw material , semi finished
products , maintenance items & services are the
areas for which MM Module is responsible
The contents to cover the presentation
for Materials Management module
includes:
1. Organizational Structure
2. Procurement cycle
3. Material master
4. Vendor master
5. Source list
6. Info record
7. Pricing Procedure
1. Organization structure
◼ The organization structure is a prerequisite
for any transaction in any module
◼ Defining an organization in SAP includes
following steps :
1.Define company
2.Define company code
3.Define plant
4.Define storage locations
5.Define purchase organization
Defining above in SAP is done as
below :
◼ Company & company codes are defined
in “Financial Accounting”
◼ Plant is defined in “Logistics General”
◼ Storage locations are created in
“Materials Management”
◼ Purchasing Organization is defined in
“Materials Management”
Assignment is done in SAP as below :
◼ Company is assigned to company code
in “Financial Accounting”
◼ Plant is assigned to company code in
“Logistics General”
◼ Purchasing Organization is assigned to
a plant in “Materials Management”
After defining above, all those are to be
linked together which is termed as
“assignment” in SAP
Assignment includes
1.Assign company to company code
2.Assign plant to company code
3.Assign purchasing organization to
plant
◼ The structure created for co.code 101 is as
below
◼ Contd…. Org.structure
Configure Material Master (MM01)
The prerequisites for Material Master are
as below
◼ Define Material Type
◼ Define Industry Type
◼ Select the required views for defining the
material
◼ Define Organization structure for material
◼ Creat Materials Master for 10 materials with
transaction code MM01
◼ M000010 PVC
◼ M000011 Aluminium
◼ M000012 Copper
◼ M000013 Aluminium Foil
◼ M000014 Nylon Rod
◼ M000015 Colour Ingredient
◼ M000016 Cable
◼ M000017 Barrel
◼ M000018 Screw
◼ M000019 Heater
In SAP MMO1 is the transaction code
for creating material
◼ Materials created in plant 101a
◼ Material list contd…
Vendor Master
◼ Vendor master has all the details about
the vendors as address , purchasing
data , accounting data etc.
◼ The transaction code for vendor
creation is XK01
Vendor vtest01 is created as below
◼ Creat vendor master for five vendors as
below with transaction code XK01
◼ V001
◼ V002
◼ V003
◼ V004
◼ V005
◼ Vendors created for p.org 101p
◼ Vendor’s list contd….
Source List
◼ Source list is the record of all the
probable sources for a given material
with a validity period
◼ It is created in ME01 as below
◼ The source list is maintained for a
material,plant&vendor in ME01 as below
◼
◼ An Info Record is created in ME11
which is the relation between vendor&
material wrt
◼ 1.quantity
◼ 2.delivery schedule
◼ 3.price & conditions
◼ It is maintained for vendor v001&
material
M000012 as below
◼ Info record contd..
1. Purchase Requisition ME51
The requisitioner enters his requirements in
the system through transaction code ME51
He enters there item,qty,delivery date & the
organizational data as plant , st.loc , pur.gr
material group etc.
This requirement is saved as requisition no.
by the system
◼ Material Requisition is created in ME51
as below
◼ PR contd...
◼ PR contd…
◼ Request For Quotation ME41
◼ The above purchase requisition is
passed on to the purchasing dept.
◼ The concerned person then floats
enquiry to the probable suppliers of the
material by way of sending them the
Request For Quotation
◼ It is same as PR except the vendor
details given in it & quotation deadline
for the vendor
◼ The screen will look like below
RFQ CONTD..
◼ Request For Quotation contd.…
◼ RFQ contd..
◼ RFQ contd..
◼ RFQ contd..
◼ With reference to the above request the
vendor will send his quotation & that will
be maintained by the system in ME47
◼ Here the system maintains the price
given by the vendor along with all other
details wrt RFQ no. ( in this case
6000000009).It will be entered as below
with price as 100 inr & saved.The
qtn.for RFQ no.is maintained by the
system after saving
◼ Maintain Quotation contd..
◼ Price Comparison
◼ Price comparison contd…
◼ Maintain Quotation contd.
◼ After receiving quotations from vendors
the concerned person compares prices
in ME49 Here he enters qt.nos,vendor&
material with the p.org.
◼ The system will recommend the vendor
with lowest price as below for ex.with
green signal
◼ Maintain Qtn.contd..
◼ After selecting a vendor a purchase
order is prepared in ME21N
◼ Here org.data,material,vendor,qty,net
price are entered .The system saves
this order with a purchase order no.as
below.A
◼ Purchase order is created a below
◼ After the purchase order is prepared it is
passed on to the vendor & the vendor
delivers goods as per the order contents
◼ The system accepts the goods receipt
in MIGO .Purchase order no.reference
is given for the goods receipt along with
other data as qty,stock type,material
◼ MIGO contd..
◼ It integrates itself with SAP PP Module
by way of generating material
requirement for external procurement
◼ It integrates with SAP FICO Module by
way of account determination for all
transactions
◼ Basic procurement cycle consists of
followings in sequence
1. Purchase requisition
2. Request for Quotation
3. Maintain Quotation
4. Compare prices
5. Prepare purchase order
6. Goods Receipt
7. Invoice verification / Payment to
vendor
◼ The document 22 is displayed as below
◼ After GR is posted , the invoice raised
by the vendor is verified in MIRO by the
system
◼ In MIRO , p.order ref.is given which
refers directly the GR.
◼ The payment cycle after this as shown
below
◼ Info Record
Info record is the record of relation
between
the given material & the vendor wrt
price, validity period ,conditions &
quantity
It is maintained in SAP by transaction
code ME11 as below
Pricing procedure
◼ It is the procedure dictating conditions
to be applied to the materials to arrive at
a price at which it could be purchased ,
at a central level
◼ It includes
discount,surcharge,frieght,transportatio
n charges,excise duty etc.
◼ The conditions could also be given
manually instead of centralised one in
the purchase order
End of Session
