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MM-Material Management

Sap MM is one of the core modules which helps business keep a track on procurement processes it begins with requirement determination goes till invoice receipt

Key aspects of the procurement process are

1)Determination of material requirement

2)Determination of sources

3)Determination of vendor

4)Purchase order processing

5)Purchase order monitoring

6)Goods receipt

7)Invoice receipt

The primary objective of MM module is to keep the proper quantity of materials without flaws in the supply chain. Enterprise structure in SAP represents the organization levels at which business runs. Material management system has following organization levels

  • Client: A corporate group this is the highest level in SAP system
  • Company code: This is the organization level were separate bookkeeping system is maintained
  • Plant: This is the organization level were the entire logistic activity takes place
  • Purchase organization: This is the organization level were procurement activity takes place. This is also the highest organization level in MM perspective
  • Storage location: It is the organization level were material is maintained on a quantity basis

That data that is added to the system can be broadly classified into two categories

Master data: Master data is the data stored for long term every processes performed by the system requires some master data to be maintained before actual execution of the process


Materiel master data, Vendor master data, Purchase info record,

Service master, Service condition etc

Transaction data:Data that is generated out of business transaction is called transaction data

Examples: Purchase order, Goods receipt etc.


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