Introduction to SAP MM 

Welcome to SAP MM Tutorials. The objective of these tutorials is to provide an in-depth understanding of SAP MM. In addition to free SAP MM Tutorials, we will cover common interview questions, issues, and how to’s of SAP MM.

SAP MM ( Material Management ) is one of the largest functional modules in SAP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation of Material & Account Determination, Material Requirement Planning, Invoice Verification, etc.

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Index

SAP MM Module

SAP MM stands for Material Management and it is one of the important modules of logistics in ERP SAP software as it supports all the processes of inventory management and procurement.

SAP Material Management Module can be integrated with various SAP modules in like Sales and distribution, Production planning, Quality management, Warehouse management, financial accounting, and controlling modules.

Like the SAP FICO module, we have to maintain the organizational structure while implementing the Material management Module in SAP.

The important organizational units of MM modules are as follows.

  • Plant: Plant is a location that is able to record and store inventory items. All the financial transactions of the organization can be recorded and maintain at the plant level.
  • Storage Locations: Storage location is an important organizational element of the SAP MM module, it is a place where the stock is physically kept in a plant.
  • Purchase organization: Organization is responsible for all activities of purchasing such as quotations, Purchase orders). The purchasing organization contains all the data that related to the vendors and pricing to support the cost-effective acquisition of goods.

SAP MM module components

The important components of SAP material management modules are

  • Material Requirement Planning: – MRP is processed based on bills of material and material will be planned according to the Bills of material.
  • Purchasing: – The main task of purchasing is to procure the materials or services and determine the possible sources of supply for a requirement to be identified by the material planning department.
  • Inventory Management: – Inventory management is one of the important sub-modules of SAP MM as it details with material stocks on a quantity, goods movement, and physical inventory.
  • Material valuation: – Material valuation determines the stock value of a material and stock value is determined by the stock quantity and material price.
  • Invoice Verification: – Invoice verification is an important step in the procurement process. When the invoice is posted in the SAP system, the system updates the invoice data in MM and FI modules. After checking all the details invoice can be sent further process like payment process.

SAP R/3 works on real-time data that is there is no time lag between data entry and data availability. The important thing while creating any data is to maintain data integrity.

Checkout Our  Frequently Asked SAP MM Interview Questions

SAP MM - Configuration

This configuration will allow you to make some fields as optional or as hidden or some as mandatory in the master record. This configuration can be set up by following the below steps.

Path to Assign Fields to Field Selection Groups: IMG => Logistic General => Material Master => Field Selection => Assign Fields to Field Selection Groups TCode: OMSR

On Display IMG screen select Assign Fields to Field Selection Groups execute icon by following the above path.

sap mm configuration

Select the entry in which you want to make the changes.

sap mm configuration 2

Here you can do changes in fields as hidden, display, required entry, or optional entry. Click on save. Field Groups are now set with desired field entries.

sap mm configuration 3

Maintain Field Selection for Data Screens

This configuration will allow you to make some data screens in master data as optional or as hidden or some as mandatory. This configuration can be set up by following the below steps.

Path to Maintain Field Selection for Data Screens: IMG => Logistic General => Material Master => Field Selection => Maintain Field Selection for Data Screens TCode: OMS9

On Display IMG screen select Maintain Field Selection for Data Screens execute icon by following the above path.

sap mm data screen

Select the field selection group in which you want to make changes. Here you can do changes in field reference as hidden, display, required entry, or optional entry. Click on save. Field selection for data screens is now maintained.

sap mm field selection for data screen

Maintain Company Codes for Materials Management

This configuration will allow you to maintain company codes with period along with the fiscal year. This configuration can be set up by following the below steps.

Path to Maintain Company Codes for Materials Management: IMG => Logistic General => Material Master => Basic Settings => Maintain Company Codes for Materials Management TCode: OMSY

On Display IMG screen select Maintain Company Codes for Materials Management execute icon by following the above path.

sap mm material management

Provide details like name of company code, along with fiscal year and period for that. Click on save. The company code is now maintained for materials management.

sap mm material management for company code

Features of SAP MM

The features of the SAP MM system are as follows:

  • SAP MM is one of the modules of SAP that deals with material management and inventory management.
  • The material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. SAP MM speeds up the procurement and material management activities making the business run smoother with complete time and cost-efficiency.
  • It deals with managing the materials (products and or services) resources of an organization with the aim of accelerating productivity, reducing costs, and increase improvement and at a similar time be versatile to accommodate changes in day to day life.
  • It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning, etc.