2. MATERIALS MANAGEMENT
DEFINITION:
Material management is concerned with
planning, organizing and controlling the flow of
materials from their initial purchase through
internal operations to the service point through
distribution.
SCOPE
Emphasis on the acquisition
aspect
Inventory control and stores
management
Material logistics, movement
control and Handling aspect
Purchasing, supply
, transportation , materials
5R
Aim
To GET
The Right quality
Right quantity of supplies
At the Right time
At the Right place
At the Right cost
3. MM in SAP
The Materials management (MM) function
of SAP is part of the logistics area.
It is one of the important modules in SAP
ERP software and MM application module
supports the procurement and inventory
functions occurring in day-to-day business
operations.
The Materials Management module consists of
all master data, system configuration, and
transactions to complete the Procure to Pay
process.
This process map spans from MRP generated
procurement proposals through final invoice
receipt and verification.
4. Purchasing
Valuation
It includes material price
change, balance sheet
valuation, actual costing/material
ledger
Foreign trade
Manage import and export
processes, integrating them
efficiently into the supply chain
External procurement of materials and services
And Determination of possible sources of supply
for a requirement identified by the materials
planning and control system or arising directly
within a user department
Inventory
management
It deals with Management
of material stocks on a
quantity and value basis
Material master
It information on all the materials
that a company procures or
produces, stores, and sells.
Logistic invoice verification
MRP
It is situated at the end of the logistics supply chain
that includes Purchasing, Inventory
Management, and Invoice Verification.
It includes, Reorder point
procedure
Forecast-based planning
Time-phased materials
planning
Service master
Product catalog
The materials and prices in the product
catalog
It provides a basic process for the
procurement of externally performed
services.
5. ORGANIZATIONAL STRUCTURE
The organizational structures form a
framework of a company in which
business is conducted.
A hierarchy in which the organizational units in an
enterprise are arranged according to tasks and
functions
MM module is fully integrated with other modules in the SAP R/3
System such as Finance (FI), Controlling (CO), Sales and Distribution
(SD), Quality Management (QM), Plant Maintenance (PM), Production
Planning (PP), and Warehouse Management(WM).
7. Client:
Represents a grouping or combination of
legal, organizational, business and/or
administrative units with a common purpose.
Company Code:
Company Code represents an independent accounting unit within a client. Each
company code has its own balance sheet and its own profit and loss statement.
Plant:
Operational unit within a
company code.
Storage Location:
This level contains the data specific to a storage
location. Stock levels are an example of the
data maintained for each storage location.
Purchasing Organization:
An organizational unit responsible for procuring materials or
services for one or more plants and for negotiating general
conditions of purchase with vendors. The purchasing organization
assumes legal responsibility for all external purchase transactions.
Purchasing Group:
The purchasing organization is further subdivided into purchasing
groups, which are responsible for day-to-day buying activities. A
purchasing group can also act for several purchasing organizations
9. JOB roles of SAP MM consultant
Role during implementation of the project
Understand the business requirements, Setting up organization
structure of MM and relevant configuration like Purchase
organization, valuation area plants, storage location, and warehouse
structure etc.
Finalization of material groups, purchasing groups, payment
terms, Inco terms, material master, vendor master and all purchasing
and inventory documents, Pricing Procedure, Purchase requisition
and purchase order and set up of Indian taxation structure.
Role during support project
Interaction with client through net meetings, calls & emails.
Handling Tickets & Tasks and responsible for closing the same within defined
SLAs, and troubleshooting the issues in the system and providing
support, Executing the needed changes in configuration, analysis and
resolution of production support calls
Raising Change Requests (CRs) and writing functional specifications for them
and Preparing test data for testing CRs, Testing CRs (Change Requests) and
preparing test results
10. Menu Path:
SAP Easy Access
Tools
Customizing
IMG
Execute Project
Reaching SAP
implementation guide(IMG)
18. • Invoicing
Invoice Posting
Variances and Blocking Reasons
Release Blocked Invoices
Automatic Settlements - Evaluated Receipt
Settlement (ERS)
• Valuation and accounts assignment
Materials Price Change
• Basic overview
Materials Valuation Type
SAP overview
Configure Automatic Account Determination
SAP MM overview
• Materials Requirements Planning (MRP)
• Procurement process in SAP MM
Planning Requirements
Master Data
Over All Procedures
Materials Master
Planning Run
Vendor Master
• Reporting in SAP MM
purchasing
Reporting at Document Level
Special stocks and special procurement types
Reporting with the Logistics Information
source determination
System
release procedures for purchasing documents
• Configuration
• Inventory management
Enterprise Structure in MM
Goods Receipt
Materials Master
Goods Issue
Purchase Requisition
Transfer Posting
• Integration of MM with various modules
Reservation
Overview of integration of MM with other
Physical Inventory
modules FICO, SD and PP
SYLLABU
S
19. Salary range for SAP MM
consultant
freshers
lessthan 1 year
1-4 years
5-9 years
10-15 years
15 years and more
0
2
4
6
8
10
12
14
20. CONCLUSION
• SAP SD module is the one which is very interesting and important module in SAP compare
to other modules.
• This includes the material management in industry, it is responsible for all the steps during
the purchase of materials and maintaining that materials.
• MM module is integrated with other SAP modules such as controlling(CO), sales and
distribution(SD), quality management(QM), plant maintenance(PM), production
planning(PP), warehouse management(WM) and financial accounting(FI).
• This module has a great impact on every industry because every industry works on
this, so demand for this module is more compare to other modules in SAP.
• The opportunities in MM module are more, every time it has bull run demand.
• More of this module is related for MBA professionals in any specialization but it is related
to who did specialization in Marketing and finance, even for others also it is very good as
we can observe in many job portals and other sources.
• In Mm module salaries providing by companies are huge and compare to previous years
the salaries are increased 3-4 % according to payscale.com and ITJOBSWATCH.com.
Hinweis der Redaktion
Definition of the materials management module and its scope,The aim of this module is we can indicate with 5R’s those are,To achieve right quality and quantity at right time, right place, with right cost.
This is the materials management module role in SAP
These are the components and functions of MATERILS MANAGEMENT module in SAP, it includes PurchasingValuationInventory managementForeign tradeMaterial masterLogistic invoice verificationMRP(materials requirement planning)Product catalog andService master.
This is the organizational structure of MM module, this is very important in MM Module.
This is the structure of an organization in MM module and sub modules of MM.
This is the explanation of each factor in organizational structure of module MM in SAP.
Process flow of SAP MM module, this I have explained in one topic explanation in 17th slide.
These are the job roles of MM consultant in SAP.This data is integrated from different sources.
This is the screen shot for reaching SAP implementation guide (IMG)
Screen shot for SAP reference image.
This is the screen that shows nodes related to MM and other modulesMenu path for MM area – SAP Customizing Implementation Guide (IMG) > Enterprise Structure > Definition SAP Customizing Implementation Guide (IMG) > Enterprise Structure > Assignment SAP Customizing Implementation Guide (IMG) > Logistics – General > Material Master SAP Customizing Implementation Guide (IMG) > Materials Management
Screen shot for creating a plant in MM module.
Screenshot for creating a storage location in SAP.
Screenshot for creating a purchase order
Screenshot for invoice verification
One topic explanation: MM process flowThis is the typical procurement cycle for a service or material consists of the following phasesDetermination of RequirementsMaterials requirements are identified either in the user departments or via materials planning and control. This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.wecan enter purchase requisitions our self, or they can be generated automatically by the materials planning and control system.2. Source DeterminationThe Purchasing component helps to identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.3. Vendor Selection and Comparison of QuotationsThe system is capable of simulating pricing scenarios, allowing us to compare a number of different quotations. Rejection letters can be sent automatically.4. Purchase Order ProcessingThe Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, we can generate Pos our self or have the system generate them automatically. Vendor scheduling agreements and contracts are also supported.5. Purchase Order Follow-UpThe system checks the reminder periods we have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides uswith an up-to-date status of all purchase requisitions, quotations, and purchase orders.6. Goods Receiving and Inventory ManagementGoods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods.7. Invoice VerificationThe system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.
Reference from: http://payscale.comCountry: INDIA currency: INR updated: 13th NOV 2013The above mentioned numbers are average of my sources which I have colleceted data from various job portals, companies and http://payscale.com
