Material Management Module In Erp

Material Management Module In Erp. Material Management Module in ERP System Determines needs identifies a potential source of supply compare alternative quotations create a purchase order track the status of the purchase order receive goods and verify invoices upon receipt of goods An ERP System provides a needed integration between Material Management System and other submodules.

SAP mm – Master DataPurchasingInventory ManagementPricing ProcedureFeatures of SAP mmSummaryData stored in SAP R/3 is categorized as 1 Master Data and 2 Transactional Data Master data in SAP materials management is the core data that is used as a base for any transaction If you are producing transferring stock selling purchasing doing a physical inventory whatever your activity may be it requires certain master data to be maintained Example of Master Data 1 Material master data 2 Customer master data 3 Vendor master data 4 Pricing/conditions master data 5 Warehouse management master data (storage bin master data) Learn more about Master Data here Purchasing is a component of SAP MM module and its process can be roughly depicted in below diagram MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition Next step is assigning a source to Purchase Requisition and release of Purchase Requisition The PR gets converted to Purchase Order and upon goods receipt an invoice receipt can be done to complete the purchasing process Additionally payment is processed (in FI module) Learn more about Purchasing here Inventory management is used to manage the inventory of the goods It is based on several key processes like 1 Definition of movement types 2 Reservations 3 Goods issue 4 Goods receipt There are a number of functions and transactions used in the Inventory management processes Learn more about Inventory Management here Pricing procedure in MM module is a way to determine prices in purchasing documents It gives us functionality to assign different calculation types for different needs Defining a pricing procedure can be done by creating an access sequence and assigning it to condition types Access sequence tells the system where to look for the condition values Learn more about Pricing Procedure here It can deal with both material management and inventory managementEnsures no shortage of material in the supply chain processHelps to speed up material management and procurement activitiesIt helps to accelerate productivity and reduce costs while maintaining accommodations for frequent changes in a business environment SAP MM meaning SAP Material Management module is a SAP ERP component that helps organizations with material management inventory management and warehouse management in the supply chain processSAP MM full form is SAP Material ManagementTransaction in SAP means processing of certain information in order to complete business process requirementMaster data is the core data that is used as a base for any transaction.

SAP MM module: What is, Material Management Process Flow

Material Requirement PlanningWarehouse ManagementProcurementImportInbound LogisticsSupports a combination of Production Planning Scheduling and Inventory Control 1 Integrates with Planning Production Scheduling Maintenance 2 Supports reorder point reorder quantity lead time based method 3 Supports MRP for Fixed Inventory level and Manual Forecast 4 Supports both Make to Order and Make to Stock planning Tracks the entry and movement of materials within one or more warehouses also keeps a track of reserve stocks for projects and departments 1 Defines multiple warehouse 2 Maps items to one warehouse or multiple warehouses (as required) 3 Records Inward receipt of materials and services 4 Ensures Consumption tracking for dept cost center EMP contractor project job card and many other parameters 5 Records Inspection entry 6 Records Material outward movement 7 Provides Lot and serial number tracking 8 Maintain records of Reserve stock for project and department 9 Enables Material valuation 10 Enables Integration with finance 11 Records Subcontracting cases 12 Enables Physical entry and cycle count Supports procurement of raw materials capital & consumable items and drop shipment cases 1 Collects requirement from departments 2 Sends enquiries to vendors 3 Collects quotations 4 Enables view of auto generated comparative statement 5 Presents Landed value calculation in comparative statement 6 Ensures Budget implementation 7 Manages pre procurement activity for both material and services Provides Functionality to Import data from other softwares 1 Enables Import of purchase order in multiple currency 2 Provides Entry of bill of landing for imported shipment 3 Provides for Bill of Entry custom duty calculations and account postings 4 Records Material received at external warehouse transport to factory warehouse 5 Enables passing Bills with all other expenses 6 Records Correct material valuation including all expenses Helps define capture & implement logistics rules 1 Defines logistics related info in purchase order 2 Captures logistics detail in gate entry 3 Integrates with Weighbridge 4 Creates freight order for long term contracts 5 Clears freight bill as per contract.

SAP ERP Material Management Module ERP College

What is Material Management Module in SAP ERP Materials Management is the module where (finished goods raw materials and consumables) are managed for quantity price month end inventory cutoffs and balance Materials Management is inventory management purchasing invoice verification warehouse valuation Material master and materials.