SAP MATERIALS MANAGEMENT(MM) TRAINING IN SOUTHAFRICA,AUSTRALIA CONTACT US: MAGNIFIC TRAINING INDIA +91-9052666559,9052666558 USA : +1-678-693-3475 info@magnifictraining.com www.magnifictraining.com
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
5R
Inventory control and stores management
Material logistics, movement control and Handling aspect Purchasing, supply , transportation , materials handling etc. Supply management or logistics management
Aim
To GET The Right quality Right quantity of supplies At the Right time At the Right place At the Right cost
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.
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 It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification.
MRP 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.
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).
ORGANIZATIONAL STRUCTURE
MM STRUCTURE Client Company code Plant Storage location Purchasing organization Purchasing group
Sub Modules of MM
•Material Planning •Purchasing •Inventory Management •Vendor Valuation •Invoice Verification •Statutory Requirements
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
Determine requirements Invoice verification Source determination
goods receipt and inventory management
Materials management Vendor selection
Orderfollow up Order processing
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
Menu Path: SAP Easy Access
Tools
Customizing
IMG
Execute Project
Reaching SAP implementation guide(IMG)
click on “AP Reference IMG
Configuration nodes related to MM & other Modules
Creating plant Menu Path: SAP IMG Enterprise Structure Definition
Logistics- general Define, Copy Delete, Check plant
Creating storage location Menu Path: SAP IMG
Enterprise Structure Definition Materials management
Maintain storage location
Creating purchase order
Invoice verification
Determine requirements Invoice verification Source determination
goods receipt and inventory management
Materials management Vendor selection
Orderfollow up Order processing
• 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
SYLLABUS
Salary range for SAP MM consultant freshers
lessthan 1 year 1-4 years 5-9 years 10-15 years 15 years and more 0
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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.