From the course: Learning SAP MM (Materials Management)

SAP MM process overview - SAP ERP Tutorial

From the course: Learning SAP MM (Materials Management)

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SAP MM process overview

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- [Instructor] The materials management module, often abbreviated as MM, is the SAP logistics module that ensures the right materials and the right quantity are available at the right time and place for a company. Materials management tracks the material journey from manufacturer all the way to customer. There are four key components of the materials management module to help accomplish this. First is master data. As in other SAP modules, accurate master data is required to drive all other transactional processes. MM master data includes material master records, which must be set up before materials can be purchased externally. Another key master data element are supplier records that have all the physical and financial information about a vendor that a company can buy from. The second component of the MM module is purchasing. Purchasing includes activities, like getting quotes from vendors, creating purchase requisitions, and creating formal requests for goods or services called purchase orders. The third component of materials management is inventory management. Inventory management deals with materials once they have been received. Important inventory management functions include goods receipts, which records delivery of outside goods and stock transfers, which move materials from one storage location to another. Finally, the fourth major component of MM is physical inventory. Physical inventory determines if inventory quantities in the system are correct and flags any discrepancies. Common transactions in physical inventory are entering inventory counts and posting any inventory differences. The key benefit of materials management is an efficient supply chain that helps us increase productivity and reduce costs by handling all our materials efficiently.

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