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SAP MM Modules: Key Functions Every Beginner Should Know

What is SAP MM?

Table of Contents

The SAP MM (Materials Management) Online Training and Certification Course is a specialist curriculum that features a complete overview of the SAP MM module, which is an important part of the SAP ECC (ERP Central Component).

The purpose of SAP MM is to manage an organization’s materials and the organization’s material resources. This includes control of material value, control of inventories, and procurement of materials.

The online course covers all aspects of SAP MM, including BOOM data, maintaining purchasing and inventory, verification of invoices, etc. The course will also cover the settings required to customize SAP MM for an organization. After completing the course, Participants can choose to complete additional SAP MM training, thus demonstrating their mastery of this subject. In this blog, we provide you with the major functions of SAP MM modules for every beginner.

SAP MM Modules: Key Functions Every Beginner Should Know - Nextnow Canada

Features of SAP MM

Material Management (SAP MM) is a critical part of SAP ECC because it provides support for the complete supply chain process. It also covers all aspects of buying things to paying for them. It allows a group to have a single source for managing all of its material-related activities. The important features of SAP MM include:

The ability to connect with other SAP modules, such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), and Plant Maintenance (PM), to ensures a seamless flow of information for business processes.
A comprehensive Vendor Master Data management solution that provides a single source of truth for managing and obtaining information about vendors.
Purchase Order Management and Purchase Requisition Management support processes that allow groups to acquire goods and services more effectively.
Inventory management features that allow you to keep track of and manage stock movements (goods receipt, goods issue, and stock transfers).
Material Requirement Planning (MRP) functionality that assists groups with forecasting and planning for their future material requirements.
The implementation of automated steps and processes for accounting items and inventory valuations ensures that resources are valued accordingly and that the general ledger is updated accurately.

All of these features make SAP MM a complete and reliable tool for handling goods and materials, which generates higher profits and efficiency.

Components of SAP MM

SAP MM (Materials Management) contains many components, each dealing with a portion of materials management. Here is a summary of your components:

MM – CBP (Consumption-Based Planning): This component involves planning based on previous consumption patterns of items. The component helps to identify what items are needed, how much is needed, as well as when they will be consumed.
MM – PUR (Purchasing): This component is critical and processes all purchasing activities such as purchase requisitions, purchase orders, goods receipts, and invoice verification.
MM – SRV (External Services Management): This component is responsible for processing external services. This may include processing service contracts, service entries, and service provider invoicing.
MM-IV (Inventory Management): Inventory Management is responsible for managing stocks in terms of both quantity and value, as well as the planning, entry and documentation of all goods movement for the plant’s storage facility.
MM- IV (Logistics Invoice Verification): Logistics Invoice Verification is not the same as Inventory Management since it only takes place after the goods are received.

These parts are very important to the SAP MM module, and if they work together, then they make a complete system of handling an organization’s inventory and material needs.

Benefits of SAP MM

SAP MM provides various benefits to the organization by delivering a streamlined and integrated approach to controlling material procurement, inventory, and any related processes. SAP MM authorizes businesses to optimize their supply chain operation with comprehensive functionalities and seamless integration with other SAP modules. Mentioned below, we provide you with the benefits of SAP MM:

Enhanced procurement efficiency and cost savings
Improves visibility and inventory control
Streamlines vendor management and collaboration
Timely reporting financial system
Better forecasting and effective demand planning
Improved traceability and compliance
Better decision-making through real-time insights

What You’ll Learn in SAP MM Online Training for Beginners?

A good SAP MM beginner learning course will cover all of the theoretical aspects and practical exercises. Here is an outline of the areas typically addressed:

A Brief Investigation of ERP and SAP

How ERP and SAP systems operate
Navigating through the SAP GUI
SAP MM’s position in the business organization methodologies

Organizational Structure

Business code, plants and garage locations
Companies and groups for purchasing

Master Data Management

Acquire the material
Acquire the vendor
Purchasing information

How to Purchase Something: Purchase Requisition

Requesting a quote (RFQ)
The Purchase Order
Verifying the Good Receipts and Invoices

Inventory Management

Comparison of stocks and brands
Inventories of goods, shift listings and problems
Movements of stock and physical inventories

Valuation and Account Deciding

Material’s valuation and cost
Automated writing to the account

Reports and data obtaining

MM-specific evaluations and analytics systems

Systems for MM review and data integration to other modules

MM and FI (to pay the bills)
MM and SD to make orders.
WM and MM (warehouse)

Conclusion

SAP MM is an important tool for businesses that need to manage procurement, inventory, and vendor relations efficiently. Through a SAP MM course, beginners can quickly learn the functions of this powerful module and apply them in real-world business scenarios. SAP MM provides the tools which is necessary to streamline operations like handling materials, managing suppliers, or optimizing inventory.

By selecting a course at Nextnow, you are setting yourself up for success, equipping the skills to navigate the world of SAP MM and take various challenging roles in supply chain management and procurement.