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Mm module sap
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- 2. MATERIALS MANAGEMENT DEFINITION: Material managementis 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 TheMaterials 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 materialprice 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 organizationalstructures 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).
- 6. ORGANIZATIONAL STRUCTURE MM STRUCTURE Client Company code Plant Storagelocation Purchasing organization Purchasing group Sub Modules of MM •Material Planning •Purchasing •Inventory Management •Vendor Valuation •Invoice Verification •Statutory Requirements
- 7. Client: Represents a groupingor 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
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- 9. JOB roles ofSAP 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 EasyAccess Tools Customizing IMG Execute Project Reaching SAP implementation guide(IMG)
- 11. click on “SAPReference IMG”
- 12. Configuration nodes related toMM & other Modules
- 13. Creating plant Menu Path: SAPIMG Enterprise Structure Definition Logistics- general Define, Copy Delete, Check plant
- 14. Creating storage location MenuPath: SAP IMG Enterprise Structure Definition Materials management Maintain storage location
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- 18. • Invoicing Invoice Posting Variancesand 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 forSAP 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 SDmodule 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.
Editor's Notes
- #3 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.
- #4 This is the materials management module role in SAP
- #5 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.
- #6 This is the organizational structure of MM module, this is very important in MM Module.
- #7 This is the structure of an organization in MM module and sub modules of MM.
- #8 This is the explanation of each factor in organizational structure of module MM in SAP.
- #9 Process flow of SAP MM module, this I have explained in one topic explanation in 17th slide.
- #10 These are the job roles of MM consultant in SAP.This data is integrated from different sources.
- #11 This is the screen shot for reaching SAP implementation guide (IMG)
- #12 Screen shot for SAP reference image.
- #13 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
- #14 Screen shot for creating a plant in MM module.
- #15 Screenshot for creating a storage location in SAP.
- #16 Screenshot for creating a purchase order
- #17 Screenshot for invoice verification
- #18 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.
- #20 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