SAP Materials Management (SAP MM)

The Materials Management module (SAP MM) 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.
SAP Materials Management Components or Sub-Components:

Vendor Master and Material Master data

Consumption Based Planning or Material Requirements Planning (MRP)

Request for Quotation (RFQ)

Invoice Verification

Purchasing

Inventory Management

Physical Inventory

External Services Management

Procure to pay business process associated with the SAP MM module:

MATERIALS MANAGEMENT (MM)

In the following objects, the single role for the Materials Management (MM)
component is given;

VENDOR MASTER DATA

1. SETTLEMENT INFORMATION FOR THE VENDOR VIA THE INTERNET
Tasks
With this role, the vendor can check the settlement status that is the updated
quantities or settled values, of the supplying companys deliveries in the
customers system and monitor price agreements and goods receipts.
Activities in Materials Management

Display
Display
Display
Display

purchasing documents
price conditions
goods receipt history
settlement status

2. LIS ANALYSES FOR VENDOR EVALUATION (MM-PUR)

Tasks
This role enables you to analyze vendor evaluation data. The vendor
evaluation analysis enables you, for example, to monitor whether a certain
vendor delivers a material on time and in the desired quantity. The key
figures that can be analyzed are the scores for the criteria quantity reliability,
on-time delivery performance, shipping notification variance, and compliance
with shipping instructions.
Activities in Materials Management

Vendor evaluation analysis

3. MAINTAIN VENDOR EVALUATION (MM-PUR)

Tasks
This role covers all the activities necessary for vendor evaluation purposes.
Vendor evaluation provides a basis for decision-making with regard to the
selection and control of sources of supply. Vendors are evaluated on the basis
of the main criteria (delivery reliability, price, quality, and service) and are
awarded a score for each. These scores are calculated by the system for the
evaluation criteria taking into account user-defined weightings.
Activities in Materials Management

Maintain vendor evaluation

Display vendor evaluation
Re-evaluate automatic sub criteria
Display changes to vendor evaluation
Print evaluation sheet

4. VENDOR SERVICE CONDITIONS (MM-SRV)

Tasks
The activities of this role enable you to maintain conditions for the services
provided by a certain vendor.
Activities in Materials Management

Create vendor service conditions

Change vendor service conditions
Display vendor service conditions

MATERIAL MASTER DATA

1. LIS ANALYSES OF STOCK MATERIAL (MM-PUR)
Tasks
This role enables to analyze the purchasing activities of your enterprise by
displaying the statistical data on materials.
Questions that may be asked include the following: How much of which
material has been ordered?
Activities in Materials Management

Material analysis

REQUEST FOR QUOTATION

1.

PROCESS RFQ (MM-PUR)

Tasks
This role covers all the activities necessary to process a request for quotation
(RFQ).
An RFQ is used to request the vendor to submit a quotation for the supply of
materials or the performance of services.
If RFQs whose total value exceeds a certain figure require approval in the
company before they can be issued, the role Release RFQ is available for this
purpose.
Activities in Materials Management

Create RFQ
Change RFQ
Display RFQ
Maintain RFQ supplement
Release RFQ

1. RELEASE RFQ (MM-PUR)

Tasks
This role is used to release (approve) requests for quotations (RFQs).
An RFQ may be blocked via a release procedure (if its total value exceeds a
predefined value -say $10,000 - for instance). Before this RFQ can be
outputted (printed out or transmitted directly to the vendor), it must be
approved (i.e. released).
Activities in Materials Management

Release RFQ

2. MAINTAIN QUOTATION (MM-PUR)

Tasks
The activities of this role can be used to record and maintain the data
submitted to us by a vendor in a quotation (e.g. prices, conditions, and terms
of delivery) in SAP System.
Activities in Materials Management

Enter quotation
Display quotation
Quotation price comparison list

INVOICING
1.

ONLINE DOCUMENT PARKING (MM-IV)

Tasks
This role covers the activities necessary for online document parking. This
activity contains the functions for changing, deleting, and posting invoice
documents.
Activities in Materials Management

Park Invoice

2. ONLINE INVOICE VERIFICATION (MM-IV)

Tasks

This role covers the activities necessary for online invoice verification.
Activities in Materials Management

Enter Invoice
Display Invoice Document
Cancel Invoice Document

3. GR/IR CLEARING ACCOUNT MAINTENANCE (MM-IV)

Tasks
This role covers the activities necessary for maintaining the GR/IR clearing
account. The system makes postings to GR/IR clearing accounts at the time
of goods receipt. If, for example, the delivered quantity for a purchase order
item is not equal to the invoiced quantity, there is a balance on the GR/IR
clearing account.
The person responsible for account maintenance lists the purchase order
history with the differences. In order to archive invoice documents, the
difference must be cleared. If the balance is not cleared by more goods
receipts, return deliveries, invoices, or credit memos, the person responsible
for account maintenance has to clear the difference manually.
Activities in Materials Management

Maintain GR/IR Clearing Account

Display/Cancel Account Maintenance Document

PURCHASING
1.

GENERAL DISPLAY FUNCTIONS IN PURCHASING (MM-PUR)

Tasks
The activities of this role are used to display all documents and information
relating to Purchasing.
Activities in Materials Management

Display
Display
Display
Display
Display
Display
Display
Display
Display
Display
Display

purchase requisition
purchase order
RFQ
quotation
contract
scheduling agreement
info record
source list
quota arrangement
approved manufacturer parts list
vendor evaluation

Display RFQ message

Display purchase order message
Display outline purchase agreement message
Display scheduling agreement delivery schedule message
Display service entry sheet message
Display inbound delivery message
Subsequent (end-of-period rebate) settlement: Display messages for
settlement run
Display rebate arrangements for subsequent (end-of-period)
settlement
Display conditions for subsequent (end-of-period) settlement
Display conditions (Purchasing)

2. GENERAL ANALYSES IN PURCHASING (MM-PUR)

Tasks
The activities of this role enable to obtain an overview of purchasing
operations in the enterprise.
For example, we can run analyses of certain purchasing documents, compare
plants or vendors, or determine which purchasing organization is responsible
for the largest portion of the total order value.
With the aid of the order value analysis functionality, w can run an ABC
analysis or compare purchasing operations in two different periods.
Activities in Materials Management

General analyses relating to purchase orders

General analyses relating to outline purchase agreements
General analyses relating to RFQs
Analysis of order values
Purchasing transactions by requirement tracking number
Monitor subcontracting stocks per vendor

3. GENERAL FUNCTIONS IN PURCHASING (MM-PUR)

Tasks
This role covers activities for non-Purchasing staff (e.g. employees from
Production or Sales). For purchasing staff, these activities are available in
other roles.
Activities in Materials Management

Purchasing transactions by requirement tracking number

Monitor subcontracting stock per vendor
Display purchase order
Maintain vendor evaluation

4. OUTPUTTING PURCHASING DOCUMENTS (MM-PUR)

Tasks
This role covers all the activities that are necessary to output (print or
transmit) purchasing document messages and any associated reminders and
expediters to the vendor.
Messages are documents and other communications in output form for
transmission to the vendor via various media (e.g. local or remote printer,
regular postal service, e-mail, fax, EDI).
Examples: hardcopy of a purchase order, transmission of an RFQ via EDI or
fax.

Activities in Materials Management

Output purchase orders

Issue reminders/expediters re purchase orders
Monitor and output acknowledgments
Output RFQs
Issue reminders/expediters re RFQs
Output scheduling agreement delivery schedules
Issue reminders/expediters re scheduling agreement delivery
schedules
Output service entry sheets

5. PROCESS PURCHASE REQUISITION (MM-PUR)

Tasks
This role covers all the activities necessary to process a purchase requisition.
With a purchase requisition, you instruct Purchasing to procure a certain
quantity of materials or services on or by a certain date.
If requisitions whose total value exceeds a certain figure require approval in
the company before they can be issued, the role Release Purchase
Requisitions is available for this purpose.
Activities in Materials Management

Create purchase requisition

Change purchase requisition
Display purchase requisition

6. RELEASE PURCHASE REQUISITIONS (MM-PUR)

Tasks
This role can be used to release (approve) purchase requisitions.
A purchase requisition may be blocked via a release procedure (if its total
value exceeds a predefined value - say $10,000 - for instance). In order for
such a requisition to be processed further (e.g. converted into a purchase
order), it must first be approved, i.e. released.
Activities in Materials Management

Individual release for purchase requisitions

Individual release for purchase requisitions
Release reminder for purchase requisitions

7. PROCESS PURCHASE ORDERS (MM-PUR)

Tasks
This role covers all the activities necessary to process a purchase order. It
enables you not only to create and change purchase orders, but also to
convert requisitions into orders.
If purchase orders whose total value exceeds a certain figure require approval
in the company before they can be issued, the role Release Purchase Orders
is available for this purpose.
Activities in Materials Management

Create purchase order

Create purchase order vendor unknown
Change purchase order
Display purchase order
Assign source to purchase requisition
Assign and process purchase requisitions
Order for assigned purchase requisitions
Generate purchase orders from requisitions automatically
Maintain PO supplement

8. RELEASE PURCHASE ORDERS (MM-PUR)

Tasks
This role can be used to release (approve) purchase orders. A purchase order
may be blocked via a release procedure (if its total value exceeds a
predefined value - say $10,000 - for instance). Before this purchase order
can be outputted (printed out or transmitted directly to the vendor), it must
be approved (i.e. released).
Activities in Materials Management

Release purchase order

9. VENDOR CONFIRMATIONS (MM-PUR)

Tasks
This role covers activities for maintaining vendor confirmations. A
confirmation provides Purchasing with information from the vendor regarding
the status of a purchase order. A confirmation may take the form of an order
acknowledgment, a loading or transport confirmation, or a shipping
notification.
Activities in Materials Management

10.

Monitor and output acknowledgments

Monitor vendor confirmations
MAINTAIN PURCHASING INFO RECORD (MM-PUR)

Tasks
This role covers all the activities necessary to process a purchasing info
record. The purchasing info record is a source of information for Purchasing
on a certain material and the supplier of this material. It contains data such
as the vendors current prices and conditions for this material, the number of
the last PO, or the time interval in which the vendor can supply the material.
Activities in Materials Management

11.

Create purchasing info record

Change purchasing info re
Display purchasing info record
Display changes to purchasing info record
Flag purchasing info record for deletion
NON-ASSIGNED PURCHASING FUNCTIONS (MM-PUR)

Tasks
This role covers additional activities that are not covered by any other roles
(e.g. activities relating to conventional purchase orders.
Activities in Materials Management

Create purchase order

Change purchase order
Display purchase order
Create purchase requisition
Change purchase requisition
Display purchase requisition
Monitor order acknowledgment

Create conditions (Purchasing)

INVENTORY MANAGAMENT
1. REPORTING (MM-IM)
Tasks
The user has the task of monitoring the following data in the Inventory
Management component:

Stock data for companys own stocks

Stock data for external stocks
Data on stock types
Data on special stock types
Movement data for stocks

Activities in Materials Management

Display Stock List

Display Stock in Transit Cc
Display SLED/Date of Production
Display Valuated Special Stock
Display Stocks with Subcontractor
Display Availability Overview
Display Stocks for Posting Date
Display Material Items
Display Cancelled Material Documents
Display Material Document for Reason for Movement
Read/Display Material Document Archive
Display Consignment Stocks
Display Customer Consignment Stock and Returnable Packaging with
Customer

2. PHYSICAL INVENTORY (MM-IM)

Tasks
In Physical Inventory, the user has the task of creating and processing
physical inventory documents. After the physical inventory count is complete
and a recount has been carried out if required, he or she posts the inventory
differences and can print out a list of these.
Activities in Materials Management

Create Physical Inventory Document

Change Physical Inventory Document
Display Physical Inventory Document
Print Physical Inventory Document
Process List of Differences

Create List of Differences with Document

Create List of Differences Without Document
Print List of Differences
Recount Physical Inventory Document

3. REPORTING IN PHYSICAL INVENTORY (MM-IM)

Tasks
The user has the task of monitoring all the data relevant to physical inventory
in the Inventory Management component.
Activities in Materials Management

Display Physical Inventory Documents for Material

Display Physical Inventory Data for Material
Physical Inventory Overview
Display Changes
Physical Inventory List

4. CARRYING OUT A PHYSICAL INVENTORY (MM-IM)

Tasks
When carrying out a physical inventory, the user has the task of entering the
counted stocks in the system and changing and displaying physical inventory
documents if necessary.
Activities in Materials Management

Enter Physical Inventory Count with Document

Enter Physical Inventory Count without Document
Change Physical Inventory Count
Display Physical Inventory Count

5. LIST DISPLAYS (MM-IM)

Tasks
In the Inventory Management system, the user has the task of monitoring the
various stocks and stock types, of displaying goods movements that have
been posted, and of controlling stocks and requirements.
Activities in Materials Management

Stock Overview
List of Material Documents
Display Stock/Requirement Situation

EXTERNAL SERVICES MANAGEMENT

1. LIS ANALYSES OF SERVICES (MM-SRV)

Tasks
This role enables you to analyze the purchasing activities of your enterprise
by displaying the statistical data on services. Possible questions that might
be asked include: How much had to be paid for a certain service last year?
Activities in Materials Management

Service analysis

2. ENTRY OF SERVICES PERFORMED (MM-SRV)

Tasks
This role can be used to create service entry sheets. In service entry sheets,
the actual performance of services by a service provider with reference to the
relevant purchase order is reported.
The role Release Service Entry Sheets is available to release (signify approval
of) such entry sheets.
Activities in Materials Management

Service entry sheet

3. RELEASE SERVICE ENTRY SHEETS (MM-SRV)

Tasks
This role enables you to list service entry sheets that are subject to a release
procedure in order to either release them or cancel their release.
Activities in Materials Management

Collective release of service entry sheets