SAP Material Management and How to Use:-

SAP Enterprise Resource Planning (ERP) is a business software that integrates all the
knowledge in a separate software, considering various factors such as time and cost.
Corporations can easily meet their business requirements with the help of SAP.

SAP Business Process:-

SAP MM is the small form for SAP Material Management system. The roles of SAP
MM(Material Management) in a business process are as follows:
• It supports all aspects of MM (planning, control, etc.).
• A business method in SAP is termed as a “module”.
• It is the backbone of logistics that incorporates modules such as SD, PP, PM, PS, and WM
• SAP MM is a part of logistics purposes and it helps in handling the obtainment activities of an

organization.

Features of SAP MM:-

The features of an SAP MM system are as follows:

• It deals with those Procurement Process, Master Data, Account Measurement & Estimate of
Material, Inventory Management, Invoice Verification, Material Requirement Planning, etc.
• It deals with managing the material and resources of an industry with the aim of hastening
productivity and defeating costs. At the same time, Systems Applications Products Material
Management is quite able to help changes that are common in any business environment.
• MM (Material Management) as a method ensures no deficiency of materials or any gaps in the
quantity string process of the business. SAP MM speeds up the procurement and Material
Management movements, making the business run easily with complete time and cost efficiency.
• Systems Applications Products Material Management is one of the modules of SAP that deals
with MM and inventory management

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SAP MM ─ Screen Navigation:-

The first step to understand SAP is to have a primary awareness of its different screens. The
following parts describe how to navigate through the screens available in Systems Applications
Products (SAP) and how to use the functionalities of the regular toolbar.

Login Screen
Log on to the SAP ERP server. The SAP login screen will help you for the User ID and the
Password. Give a valid user ID and password and press enter. The user id and password are
given by the system administrator. The login screen looks as follows:

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Standard Toolbar Icons

The next screenshot displays the toolbars possible on the SAP screen.

Presented below is a brief summary of the available toolbars:

• Menu Bar - Food(menu) bar is the top line of the dialog window in the SAP mode.
• Standard Toolbar – This toolbar adds standard functions so as for saving, top of a page, end of
the page, page up, page down, copy, etc.
• Title Bar - Title bar represents the name of the application/business process you are currently
in.
• Application Toolbar – Application-specific menu options there available on this toolbar.
• Command Field - To start a business importance without operating within menu transactions,
some logical codes are allocated to the enterprise processes. Transaction and best sap mm
training in hyderabad ameerpet on codes are listed in the command field to start an request
directly.

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Standard Exit Keys:-
Exit keys are done to exit the module or to log off. They are managed to go back to the last
accessed screen. The following screenshot highlights the standard exit keys used in SAP:

New Session Icon:-

For creating a new session, we use the following keys shown in the screenshot below:

Log Off:-
It is a great method to log off from the SAP system when you complete your work. There are
many ways to log off from the system, but it can be done using the following instructions as
given in the screenshot below:

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SAP MM(Material Management) Procurement Process:-

Each business acquires material or assistance to achieve its business needs. The method of
buying materials and obtaining services from merchants or dealers is called procurement.
Procurement should be done in such a way that materials are placed false quantity, with a proper
value at the proper time. It is subdivided into following parts:
• Special Procurement
• Basic Procurement

Basic Procurement

Basic procurement is a method of obtaining goods or services in the right size, at the right price,
and at the right time. But, it is critical to maintaining a right balance in quantity, price, and time.
Consider the following example:
• Groups try and keep inventory levels at a point, due to the prices associated with big levels of
inventory; at the equal time, it can be detrimental to stop production due to the shortage of raw
materials.
• Getting the minimum value for a product or service is often required, however, it is equally
necessary to have a balance between the product availability, quality, and merchant (seller)
relations.

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Procurement Lifecycle
Procurement in most modern groups follow some sequential steps which are described below:

Requirement and Information Gathering

Procurement method starts by finding information about a product and its capacity. Then for the
needed products and services, it is necessary to look for suppliers who can satisfy the
requirements.

Supplier Contact
After collecting the requirements, one sees for the suppliers who can fulfill those requirements.
Based on that, quotation requests or data requests are sent to the suppliers or they are contacted
directl best sap mm training in hyderabad ameerpet.

Background Review
Once the supplier is identified, the product/service quality is checked, and any necessities for
services such as insulation, warranty, and support parameters are investigated. Any examples of
the goods can be received for quality examination.

Negotiation
Some agreements with suppliers are made about the price, availability, and transfer list of the
products/services. Thereafter, a treaty is signed that is a binding legal report between the supplier
and the ordering party. A contract will include all necessary information such as cost and size
material, delivery date, etc.

Order Fulfillment
The required material is sent, given to the ordering party, and the supplier is paid equally.
Training and establishment of product or services may also be included.

Consumption, Maintenance, and Disposal

As the products/services are consumed, the performance of the products or services is evaluated
and any follow-up service support, if required, is analyzed.

Contract Renewal
Once the goods or services are consumed or the contract expires and needs to be renewed, or the
merchandise or service is to be re-ordered, the knowledge with the venders and service
providers is reviewed. If the products or services are to be re-ordered, the organization decides
whether to order from the previous supplier or think about new suppliers sap mm training
institutes in Madhapur.

Basic Procurement Activities

The following figure illustrates the flow of basic acquisition activities:

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Procurement Activities Description
It is the logical group where it is selected what material or services are needed, and
which supplier can fulfill the requirements.

Determination of requirement
It is the phase in which the buying department is notified about the requirement
of items or services assistance. A request is an intestinal document.

Creating purchase requisition

It is the phase when an order is created from the request and it is
accepted and allowed to a supplier.

Creating purchase order

It is the phase in which the material is received by the corporation and its position and
quality are being inspected. In this phase, an invoice is collected from the vendor (seller).

Goods receipt/ Invoice received

It is the phase in which the merchant (seller) is paid by the organization and reconciliation
of the invoice and PO is accomplished.

Invoice verification/Vendor Payment

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A brief introduction of the procurement activities is given below:

Type of Basic Procurement:-

There are two types of basic procurement:

• Procurement for Stock vs Consumption
• External vs Internal Procurement

Procurement for Stock vs Consumption:-

The following points give the difference within Procurement for Stock vs. Consumption:
• Acquisition for Stock - A stock material is a material that is kept in stock. These materials are
kept in assets once obtained from the merchant. The stock of this material keeps on growing or
decreasing based on the value of quantity obtained or issued. To obtain a material for stock, the
material must have a control record within the system.
• Procurement as Following Destruction - When the procurement is for basic expenditure, i.e., it
will be used as early as it is received, the user should

specify the consumption purpose. To apply a material for forming, the material may must a
preceptor record in the system.

External Procurement vs Internal Procurement:-

The following points show the difference between External vs Internal Procurement:
• External procurement - It is the method of obtaining goods or services from external merchants.
There are three basic forms of outside procurement usually maintained by the purchasing
component of the IT system.
> One-time orders are generally used for material and sets that are required erratically.
> Longer-term agreements with following the issue of release orders - For materials that are
doing ordered exactly and in large sizes, we can negotiate a deal with the merchant (seller) for
pricing or provisions and record them in a convention. In a contract, you also define the gravity
date.
> Longer-term scheduling systems and received schedules - If a supply is required on a daily
basis and is to be performed according to a specific time schedule, then you set up a scheduling
agreement.
• Internal Procurement - Large corporate groups may own various separate industries or
companies. The internal acquisition is a process of getting material and services from same
companies. So, each of these groups maintains a complete recording system with separate
Balance, Profit, and Loss Descriptions, so that when any enterprise happens between them, it
will be recorded.

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Special Procurement
Specific stocks are the stocks that are managed individually, as these stocks do not belong to the
group. Special stocks are kept at some particular location. Special acquisition and first stock
types are classified into the following sections:

Consignment Stocks
Consignment stocks are that supply that is possible at our store premises, however, it still
belongs to the merchant (seller) of the material. If you use the material from consignment stocks,
then you have to pay to the merchant.

Third-party Processing
In third-party processing, an organization declares on a sales order to the associated external
merchant (seller) who sends the goods directly to the customer. The sales order is not processed
by the company, but by the merchant (seller). 3rd-party items can be entered in purchase
requisitions, purchase orders, and sales order sap training in hyderabad ameerpet.

Pipeline Handling
In pipeline handling, the company need not order or store the material involved. It is accessible
as and when needed via a pipeline, for example, oil or water, or another style of cable (such as
electricity). The material that is used is settled with the merchant (seller) on a regular basis.

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