Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
SAP MM
SARIKA S. BHALSHANKAR
Sarikab2001@gmail.com
SHEETAL G. PATIL
Ass.prof. Dr. D Y Patil Institute of MCA, patil.sheetal8387@gmail.com
ABSTRACT
SAP ERP is enterprise resource planning software
developed by the German company SAP SE.SAP
integrates all business functions. This paper focuses on
SAP MM Module which is a part of supply chain
management.
INTRODUCTION
An ERP was fabricated in view of the previous SAP R/3
programming. SAP R/3, which was authoritatively
propelled on 6 July 1992, comprised of different
applications over SAP Basis, SAP's arrangement of center
product projects and instruments. All applications were
based over the SAP Web Application Server. Expansion
sets were utilized to convey new highlights and keep the
center as steady as could be expected under the
circumstances. The Web Application Server contained
every one of the abilities of SAP Basis.
A total design change occurred with the presentation of
my SAP ERP in 2004. R/3 Enterprise was supplanted with
the presentation of ERP Central Component (SAP ECC). The
SAP Business Warehouse, SAP Strategic Enterprise
Management and Internet Transaction Server were
likewise converged into SAP ECC, enabling clients to run
them under one occasion. The SAP Web Application Server
was wrapped into SAP NetWeaver, which was presented in
2003. Structural changes were additionally made to help
an endeavor benefit design to progress clients to a Service-
situated architecture.
The most recent variant, SAP ERP 6.0, was discharged
in 2006. SAP ERP 6.0 has from that point forward been
refreshed through SAP upgrade packs, the latest: SAP
improvement bundle 8 for SAP ERP 6.0 of every 2016.
INTRODUCTION TO SAP
Organizations of any size utilize their store network
capacity to buy things either to make completed products
or to give administrations. Prior to an obtaining division
can buy material in SAP, the office's one of a kind
foundation must be designed. To plan a structure that best
addresses a business' issues, you have to comprehend the
SAP hierarchical structure and the choices a buying
division needs to make.
SAP PURCHASING ORGANIZATIONAL STRUCTURE
Each acquiring division is novel, however the association
structure characterized inside SAP will enable an
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
organization to embrace best practices so as to boost the
advantages of the framework.
PURCHASING ORGANIZATION - This is the most elevated
amount of the obtaining framework. A buying association
is characterized as a gathering of acquiring action that is
related with all or a particular piece of the endeavor.
On the off chance that an organization has countless that
are topographically free then every region may have their
own obtaining association. In any case, an independent
venture with maybe a couple areas may just utilize one
buying association.
PURCHASING GROUP - The acquiring gathering can be
characterized as a man or gathering of individuals
managing a specific items or gathering of items that are
obtained through the buying association. In bigger
associations there are frequently gatherings of acquiring
experts in the obtaining office who work with specific
providers or kinds of providers.
Buying Documents
There are various acquiring archives that are utilized by
buying divisions in SAP.
PURCHASE REQUISITION - If an item is required through
the creation arranging process, a buy demand can be
produced. Items and administrations not some portion of
the arranging procedure can be asked for physically
utilizing a buy demand.
A demand can be made by approved clients and they will
either ask for things from an electronic inventory or by
entering orders straightforwardly into the SAP framework.
On the off chance that an order is raised for a thing that
isn't been bought some time recently, a demand for
citation can be made and sent to existing or new
merchants.
REQUEST FOR QUOTATION - If the item can't be
purchased from contracted provider or the cost and
quality isn't adequate, the acquiring office can send new or
existing providers a Request for Quotation (RFQ). The
provider can survey the RFQ and send back their best cost
and conditions for the things.
QUOTATION - When the provider sends back their
citations, they can be gone into SAP and after that the
buying office can survey and look at. There might be some
arrangement with the providers for the best citation,
where the acquiring division will attempt to get more good
conveyance times, rebates or cargo costs.
PURCHASE ORDER - This is a business report issued by an
acquiring office to the merchant, which distinguishes the
19 | P a g e
 Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
item or administration required, the amounts, and
arranged value that the provider and buying office have
settled upon. It is conceivable to set up the framework with
the goal that a merchant needs to recognize that they have
gotten the buy arrange.
Likewise, it is conceivable to expect merchants to send a
propelled transporting notice, with the goal that it is
conceivable to know when the things are to be conveyed.
Contracts - Instead of a solitary buy arrange with a
merchant, it is conceivable to make a contact where the
seller consents to send a specific amount of the things over
a specific timeframe. Likewise, the agreement can be an
esteem contract where rather than an amount; the contact
is for an aggregate sum of products bought over a specific
period.
Scheduling Agreement - This concurrence with the
merchant implies that there will be an agreement to supply
a the things at planned interims over some stretch of time.
SAP's Purchasing capacity was composed so its clients can
enable their associations to give their clients the requests
those clients need, when those clients need those requests
- and finish that by spending as meager on stock as would
be prudent.ck as would be prudent.
PURCHASING MODULE OF SAP
PLANNED PROCUREMENT OF RAW MATERIALS
SAP Business One gives a usefulness called Material
Requirement Planning (MRP) which computerizes the way
toward discovering the potential material deficiencies as
for a proposed satisfaction of a business design.
Framework totals all request components and does in
reverse computation of materials and sub-congregations
required and makes suggestion on what thing should be
acquired, in how much amount and what ought to be the
PO discharge date.
This procedure can deal with every one of the things
are a piece of the bill of material of any FG or WIP.
Procurement of consumables based on inventory levels
Certain things, ordinarily found in C class, should be
arranged in light of utilization.
SAP Business One gives a usefulness by which clients can
store the base and most extreme stock amount (area
savvy). Further, the framework suggests obtainment
recommendations in light of the trigger of stock falling
underneath the base level.
REDUCTION IN MAVERICK SPENDS
Free thinker spend implies putting orders at costs higher
than the costs consulted in contract, typically managed
without counseling the obtainment office.
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
SAP Business One will put an entire end to such
obtainment and will ingrain a much taught process for
getting material and administrations. Just approved clients
from buy office can bring Purchase Orders up in the
framework.
AD HOC PROCUREMENT WILL BE MINIMIZED OR
ELIMINATED
These occurrences will be either killed or decreased
radically with SAP Business One. No material will be
permitted to enter the premises without a PO in the
framework. Purchasers who are to blame, will have clarify
the explanation behind such obtainment to higher ups
before having the capacity to get their specially appointed
PO (at higher rate) affirmed.
PO APPROVALS
It is essential to have a built up expert framework in any
obtaining association.
SAP Business One enables you to set up esteem based
standards that assistance the framework decide naturally,
as to whose endorsement is required for a specific PO in
the framework. Obviously, acquisition against a PO is just
conceivable in the event that it approved/affirmed by the
concerned specialist.
Since this procedure can't be evaded, administration can
be guaranteed of the way that no untoward practices can
win in the organization.
System Control on buying prices
At the point when manual frameworks are utilized it is
conceivable that rates in the buy request may, either
incidentally or deliberately, be higher than what has been
conceded to contract or value list.
With SAP Business One, there are two courses by which
such circumstances can be dispensed with. Alternative one
is to utilize a value list usefulness. Utilizing this, the
framework will naturally populate the cost as kept up in
the value rundown and client will be enabled just to
diminish the cost, if at all progressions are permitted.
Second alternative is to utilize the usefulness called
Blanket PO where an agreement is made in the framework
for a blend of thing and seller and every single further Po
for a similar mix will fundamentally pick the costs from
this agreement and client will be enabled just to diminish
the cost, if at all progressions are permitted.
EXACT BOOKKEEPING OF MATERIAL SENT BACK TO
SELLER/H5>
Utilizing the buy return usefulness, clients can guarantee
that the stock amount, its esteem and merchants credit
sum are balanced properly at whatever point material is
sent back to seller.
20 | P a g e
 Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
TRACKING OF PERFORMANCE OF VENDORS
A report can be effortlessly built up that will track the
execution of the seller as far as conveyance (genuine v/s
arranged conveyance date) and rate dismissal and a score
can be touched base at. This score/rating can be refreshed
in the seller ace and can be utilized for key choices.
Dispose of the likelihood of business exchanges did by your
group with mala fide expectation
An organization that works with manual procedures is
presented to the danger of false exchanges did by staff.
With SAP Business One, you can execute isolation of
obligations (SOD) extensively to guarantee that no single
framework client can complete exchanges that can be
conceivably hurting to the organization monetarily. For
instance, a staff part ought not be permitted to raise the PO
and furthermore make installments. With all around
organized approval profiles such conceivable outcomes
can be disposed of.
Notwithstanding this you can execute different business
decides that may avert undesired exchanges. For instance,
forbidding great receipt amount to be in abundance of as
far as possible characterized.
Such abilities influences your organization to free of such
exposures and administration can uninhibitedly
concentrate on business development and other key
activities without being worried about mal hones.
Eliminate the possibility of business transactions carried
out by your team with mala fide intention
You can email the PO to your seller from inside the SAP
framework, accordingly making it more gainful process.
You can likewise send SMS alarms to your sellers for pre-
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
characterized triggers say, arrival of installment, dismissal
of material, charge note and so on.
REFERENCES
1) "SAP Project - A Step-by-step SAP Implementation
Guide". Udemy. Retrieved 2017-02-15.
2) "Calculating the Opportunities and Benefits of
Implementing ERP Software through a Risk Lens".
INDUSA Technical Corp. - Software Outsourcing |
Microsoft Partner Company | Software Solutions.
Retrieved 2017-03-21.
3) Oehler, Christian; Weiss, Thomas (15 December 2009).
"Get Ready to Implement SAP Enhancement Packages
for SAP ERP 6.0". SAP Experts. Retrieved 2 August
2017.
4) Everett, Cath (2008-02-13). "Companies warned over
custom SAP costs". UK: zdnet. Retrieved 2009-03-08.
"Around 90 percent of European SAP customers could
save six- or seven quid each year by avoiding the
creation of bespoke code on top of the ERP platform,
an IT consultant has claimed"
5) Rau, Sabine (13 April 2016). "SAP ERP Enhancement
Package 8, what is new?". SAP Blogs. Retrieved 2
August 2017.
21 | P a g e