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MATERIALS MANAGEMENT
MATERIALS MANAGEMENT D DE EF FIN M Ma ate terial o or rg ganizing th the eir ir i in ni itia th the e s se er rvice INIT ITIO rial ma anizing a an nd d c co on ntr trolling tial l p pu ur rchase vice p po oi in nt t th thr ro ough ION: N: manage nagemen ment t i is s c co onc olling th the e f fl lo ow chase th thr rough ugh d di is str trib ibut ution ned d w wi ith th p pl la anni w o of f m ma ate terials ough i in nte ternal ion. . nce er rne nning rials f fr ro om rations ng, , m rnal o op pe erati ons to to T To o G GE ET T T Th he e R Ri ig ght R Ri ight A At t t th he e R Ri ig ght A At t t th he e R Ri ig ght A At t t th he e R Ri ig ght Ai m S SC CO OP PE E ht q qu ua al lity ght q qu ua an nti tity ht t ti im me e ht p pl la ac ce e ht c co os st t ity 5R ty o of f s su up pp pli lies es Emphasis on the acquisition aspect Inventory control and stores management Material logistics, movement control and Handling aspect Purchasing, supply , transportation , materials handling etc.
MM in SAP The Materials 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.
Purchasing 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. MRP It includes, Reorder point procedure Forecast-based planning Time-phased materials planning Service master It provides a basic process for the procurement of externally performed services. Valuation It includes material price change, balance sheet valuation, actual costing/material ledger Foreign trade Manage import and export processes, integrating them efficiently into the supply chain Logistic invoice verification It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. Product catalog The materials and prices in the product catalog
ORGANIZATIONAL STRUCTURE T Th he e o or rg ganiza f fr rame i is s c co on nducte anization work o of f a a c co om mpan ducted. d. tional al s str tructu uctures pany y i in n w wh hi ich res f fo or rm m a a ch b bu us siness amework iness 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).
ORGANIZATIONAL STRUCTURE Client M MM M ST STRU RUCTURE CTURE Company code Company code Cl Cli ie en nt t C Co om mp pa any P Pl la ant St Sto orage P Pu ur rch P Pu ur rch Plant Plant Plant ny co code de Storage location Storage location Storage location nt rage l lo oca chasin chasin cati tion on S Sub ub Mo Mod dul ule es s o of MM f MM asing g o or rg ga an niza asing g g gr ro ou up p izati tio on n M Ma at te eri ria al l P Pl la ann P Pu urc rchasi I In nv vent Ve I In nvo S St ta at tutory nning ing hasing entor ory y M Ma an na agement Ven nd dor or Va voic ice e Ve utory R Re eq qu uir irements ng gement ation Veri rif fica Val lu uation ication tion ements
C Cl li ien Represents a grouping or combination of legal, organizational, business and/or administrative units with a common purpose. ent: t: C Co om mp pa an ny y C Co od de e: : 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. S St to or ra age This level contains the data specific to a storage location. Stock levels are an example of the data maintained for each storage location. ge L Lo oc ca at tio ion n: : P Pu ur rc ch hasin 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. P Pu ur rc ch hasin 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 asing g O Or rg ga an niza izati tio on: n: asing g G Gr rou oup p: :
Determine requirements Invoice verification Source determination Materials management goods receipt and inventory management Vendor selection Order-follow up Order processing
JOB roles of SAP 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
Reaching SAP implementation guide(IMG) Menu Path: S SA AP P E Ea as sy y A Ac cc ce ess ss T To oo ol ls s C Cu us st to omiz I IM MG G E Ex xe ecute mizin ing g cute P Pr roj oje ect ct
Configuration nodes related to MM & other Modules
Creating plant Menu Path: S SA AP P I IM MG G E En nt ter erpri D De ef fini L Lo ogi gistics D De efi fine, C Ch heck prise se S St tr ructu ucture re initio tion n stics- - g ge ene ner ral al ne, C Copy eck p pla lan nt t opy D De elete, lete,
Creating storage location Menu Path: S SA AP P I IM MG E En nt ter erpri D De ef fini M Ma at teri M Ma ainta s st tor orage G prise se S St tr ructu ucture re initio tion n erial als s m ma ana nagem gemen ent t intain age l lo ocatio in cation n
Creating purchase order
• Invoicing Invoice Posting Variances and Blocking Reasons Release Blocked Invoices Automatic Settlements - Evaluated Receipt Settlement (ERS) • Valuation and accounts assignment Materials Price Change Materials Valuation Type Configure Automatic Account Determination • Materials Requirements Planning (MRP) Planning Requirements Over All Procedures Planning Run • Reporting in SAP MM Reporting at Document Level Reporting with the Logistics Information System • Configuration Enterprise Structure in MM Materials Master Purchase Requisition • Integration of MM with various modules Overview of integration of MM with other SY SYLL LLABUS ABUS • Basic overview SAP overview SAP MM overview • Procurement process in SAP MM Master Data Materials Master Vendor Master • Inventory management Goods Receipt purchasing Special stocks and special procurement types source determination release procedures for purchasing documents Goods Issue Transfer Posting Reservation Physical Inventory
Salary range for SAP MM consultant
CO CONC NCLU LUSI SION ON • SAP SD module 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.