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SAP MM

Logistics

Definition

SAP MM (Materials Management) is a module in SAP ERP software that manages procurement and inventory functions.

Detailed Description

SAP Materials Management (MM) is a core component of the SAP ERP system that ensures materials are available in proper quantities and at the right time. It supports all aspects of material management, including procurement, inventory management, material requirements planning, and invoice verification. SAP MM integrates seamlessly with other modules like Finance (FI), Controlling (CO), Sales and Distribution (SD), and Production Planning (PP), enabling efficient and effective material flow throughout the organization.

Key Features

  • Consumption-Based Planning
  • Inventory Management
  • Invoice Verification
  • Material Requirements Planning
  • Material Valuation
  • Procurement Management
  • Purchase Order Processing
  • Vendor Evaluation

Common Modules

SAP CO (Controlling)

Provides tools for internal reporting and financial analysis.

SAP FI (Financial Accounting)

Facilitates comprehensive financial management and accounting.

SAP PP (Production Planning)

Manages production planning and control activities.

SAP SD (Sales and Distribution)

Handles sales processes and distribution of goods and services.

Examples

Creating a Purchase Order

Steps to create a purchase order in SAP MM using transaction code ME21N.

Transaction Code: ME21N
1. Enter vendor details.
2. Specify the material and quantity.
3. Review and save the purchase order.

Displaying Stock Overview

How to view current stock levels using transaction code MMBE.

Transaction Code: MMBE
1. Enter the material number.
2. Execute to display stock quantities across different storage locations.

Popular Implementations

Inventory Management Optimization

Implementing SAP MM to optimize stock levels and reduce carrying costs through accurate inventory tracking.

Procurement of Raw Materials

Using SAP MM to manage the procurement of raw materials, from purchase requisition to goods receipt and invoice verification.