Intro/Overview of MM MM_300_1.

1
MM300 - Introduction to MM
The Materials Management (MM) module is aimed at
managing procurement and receipt of materials &
services. Materials management also involves storage,
movement, valuation & consumption of materials.
This course will focus initially on the management of
goods. Services are covered near the end in a separate
section on External Services Management.
Note that internal services are not covered in this course
as they are not purchased. They can be managed via the
Production Planning and/or Plant Maintenance and/or
Project System modules.
Intro/Overview of MM MM_300_1.2
Materials Management
(MM) Overview
The SAP Materials Management (MM) Module provides a
comprehensive solution for Materials Management within
the integrated supply chain. Also, it supports other logistics
functions such as plant maintenance and project
management, which also require materials information. MM
works as part of an on-line, real-time system for processing,
maintaining and recording integrated transactions.
Objectives:
Provide a general overview of the Materials Management
(MM) Module and the relevant sub-modules.
Understand what is meant by the integrated supply chain
Identify areas where MM and other SAP modules
integrate.
Intro/Overview of MM MM_300_1.3
MM Overview
(Sub-Modules)
MATERIALS PLANNING
PURCHASING
INVENTORY MANAGEMENT
INVOICE VERIFICATION
VALUATION
Intro/Overview of MM MM_300_1.5
MM Overview
How does SAP view MM?
Intro/Overview of MM MM_300_1.6
Supply Chain Management: The delivery of enhanced customer and economic value
through management of the flow of physical goods and
associated information.
Information Flow
Demand
Product Flow
Supplier Purchasing Production Distribution Retailing Customer
Financial
Control
Human
Resources
MM Overview
The Integrated Supply Chain
Intro/Overview of MM MM_300_1.7
Inventory Management
Warehouse
Management
Accounting
Requirement
Production
(Internal Procurement)
Material Requirements
Planning
Goods
Issue
Transfer
Posting
Purchasing
(External Procurement)
Goods Receipt
Sales and Distribution
Invoice
Verification
Invoice
Demand Stocks
Forecast
MM Overview: Procurement Cycle
Intro/Overview of MM MM_300_1.8
MM300 - Introduction to MM
Chapter 1 - Review
The functions supported by MM - Materials Management
include the following sub-modules:
Material Requirements Planning (MRP)
Purchasing
Inventory Management
Material Valuation
Invoice Verification
Note that the Procurement cycle for goods/services is
only completed once payment has been made by Finance
(through the FI module)