SAP MM Module Overview | Warehouse | Leadership & Mentoring

REMSC, 2011-04-27

SAP Material Management MM Module Overview Doc no: 9AKK105408A1193

 ABB LMS – SAP Material Management MM Module Overview – lesson summary Key learning: 

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Fundamental SAP Material Management (MM) knowledge, including its organization structure Basic knowledge about the MM functionality and its master data Overview on the integration of the MM module into several other modules

What will happen: This slide based training will start with general SAP information on the SAP MM module, covering the general functionality and organization structure. The main part of this learning is about the master data in the MM module, especially pertaining to the material master. The learning concludes with a high level overview on module integration enumerating the relation and dependencies of the MM module with other modules.

Duration of this lesson : 20 min © ABB Group  April 13, 2012 | Slide 2

SAP MM Module Overview Table of content 

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Objective of the MM module MM module functionality Master Data Module integration

SAP MM Module Overview MM - Objective 

The MM (Material Management ) Module is a core module of the logistics functionality of SAP. 

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It integrates closely with other modules like SD (Sales and Distribution), PP (Production Planning), FI (Finance) and CO (Controlling). It contains key functions of SAP including Purchasing, Inventory Management and Goods Receipt.

It includes creation and maintenance of Master Data such as Material Master, Vendors and Purchasing Info Records.

SAP Material Management MM - Process Overview

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SAP Material Management MM - Organization Structure

Client

AU01

Company Code

Plants

Storage Locations

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AULA

MN01

FG01

AUDI

MN01

AUMN

FG01

FG01

SAP Material Management MM - Organization Structure 

Plant  An organizational unit within a company where an activity takes place. A plant produces goods, renders services or makes goods available for distribution. It can be a manufacturing facility, warehouse distribution centre or a regional sales office.

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Storage Location Storage locations are organizational units that allows the differentiation of material stocks within a plant.

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SAP Material Management MM – Master Data Master Data in the MM Module are 

Material Master  All the information your company needs to manage a material is stored in a data record in the material master. (see next slides)

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Vendor Master The vendor master contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as: 

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The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff)

SAP Material Management MM – Master Data Master Data in the MM Module are 

Info Record The info record is a source of information for purchasing and contains information on a specific material and a vendor supplying the material. For example, the vendor's current pricing is stored in the Inf o record. The info record allows buyers to quickly determine: 

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Which materials have been previously offered or supplied by a specific vendor. Which vendors have offered or supplied a specific material.

Service Master Repository for the descriptions of all services that a firm frequently has to procure. There is a service master record for each individual service description.

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SAP Material Management MM – Material Master Material Master 

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 All the information your company needs to manage a material is stored in a data record in the material master. The data in a material master record can be divided into two categories: 

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Data of a purely descriptive nature Data that the system uses to perform a control function

Material Number : For every material that your company uses, you must create a material master record in the material master. This record is uniquely identified by a material number.

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Industry Sector: The industry sectors have control functions in the SAP system. For example, it is factor determining the screen sequence and field selection in a material master record. Once you have assigned an industry sector to a material, you cannot change the industry sector again afterwards. In ABB we only use “Mechanical Engineering”

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SAP Material Management MM – Material Master 

Material Type: Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. This is important especially with regard to Accounting and Inventory Management. Examples of material types are: ERSA (Spare parts); HALB (semi finished products ); ROH (raw material); DIEN (services) etc.

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Material Group: Grouping of materials and services according to their characteristics (e.g.. Bearings, Electrical Cables, etc…). In ABB we use the MDF code in this field.

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Unit of Measure: Different parts of the business can measure quantities in different units e.g. Piece, box, crate, pallet

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SAP Material Management MM – Material Master Overview: 

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The material master contains different business related views, these are governed by the material type selected Basics Data is always required and shared between countries, so care should be taken when creating or changing this data. Other tabs can be selected to meet the business requirements e.g.. Warehouse Management views are only relevant to businesses with Advanced Warehouse functionality.

SAP Material Management MM – Material Master 

Material Master primary view Basic data is created at client level and is shared between plants and countries. Plant level data is specific to individual businesses. E.g.

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SAP Material Management MM - Integration 

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MM integrates with other modules and functions in the SAP environment.