SAP stands for Systems, Applications and Products in Data Processing. Five German
Engineers founded it in 1972. SAP is ERP software which large organizations use to manage
Their business. SAP has several modules, each of which represents a business-process.
Modules are usually abbreviated for the business process they represent. For instance, HCM is
Human Capital Management, FI for Financial Accounting, MM for Materials Management and
SD is Sales & Distribution and so on. All together there are some nineteen core modules.
These modules are highly integrated in real-time, which means, that if information is shared
Between modules then the data is entered only once. This reduces the chances of error arising
From repetitive entry and also reduces the man-hours. Managers and decision makers always
Have information at their fingertips and this helps them in effective decision making.
SAP has been around for nearly four decades. Nine out of ten Fortune-500 companies have
Already implemented SAP (not counting the thousands of to-be Fortune-500 companies that
Have SAP). There are well over 10 million SAP users worldwide and jobs keep popping up all
Around the world.
SAP is the leading ERP (Enterprise Resource Planning) software. Because of its liberal open architecture,
There are millions of programmers working around the world to provide interaction
Between thousands of major software and SAP.
SAP is usually implemented in phases. The first phase is when organizational structure and
Accounting components are configured, tested and then taken live. Gradually more modules are
The purpose of this book is to learn step-by-step general configuration methods for the MM
Module which has always been the backbone of Logistics. The course is built on menu path
Navigation of the Implementation Guide (IMG) and the application area.
Overview of Materials Management Module:
Materials Management deals with managing the materials (products and or services) resources
Of an organization with the aim of increasing productivity, reducing costs and increases
Optimization and at the same time be flexible to accommodate changes.
A business process in SAP is termed as “Module”. SAP Materials Management (MM) is a part of
Logistics area and helps to manage the procurement activity of an organization from
Procurement process, inventory management, invoice verification and material planning.
Materials Management is the backbone of the Logistics area which includes modules like Sales
And Distribution, Production Planning, Plant Maintenance, Project Systems, Warehouse
Management which are highly dependent on Materials Management module.
Materials management is highly integrated with other modules such as FI (Financial
Accounting), SD (Sales & Distribution), PP (Production Planning), QM (Quality Management),
PM (Plant Maintenance).
Is a process of acquiring goods and or services in the right amount, at the right price at the right
Time. Procurement can refer not only to buying of goods and or service, it also can include
Procurement process generally starts when there is a Demand or Request for a Material or
The request or demand leads to requesting quotes from Vendor/Suppliers for the material or
Vendor Selection is the next step after receiving the quotes from the vendors.
Negotiating the terms and conditions.
Creation of Purchase Orders
Receipt of Goods against Purchase Orders
Payment to the vendor/supplier