SAP MM Materials Management (beginner to expert)

Description

A warm welcome to the SAP MM course by Uplatz.

SAP MM (Materials Management) is a module of the SAP ERP software package from SAP AG that is used for Procurement Handling and Inventory Management.

SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Concepts such as Electronic Kanban / Just-in-Time delivery are supported within MM.

Materials management is integrated with other modules such as SAP SD, SAP PP and SAP QM. SAP MM is used for procurement and inventory management. The module has two important master data – material and vendor. Broadly, the various levels that can be defined for a SAP MM (Material management) implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.

SAP MM can be divided into five major components. These are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of sub-components.

SAP MM (Material management) is all about managing the materials i.e the resources of an organization. These resources include man, manpower and materials. The main functionality within MM (Material management) includes purchasing, Inventory management, valuation and assignment, batch management and classification. In simple words, SAP Material Management is a fundamental module of the SAP ERP (Enterprise Resource Management) system that manages the complete material supply chain and inventory management processes of an organization.

SAP MM is essentially an element of Logistics. It is counted as one of the most important modules when talking about SAP ERP software. The MM application module allows the user to manage and procure the data in a very organized manner. SAP MM module has plenty of aspects such as receiving and purchasing goods, material storage, inventory and most importantly planning based on consumption.

SAP MM is the key area within Logistics in SAP. It is very important component of Logistics because it is tightly integrated with all of other components of SAP Logistics. MM contains of the following components:

• MM-PUR : Purchasing

• MM-IM : Inventory Management

• MM-CBP : Consumption based Planning

• MM-IV : Invoice Verification

• MM-EDI : Electronic Data Inter-exchange

• MM-IS : Information System

  
  

This SAP Material Management (MM) course by Uplatz enables you to understand the end to end process of Supply Chain Management which helps the organization to optimize the inventory and effectively execute the procurement process. This course deals with the process of direct procurement to material requirement planning and from purchasing to pricing.

The SAP MM training provides you insight into various procurement and goods movement processes in an organization that aims in optimizing, increasing productivity and reducing cost while providing flexibility to accommodate changes.

This SAP MM training will help you gain complete knowledge on several components and sub-components of SAP Material Management, including Master Data, Purchasing, consumption-based planning, and Inventory. Our SAP MM course materials are designed in simple modules by industry experts for easy understanding and help you sail through the exam in the first attempt itself.

Course Objectives

SAP MM Module online training will train the student in all the aspects of SAP MM Module. By the end of the training program, one will be thorough will all the characteristics of the software. These comprise of:

• Source Determination

• Requirements Determination

• Correct selection of vendor

• PO Processing

• Follow up of PO

• Purchasing and receiving of goods along with efficient inventory management.

• And finally verification of Invoice

SAP MM - Course Curriculum

Introduction to ERP & SAP

• ERP Packages

• Introduction to SAP

• Functions and Objectives of MM

• SAP Logistics Cycle SD/MM/PP

• MM Flow And Procurement Types

SAP Navigation

Organizational structure of an Enterprise in the SAP R/3 System

• Company, Company code, Controlling Area, Plant, Storage Location, Purchase Organization, Purchasing group

• Controlling Settings (Cost Center and Cost Element Etc…)

Master Data

• Material Master

• Vendor Master

• Purchase Info Record

Source Determination

• Source List

• Quota Arrangement

Purchasing

• Purchase Requisition

• Purchase Order

• Request For Quotation (RFQ)

Outline Agreement

• Contracts

• Schedule Agreement

Document Types for Purchasing Documents

• Define Document Type

• Define Number Ranges for Document Types

• Define Screen Layout At Document Level

Release Procedure for Purchasing Documents

• Purchase Requisition, Purchase Order, Request For Quotation (RFQ), Outline Agreement- Contracts, Schedule Agreement

Pricing Procedure

• Maintain Condition Table

• Define Access Sequence

• Define Condition Types

• Define Calculation Schema

• Define Schema Group

1. Schema Group Vendor

2. Schema Group for Purchasing Organization

3. Assignment of Schema Group to Purchasing Organization

• Define Schema Determination

1. Determine Calculation Schema for Standard Purchase Orders

External Service Management

• Service Master Creation

• Model Service Specifications – MSS

• Service PO

• Service Entry Sheet

Optimized Purchasing

• Automatic PO w ref to PR

• Automatic PO at GR

Inventory Management

• Movement types

• Goods Receipt

• Goods Issue

• Transfer Postings

1. Transfer Posting from Stock to Stock

2. Transfer Posting from Plant to Plant

3. Transfer Posting from Sloc to Sloc

4. Transfer Posting from Material to Material

• Return Delivery to vendor

• Initial Entry of Stock Balances

• Reservations

Physical Inventory

• Types of Physical Inventory

• Creating Physical Inventory Document

• Entering Physical Inventory Count

• List Of Inventory Differences

• Post the Difference

Special Stocks and Special Procurement Types

• Consignment

• Stock transport order

• Subcontracting

• Pipeline

• Returnable transport packaging – RTP

• Third Party Processing

Batch Management in MM

• Condition Tables

• Access Sequence

• Strategy Types

• MM Batch Search Procedure

• Batch Status in MM

• Characteristics and class

• Sort Sequence for MM Batch

• SLED In Batch in MM

• Manual And Automatic Batch Display In MM

Valuation and Account Determination

• Introduction to Material Valuation

• Split Valuation

• Configure Split Valuation

• Defining Global Categories

• Defining Global Type

• Defining Local Definition& Assignment

Invoice Verification

• Basic Invoice Verification Procedure

• Invoice for Purchase Order

• Unplanned Delivery Costs

• Planned Delivery Costs

• Credit Memo

• Blocking the Invoice

• Releasing Blocked Invoices

• Subsequent Debit/Credit

• Automatic Settlements (ERS, Cosignment,Pipeline)

• GR/IR Account Maintenance

• Stochastic Block

• Parking Invoice Document

Integration Concepts

• Integration of MM with FI/CO

Automatic Account Determination

• Integration of MM with SD

Stock Transport Order (STO)

Intra Company Stock Transfer

Inter Company or Cross Company Stock Transfer

Third Party Processing

• Integration of MM with PP

MRP Concepts

Planned Independent Requirements

Consumption Based Planning

Reorder Point Planning

Forecast Based Planning

• Integration of MM with WM

Introduction to Warehouse Management

Warehouse management overview in SAP R/3

• Organization Data

• Warehouse Structure

• WM Flow with MM/SD/PP/QM

Organization Data

Define Warehouse Organization structure

• Warehouse number, Storage type, Storage section, Storage Bin, Storage Bin Structure, Storage Bin Types, Picking Area, Storage unit, Quant

Master Data

• Material Master

Search Strategies

• Storage Type Search Strategies, Storage Section Search Strategies, Storage Bin Type Search Strategies

Storage Bins

• Define Storage Bin Types, Define Blocking Reasons, Define Storage Bin Structure

WM Settings for the Material Master

• Define Storage Type Indicators, Define Storage Unit Types, Define Storage Section Indicators, Define Special Movement Indicator

• Integration of MM with QM

• Master Inspection Characteristics, Sampling Procedure, Quality Inspection types, Quality Inspection Planning, Quality Inspection Lot, Record Quality Results and Record Usage Decision for the Quality Inspection Lot.

Summarized list of Key Topics covered in this course

Introduction To MM

• Introduction to ERP

• SAP Overview

• Functions and Objectives Of MM

• Overview Cycle of MM

• Organizational structure of an Enterprise in the SAP R/3 System

Creation of Organizational Elements

• Company

• Company code

• Plant

• Storage Location

• Purchasing Organization

• Purchasing Group and Assignments

Master Data

• Material Master

• Vendor Master

• Info Record Source Determination

• Source Determination

• Material Master

• Vendor Master

• Info Record

• Source Determination Purchasing

• Purchase Requisition

• Purchase Order

• RFQ – Request for Quotation

• Outline Agreements Document Types for Purchasing Documents (PR, PO, RFQ, Contract and Schedule Agreement)

• Define Document type

• Define Number Ranges for Document Type

  
  

  Define Screen Layout at Document Level Release Procedure for Purchasing Documents:
  

  • Creation of Characteristics

  • Creation of Class

  
  Release Group, Release Codes, Release Indicator, Release Prerequisite, Release Strategies Conditions or Pricing Procedure or Price Determination:
  

  • Define Access sequence

  • Define Condition Types

  • Define Calculation Schema

  • Define Schema Group

  • Schema group vendor

  • Schema group purchasing organization

  • Assignment of Schema group to purchasing Organization

  • Define Schema Determination

  
  Determine Calculation Schema for Standard Purchase Orders External Services Management (ESM):
  

  • Define Organization status for service categories

  • Define service category

  • Define Number Ranges

  • Define Number Ranges for Service Entry Sheet

  • Define Internal Number Ranges for Service Entry Specification

  • Assign Number Ranges

  • Define Screen Layout

Procedure For Services

• Creation of Service Master

• Creation of Service PO

• Creation of Service Entry Sheet

  
  Invoice wref Service Entry Sheet Inventory Management (IM):
  

  • Goods Movement

  • Goods Receipt – GR

  • Goods Issue – GI

  • Transfer Posting – TP

  
  Reservation Physical Inventory (PI):
  

  • Types of PI processes

  • Creating Physical Inventory Document

  • Entering Physical Inventory Count

  • List Of Inventory Differences

  • Post the Difference

  
  Print Out PI Difference Report Special Stocks and Special Procurement Types:
  

  • Consignment

  • Stock transport order

  • Subcontracting

  • Pipeline

  • Returnable transport packaging – RTP

  
  Third Party Processing Valuation and Account Determination:
  

  • Introduction to Material Valuation

  • Split Valuation

  • Configure Split Valuation

  • Defining Global Categories (Valuation Category)

  • Defining Global Type (Valuation Types)

  
  Defining Local Definition& Assignment (Valuation Area)Valuation and Account Determination:
  

  • Basic Invoice Verification Procedure

  • Invoice for Purchase Order

  • Planned Delivery Costs

  • Unplanned Delivery Costs

  • Credit Memo

  • Blocking the Invoice

  • Releasing Blocked Invoices

  • Subsequent Debit/Credit

  • Automatic Settlements (ERS)

  • GR/IR Account Maintenance

  • Invoice for Tax, Discounts, Terms of Payment

  • Invoices for PO’s with Account Assignment

  • Parking Invoice

  
  Invoice With reference to Service Entry Sheet Integration With Other Modules:
  

  • Integration of MM with FI/CO

  • Integration of MM with SD

  • Integration of MM with PP

Benefits of SAP MM

Customer demands are changing rapidly, an organization’s efficiency is measured primarily by its ability to cater to the market demands in the shortest time possible. For this to happen, the business has to have stock of the required raw materials at the right time and must be able to use it efficiently A proper Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. The SAP MM automates the procurement and material management activities to make the processes smoother and effective. Some prominent benefits of SAP MM are:

• Reduces material costs by avoiding stocking of unnecessary or obsolete materials

• Inventory losses are minimized

• Direct labor costs are reduced and labor can be used efficiently

• Manufacturing cycle times are reduced and can be controlled effectively

• Effective inventory management and reduces expenditure on unwanted material storage

• Improves delivery time and increases transparency across the organization

What You Will Learn!

• Prepare for SAP MM Certification exam
• Gain knowledge to become a top SAP MM Consultant
• Master SAP MM module from beginner to expert level
• Introduction to ERP and SAP
• Master Data
• Configuration of Organizational Structures and Material Master
• Purchasing and Release Procedure & Document Types for Purchasing Documents
• Purchasing Optimization
• Pricing in MM and Pricing Procedure
• External Service Management
• Consumption Based Planning and Forecast
• Inventory Management and Movement Types
• Physical Inventory
• Special Stocks and Special Procurement Types
• Procurement Process
• Valuation and Account Determination
• Logistics Invoice Verification
• Cross-Functional Customizing in MM
• Integration Concepts

Who Should Attend!

• SAP MM Consultants, End Users, Managers
• SAP MM/WM/PP/PM/SD/QM Consultants & Analysts
• SAP Logistics Consultants & Managers
• SAP S/4HANA MM Consultants, Managers, End Users
• Newbies and Beginners aspiring for a career in SAP
• Store Managers, Inventory Managers
• SAP SRM, SCM, EWM Consultants
• Technology Consulting: SAP S/4HANA SD/MM Managers
• SAP & ERP Professionals
• Business Analysts & Consultants
• SAP Specialists
• Solutions Architect SME
• Anyone having interest in SAP MM and Inventory Management

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