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SAP MM (end-to-end)
Become an SAP MM Consultant gaining knowledge on configuration and implementation. Learn purchasing, inventory management, business process, materialsPreview SAP MM (end-to-end) course
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SAP MM stands for Materials Management. SAP MM is an important module of the SAP ERP CC. It offers warehouse and inventory management facilities. These activities are important to any company. This is because materials management is a key function needed to sustain their supply chain. The main aim of this software is to ensure that the supply chain has no gaps. Plus, the software assists employees to make sure that the materials are available in appropriate quantities.
The material Management module/tool is used globally by millions of organizations to effectively manage manufacturing components. It is the most widely utilized ERP solution in the Industry. Being part of logistics, allows the management to effectively perform procurement activities in the organization. Organizations that manufacture products have to handle a lot of aspects. Their materials management phases include materials planning, control, inventory management, and invoice management. Handling all these tasks may require a lot of manpower and software solutions.
That’s why companies choose SAP MM. This software module helps them in tackling daily inventory and procurement tasks. In this article, we will learn the features, components, and advantages of using SAP MM.
The most important organizational units of SAP MM are –
Plant – This is a location where inventory items can be stored. Companies can store their financial transactions and maintain them
Storage Locations – This is the physical location where the stock is kept
Purchase organization– This unit contains the data related to purchase orders and pricing. This makes the acquisition of goods cost-effective.
Uplatz provides this end-to-end course on SAP MM module. The SAP MM course will prepare the students to learn and understand all the end-to-end implementation steps to configure SAP MM modules for any organization. The SAP MM course also highlights the necessary documentation and methodology which are used in SAP implementation projects. After this course, the students will be able to identify and analyse the business requirements of any organization for Procurement to Payment process cycle and to configure SAP MM module accordingly.
SAP Materials Management module course imparts the knowledge that consists of several components and sub-components prominently including Master Data, Purchasing, and Inventory, Evaluation of Materials, Consumption-based planning, and Invoice Verification. Course Objectives: An overview of the ERP system, SAP tools, navigation and so forth. Overview of the components of Materials Management. Material Master Data and Vendor Master. Consumption-based planning and purchasing processes. Inventory management and insights into the valuation of materials. Invoice verification. Material requirement planning. Material Management Logistics information system.
This course is intended for the following audience:
-- Anyone who wants to learn SAP MM configuration and implementation
-- SAP Users who want to extend their knowledge to configure SAP MM
-- ERP/SAP Consultants who want to learn SAP MM configuration and implementation
Course/Topic - SAP MM (end-to-end) - all lectures
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Episode 1. Part 1 of SAP MM Overview
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Episode 2. Part 2 of SAP MM Overview
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Episode 3. Part 1 of Organisational Structure
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Episode 4. Part 2 of Organisational Structure
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Episode 5. Part 1 of SAP Movement Types
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Episode 6. Part 2 of Movement Types in SAP MM
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Episode 7. Part 1 of Vendor Master
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Episode 8. Part 2 of Vendor Master
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Episode 9. Part 1 of Material Master
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Episode 10. Part 2 of Material Master
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Episode 11. Part 3 0f Material Master
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Episode 12. SAP Procure to Pay Process
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Episode 13. Stock Transfer Process
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Episode 14. Goods Receipt for consumable Materials
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Episode 15. Purchasing Information Record
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Episode 16. Vendor Consignment Process
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Episode 17. Part 1 of SAP Material Valuation
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Episode 18. Part 2 of SAP Material Valuation
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Episode 19. Part 1 of SAP Service Master
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Episode 20. Part 2 of SAP Service Master
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Episode 21. Part 1 of SAP Service Conditions
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Episode 22. Part 2 of SAP Service Conditions
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Episode 23. SAP Service Entry Sheet and Invoice Verification
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Episode 24. SAP Logistics Information System
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Episode 25. Part 1 of SAP MM Pricing
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Episode 26. Part 2 of SAP MM Pricing
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Episode 27. Part 1 of SAP Source List
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Episode 28. Part 2 of SAP Source List
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Episode 29. SAP MM Stock Types
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Episode 30. SAP Evaluated Receipt Settlement
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Episode 31. SAP MMBE Stock Overview
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Episode 32. Part 1 of SAP MRP Process
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Episode 33. Part 2 of SAP MRP Process
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Episode 34. SAP MRP procedures
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Episode 35. Part 1 of MRP Types
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Episode 36. Part 2 of MRP Types
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Episode 37. SAP MRP Profile
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Episode 38. SAP Material status
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Episode 39. SAP Purchase order acknowledgement
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Episode 40. SAP MM FI Integration
1. Attain knowledge of Material Management (MM) and the role of SAP MM in the business processes
2. Get familiar with material requirement planning for producing required material quantities
3. Learn how to evaluate material prices in purchasing, inventory management, and invoice ver
4. Understand the major business processes in SAP MM
5. Understand key technical concepts ( apart from the business processes ) like Movement Types
6. Understand how to complete the business processes in SAP MM
SAP Materials Management Training Course Syllabus
Chapter 1: Overview of SAP Material Management
a) SAP Material Management Organisational Structure
b) Procure to Pay Process
c) SAP Stock Transfer Order and Process
d) Subcontracting Process
e) SAP Vendor Consignment Process
f) SAP Movement Types
Chapter 2: SAP Material Master Data Management
a) Vendor Master Data
b) Material Management Material Master
c) SAP Purchasing Record
d) Pricing Conditions
e) Mass Maintenance
Chapter 3: SAP Procurement Process
a) Purchase Requisition
b) Request for Quotation
c) Conversion of Purchase Requisition to Purchase Order
d) SAP Purchase Order
e) Acknowledgement of Purchase Order of SAP
f) Material Valuation in SAP
g) SAP Inventory Valuation
h) Consumable Material
i) Stock Material
j) Stock Types
k) Invoice Verification
l) SAP MMBE Stock
m) Blanket Purchase Order
n) Source List
o) Settlement of Evaluated Receipt
Chapter 4: External Services Procurement
a) Service Master
b) Service Conditions
c) Service Entry Sheet
d) Service Invoice Verification
Chapter 5: SAP Reporting
a) Purchase Order Report
b) SAP Purchase Requisition
c) Vendor Invoice Report
d) Logistics Information System
e) SAP Material Management Info Structure
Chapter 6: SAP Material Requirements Planning
a) Material Management Planning Process
b) MRP Vs CBP
c) Material Management Planning Procedures
d) MRP Types
e) MRP Profile
f) Material Status
g) Reorder Point Planning
h) Consumption-Based Planning
Chapter 7: Combination with Other Modules
a) SAP Material Management FI Integration
SAP Materials Management (SAP MM) is a key module within the SAP ERP system, focusing on procurement and inventory management. There are several certifications available for SAP MM that cater to different levels of expertise and aspects of the module. Here’s an overview of the top SAP MM certifications, from foundational to advanced, along with their benefits:
1. SAP Certified Application Associate – SAP MM
Purpose: This entry-level certification is designed for individuals who want to demonstrate their basic knowledge of SAP MM. It covers fundamental concepts and basic functionalities of the SAP MM module.
Content: Includes topics such as procurement processes, inventory management, material master data, purchase order processing, and vendor evaluation.
Foundational Knowledge: Validates your understanding of core SAP MM concepts and processes.
Career Entry: Suitable for those starting their career in SAP MM or looking to understand the basics of the module.
Industry Recognition: Provides a recognized certification that enhances your resume and job prospects for entry-level SAP MM roles.
2. SAP Certified Application Associate – SAP MM with SAP S/4HANA
Purpose: This certification focuses on the SAP MM module within the SAP S/4HANA environment. It is designed for professionals who need to understand SAP MM functionality in the context of SAP’s latest ERP suite.
Content: Covers SAP MM processes in SAP S/4HANA, including procurement, inventory management, and integration with other SAP modules in the S/4HANA environment.
Updated Knowledge: Validates your skills in using SAP MM within the latest SAP S/4HANA system.
Relevance: Ensures your expertise is aligned with current SAP technology and practices.
Career Opportunities: Suitable for roles involving SAP S/4HANA and modern SAP MM functionalities.
3. SAP Certified Application Specialist – SAP MM Purchasing
Purpose: This certification is aimed at individuals specializing in the purchasing aspect of SAP MM. It focuses on the procurement processes and functionalities within the SAP MM module.
Content: Includes topics such as purchase order processing, vendor management, procurement strategies, and purchasing analytics.
Specialized Skills: Validates your expertise in the purchasing and procurement components of SAP MM.
Advanced Knowledge: Demonstrates your ability to handle complex procurement scenarios and optimize purchasing processes.
Career Enhancement: Ideal for professionals looking to specialize in purchasing and procurement roles within SAP MM.
4. SAP Certified Application Specialist – SAP MM Inventory Management
Purpose: This certification focuses on inventory management aspects of the SAP MM module. It is designed for professionals who work with inventory and materials management in SAP.
Content: Covers topics such as inventory control, stock management, material valuation, and goods movements.
Inventory Expertise: Validates your knowledge and skills in managing inventory and materials within SAP MM.
Enhanced Capabilities: Demonstrates your ability to handle inventory management tasks and optimize stock control processes.
Career Development: Suitable for roles focusing on inventory management and materials handling.
5. SAP Certified Application Associate – SAP MM End-to-End
Purpose: This certification covers the end-to-end functionality of the SAP MM module, encompassing all aspects from procurement to inventory management. It is aimed at professionals who need comprehensive knowledge of the entire MM process.
Content: Includes procurement processes, inventory management, material master data, vendor management, and integration with other SAP modules.
Comprehensive Understanding: Validates your ability to manage and integrate all aspects of the SAP MM module.
Holistic Skills: Demonstrates a broad and in-depth understanding of SAP MM, making you capable of handling various MM-related tasks.
Career Versatility: Suitable for professionals seeking a well-rounded understanding of SAP MM for diverse roles.
6. SAP Certified Development Associate – SAP MM
Purpose: This certification is for developers who work on customizing and extending the SAP MM module. It focuses on the technical aspects of SAP MM, including enhancements and customizations.
Content: Covers topics such as custom developments, integration with other modules, and advanced configurations.
Technical Skills: Validates your ability to develop and customize SAP MM solutions.
Expertise: Demonstrates your capability to handle complex technical requirements and integrations.
Career Advancement: Ideal for developers working with SAP MM who need to validate their technical skills.
7. SAP Certified Application Specialist – SAP MM for SAP S/4HANA
Purpose: This certification is designed for those who work with SAP MM in the SAP S/4HANA environment. It focuses on the advanced functionalities and features specific to SAP S/4HANA.
Content: Includes advanced topics in SAP MM within the S/4HANA framework, such as new features, process improvements, and integration with other modules.
Advanced Knowledge: Validates your expertise in the latest SAP MM functionalities within SAP S/4HANA.
Updated Skills: Demonstrates your ability to work with advanced features and process improvements in SAP S/4HANA.
Career Enhancement: Suitable for professionals working with SAP S/4HANA who need to stay current with advanced SAP MM capabilities.
These certifications cover various aspects of SAP MM, from basic to advanced levels, including specialized areas such as purchasing, inventory management, and technical development. They are designed to validate your skills and knowledge in different aspects of SAP MM, making them valuable for career development in roles related to SAP MM and its integration with other SAP modules. Whether you are starting out in SAP MM or looking to specialize in specific areas, these certifications can help enhance your expertise and career prospects.
Completing a course in SAP MM (Materials Management) from end-to-end provides individuals with comprehensive knowledge in managing materials and procurement processes within the SAP system. Here are some typical job roles and their associated salary ranges for professionals with expertise in SAP MM:
1. SAP MM Consultant-SAP MM Consultants typically earn between $85,000 and $120,000 per year. Experienced consultants or those working in high-demand areas can earn up to $140,000 or more annually.
2. SAP MM Functional Consultant-SAP MM Functional Consultants generally earn between $80,000 and $115,000 annually.
3. SAP Procurement Specialist-SAP Procurement Specialists typically earn between $75,000 and $105,000 per year.
4. SAP Materials Manager-SAP Materials Managers generally earn between $85,000 and $120,000 annually.
5. SAP MM Project Manager-SAP MM Project Managers typically earn between $100,000 and $140,000 per year.
6. SAP Supply Chain Analyst-SAP Supply Chain Analysts generally earn between $70,000 and $100,000 annually.
7. SAP MM Support Specialist- SAP MM Support Specialists typically earn between $65,000 and $90,000 per year.
8. SAP MM Business Analyst-SAP MM Business Analysts generally earn between $75,000 and $105,000 annually.
9. SAP MM Trainer/Instructor-SAP MM Trainers typically earn between $70,000 and $95,000 per year.
10. SAP MM Technical Consultant- SAP MM Technical Consultants can earn between $85,000 and $120,000 annually.
Salaries for these roles can vary based on geographical location, industry sector (e.g., manufacturing, retail, logistics), company size, and specific job responsibilities. Completing a comprehensive course in SAP MM (end-to-end) prepares individuals for various roles in material management and procurement, offering career opportunities with competitive salary prospects.
Q.1: Can you describe the end-to-end process in SAP MM?
A: The end-to-end process in SAP MM (Materials Management) typically involves the following key steps:-
a) Material Master Data Management: Create and manage material master records that define the materials used in procurement and inventory processes.
b) Purchase Requisition (PR): A request to procure materials or services, which is created internally or automatically by the system.
c) Request for Quotation (RFQ): A formal request sent to vendors to obtain quotes for the requested materials or services.
d) Purchase Order (PO): A formal order placed with the vendor based on the accepted quotation or internal requirements.
e) Goods Receipt (GR): Receipt and recording of the goods delivered by the vendor into inventory.
f) Invoice Verification: Matching the invoice received from the vendor with the purchase order and goods receipt to ensure accuracy.
g) Payment: Processing of payments to vendors based on the invoice verification.
Inventory Management:
a) Stock Management: Monitoring and managing stock levels, including stock transfers and adjustments.
b) Goods Issue: Recording the removal of goods from inventory for production or sales.
c) Stock Taking: Periodic physical counts of inventory to ensure accuracy.
d) Material Valuation: Determining the value of materials in stock and managing the valuation of inventory.
e) Reporting and Analysis: Generating reports and analyzing data related to procurement, inventory, and materials management.
Q.2: What is a Purchase Requisition (PR) and how is it used in SAP MM?
A: A Purchase Requisition (PR) is an internal document used to request the procurement of materials or services. It is used to initiate the procurement process within SAP MM. Key aspects include:
a) Creation: PRs can be created manually by users or automatically by the system based on predefined rules, such as reorder levels.
b) Approval: PRs typically require approval before they can be converted into a Purchase Order (PO).
c) Conversion: Once approved, the PR can be converted into a PO, which formalizes the request with external vendors.
d) Tracking: PRs help track and manage procurement needs and ensure that materials are ordered in a timely manner.
Q.3: How do you handle Goods Receipt (GR) in SAP MM?
A: Goods Receipt (GR) is the process of recording the receipt of goods from a vendor into the SAP system. It involves:
a) Receiving Goods: When goods arrive at the warehouse, a GR is created to document the receipt.
b) GR Posting: Enter the GR details in SAP MM, including the PO number, quantity received, and storage location.
c) Inspection: If applicable, perform quality inspections on the received goods.
d) Inventory Update: The system updates inventory levels and stock quantities based on the GR.
e) Document Verification: Ensure that the GR matches the PO and that the items are correctly recorded.
Q.4: Explain the process of Invoice Verification in SAP MM.
A: Invoice Verification in SAP MM is the process of ensuring that vendor invoices are accurate and match the corresponding purchase orders and goods receipts. The process involves:
a) Invoice Receipt: Enter the invoice details received from the vendor into SAP MM.
b) Three-Way Matching: Compare the invoice with the purchase order and goods receipt to verify that the quantities and amounts match.
c) Error Handling: Resolve any discrepancies between the invoice, PO, and GR.
d) Invoice Posting: Once verified, post the invoice to update the financial accounts and create a payment request.
E) Payment Processing: Initiate payment to the vendor based on the posted invoice.
Q.5: How do you manage inventory in SAP MM?
A: Inventory management in SAP MM involves:
a) Stock Management: Monitor stock levels, including managing stock movements such as transfers and adjustments.
b) Goods Issue: Record the removal of goods from inventory for production or sales.
c) Stock Transfers: Move stock between different storage locations or plants.
d) Physical Inventory: Conduct periodic stock counts and reconcile physical inventory with system records.
e) Inventory Valuation: Manage the valuation of inventory based on various valuation methods, such as standard cost or moving average price.
f) Reporting: Use reports to track stock levels, movements, and discrepancies.
Q.6: What is SAP MM's role in Material Valuation?
A: Material Valuation in SAP MM involves determining and managing the value of materials in inventory. It is critical for financial accounting and cost control. Key aspects include:
a) Valuation Methods: SAP MM supports various valuation methods, such as standard price, moving average price, and FIFO (First In First Out).
b) Valuation Class: Each material is assigned a valuation class that determines how the material's value is managed in financial accounting.
c) Price Changes: Handle changes in material prices, including adjusting valuation records and accounting entries.
d) Costing: Integrate material valuation with cost accounting and product costing for accurate financial reporting..
Q.7: Describe how SAP MM integrates with other SAP modules.
A: SAP MM integrates with several other SAP modules, including:
a) SAP SD (Sales and Distribution): Integration for managing inventory and order fulfillment. Sales orders in SD may impact inventory levels in MM.
b) SAP PP (Production Planning): Integration for managing materials required for production. Production orders in PP rely on material availability managed in MM.
c) SAP FI (Financial Accounting): Integration for managing financial transactions related to procurement and inventory, such as invoice verification and payment processing.
d) SAP WM (Warehouse Management): Integration for managing warehouse operations and inventory movements.
e) SAP QM (Quality Management): Integration for managing quality inspections and quality control processes related to procurement and inventory.
Q.8: What are some common challenges you might face when working with SAP MM, and how do you address them?
A: Common challenges include:
a) Data Accuracy: Ensure accurate master data by validating data entries and implementing data governance practices.
b) System Integration Issues: Address integration issues with other SAP modules through thorough testing and coordination with cross-functional teams.
c) Process Compliance: Ensure compliance with procurement and inventory management processes by implementing and following standard operating procedures.
d) User Training: Provide comprehensive training to users to ensure they understand and can effectively use SAP MM functionalities.
e) Change Management: Manage changes effectively by communicating changes, providing training, and offering support during transitions.
Q.9: How do you handle a situation where a Goods Receipt (GR) does not match the Purchase Order (PO)?
A: If a GR does not match the PO:
a) Investigate Discrepancies: Identify the nature of the discrepancy (e.g., quantity, quality, or price) by reviewing the PO, GR, and vendor invoice.
b) Resolve Issues: Contact the vendor to resolve issues such as incorrect deliveries or discrepancies in pricing. Update the PO or GR as necessary to reflect the correct information.
c) Document Changes: Adjust the GR or PO in the system to ensure that inventory and financial records are accurate.
d) Perform Reconciliation: Reconcile the GR with the PO and vendor invoice to ensure that all records are consistent and accurate.
e) Review Processes: Evaluate and improve procurement processes to prevent similar discrepancies in the future.
Q.10: What role does SAP MM play in the overall SAP ecosystem?
A: SAP MM plays a crucial role in the SAP ecosystem by managing and optimizing the procurement and inventory processes within an organization. It supports:
a) Procurement Management: Facilitates the purchasing process, including requisitioning, ordering, and invoice verification.
b) Inventory Management: Manages stock levels, stock movements, and inventory valuation.
c) Integration: Works closely with other SAP modules like SD, PP, FI, and WM to ensure seamless data flow and coordination across various business functions.
d) Cost Control: Helps in tracking and managing procurement costs, inventory costs, and overall material expenditures.
e) Compliance and Reporting: Ensures compliance with procurement policies and provides reports for decision-making and performance analysis.