Material Management (MM)

SAP MM (Material Management):

Materials Management module in SAP consists of several components and sub-components. The most prominent and widely used are Master Data, Purchasing, Inventory and Logistics Invoice.

All of these components have their sub components that are essential in specific business processes, and all of the processes are executed by using transactions.

Transaction (in SAP) means processing of certain information in order to complete business process requirement. For example, if you have purchased 10 pieces of litter buckets, you can perform particular transaction code (t-code) that will reflect those changes in SAP. Most of the business processes involve multiple SAP transactions to be accomplished and are spread over one, two or more modules.

Data stored in SAP is categorized as

  1. Organization Structure
  2. Master Data
  3. Transactional Data

Organization Structure

Enterprise structure is the structure that represents an enterprise in SAP system. It is subdivided into various organizational units, which for legal reason or business related reason are grouped together. Enterprise structure for MM module is defined in an organization as follows;

MM Enterprise Structure

  • Plant
  • Storage Location
  • Purchasing Group
  • Purchasing Organization

Master Data

Master data is the core data that is used as a base for any transaction. If you are producing, transferring stock, selling, purchasing, doing a physical inventory, whatever your activity may be, it requires certain master data to be maintained.

MM Master Data

  • Material master data
  • Vendor master data
  • Info-record
  • Source List


Purchasing is a component of SAP MM module and the process flow for procure to pay (PTP) is represented as follows;

  • MRP
  • Purchase Requisition
  • Assign Source to PR
  • Release PR
  • Convert PR to PO
  • Goods Receipt
  • Invoice Receipt

MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Once the purchase requisition is created, a source is assigned and it is released/approved. The PR gets converted to Purchase Order, and upon goods receipt, an invoice receipt can be done to complete the purchasing process. Additionally, payment is processed (in FI module).

Inventory Management

Inventory management is used to manage the inventory of the goods. It is based on several key functions, transactions and processes used in the Inventory management as follows;

  • Goods receipt
  • Reservations
  • Goods issue
  • Stock Transfer
  • Transfer Posting
  • Physical Inventory

Invoice Verification

Invoice Verification is a process, which confirms in SAP that the AP department has received an invoice against the purchase orders. Goods receipt will need to enter on SAP prior to invoice verification unless that process has been by-passed at the raising of the purchase order.

Once the invoice verification process is complete, the payment is posted to the vendor using appropriate payment methods.

This is a weekend course to accommodate the working professionals. Our faculty for all SAP Modules are working SAP Professionals.

Course Duration: 4 Weekends (Saturday and Sunday)

Timing: 10 am – 3 pm (5 hours a day) including breaks

Course Fee: $ 3,200/- plus $ 100 registration and applicable taxes