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SAP Materials Management (MM) is an important module in the SAP ERP package from SAP AG. The SAP MM module handles all stages of materials management, including acquiring materials, planning and controlling the process, receiving items, managing inventories, and verifying invoices. It also connects with other SAP system modules. Knowing “What is SAP MM?” is a fantastic place to start if you’re interested in a career as a SAP MM consultant. In this post, we look at the main features of SAP MM.
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What is SAP MM?
SAP MM (Materials Management) is a crucial module of the SAP ERP Central Component (ECC) that provides organisations with material, inventory, and warehouse management capabilities. Ensuring that all organisational materials are maintained in the appropriate quantities at the appropriate times in the appropriate locations is the key responsibility of SAP MM. It guarantees that the supply chain of an organisation is free from shortages and gaps in supply. It assists supply chain experts such as inventory managers, warehouse managers, and others in completing the timely and economical procurement of goods and raw materials.
Components of SAP MM
Here are five of the most important components of the SAP MM software suite:
MM – CBP (Consumption-Based Planning)
Consumption-based planning use statistical methods to estimate future requirements based on previous consumption values. The main functions of the MM-CBP component are automatic procurement proposal creation for purchasing and production, as well as stock monitoring. The plan starts when stock levels fall below a predetermined reorder point or by projecting needs based on historical consumption data.
MM – PUR (Purchasing)
The purchasing component makes sure that everyone involved in the procurement process communicates effectively, which guarantees the smooth operation of an organization’s purchasing unit. The purchasing element’s main responsibilities are:
- Managing the external sourcing of supplies and labour
- Monitor vendor delivery,
- Track payments, and
- Identify potential supply sources for a certain requirement.
MM – SRV (External Services Management)
This part facilitates the issuance of bid invitations, placement of orders and awards, service acceptance, and invoice verification. It offers a platform for overseeing and arranging outside services. It is compatible with two kinds of outside services:
- Scheduled services where the requirements’ nature and extent are known at the outset of the procurement process
- Unanticipated services where procurement is dependent on a value limit and the extent of the request is not available
MM – IV (Inventory Management)
The following tasks are handled by this component:
- Keeping track of and controlling material (physical) stocks according to value and amount
- Keeping up the physical inventory of products
- Organising, registering, and recording the transportation of every item
MM – IV (Logistics Invoice Verification)
The last step in the logistics supply chain is the logistics invoice verification procedure. It covers things like buying, keeping track of inventories, and checking invoices. This part aids in the pricing, content, and quantity verification of incoming bills. This part enters a purchase invoice sent by a vendor into the system and forwards it to the financial accounting department and other materials management components.
Features of SAP MM
- Manages both raw materials and inventory.
- Guarantees that the supply chain has an adequate supply of commodities
- Enhances the effectiveness of procurement operations
- Increases output while lowering total procurement costs
- Manages a variety of business functions, including planning for material requirements, evaluating vendors, procuring, validating materials, managing warehouses, and verifying invoices.
Career scope for SAP MM Certification Course
In the IT business, one of the most sought-after professional qualifications is the SAP MM certification. Having a SAP MM certification facilitates the acquisition of a well-paying position in the ERP industry. Having a SAP MM certification opens up a number of job options for you, including
- SAP MM consultant
- SAP MM associate
- SAP team lead
- SAP functional analyst in materials management
- Plant maintenance analyst
- Supply chain specialist
- Logistics manager
- Purchase executive
- Material manager
- Project manager
SAP MM Certification Eligibility Criteria
Verify the requirements for the programme before submitting an application for the SAP MM test:
- A legitimate degree, either undergraduate or graduate, in any field
- Business knowledge and professional experience in procurement, material handling, inventory, purchasing, and vendor management
Types of SAP MM Certification
The SAP MM certification is an online curriculum that allows students, professionals, and software users working in the SAP ERP environment to learn and confirm their understanding of the software. At the moment, SAP provides the following certificates to applicants who want to work in the field of materials management:
- SAP Ariba Procurement
- SAP S/4HANA Cloud (public) – Procurement Implementation
- SAP S/4HANA Sourcing and Procurement – Upskilling for ERP Experts
- SAP S/4HANA Sourcing and Procurement
- Procurement with SAP ERP 6.0 EhP7
Entri App – SAP MM Online Training
Entri, a popular learning platform, provides a complete course on SAP S&P Sourcing and Procurement (MM- Material Management) to learners. The goal of our course is to provide students a thorough understanding of the SAP MM module, a crucial part of the SAP ERP system. Students will acquire knowledge about the different procedures related to material management, such as purchasing, inventory control, and invoice validation. In order to prepare students for job options, the course will also address topics including material requirement planning, vendor evaluation, and contract administration.
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Frequently Asked Questions
Is SAP MM a good career?
Definitely yes. It is a highly rewarding credential for those pursuing a career in Enterprise Resource Planning.
What is SAP MM used for?
SAP MM (Materials Management) is a module of SAP AG’s ERP software suite used for procurement and inventory management. All supply chain tasks are covered by SAP Materials Management.
Is SAP MM hard to learn?
You may be concerned about whether SAP is simple to learn or not. But things get pretty easy once you sign up for a quality course.
Who is eligible for SAP MM?
A degree from an accredited undergraduate or graduate programme in any field. business acumen and practical experience in purchasing, inventory control, material handling, procurement, and vendor management