MATERIALS MANAGEMEN T

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MATERIALS MANAGEMENT DEFINITION: Material management is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. To GET The Right quality Right quantity of supplies At the Right time At the Right place At the Right cost 5R Emphasis on the acquisition aspect Inventory control and stores management Material logistics, movement control and Handling aspect Purchasing, supply, transportation, materials handling etc. Supply management or logistics management SCOPE Aim

MM in SAP The Materials management (MM) function of SAP is part of the logistics area. The Materials Management module consists of all master data, system configuration, and transactions to complete the Procure to Pay process. It is one of the important modules in SAP ERP software and MM application module supports the procurement and inventory functions occurring in day-to-day business operations. This process map spans from MRP generated procurement proposals through final invoice receipt and verification.

Purchasing External procurement of materials and services And Determination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly within a user department Valuation It includes material price change, balance sheet valuation, actual costing/material ledger Inventory management It deals with Management of material stocks on a quantity and value basis Foreign trade Manage import and export processes, integrating them efficiently into the supply chain Material master It information on all the materials that a company procures or produces, stores, and sells. Logistic invoice verification It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. MRP It includes, Reorder point procedure Forecast-based planning Time-phased materials planning Service master It provides a basic process for the procurement of externally performed services. Product catalog The materials and prices in the product catalog

The organizational structures form a framework of a company in which business is conducted. MM module is fully integrated with other modules in the SAP R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and Warehouse Management(WM). ORGANIZATIONAL STRUCTURE A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions

ORGANIZATIONAL STRUCTURE MM STRUCTURE Material Planning Purchasing Inventory Management Vendor Valuation Invoice Verification Statutory Requirements Client Company code Plant Storage location Purchasing organization Purchasing group Sub Modules of MM

Client: Represents a grouping or combination of legal, organizational, business and/or administrative units with a common purpose. Storage Location: This level contains the data specific to a storage location. Stock levels are an example of the data maintained for each storage location. Purchasing Organization: An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions. Purchasing Group: The purchasing organization is further subdivided into purchasing groups, which are responsible for day-to-day buying activities. A purchasing group can also act for several purchasing organizations Plant: Operational unit within a company code. Company Code: Company Code represents an independent accounting unit within a client. Each company code has its own balance sheet and its own profit and loss statement.

JOB roles of SAP MM consultant Understand the business requirements, Setting up organization structure of MM and relevant configuration like Purchase organization, valuation area plants, storage location, and warehouse structure etc. Finalization of material groups, purchasing groups, payment terms, Inco terms, material master, vendor master and all purchasing and inventory documents, Pricing Procedure, Purchase requisition and purchase order and set up of Indian taxation structure. Interaction with client through net meetings, calls & s. Handling Tickets & Tasks and responsible for closing the same within defined SLAs, and troubleshooting the issues in the system and providing support, Executing the needed changes in configuration, analysis and resolution of production support calls Raising Change Requests (CRs) and writing functional specifications for them and Preparing test data for testing CRs, Testing CRs (Change Requests) and preparing test results Role during implementation of the project Role during support project

Reaching SAP implementation guide(IMG) Menu Path: SAP Easy Access Tools Customizing IMG Execute Project

click on “SAP Reference IMG”

Configuration nodes related to MM & other Modules

Menu Path: SAP IMG Enterprise Structure Definition Logistics- general Define, Copy Delete, Check plant Creating plant

Menu Path: SAP IMG Enterprise Structure Definition Materials management Maintain storage location Creating storage location

Creating purchase order

Invoice verification

Basic overview SAP overview SAP MM overview Procurement process in SAP MM Master Data Materials Master Vendor Master purchasing Special stocks and special procurement types source determination release procedures for purchasing documents Inventory management Goods Receipt Goods Issue Transfer Posting Reservation Physical Inventory Invoicing Invoice Posting Variances and Blocking Reasons Release Blocked Invoices Automatic Settlements - Evaluated Receipt Settlement (ERS) Valuation and accounts assignment Materials Price Change Materials Valuation Type Configure Automatic Account Determination Materials Requirements Planning (MRP) Planning Requirements Over All Procedures Planning Run Reporting in SAP MM Reporting at Document Level Reporting with the Logistics Information System Configuration Enterprise Structure in MM Materials Master Purchase Requisition Integration of MM with various modules Overview of integration of MM with other modules FICO, SD and PP SYLLABU S

Salary range for SAP MM consultant

SAP SD module is the one which is very interesting and important module in SAP compare to other modules. This includes the material management in industry, it is responsible for all the steps during the purchase of materials and maintaining that materials. MM module is integrated with other SAP modules such as controlling(CO), sales and distribution(SD), quality management(QM), plant maintenance(PM), production planning(PP), warehouse management(WM) and financial accounting(FI). This module has a great impact on every industry because every industry works on this, so demand for this module is more compare to other modules in SAP. The opportunities in MM module are more, every time it has bull run demand. More of this module is related for MBA professionals in any specialization but it is related to who did specialization in Marketing and finance, even for others also it is very good as we can observe in many job portals and other sources. In Mm module salaries providing by companies are huge and compare to previous years the salaries are increased 3-4 % according to payscale.com and ITJOBSWATCH.com. CONCLUSION

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