Scribd
Upload
103 views2 pages

SAP MM Process Overview

The SAP Materials Management (MM) module oversees procurement and inventory functions, facilitating a seamless process from material planning to invoice verification. Key steps include Material Requirement Planning, Purchase Requisition, vendor selection through RFQs, Purchase Order creation, and Goods Receipt, culminating in Invoice Verification and Payment Processing. This structured approach ensures efficient management of materials and vendor interactions.

Uploaded by

jyothirmayi9249
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
103 views2 pages

SAP MM Process Overview

The SAP Materials Management (MM) module oversees procurement and inventory functions, facilitating a seamless process from material planning to invoice verification. Key steps include Material Requirement Planning, Purchase Requisition, vendor selection through RFQs, Purchase Order creation, and Goods Receipt, culminating in Invoice Verification and Payment Processing. This structured approach ensures efficient management of materials and vendor interactions.

Uploaded by

jyothirmayi9249
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SAP MM Process Overview

The SAP Materials Management (MM) module manages procurement and inventory
functions. The core MM process ensures a smooth flow from material planning to invoice
verification. Below is a typical end-to-end MM process.

1. Material Requirement Planning (MRP)


Automatic or manual planning to determine material requirements based on demand and
supply.

2. Purchase Requisition (PR)


Internal request to procure goods or services, generated manually or via MRP.

3. Source Determination
Identify suitable vendors using Source List, Quota Arrangement, or Info Records.

4. Request for Quotation (RFQ)


Send RFQs to selected vendors to collect pricing and delivery terms.

5. Quotation Comparison and Vendor Selection


Evaluate vendor responses and select the best option based on price, lead time, etc.

6. Purchase Order (PO) Creation


Formal document sent to vendor to order goods/services. Can be created with reference to
PR or RFQ.

7. Order Follow-Up
Track vendor confirmations and monitor delivery progress.

8. Goods Receipt (GR)


Record receipt of goods against PO. Updates inventory and creates material documents.
9. Invoice Verification
Vendor invoice is verified against PO and GR before payment. Discrepancies are handled
here.

10. Payment Processing


After successful invoice verification, payment is processed through SAP FI module.

You might also like