What is SAP MM? | SAP Material Management Module

SAP MM (Material Management) is one of the vital modules in SAP ERP software and MM application module supports the procurement and inventory functions occurring in day-to-day business operations. This MM module consists of many facets such as purchasing, goods getting, material storage, consumption-based planning, and inventory. SAP MM module is completely 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).

It supports all phases of materials management materials planning and control, buying, items getting, inventory management, and invoice verification.


Organizational Structure

  • Plant
  • Assessment location
  • Storage locations
  • Buying organizations
  • Purchasing groups


SAP MM Sub Modules

  • Material Planning.
  • Buying.
  • Stock Management.
  • Vendor Valuation.
  • Invoice Verification.
  • Statutory Requirements.
  • Procurement Process.

One of the crucial procedure in SAP MM module is Purchasing/Procurement. The purchasing procedure is at first started when there is a requirement of material/service for the organization. If the material/service can not be obtained from business’s internal resource, the liable individual of that company have to discover the vendor/supplier which can offer it on the necessary date. The purchasing process is Started with production of Purchase Requisition (PR), Purchase Order (PO), Good Receipt/Services, Invoice Verification, Payment to vendors.



SAP MM module is a part of logistics and it helps in managing end to end procurements and logistics business process. The main features you can find in the MM module are requisitions, purchase orders, goods receipt, accounts payable, inventory management, BOM’s and master raw material, completed goods etc.

Requisitions in SAP MM module is a document created for purchase of goods or services, it is sent out to procurement office for the issuance of order. Appropriations surpassing specific quantity need vendor confirmation in SAP MM module. There are two means of placing requisition either with SAPGUI or SAP web.

Order are the legal document released as commitment to the vendor to supply discussed material in the specified quantity together with shipping information and requirements. The licensed vendors list is displayed while creating purchase order as per material and plant of the organization.

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