{"id":342,"date":"2022-11-03T22:56:00","date_gmt":"2022-11-03T22:56:00","guid":{"rendered":"https:\/\/xamai.com\/sap-mm\/"},"modified":"2026-05-19T12:33:18","modified_gmt":"2026-05-19T18:33:18","slug":"sap-mm","status":"publish","type":"post","link":"https:\/\/www.xamai.com\/en\/blog\/sap-mm","title":{"rendered":"SAP MM Module: Why is it important for companies?"},"content":{"rendered":"

What is SAP MM?<\/strong><\/span><\/p>\n

<\/p>\n

SAP MM stands for SAP Materials Management and includes the planning, control, and optimization of the flows of Supply Chain<\/strong> of a company.<\/p>\n

The SAP MM module provides all the necessary functions for the planning and efficient processing of processes in a company's materials management.<\/p>\n

As part of logistics, SAP MM is used for inventory management and control of purchasing activities with a database that allows documenting all internal and external purchasing processes for materials and services, planning requirements, determining sources of supply, performing inventories, and verifying stock. SAP MM is included in the SAP S\/4HANA ERP system.<\/p>\n

Application areas of the SAP MM module<\/strong><\/span><\/p>\n

The SAP MM module is one of the standard modules of the SAP infrastructure and, therefore, can be used by any company that already uses an SAP ERP system, obviously after evaluation by an SAP consultant.<\/p>\n

SAP MM forms the basis and prerequisite for all other SAP logistics applications and includes a series of submodules with numerous functions.<\/p>\n

It guarantees a high level of process reliability through the consistent use of the possibilities of SAP MM.<\/p>\n

SAP MM includes the mapping of materials such as office supplies and business travel. Elements that gain special importance depending on the size of the company, since these costs can amount to several million a year.<\/p>\n

Since materials management represents a central business area, SAP MM communicates with several other SAP modules, such as financial accounting and controlling, when certain functions are used.<\/p>\n

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Main functions of the SAP MM module<\/strong><\/span><\/p>\n

Materials management:<\/strong><\/p>\n

Through process optimization, material shortages and disruptions in the supply process are avoided, productivity is accelerated, and costs are reduced.<\/p>\n

Procurement activities:<\/strong><\/p>\n

By accelerating materials management and procurement activities, day-to-day business becomes efficient in terms of time and costs, benefiting even the staff.<\/p>\n

Inventory management:<\/strong><\/p>\n

By linking disposition, procurement, and invoice verification, availability checks are performed and material stocks are made available.<\/p>\n

Inventory:<\/strong><\/p>\n

Information on material and product inventories is collected, and inventory documents are recorded.<\/p>\n

Sourcing<\/strong><\/p>\n

SAP MM determines the sourcing for a purchase so that a request or purchase order can be generated.<\/p>\n

Warehouse Management<\/strong><\/p>\n

Goods receipt postings and reservations are carried out, and scheduled items are marked.<\/p>\n

Invoice Verification<\/strong><\/p>\n

Supplier invoices are recorded, details are compared with purchase order details, and invoices are released for payment.<\/p>\n

Valuation<\/strong><\/p>\n

Price changes for the material can be made for balance sheet valuation and actual costing.<\/p>\n

Data Management<\/strong><\/p>\n

Master data for the SAP supplier and material database is managed to improve procurement processes. In addition, accounts, material evaluations, invoice verifications, as well as material requirement planning and inventory management are displayed.<\/p>\n

Returns<\/strong><\/p>\n

Processes such as refunds for returns to external suppliers can be tracked with reference to reference documents.<\/p>\n

Submodules<\/strong><\/p>\n

The SAP MM application can be divided into two submodules. On the one hand, in the purchasing area with SAP MM-PUR and on the other hand, in the stock and inventory management of parts with SAP MM-IM.<\/p>\n

The functions of these two sub-areas are described in detail below.<\/p>\n

SAP MM-PUR<\/strong><\/p>\n

MM-PUR supports the following tasks:<\/p>\n