What is SAP MM (Material Management)?

SAP MM is the Materials Management module of the SAP ERP software package from SAP AG that is used for Procurement Handling and Inventory Management. Materials management is integrated with other modules such as SAP SD, SAP PP and SAP QM. Materials management Training (SAP MM) is used for procurement and inventory management.

The module has two important master data – material and vendor. Broadly, the various levels that can be defined for a


(Material management) implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.

SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-in-Time delivery is supported.

It can be divided into five major components. There are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of subcomponents.

SAP MM (Material management) is all about managing the materials i.e the resources of an organization. These resources include man, manpower and materials. The main functionality within MM (Material management) includes purchasing, Inventory management, valuation and assignment, batch management and classification.


Introduction to ERP

  • ERP Packages
  • Introduction to SAP
  • Functions and Objectives of MM
  • SAP Logistics Cycle SD/MM/PP
  • MM Flow And Procurement Types


SAP Navigation

Organizational structure of an Enterprise in the SAP R/3 System

  • Company, Company code, Controlling Area, Plant, Storage Location, Purchase Organization, Purchasing group
  • Controlling Settings (Cost Center and Cost Element Etc…)


Master Data

  • Material Master
  • Vendor Master
  • Purchase Info Record

Source Determination

  • Source List
  • Quota Arrangement



  • Purchase Requisition
  • Purchase Order
  • Request For Quotation (RFQ)

Outline Agreement

  • Contracts
  • Schedule Agreement

Document Types for Purchasing Documents

  • Define Document Type
  • Define Number Ranges for Document Types
  • Define Screen Layout At Document Level

Release Procedure for Purchasing Documents

  • Purchase Requisition, Purchase Order, Request For Quotation (RFQ), Outline Agreement- Contracts, Schedule Agreement


Pricing Procedure

  • Maintain Condition Table
  • Define Access Sequence
  • Define Condition Types
  • Define Calculation Schema
  • Define Schema Group

1. Schema Group Vendor

2. Schema Group for Purchasing Organization

3. Assignment of Schema Group to Purchasing Organization

  • Define Schema Determination
  1. Determine Calculation Schema for Standard Purchase Orders


External Service Management

  • Service Master Creation
  • Model Service Specifications – MSS
  • Service PO
  • Service Entry Sheet


Optimized Purchasing

  • Automatic PO w ref to PR
  • Automatic PO at GR


Inventory Management

  • Movement types
  • Goods Receipt
  • Goods Issue
  • Transfer Postings

1. Transfer Posting from Stock to Stock

2. Transfer Posting from Plant to Plant

3. Transfer Posting from Sloc to Sloc

4. Transfer Posting from Material to Material

  • Return Delivery to vendor
  • Initial Entry of Stock Balances
  • Reservations


Physical Inventory


  • Types of Physical Inventory
  • Creating Physical Inventory Document
  • Entering Physical Inventory Count
  • List Of Inventory Differences
  • Post the Difference

Special Stocks and Special Procurement Types


  • Consignment
  • Stock transport order
  • Subcontracting
  • Pipeline
  • Returnable transport packaging – RTP
  • Third Party Processing


Batch Management in MM

  • Condition Tables
  • Access Sequence
  • Strategy Types
  • MM Batch Search Procedure
  • Batch Status in MM
  • Characteristics and class
  • Sort Sequence for MM Batch
  • SLED In Batch in MM
  • Manual And Automatic Batch Display In MM


Valuation and Account Determination

  • Introduction to Material Valuation
  • Split Valuation
  • Configure Split Valuation
  • Defining Global Categories
  • Defining Global Type
  • Defining Local Definition& Assignment


Invoice Verification

  • Basic Invoice Verification Procedure
  • Invoice for Purchase Order
  • Unplanned Delivery Costs
  • Planned Delivery Costs
  • Credit Memo
  • Blocking the Invoice
  • Releasing Blocked Invoices
  • Subsequent Debit/Credit
  • Automatic Settlements (ERS, Cosignment,Pipeline)
  • GR/IR Account Maintenance
  • Stochastic Block
  • Parking Invoice Document


Integration Concepts

  • Integration of MM with FI/CO

Automatic Account Determination

  • Integration of MM with SD

Stock Transport Order (STO)

Intra Company Stock Transfer

Inter Company or Cross Company Stock Transfer

Third Party Processing

  • Integration of MM with PP

MRP Concepts

Planned Independent Requirements

Consumption Based Planning

Reorder Point Planning

Forecast Based Planning


  • Integration of MM with WM


Introduction to Warehouse Management

Warehouse management overview in SAP R/3

  • Organization Data
  • Warehouse Structure
  • WM Flow with MM/SD/PP/QM


Organization Data

Define Warehouse Organization structure

  • Warehouse number, Storage type, Storage section, Storage Bin, Storage Bin Structure, Storage Bin Types, Picking Area, Storage unit, Quant


Master Data

  • Material Master


Search Strategies

  • Storage Type Search Strategies, Storage Section Search Strategies, Storage Bin Type Search Strategies


Storage Bins

  • Define Storage Bin Types, Define Blocking Reasons, Define Storage Bin Structure


WM Settings for the Material Master

  • Define Storage Type Indicators, Define Storage Unit Types, Define Storage Section Indicators, Define Special Movement Indicator
  • Integration of MM with QM
  • Master Inspection Characteristics, Sampling Procedure, Quality Inspection types, Quality Inspection Planning, Quality Inspection Lot, Record Quality Results and Record Usage Decision for the Quality Inspection Lot.


Technical Requirements for MM


• MM Standard Reports

• Tables


General Topics Prerequisite

• Differences between Implementation, Support, Upgrade and Roll out projects

  • GAP Analysis, AS-IS, TO-BE
  • SAP System Landscape
  • SAP Testing
  • Handling SAP Tickets


Resume Preparation

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