What are the necessary components of SAP MM?

Question

Can you help me with this question

in progress 0
Aravind 2025-02-26T13:51:39+00:00 1 Answer 9 views
0

Answer ( 1 )

  1. Renuka
    0
    2025-02-26T14:06:17+00:00
    Reply
    According to SAP documentation, the essential components of SAP MM (Materials Management) include: Master Data Management (including Material Master and Vendor Master), Purchasing, Inventory Management, Material Requirement Planning (MRP), Invoice Verification, and Valuation and Account Assignment; these components work together to manage a company’s procurement and inventory processes efficiently. 

    Key points about each component:
    • Master Data Management:
      Contains critical information about materials (Material Master) and vendors (Vendor Master) used in the procurement process. 

    • Purchasing:
      Handles the creation and management of purchase requisitions and purchase orders to acquire necessary materials from vendors. 

    • Inventory Management:
      Tracks the movement of goods within the warehouse, including goods receipts (GR), goods issues (GI), and stock transfers. 

    • Material Requirement Planning (MRP):
      Uses algorithms to calculate the required quantity of materials based on production plans and current inventory levels. 

    • Invoice Verification:
      Process of verifying vendor invoices against purchase orders and goods receipts before making payment. 

    • Valuation and Account Assignment:
      Determines the accounting values of materials and assigns them to appropriate general ledger accounts. 

Leave an answer