• SAP MM (Materials Management) is a module of the SAP Enterprise Resource Planning (ERP) package that is used for Procurement Handling and Inventory Management.
• The module has two important master data – material and vendor.
• Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.
• This is the largest and most complex in all of SAP modules. 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 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.
• Material Management covers the functionality required to purchase goods and services, manage inventory, and inspect incoming materials.
• The Purchasing function includes creation of requisitions, requisition approval, purchase order generation, and receipt of goods and services.
• Inventory Management includes issuing and transferring inventory, inventory restocking, and the inventory count and adjustment processes.

The basic of the purchase to pay flow is explained below.

• Determination of Requirements
  In this step, there is a requirement of material or service, which must be procured externally, from the user. The requirement must be recorded as Purchase Requisition (PR) document in SAP MM.
  Purchase Requisition (PR) isan internal purchasing document in SAP ERP that is used to give notification to responsible department about the requirement of material/service and to keep track of such requirement.
• Determination of the Source of supply
  After the PR has been created in the previous step, the responsible department must process it. The buyer of the procurement department must determine the possible sources of supply of the material/service specified in the PR.
• Vendor Selection
  If in the previous step, there are some outline agreements or info record documents that can be used as references to create a PO, the buyer can select or choose which vendor that will be appointed to provide the material/service at this time.
• PO Processing
  In the previous step, the buyer has selected the vendor which will provide the material/service needed in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation).
• PO Monitoring
  After the PO has been sent to the vendor, the buyer has the responsibility to monitor whether the vendor delivers the material/service at the right time on the right place.
• Goods Receipt
  When the vendor delivers the material or perform the service, the responsible person of the company must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SA will update the PO history.
• Invoice Verification
  After the vendor delivered the material/service, it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO.
• Payment Processing
  After the Invoice Receipt (IR) transaction has been posted, the vendor’s account payable will increase and the company must process the payment to that vendor as stated in the terms of payment of the PO. The payment transaction will be performed in FI module. After the payment has been posted, the vendor’s account payable will be debited and the cash or bank account will be credited.

SAP MM stands for Materials Management and this is part of SAP Logistics  includes:

• Requisitions
• Purchase orders
• Goods receipts
• Accounts payable
• Inventory management
• BOM’s
• Master raw materials, finished goods etc

Some of the Main SAP MM Transactions are:

• ME51N – Create Requisition
• ME21N – Create Purchase Order
• MIGO – Goods receipt a PO
• MIRO – Create Invoice

One of the main areas covered by MM module is Purchasing/Procurement. The purchasing process is initially started when there is a requirement of material/service from a user. If the material/service can not be obtained from company’s internal resource, the responsible person of that company must find the vendor/supplier which can provide it on the required date. The purchasing process is ended when the payment processing to the vendor that supply the material/service has been done.

• It’s all about selling goods & distributing them to relevant parties and gets the payments for relevant parties.
• Helps to optimize all the tasks and activities carried out in sales, delivery and billing.
• Key elements are: pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.
• SAP SD application components fulfills many of the international requirements that supports the sales and distribution activities with functions such as pricing and conditions, customer order processing, delivery monitoring, billing, credit and risk management.
• The SAP sales and distribution is part of the logistics module that support your customers, starting from quotations, sales order and all the way towards billing the customer.
• It is tightly integrated with the MM and PP functional modules. It allows companies to input their customer sales price, check for open orders and forecast etc.

The most important basic functional features in the SD module are:

• Pricing
• Availability Check
• Credit Management
• Material Determination
• Output Determination
• Text Processing

SAP SD stands for Sales and Distribution and this is the module which is used to manage customer-focused activities, from selling to delivery, including -

• RFQ
• Sales orders
• Pricing
• Picking (and other warehouse processes)
• Packing
• Shipping

Some of the main SAP SD transactions are:

• VA01 – Create Customer Order
• VL01N – Create a Delivery
• VA03 – Display a Order
• VL02N – Change Customer Delivery (F20 is to post a good issue)
• VA05 – List Orders
• VF01 – Create a Invoice

The Order to Cash flow roughly follows the following sequence -

• A customer orders some items from your company by creating a sales order
• Your company decides to deliver the items ordered by the customer.
• This is recorded by creating a outbound delivery document
• Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document.
• You will post goods but the material document created will be stored in tables.
• You will then create shipment document to actually ship the items.
• You finally create a sales billing document.
• This will have a corresponding accounting document created that will be in different tables.
• When customer pays to your invoice, it will directly hit your AR account in FI.

• Customers
• Vendors
• Employees
• Materials
• Products
• Business partners

Who Needs SAP MDM?

• Do you have multiple SAP or non SAP systems which houses the master data for example customers, vendors, partners etc., if the answer is yes then you might be needing it to consolidate your master data. For example your company and global subsidiaries have master data of customers which are housed in different SAP systems. There might be high probability of duplicate customers across the systems. SAP MDM helps you to remove that duplicates so that you can service your customers better. The same concept works for your other master data like vendors, materials, employees, product data and business partners.
• Global companies who ship from multiple locations as mismatched master data/product data will affect your ability to ship orders from global points as there would be problems in ATP etc as they won’t recognize both of them as same products/materials.

Benefits of SAP  MDM Module:

• No Coding, No Transactions
• Data Cleansing can be done. For example deletion of duplicate entries or merging of duplicate entries etc by defining rules.
• Ability to modify huge number of data records.
• Get data from multiple sources SAP, non SAP system, file or from XML and remember without coding.
• Validation of data while loading the data.

Who should get SAP MDM Training?

• SAP Netweaver/XI/PI Administrators/ Analyst
• SAP Basis Administrators
• SAP Master Data Management users
• SAP Project Managers
• SAP SCM/SD/MM Consultants

See some screen shots of SAP MDM module….
SAP master data management demo and trends
and also the SAP MDM product brochure from SAP.
SAP NetWeaver Business Content
Our SAP MDM Training Content:
SAP MDM Training

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• Trainers are SAP expert professionals who are working in their respective modules as SAP consultants and who have more than 4 years of experience.
• Training from wherever you choose, your home, office or how about beach! We have already trained two aliens from Mars Planet. It doesn’t matter which part of the globe you are from you can get trained as long as you have good broadband internet connection.
• Ability to stay connected with your real job while attending training
• Access to a live instructor for the complete duration of the course
• We have trained people using live virtual classroom training in all the continents and for the countries list please see
  Our Esteemed Trainees from countries other than USA.
• You can see the configuration steps live on your screen
• Save time and money by avoiding expensive travel
• Classes available both day and night also weekdays and weekends

Requirements for training:

• Fast PC or Laptop with minimum broadband internet connection.
• Minimum resolution of 800 X 600 preferred.
• Phone with Headset/Microphone or ability to dial in to conference to our US phone numbers.
• Ability to install software and plug-ins (Administrator or Power User rights)
• Telephone headset or speakerphone (for VoIP: integrated headset and mic)
• Windows 2000, XP or Vista
• High-speed Internet connection (LAN, DSL, cable)
• Internet Explorer 6/7 or Mozilla
• JavaScript and cookies enabled
• ActiveX controls enabled

• Pricing methodology, same condition records, scales.
• Output mechanism through which you can issued print, fax or email outputs.
• IMG Configuration methodology etc.,
• Enhancement concepts like user exits, function exits and BADI etc.,

The reason why we have listed these here is similar kind of mechanism is followed in most of other SAP modules like MM, FICO etc so it would be easy sail for SD consultants to learn other SAP modules compared to others. We have listed down some of the modules SAP SD consultant’s can learn to improve their knowledge and fortify their current job position.

• Material’s Management Module.
• SAP CRM.
• SAP Project Systems Module.
• SAP MDM Module.
• SAP SCM Training .
• SAP APO.
• SAP IS Retail .

SAP Certification: Does it Matter?

Still we want to add few points:

• Having domain knowledge is more important than certification.
• Ability to learn things very quickly is one more attribute. The most seasoned SAP consultants also don’t know all about their respective modules…so everyday is learning if you are handling projects in different domain/industry sectors.
• Having a certificate may be mandatory in certain companies to work as SAP consultant, but we haven’t really seen any of those requirements.
• Having a certificate may be a fetching point for permanent jobs as SAP analyst, we feel the benefit is negligible for SAP Contractors.

• Sreedharan from Oman for ABAP Training.
• Richard from U.K for CRM Training.
• Jacob (MM Consultant) from New Zealand for Sales & Distribution Training.
• Armaan from Suadi Arabia for SAP Basis Training.
• Sharmeen from Dubai for SAP XI Training.
• Andrew from Singapore for SAP BI Training.
• Sheila from Kuwait SAP IS retail Training.
• Hosni from Egypt SAP PP Training.
• Krupa from U.A.E SAP PS Training.
• Bhavesh from Canada SAP SRM Training.
  and many more…..