SAP Material Management and How to Use:-
SAP Enterprise Resource Planning (ERP) is a business software that integrates all the knowledge in a separate software, considering various factors such as time and cost. Corporations can easily meet their business requirements with the help of SAP.
SAP Business Process:-
SAP MM is the small form for SAP Material Management system. The roles of SAP MM(Material Management) in a business process are as follows:
• It supports all aspects of MM (planning, control, etc.).
• A business method in SAP is termed as a “module”.
• It is the backbone of logistics that incorporates modules such as SD, PP, PM, PS, and WM
• SAP MM is a part of logistics purposes and it helps in handling the obtainment activities of an organization.
Features of SAP MM:-
The features of an SAP MM system are as follows:
• It deals with those Procurement Process, Master Data, Account Measurement & Estimate of Material, Inventory Management, Invoice Verification, Material Requirement Planning, etc.
• It deals with managing the material and resources of an industry with the aim of hastening productivity and defeating costs. At the same time, Systems Applications Products Material Management is quite able to help changes that are common in any business environment.
• MM (Material Management) as a method ensures no deficiency of materials or any gaps in the quantity string process of the business. SAP MM speeds up the procurement and Material Management movements, making the business run easily with complete time and cost efficiency.
• Systems Applications Products Material Management is one of the modules of SAP that deals with MM and inventory management.
SAP MM ─ Screen Navigation:-
The first step to understand SAP is to have a primary awareness of its different screens. The following parts describe how to navigate through the screens available in Systems Applications Products (SAP) and how to use the functionalities of the regular toolbar.
Log on to the SAP ERP server. The SAP login screen will help you for the User ID and the Password. Give a valid user ID and password and press enter. The user id and password are given by the system administrator. The login screen looks as follows:
Standard Toolbar Icons
The next screenshot displays the toolbars possible on the SAP screen.
Presented below is a brief summary of the available toolbars:
• Menu Bar – Food(menu) bar is the top line of the dialog window in the SAP mode.
• Standard Toolbar – This toolbar adds standard functions so as for saving, top of a page, end of the page, page up, page down, copy, etc.
• Title Bar – Title bar represents the name of the application/business process you are currently in.
• Application Toolbar – Application-specific menu options there available on this toolbar.
• Command Field – To start a business importance without operating within menu transactions, some logical codes are allocated to the enterprise processes. Transaction and best sap mm training in hyderabad ameerpet
on codes are listed in the command field to start an request directly.
Standard Exit Keys:-
Exit keys are done to exit the module or to log off. They are managed to go back to the last accessed screen. The following screenshot highlights the standard exit keys used in SAP:
New Session Icon:-
For creating a new session, we use the following keys shown in the screenshot below:
It is a great method to log off from the SAP system when you complete your work. There are many ways to log off from the system, but it can be done using the following instructions as given in the screenshot below:
Each business acquires material or assistance to achieve its business needs. The method of buying materials and obtaining services from merchants or dealers is called procurement. Procurement should be done in such a way that materials are placed false quantity, with a proper value at the proper time. It is subdivided into following parts:
• Special Procurement
• Basic Procurement
Basic procurement is a method of obtaining goods or services in the right size, at the right price, and at the right time. But, it is critical to maintaining a right balance in quantity, price, and time. Consider the following example:
• Groups try and keep inventory levels at a point, due to the prices associated with big levels of inventory; at the equal time, it can be detrimental to stop production due to the shortage of raw materials.
• Getting the minimum value for a product or service is often required, however, it is equally necessary to have a balance between the product availability, quality, and merchant (seller) relations.
Procurement in most modern groups follow some sequential steps which are described below:
Requirement and Information Gathering
Procurement method starts by finding information about a product and its capacity. Then for the needed products and services, it is necessary to look for suppliers who can satisfy the requirements.
After collecting the requirements, one sees for the suppliers who can fulfill those requirements. Based on that, quotation requests or data requests are sent to the suppliers or they are contacted directl best sap mm training in hyderabad ameerpet.
Once the supplier is identified, the product/service quality is checked, and any necessities for services such as insulation, warranty, and support parameters are investigated. Any examples of the goods can be received for quality examination.
Some agreements with suppliers are made about the price, availability, and transfer list of the products/services. Thereafter, a treaty is signed that is a binding legal report between the supplier and the ordering party. A contract will include all necessary information such as cost and size material, delivery date, etc.
The required material is sent, given to the ordering party, and the supplier is paid equally. Training and establishment of product or services may also be included.
Consumption, Maintenance, and Disposal
As the products/services are consumed, the performance of the products or services is evaluated and any follow-up service support, if required, is analyzed.
Once the goods or services are consumed or the contract expires and needs to be renewed, or the merchandise or service is to be re-ordered, the knowledge with the venders and service providers is reviewed. If the products or services are to be re-ordered, the organization decides whether to order from the previous supplier or think about new suppliers sap mm training institutes in Madhapur.
Basic Procurement Activities
The following figure illustrates the flow of basic acquisition activities:
A brief introduction of the procurement activities is given below:
Determination of requirement
|It is the logical group where it is selected what material or services are needed, and which supplier can fulfill the requirements.|
Creating purchase requisition
|It is the phase in which the buying department is notified about the requirement of items or services assistance. A request is an intestinal document.|
Creating purchase order
|It is the phase when an order is created from the request and it is accepted and allowed to a supplier.|
Goods receipt/ Invoice received
|It is the phase in which the material is received by the corporation and its position and quality are being inspected. In this phase, an invoice is collected from the vendor (seller).|
Invoice verification/Vendor Payment
|It is the phase in which the merchant (seller) is paid by the organization and reconciliation of the invoice and PO is accomplished.|
Type of Basic Procurement:-
There are two types of basic procurement:
• Procurement for Stock vs Consumption
• External vs Internal Procurement
Procurement for Stock vs Consumption:-
The following points give the difference within Procurement for Stock vs. Consumption:
• Acquisition for Stock – A stock material is a material that is kept in stock. These materials are kept in assets once obtained from the merchant. The stock of this material keeps on growing or decreasing based on the value of quantity obtained or issued. To obtain a material for stock, the material must have a control record within the system.
• Procurement as Following Destruction – When the procurement is for basic expenditure, i.e., it will be used as early as it is received, the user should
specify the consumption purpose. To apply a material for forming, the material may must a preceptor record in the system.
External Procurement vs Internal Procurement:-
The following points show the difference between External vs Internal Procurement:
• External procurement – It is the method of obtaining goods or services from external merchants. There are three basic forms of outside procurement usually maintained by the purchasing component of the IT system.
> One-time orders are generally used for material and sets that are required erratically.
> Longer-term agreements with following the issue of release orders – For materials that are doing ordered exactly and in large sizes, we can negotiate a deal with the merchant (seller) for pricing or provisions and record them in a convention. In a contract, you also define the gravity date.
> Longer-term scheduling systems and received schedules – If a supply is required on a daily basis and is to be performed according to a specific time schedule, then you set up a scheduling agreement.
• Internal Procurement – Large corporate groups may own various separate industries or companies. The internal acquisition is a process of getting material and services from same companies. So, each of these groups maintains a complete recording system with separate Balance, Profit, and Loss Descriptions, so that when any enterprise happens between them, it will be recorded.
Specific stocks are the stocks that are managed individually, as these stocks do not belong to the group. Special stocks are kept at some particular location. Special acquisition and first stock types are classified into the following sections:
Consignment stocks are that supply that is possible at our store premises, however, it still belongs to the merchant (seller) of the material. If you use the material from consignment stocks, then you have to pay to the merchant.
In third-party processing, an organization declares on a sales order to the associated external merchant (seller) who sends the goods directly to the customer. The sales order is not processed by the company, but by the merchant (seller). 3rd-party items can be entered in purchase requisitions, purchase orders, and sales order sap training in hyderabad ameerpet.
In pipeline handling, the company need not order or store the material involved. It is accessible as and when needed via a pipeline, for example, oil or water, or another style of cable (such as electricity). The material that is used is settled with the merchant (seller) on a regular basis.