What is SAP MM Materials Management?


SAP Materials Management (MM) is a module of enterprise resource planning software that deals with materials management, as the name suggests. It is a part of the logistics component and aids in managing business procurement activities. SAP MM Course is designated to manage the core functions of the supply chain, planning of resources and execution, activities, and information necessary for the completion of business processes. 

The pervasive use of SAP MM has resulted in businesses seeking SAP Materials Management experts for smooth business processes. To gain an in-depth understanding of SAP MM, let us discuss more in detail about SAP MM and what it entails to learn about it. 

More about SAP Materials Management

Companies use SAP Materials Management to determine comprehensive material specifications, communicate material specifications to procurement, and perform other sourcing tasks. Choosing the quantity of material to be transported through the supply chain at each storage location, creating plans for material replenishment, determining the inventory levels to be kept for each category of product (raw materials, finished goods), and communicating information about material needs within the extended supply are all tasks that fall under the purview of materials management.

Companies in the current times face challenges in material management. 

SAP MM Materials Management 

SAP MM serves as a problem solver concerning logistics, by aiding companies to take complete control over the personnel, machinery, and materials. SAP MM helps businesses to enhance their supply chain, inventory, and warehouse management. By deploying SAP MM companies are empowered with higher efficiency and effectiveness in the logistics, supply chain, and production process.

Companies in the current times face challenges in material management.  

SAP MM serves as a problem solver concerning logistics, by aiding companies to take complete control over the personnel, machinery, and materials. SAP MM helps businesses to enhance their supply chain, inventory, and warehouse management. By deploying SAP MM companies are empowered with higher efficiency and effectiveness in the logistics, supply chain, and production process.

What are the Features of SAP Materials Management (MM)?

  • As the name suggests, SAP MM Modules concerns material management and Inventory management of an organization's business process. 
  • SAP MM allows acceleration of the procurement and material management processes, which further helps an organization to operate smoothly in a total time and cost-effective manner. SAP MM implementation ensures the absence of material shortages or gaps in the organization's supply chain. 
  • SAP MM increases efficiency and cut expenses by managing an organization's resources and materials (products/ services). SAP MM is also highly adaptable to the frequent changes occurring in any corporate setting. 
  • The SAP MM module covers the following activities:
    • Procurement Process
    • Master Data (Material & Vendor Master)
    • Account Determination 
    • Material Valuation
    • Inventory Management
    • Invoice Verification
    • Material Requirement Planning

Components of SAP MM

SAP MM is a composite system made up of an interconnection of numerous components. By facilitating information sharing between departments, this connection enables real-time data updating. SAP MM consists of five major components, which again are futher made up of sub-components. Let us dig into the five key elements of the SAP MM software suite: 

  • SAP MM CBP ( Consumption-Based-Planning)
  • SAP MM PUR (Purchasing) 
  • SAP MM IV ( Inventory Management)
  • SAP MM Invoice Verification
  • SAP MM SRV (External Services Management) 

SAP MM CBP ( Consumption-Based-Planning)

Planning based on consumption makes use of statistical techniques to estimate future needs using historical consumption values. The main responsibility of the MM-CBP component is to automatically generate procurement proposals for production and purchase while keeping track of stock levels. The proposal is activated either by projecting needs based on historical consumption figures or when stock levels fall below a pre-determined reorder point.

SAP MM PUR (Purchasing) 

All parties involved in the procurement process must communicate effectively for the purchasing component to guarantee that the organization's purchasing unit runs properly. The purchasing element's main responsibilities are:

  • Managing external material and service sourcing
  • Observing vendor deliveries
  • Monitoring track of payments to vendors 
  • Identifying potential sources of supply for a need

SAP MM IV ( Inventory Management)

Gathering requirements is the primary step in the procurement process, which concludes with buying products from vendors. The Purchasal step is then followed by proper storage in the company's inventory/property to use the products when the need arises. Inventory management involves managing and storing the merchandise received from the suppliers in the appropriate locations on the company's inventory/property. 

Inventory Management involves the following tasks:

  • Stock management based on value or quantity 
  • Planning, entering, and maintaining records of the movements of all commodities 
  • Creating Material documents upon moving products and Updating stock amount and value in the inventory 
  • A document number and year are used to refer to a material document

SAP MM Invoice Verification

This module concerns the smooth and accurate receipt generation of the procurement of products or services that an organization makes. Organizations purchase certain goods/services to fulfill operational requirements. Any vendor selling a product/service drafts an invoice containing the amount payable against the purchase. A careful assessment is required prior to paying the vendor. This process of verifying and confirming the accuracy of the receipt before making the payment is referred to as Invoice Verification. This process also entails:

  • Upon receiving the purchase order and the items, an invoice verification closes the procurement process.
  • All relevant financial and accounting papers are updated by invoice posting.
  • Blocked Invoices that differ from the actual invoice can be processed through invoice verification

SAP MM SRV (External Services Management) 

This SAP Module facilitates the solicitation of bids, placing of orders or awards, acceptance of services, and invoice verification. It offers a framework for organizing and managing outside services. It is compatible with two categories of outside services:

  • Planned services which entail gaining knowledge of the scope and nature of the requirement during the beginning of the procurement phase 
  • Services that are provided unexpectedly and for which the procurement process depends on a value cap

SAP MM Course to Become a SAP MM Consultant

Now that we have learned a great deal about SAP Materials Management, let us get down to the ways and means to become a SAP MM Consultant. 

To work as a SAP MM consultant, developing a sound set of soft skills aside from technical background is a must. Analytical thinking, problem-solving, and excellent communication skills are the strong suits of an SAP consultant. Above all else, a formal qualification and training through an SAP MM course is mandatory.

Strategies to Become SAP Materials Management Consultant

  • Obtain an appropriate bachelor's degree in relevant fields like Computer engineering/ Science, or Information technology. It may also be advantageous to have additional business or financial credentials.
  • Obtain extra SAP training. Pursuing a SAP MM Course and training programs will enhance your SAP knowledge and abilities in technology tools, customer relationship management, sales, and other business areas. Some training programs offer certifications that can help you find work. A SAP MM certification Course is ideally the best route to catapult into a position of a SAP MM consultant
  • Amass a wealth of professional expertise. Consider beginning your career as a junior consultant at an IT consulting firm or look at entry-level positions like junior SAP analyst or junior SAP developer.
  • To boost your profession, take into consideration earning a master's degree. You might pursue advanced study in business or IT, depending on your desired professional path.


We have covered in detail the broad spectrum of SAP MM and the tips to start working on becoming a SAP consultant. Enrol in a SAP MM certification course today, acquire all the requisite skills, and become a successful business leader. 




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