SAP MM (Materials Management) is a module of the SAP ERP software package from SAP AG that is used for Procurement Handling and Inventory Management.
All supply chain functions, including consumption-based planning, planning, vendor evaluation, and invoice verification, are covered by SAP Materials management. In order to manage goods until utilization determines that the cycle should start over, it also comprises inventory and warehouse management.
Integration of materials management with other modules, including SAP SD, SAP PP, and SAP QM. Inventory control and procurement are handled through SAP MM. Two crucial master data—material and vendor—are present in the module. Client, Company Code, Plant, Storage Location, and Purchase Organization are the main levels that can be created for a SAP MM (Material management) system.
SAP MM can be divided into five major components. These are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of sub-components.
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. In simple words, SAP Material Management is a fundamental module of the SAP ERP (Enterprise Resource Management) system that manages the complete material supply chain and inventory management processes of an organization.
SAP MM is essentially an element of Logistics. It is counted as one of the most important modules when talking about SAP ERP software. The MM application module allows the user to manage and procure the data in a very organized manner. SAP MM module has plenty of aspects such as receiving and purchasing goods, material storage, inventory and most importantly planning based on consumption.
SAP MM is the key area within Logistics in SAP. It is very important component of Logistics because it is tightly integrated with all of other components of SAP Logistics.