SAP MM - Purchase To Pay (P2P) Cycle - In Simple Words.


"SAP MM (Materials Management) is a module of the SAP Enterprise Resource Planning (ERP) package that is used for Procurement Handling and Inventory Management."


1) MM (Material Management) optimizes all purchasing processes, helps in accurate inventory and warehouse management and so on.


2) The module has two important master data – Material and Vendor.


3) Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.


4) MM Module is the largest and most complex in all of SAP modules. It can be divided into five major components. These are:
  • Materials Management.
  • Plant Maintenance.
  • Quality Management.
  • Production Planning and control.
  • Project Management System.
Each is divided into number of subcomponents.



5) SAP Material Management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification.


6) 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.


7) Material Management covers the functionality required to purchase goods and services, manage inventory, and inspect incoming materials.


8) The Purchasing function includes creation of requisitions, requisition approval, purchase order generation, and receipt of goods and services.


9) Inventory Management includes issuing and transferring inventory, inventory restocking, and the inventory count and adjustment processes.


ALSO READ:

1) Introduction To SAP MM Module (Material Management).

2) SAP MM - Important Transaction Codes, Table Links & Flows.

3) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page I.

4) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page II.

5) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page III.



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