The SAP MM (Materials Management) module is one of the most essential components of SAP ERP. It handles the procurement and inventory functions of an organization and ensures that the supply chain processes are well managed and efficient. SAP MM integrates with other modules like Finance (FICO), Sales and Distribution (SD), and Production Planning (PP), making it critical for seamless operations in any organization.

The course is designed for procurement professionals, supply chain managers, SAP consultants, and anyone involved in materials management and purchasing. It covers the end-to-end processes in materials management, from procurement, purchasing, inventory management, and vendor management to invoice verification and reporting.

Course Objectives:

• Understand the core concepts of SAP MM and its role in the supply chain.
• Learn to configure and customize the SAP MM module for procurement, purchasing, and inventory management.
• Perform procurement processes like purchase requisitions, purchase orders, goods receipt, and invoice verification.
• Manage inventory levels, material movements, and stock transfers.
• Integrate SAP MM with other modules for a seamless supply chain and financial process.
• Master vendor management, including vendor evaluation and selection.

Module 1: Introduction to SAP and SAP MM

• Overview of SAP ERP and its importance in business processes.
• Introduction to the SAP MM module and its role in materials management.
• Key integration points with other modules like FICO, SD, and PP.
• SAP MM navigation and transaction codes.
• Overview of SAP architecture and system landscape.

Module 2: Organizational Structure in SAP MM

• Defining and configuring the organizational structure in SAP MM.
• Creation of organizational elements like company code, plant, storage location, and purchasing organization.
• Assigning roles and responsibilities to different organizational units.
• Mapping of organizational structure to real-world business processes.

Module 3: Master Data in SAP MM

• Introduction to master data and its role in materials management.
• Creating and managing material master data.
• Vendor master data: defining and managing vendor information.
• Understanding purchasing info records and source lists.
• Service master data for managing procurement of services.
• Integration of master data with other modules.

Module 4: Procurement Process in SAP MM

• Overview of the procurement process and its key components.
• Creating purchase requisitions and purchase orders.
• Different procurement types: standard, subcontracting, third-party, and consignment.
• Goods receipt process and posting of stock in the system.
• Invoice verification and posting of vendor invoices.
• Handling credit memos and subsequent debits/credits.

Module 5: Purchasing in SAP MM

• Overview of purchasing processes and strategies.
• Vendor selection and management: evaluating and approving vendors.
• Creating and managing purchase orders (PO) in SAP.
• Purchase order types: standard PO, framework orders, and scheduling agreements.
• Monitoring and tracking purchase order status and delivery schedules.
• Integration of purchasing with inventory and financial accounting.

Module 6: Inventory Management

• Understanding inventory management processes in SAP MM.
• Material stock overview and stock levels monitoring.
• Goods movements: goods receipt (GR), goods issue (GI), stock transfers, and transfer postings.
• Managing batch and serial numbers for inventory items.
• Physical inventory processes and reconciliation.
• Stock valuation and adjustments for inventory management.

Module 7: Material Requirement Planning (MRP)

• Overview of material requirement planning (MRP) in SAP MM.
• Configuring MRP settings for procurement and stock management.
• Running MRP and analyzing MRP results.
• Managing planned orders and purchase requisitions generated by MRP.
• Integration of MRP with production planning (PP) and inventory management.

Module 8: Valuation and Account Determination

• Understanding material valuation and price control in SAP MM.
• Configuring account determination for different material movements.
• Stock valuation methods: standard price and moving average price.
• Integration of materials management with SAP Finance (FI) and Controlling (CO) for accurate financial postings.
• Handling inventory revaluation, adjustments, and price changes.

Module 9: Invoice Verification

• Overview of the invoice verification process in SAP MM.
• Three-way match concept (purchase order, goods receipt, and invoice).
• Managing invoice postings, cancellations, and reversals.
• Handling discrepancies in invoices (quantity and price variances).
• Posting vendor invoices and credit memos.
• Automatic posting to FI during invoice verification.

Module 10: Vendor Management and Evaluation

• Vendor master data setup and management in SAP MM.
• Vendor evaluation criteria: quality, delivery, and price.
• Managing vendor performance and using vendor scorecards.
• Vendor account management and monitoring.
• Integration of vendor evaluation with the procurement process.

Module 11: Pricing Procedure in SAP MM

• Overview of pricing in the procurement process.
• Configuring pricing conditions for purchasing documents.
• Understanding price determination: gross price, discounts, surcharges, taxes, etc.
• Managing pricing schemas for different procurement scenarios.
• Automatic pricing in purchase orders and contracts.

Module 12: External Services Management (ESM)

• Overview of external services procurement in SAP MM.
• Service master data setup and management.
• Creating service purchase orders and service entry sheets.
• Invoice verification for service procurement.
• Managing and evaluating service providers.

Module 13: Contracts and Source Determination

• Overview of procurement contracts and their use in SAP MM.
• Creating and managing contracts: quantity contracts and value contracts.
• Using scheduling agreements for long-term procurement.
• Source list and quota arrangements for vendor selection.
• Automating procurement with source determination and vendor selection.

Module 14: Reporting and Analytics in SAP MM

• Standard reports in SAP MM for procurement and inventory management.
• Generating custom reports for purchase order tracking, stock overview, and vendor performance.
• Analyzing material consumption, procurement costs, and stock levels.
• Integration with SAP Business Intelligence (BI) for advanced reporting.
• Key performance indicators (KPIs) in materials management.

Module 15: Integration with Other SAP Modules

• Integration of SAP MM with SAP Finance (FI) and Controlling (CO) for financial tracking.
• Integration with Sales and Distribution (SD) for sales order management and procurement.
• Integration with Production Planning (PP) for material planning and availability.
• Managing inter-company and inter-plant transfers.
• Understanding the flow of data between MM and other SAP modules.

Module 16: Project-Based Learning and Final Assessment

• Hands-on project simulating a real-world procurement and inventory scenario.
• Configuring the organizational structure, creating master data, and managing procurement processes.
• Integrating SAP MM with other modules to manage end-to-end supply chain processes.
• Final project assessment, troubleshooting, and feedback.