SAP MM (Material Management) is one of the important modules in SAP ERP software, and the

MM application module supports the procurement and inventory functions occurring in day-to-
day business operations.

This MM module contains many aspects such as purchasing, goods receiving, material storage,
consumption-based planning, and inventory. SAP MM module is fully integrated with other
modules in the SAP R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution
(SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and
Warehouse Management(WM).
It supports all phases of materials management, materials planning, and control, purchasing,
goods receiving, inventory management, and invoice verification.
Organizational Structure
An effective enterprise structure enables to process of the basic transactions, and these
organization structures can be grouped to provide specific functional activities in Finance, Sales,
logistics, etc. The important organizational units in the SAP MM module are

Plant
Valuation area
Storage locations
Purchasing organizations
Purchasing groups
SAP MM Sub Modules-
SAP MM is a key area within logistics as it is tightly integrated with all the components of the
SAP Logistics module. The important components of the SAP MM module are
 Material Planning
 Purchasing
 Inventory Management
 Vendor Valuation
 Invoice Verification
 Statutory Requirements
 Information System
Procurement Process
One of the important processes in the SAP MM module is Purchasing/Procurement.
The purchasing process is initially started when there is a requirement of material/service for the
organization.
If the material/service cannot be obtained from the company’s internal resources, the responsible
person of that company must find the vendor/supplier which can provide it on the required date.
The purchasing process is Started with the creation of Purchase Requisition (PR), Purchase
Order (PO), Goods Receipt/Services, Invoice Verification, Payment to vendors.

What is SAP MM ? | SAP Material Management Module

What are the Important Submodules of SAP MM?
Describe Procurement Process?