What is SAP MM?

SAP MM stands for Materials Management and this module consists of several components and sub-components. The most prominent used are Master Data, Purchasing and Inventory. All of these components have their sub components that are essential in business processes, and all of the processes are executed by using transactions.

Transaction (in SAP) means processing of certain information in order to complete business process requirement. Most of the business processes involve multiple SAP transactions to be accomplished and are spread over one, two or more modules.

Various sub-modules in SAP MM are Master Data and Transactional Data.

Master data is the core data that is used as a base for any transaction. If you are producing, transferring stock, selling, purchasing, doing a physical inventory, whatever your activity may be, it requires certain master data to be maintained.

Some example of Master Data are like material master data, vendor master data, pricing of master data, warehouse management master data.


Purchasing is a component of SAP MM module. MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Next step is assigning a source to Purchase Requisition, and release of Purchase Requisition. The PR gets converted to Purchase Order, and upon goods receipt, an invoice receipt can be done to complete the purchasing process.

Inventory Management

Inventory management is used to manage the inventory of the goods. It is based on several key processes like definition of movement types, reservations, goods issue, goods receipt etc. There are a number of functions and transactions used in the Inventory management processes.

Pricing Procedure

Pricing procedure in MM module is a way to determine prices in purchasing documents. It gives us functionality to assign different calculation types for different needs. Defining a pricing procedure can be done by creating an access sequence, and assigning it to condition types. Access sequence tells the system where to look for the condition values.




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