SAP MM, Contents for Training

I. SAP Basics & Navigation (Quick Overview)

 Introduction to SAP and ERP: Briefly explain what SAP is and

its role as an Enterprise Resource Planning system.
 SAP Navigation:
o SAP GUI interface elements (menu bar, standard toolbar,
application toolbar, status bar).
o Logging in/out.
o Understanding sessions and modes.
o Basic transaction codes (T-codes) and navigating using
favorites.
o Help functions.

II. Enterprise Structure in SAP MM

 Understanding Organizational Units:

o Client
o Company Code
o Plant (Crucial for MM, represents a physical location or
factory)
o Storage Location (Where materials are stored within a
Plant)
o Purchasing Organization (Responsible for procurement
activities)
o Purchasing Group (Buyer responsible for certain
materials or groups)
 Assignments: How these organizational units are linked
together in the system.

III. Master Data (Foundation of SAP MM)

This is paramount. Without correctly set up master data, no

transactions can occur.

 Material Master:
o Understanding different Material Types (e.g., ROH - Raw
Material, FERT - Finished Product, HAWA - Trading
Goods, ZXXX - Custom).
o Key views: Basic Data, Purchasing, Plant Data/Storage,
Accounting, MRP, etc.
 o Creating and Extending Material Master Records
(Transaction: MM01, MM02, MM03).
o Important fields and their impact (e.g., valuation class,
material group, purchasing group).
 Vendor Master:
o Understanding different Account Groups.
o Key sections: General Data, Company Code Data,
Purchasing Organization Data.
o Creating and Changing Vendor Master Records
(Transaction: FK01, XK01, FK02, XK02).
o Partner Functions.
 Purchasing Info Record (PIR):
o Understanding its purpose (linking material and vendor,
storing pricing and delivery conditions).
o Creating/Changing PIRs (Transaction: ME11, ME12).
 Source List:
o Purpose: Defining preferred or approved vendors for a
material in a plant.
o Maintaining Source List (Transaction: ME01).
 Quota Arrangement: (If applicable to the project, for complex
sourcing scenarios)
o Purpose: Distributing procurement quantities among
multiple vendors.
o Maintaining Quota Arrangement (Transaction: MEQ1).

IV. Procurement Process (P2P - Procure to Pay Cycle)

This is the core business process in SAP MM.

 Purchase Requisition (PR):

o Purpose: Internal request for materials or services.
o Creating PRs (Transaction: ME51N).
o Understanding different PR types and item categories.
o Release Strategy for PRs (Approval workflow).
 Request for Quotation (RFQ) and Quotation:
o Process of soliciting bids from vendors.
o Creating RFQs (Transaction: ME41).
o Entering Quotations (Transaction: ME47).
o Price Comparison (Transaction: ME49).
 Purchase Order (PO):
 o Purpose: Formal document issued to an external vendor
for goods/services.
o Creating POs (Transaction: ME21N).
o Understanding different PO types and item categories.
o Account Assignment Categories (e.g., K - Cost Center, P -
Project).
o Incoterms, Payment Terms.
o Release Strategy for POs (Approval workflow).
o PO History.
 Outline Agreements (Contracts and Scheduling Agreements):
o Purpose: Long-term agreements with vendors.
o Creating Contracts (Transaction: ME31K).
o Creating Scheduling Agreements (Transaction: ME31L).
o Releasing against contracts/scheduling agreements.
 Goods Receipt (GR):
o Purpose: Recording the physical receipt of materials
against a PO.
o Posting Goods Receipt (Transaction: MIGO - Goods
Movement, MB01 - Old Transaction).
o Understanding Movement Types (e.g., 101 for GR, 103 for
GR blocked stock).
o Impact on inventory and accounting.
 Invoice Verification (IV):
o Purpose: Verifying vendor invoices against PO and GR.
o Posting Invoices (Transaction: MIRO).
o Three-way match concept (PO quantity, GR quantity,
Invoice quantity).
o Blocking and Releasing Invoices.
o Impact on accounting (FI integration).

V. Inventory Management

 Stock Types:
o Unrestricted-use stock
o Quality inspection stock
o Blocked stock
o Returns stock
 Goods Movements:
o Goods Receipt (covered above)
o Goods Issue (Issuing materials for consumption,
production, etc. - Transaction: MIGO)
 o Transfer Posting (Movement between storage locations,
plants, or stock types - Transaction: MIGO)
o Stock Transfers (One-step vs. Two-step, Stock Transport
Orders - STO)
 Reservations:
o Purpose: Requesting materials from the warehouse.
o Creating Reservations (Transaction: MB21).
 Physical Inventory:
o Methods: Periodic, Continuous, Cycle Counting.
o Creating Physical Inventory Document (Transaction:
MI01).
o Entering Count (Transaction: MI04).
o Posting Differences (Transaction: MI07).

VI. Special Procurement Processes (Select based on project

relevance)

 Consignment: Vendor owns the stock until consumed.

 Subcontracting: Sending components to a vendor for
manufacturing.
 Pipeline Materials: Materials drawn directly from a pipeline
(e.g., water, electricity).
 Returnable Transport Packaging (RTP): Managing packaging
that is returned to the vendor.

VII. Valuation and Account Determination

 Material Valuation:
o Standard Price vs. Moving Average Price.
o Impact on inventory valuation.
 Split Valuation: (If materials need to be valuated differently
based on specific criteria).
 Automatic Account Determination (Integration with FI):
o Understanding the configuration behind how MM
transactions generate financial postings.
o Key concepts: Valuation Class, Movement Type,
Transaction Key.

VIII. Integration with Other Modules

Emphasize how MM interacts with other SAP modules, as this is

crucial for a complete business process flow.
  FI (Financial Accounting): Account determination, invoice
verification, vendor payments.
 CO (Controlling): Cost center, internal orders, project costs.
 SD (Sales and Distribution): Stock availability for sales orders,
intercompany STOs.
 PP (Production Planning): Material requirements, goods issue
for production orders, goods receipt of finished goods.
 QM (Quality Management): Quality inspection during goods
receipt.
 WM (Warehouse Management): If warehouse management is
implemented, MM interacts for detailed stock placement and
removal.

IX. Reporting and Analysis

 Key MM reports for monitoring procurement, inventory, and

vendor performance (e.g., ME2N - POs by number, MB51 -
Material Document List, MMBE - Stock Overview).

X. Important Configuration Concepts (for deeper understanding,

especially for consultants)

While a project user might not configure, understanding the

concepts behind configuration is helpful.

 Number Ranges for purchasing documents (PR, PO).

 Document Types and Screen Layouts.
 Release Procedures (defining approval workflows).
 Pricing Procedures (how prices, discounts, taxes are
calculated in POs).
 Movement Types (creation and configuration).

XI. Real-time Project Scenarios & Best Practices

 Hands-on exercises simulating common business processes.

 Troubleshooting common issues (e.g., goods receipt issues,
invoice blocking).
 Understanding the project's specific business requirements
and how SAP MM addresses them.
 Data Migration concepts (what data needs to be migrated from
legacy systems to SAP MM).
Immediate Project Training Focus:

For an immediate project, focus heavily on:

1. SAP Basics & Navigation

2. Enterprise Structure (as it defines the landscape)
3. Master Data (Material Master, Vendor Master, PIR)
4. Core Procurement Process: PR -> PO -> GR -> IV (with hands-on
practice for each step, including different scenarios like
standard, service, consumable).
5. Basic Inventory Management: Goods Receipts, Goods Issues,
Transfer Postings, Stock Overview.
6. Key Integration Points: Especially with FI.
7. Relevant Reports.
8. Project-Specific Scenarios: Tailor the training to the exact
business processes that will be implemented in your project.