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Explain about sap mm in briefly?

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SAP MM is one the largest functional module in SAP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation of Material & Account Determination, Material Requirement Planning, Invoice Verification etc.
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SAP stands for Systems Applications and Products in Data Processing. It was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira. SAP by definition is also name of the ERP (Enterprise Resource Planing) software as well the name of the company. SAP system comprises of a number...
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SAP stands for Systems Applications and Products in Data Processing. It was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira. SAP by definition is also name of the ERP (Enterprise Resource Planing) software as well the name of the company. SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management. SAP is #1 in the ERP market. As of 2010, SAP has more than 140,000 installations worldwide, over 25 industry-specific business solutions and more than 75,000 customers in 120 countries Other Competitive products in the market are Oracle, Microsoft Dynamics etc. What is a SAP- ERP? Why it is Required? Following Video will explain the need of an ERP software like SAP in an enterprise Please be patient. The Video will load in some time. If you still face issue viewing video click here The very basic question to any beginners is why Enterprise Resource Planning also called ERP is required? To answer this, let’s examine this typical business scenario. Suppose a client approaches sales team asking for a particular product. The sales team contacts to inventory department to check the availability of the product. To their surprise, sales team found out that the product is out of stock. So next time this don’t happen, they have to introduce a SAP ERP tool. Before we actually see in detail, what ERP is and how ERP can help in your business process, we will understand how different departments are involved in the whole business process, right from the ordering of the raw material – to manufacturing goods – to delivering final goods to the customer. Here is the whole process that is followed by any business unit. Client contacts the sales team to check the availability of the product Sales team approaches the Inventory department to check for the availability of the product In case the product is out of stock, the sales team approaches the Production Planning Department to manufacture the product The production planning team checks with inventory department for availability of raw material If raw material is not available with inventory, the Production Planning team buys the raw material from the Vendors Then Production Planning forwards the raw materials to the Shop Floor Execution for actual production Once ready, the Shop Floor Team forwards the goods to the Sales Team Sales Team who in turn deliver it to the client The sales team updates the finance with revenue generated by the sale of the product. Production planning team update the finance with payments to be made to different vendors for raw materials. All departments approach the HR for any Human Resource related issue. That is a typical business process for any manufacturing company. Some key inferences one could derive from the scenario would be. It has many departments or business units These departments or business units continuously communicate and exchange data with each other The success of any organization lies in effective communication, and data exchange, within these departments, as well as associated third party such as vendors, outsourcers, and customers. Based on the manner in which communication and data exchanged is managed. Enterprise systems can be broadly classified as 1) Decentralized System 2) Centralized System which are also called as ERP. Decentralized System Let's look at Decentralized system first, in a company with Decentralized System of Data Management, there are two major problems – Data is maintained locally at the individual departments Departments do not have access to information or data of other departments To identify problems arising due to decentralized Enterprise management system lets look at the same business process again. The customer approaches the sales team for a product, but this time around he needs the product, on an urgent basis. Since it is a decentralized process, the Sales Team do not have any real-time information access to the products availability. So they approach the Inventory department to check the availability of the product. This process takes time and customer chooses another vendor leading to loss of revenue and customer dissatisfaction. Now, suppose the product is out of stock and the Sales Team approaches the Production Planning team to manufacture the product for future use. Production Planning Team checks the availability of the raw materials required. In a decentralized system, raw material information is separately stored by Production Planning as well as Inventory Department. Thus data maintenance cost (in this case Raw Material) goes up. The raw material information is available in two different departments Inventory as well as Production Planning. When sales team check a particular raw material required to manufacture the product, it shows the raw material is available as per the inventory, but as per the database of the production planning team, the raw material is out of stock. So, they go ahead and buy the raw material. Thus, material as well inventory cost goes up. Once the raw material is available, the shop floor department suddenly realizes they are short of workers they approach the HR, who in turn hire temporary employees at higher than market rates. Thus LABOR Cost Increases. The production planning department fails to update the finance department on the materials they have purchased. The finance department defaults the payment deadline set by the vendor causing the company loss of its reputation and even inviting a possible legal action. These are just a few of many problems with decentralized systems. Some Major problems with the decentralized system are – Numerous disparate information system generates individually over time which are difficult to maintain Integrating the data is time and money consuming Inconsistencies and duplication of data Lack of timely information leads to customer dissatisfaction , loss of revenue and reputation High Inventory, material, and human resource cost. These are some major drawbacks for which we need a solution. Well the Solution lies in Centralized Systems i.e. ERP. Centralized System In a company, with Centralized System of Information and Data Management. 1) Data is maintained at a central location and is shared with various Departments 2) Departments have access to information or data of other Departments Let’s look at the same business process again to understand how a Centralized Enterprise System helps overcoming problems posed by a Decentralized Enterprise System. In this Case, all departments update a Central Information System. When Customer approaches the sales team to buy a product on an urgent basis. The Sales Team has real-time information access to the products in inventory which is updated by the Inventory Department in the Centralized System Sales Team respond to customer request on time leading to Increased Revenue and Customer Delight. In case, manufacturing is required the Sales Team update the Centralized Database, so that all the department remain informed about the product status. Production Planning Department is auto updated by the Centralized Database for requirements. Production Planning Team checks the availability of the raw materials required via Central Database, which is updated by the Inventory Department. Thus, Data Duplication is avoided, and accurate data is made available. The Shop Floor Team update their Man Power Status regularly in the Central Database, which can be accessed by the HR department. In case of shortage of workforce, HR team starts recruitment process with considerable lead time to hire a suitable candidate at market price.Thus labor cost goes down. While vendors can directly submit their invoices to the Central Enterprise System, which can be accessed by the finance department. Thus, payments are made on time, and possible legal actions are avoided Key benefits of the centralized system are: It Eliminates the duplication, discontinuity and redundancy in data Provides information across departments in real time. Provides control over various business processes Increases productivity, better inventory management , promotes quality , reduced material cost, effective human resources management, reduced overheads boosts profits Better customer interaction and increased throughput. It also improves customer service Hence, a centralized enterprise management system is required. SAP is a centralized enterprise management system also known as Enterprise Resource Planning. read less
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Best SAP SuccessFactors Online Training

Material management is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. SCOPE Emphasis on the acquisition aspect Inventory control and stores management Material logistics, movement...
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Material management is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. SCOPE Emphasis on the acquisition aspect Inventory control and stores management Material logistics, movement control and Handling aspect Purchasing, supply , transportation , materials 5R Aim To GET The Right quality Right quantity of supplies At the Right time At the Right place At the Right cost read less
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Experienced Mathematics tutor for classes VII - XII in Vikaspuri

SAP MM (Material Management) basically revolved around Managing different types of Materials (finished, semi finished, hazardous etc), Goods movement (in a typical warehouse or manufacturing environment), complete procurement cycle, inventory management, and its integration with other closely related...
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SAP MM (Material Management) basically revolved around Managing different types of Materials (finished, semi finished, hazardous etc), Goods movement (in a typical warehouse or manufacturing environment), complete procurement cycle, inventory management, and its integration with other closely related processes like finance (how material sale or purchase affects financial records including existing assets, standard price etc), purchase cycle. Hope this clears your fundamental thought on SAP MM. read less
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SAP MM is one of the crucial modules of SAP ERP system and MM application supports the procurement and inventory management functions occurring in day to day business operation. MM module contains many aspects such as purchasing, goods receiving, materials storage, consumption-based planning and inventory....
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SAP MM is one of the crucial modules of SAP ERP system and MM application supports the procurement and inventory management functions occurring in day to day business operation. MM module contains many aspects such as purchasing, goods receiving, materials storage, consumption-based planning and inventory. SAP MM is fully integrated with other modules in SAP R/3 system such as Finance (FI), Controlling (CO), Sales & Distribution (SD), Plant & Maintenance (PM), Production Planning (PP), Warehouse Management (WM), and Quality Management (QM). SAP MM role in Business Process: SAP Materials Management (MM) is a part of Logistics area and helps to manage the procurement activity of an organization from procurement. It supports all aspects of material management (planning, control etc). It is the backbone of the Logistics area which incorporates modules like Sales and Distribution, Production Planning, Plant Maintenance, Project Systems, Warehouse Management which are extremely obsessed on Materials Management module. · Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. SAP MM speeds up the procurement and material management activities making the business run smoother with complete time and cost efficiency. · It deals with managing the materials (products and or services) resources of an organization with the aim of accelerating productivity, reducing costs and increase improvement and at a similar time be versatile to accommodate changes in day to day life. · It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc. read less
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Best SAP SuccessFactors Online Training

Hi Third party scenario is integration bet SD nad MM Brief process is like customer places orders, the sales order is converted to purchase requisition/purchase order and purchase order inturn placed to vendor who delivers the goods directly to the customer. instead of delivering to Company ...
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Hi Third party scenario is integration bet SD nad MM Brief process is like customer places orders, the sales order is converted to purchase requisition/purchase order and purchase order inturn placed to vendor who delivers the goods directly to the customer. instead of delivering to Company Following are the steps of third party: 1) Creation of third party sales order 2) Generation of automatic purchase reqisition throught the configuration of schedule line CS in SD.(schedule line is determined by the item categoty and the mrp type. please dont maintain mrp type in the material master.so that it will determin CS directly. in the tcode VOV6,please check whether the document type NB is maintained for CS. This will created auto PR). 3) You can check the PR Number in the schedule line tab of sales order.PR requirement will not be available in the MD04. 4) Manually create a PO for vendor with item category S. 5) There will be no GR in this case. 6) Create an invoice verification document. 7) Create an invoice from the SD side w.r.t Sales orde read less
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SAP Trainer

Material Management is about the giving a buainess solution for any industry that how they will manage their material requirement for production and sale including the vendor manegement and payment terms.
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Material Management is a functional module that belongs to SAP AG that is used for Procurement Handling and Inventory Management. SAP MM is one the largest functional module in SAP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation...
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Material Management is a functional module that belongs to SAP AG that is used for Procurement Handling and Inventory Management. SAP MM is one the largest functional module in SAP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation of Material & Account Determination, Material Requirement Planning, Invoice Verification etc. SAP Materials management is integrated with other modules such as SD, PP and QM. Materials management is used for procurement and inventory management. The SAP MM module has two important master data - material and vendor. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization. The SAP MM module covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. 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. It can be divided into five major components. They are: - materials management, - plant maintenance, - quality management, - production planning and control, and a - project management system. read less
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Best SAP SuccessFactors Online Training

SAP MM ( Material Management ) is one of the important modules in SAP ERP software and MM ... SAP MM module is fully integrated with other modules in the SAP R/3 System such as Finance ... Describe Procurement Process? Direct procurement. Direct categories are all goods purchased by the company which...
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SAP MM ( Material Management ) is one of the important modules in SAP ERP software and MM ... SAP MM module is fully integrated with other modules in the SAP R/3 System such as Finance ... Describe Procurement Process? Direct procurement. Direct categories are all goods purchased by the company which directly enter into the production process of that company. For the food industry as an example, ingredients and packaging will be the key direct procurement categories. Indirect Procurement. Indirect categories are all the goods and services that are bought by the company to enable its activity. This entails a wide scope, including marketing related services (media buying, agencies), IT related services (hardware, software), HR related services (recruitment agencies, training), facilities management and office services (Telecoms, furniture, cleaning, catering, printers), or utilities (gas, electricity, water)...etc read less
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