SAP MM Step by Step Customizing Guide

SAP MM (Materials Management) is a module within the SAP ERP (Enterprise Resource Planning) system that helps manage the procurement and inventory management of materials in an organization. SAP MM is widely used by organizations worldwide and is known for its flexibility, configurability, and scalability. In this article, we will provide a step-by-step configuration guide for SAP MM, including creating organizational structures, defining material master data, configuring purchasing, and managing inventory.

Organizational Structures

The first step in SAP MM configuration is to set up the organizational structure. This includes defining the company code, plant, storage location, and purchasing organization. The following steps are involved in creating the organizational structure:

Step 1: Define Company Code

In SAP MM, a company code represents a legal entity that has its own accounting and financial reporting. To define a company code, follow these steps:

1. Go to SPRO > Enterprise Structure > Definition > Financial Accounting > Define Company.
2. Enter the company code, name, and other details.
3. Save the changes.

Step 2: Define Plant

A plant in SAP MM represents a location where goods are produced or maintained. To define a plant, follow these steps:

1. Go to SPRO > Enterprise Structure > Definition > Logistics General > Define, Copy, Delete, Check Plant.
2. Enter the plant code, name, and other details.
3. Save the changes.

Step 3: Define Storage Location

A storage location in SAP MM represents a specific place where materials are stored within a plant. To define a storage location, follow these steps:

1. Go to SPRO > Enterprise Structure > Definition > Logistics General > Define, Copy, Delete, Check Storage Location.
2. Enter the storage location code, name, and other details.
3. Save the changes.

Step 4: Define Purchasing Organization

A purchasing organization in SAP MM represents a group responsible for procuring materials and services for the organization. To define a purchasing organization, follow these steps:

1. Go to SPRO > Enterprise Structure > Definition > Materials Management > Define Purchasing Organization.
2. Enter the purchasing organization code, name, and other details.
3. Save the changes.

Material Master Data

The next step in SAP MM configuration is to define the material master data. This includes creating material types, material groups, and material master records. The following steps are involved in defining material master data:

Step 1: Define Material Types

In SAP MM, a material type represents a group of materials with similar attributes. To define a material type, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Material Master > Material Types > Define Attributes of Material Types.
2. Enter the material type code, name, and other details.
3. Save the changes.

Step 2: Define Material Groups

A material group in SAP MM represents a group of materials with similar characteristics. To define a material group, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Material Master > Material Groups > Define Material Groups.
2. Enter the material group code, name, and other details.
3. Save the changes.

Step 3: Create Material Master Record

A material master record in SAP MM represents a specific material with all its details. To create a material master record, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Material Master > Material > Create Material.
2. Enter the material code, name, and other details.
3. Save the changes.

Purchasing Configuration (Continued)

Step 1: Define Purchasing Groups

A purchasing group in SAP MM represents a group of buyers responsible for procuring materials and services for the organization. To define a purchasing group, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Create Purchasing Groups.
2. Enter the purchasing group code, name, and other details.
3. Save the changes.

Step 2: Create Vendor Master Data

Vendor master data in SAP MM represents a vendor or supplier from whom materials or services can be procured. To create vendor master data, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Vendor Master > Create Vendor Centrally.
2. Enter the vendor details such as name, address, and payment terms.
3. Save the changes.

Step 3: Define Pricing Procedures

A pricing procedure in SAP MM represents a set of conditions used to calculate the purchase price of materials or services. To define a pricing procedure, follow these steps:

1. Go to SPRO > Materials Management > Purchasing > Conditions > Define Price Determination Process.
2. Enter the pricing procedure details such as calculation schema and condition types.
3. Save the changes.

Inventory Management

The final step in SAP MM configuration is to manage inventory. This includes defining movement types, creating stock transfer orders, and performing goods receipt and issue transactions. The following steps are involved in inventory management:

Step 1: Define Movement Types

A movement type in SAP MM represents the reason for a material movement in the organization. To define a movement type, follow these steps:

1. Go to SPRO > Materials Management > Inventory Management > Movement Types > Configure Movement Types.
2. Enter the movement type code, name, and other details.
3. Save the changes.

Step 2: Create Stock Transfer Order

A stock transfer order in SAP MM represents the transfer of materials from one plant or storage location to another within the organization. To create a stock transfer order, follow these steps:

1. Go to SPRO > Materials Management > Inventory Management > Goods Movement > Create Stock Transfer Order.
2. Enter the material, quantity, and the sending and receiving plant or storage location.
3. Save the changes.

Step 3: Perform Goods Receipt and Issue Transactions

Goods receipt and issue transactions in SAP MM represent the receipt of materials into the organization and the issuance of materials from the organization to customers or other departments. To perform goods receipt and issue transactions, follow these steps:

1. Go to SPRO > Materials Management > Inventory Management > Goods Movement > Goods Receipt and Goods Issue.
2. Enter the material, quantity, and other details such as storage location and vendor.
3. Save the changes.

Conclusion

In conclusion, SAP MM is a crucial module in the SAP ERP system that helps manage the procurement and inventory management of materials in an organization. By following this step-by-step configuration guide, organizations can set up their SAP MM module and streamline their materials management processes.