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    Material Management: A Brief Study of The Process Flow.......

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    kaaps
    The document discusses material management and the process flow for procurement in SAP MM. The key steps in the process are: 1) determining material requirements, 2) finding suppliers, 3) requesting quotes, 4) selecting vendors, 5) creating purchase orders, 6) monitoring orders, 7) receiving goods, 8) verifying invoices, and 9) processing payments. The goal of material management is to obtain the right materials at the right time, place, quality and price.

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    Material Management: A Brief Study of The Process Flow.......

    Uploaded by

    kaaps
    66 views10 pages
    The document discusses material management and the process flow for procurement in SAP MM. The key steps in the process are: 1) determining material requirements, 2) finding suppliers, 3) requesting quotes, 4) selecting vendors, 5) creating purchase orders, 6) monitoring orders, 7) receiving goods, 8) verifying invoices, and 9) processing payments. The goal of material management is to obtain the right materials at the right time, place, quality and price.

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    MMFLOW

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    The document discusses material management and the process flow for procurement in SAP MM. The key steps in the process are: 1) determining material requirements, 2) finding suppliers, 3) requesting quotes, 4) selecting vendors, 5) creating purchase orders, 6) monitoring orders, 7) receiving goods, 8) verifying invoices, and 9) processing payments. The goal of material management is to obtain the right materials at the right time, place, quality and price.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    66 views10 pages

    Material Management: A Brief Study of The Process Flow.......

    Uploaded by

    kaaps
    The document discusses material management and the process flow for procurement in SAP MM. The key steps in the process are: 1) determining material requirements, 2) finding suppliers, 3) requesting quotes, 4) selecting vendors, 5) creating purchase orders, 6) monitoring orders, 7) receiving goods, 8) verifying invoices, and 9) processing payments. The goal of material management is to obtain the right materials at the right time, place, quality and price.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 10

    Material Management

    A brief study of the Process flow........

    By: Umadevi

    Introduction
    Material management is concerned with the planning, organizing and controlling the flow of materials from their initial purchase to destination.

    The Aim of MM is to get -right quality -right quantity of supplies -at the right time -at the right place -for the right cost

    Purpose Of MM -to gain economy in purchasing -to satisfy the demand -to give reasonable level of client service -to avoid out of stock

    Basic Needs Of MM -to get adequate material when needed -to pay lowest possible price, with good quality -to minimize inventory investments -to operate efficiently

    MM Process Flow

    Process Flow

    Determination of requirements : In this step, there is a requirement of material or service, which must be procured externally. The requirement must be recorded as Purchase Requisition(PR) Document in SAP MM Purchase Requisition (PR) is an internal purchasing document in SAP ERP that is used to give notification to responsible department about the requirement of material/service and to keep track of such requirement.

    Determination of source of supply : After the PR has been created in the previous step, the responsible department must process it. The source of supply is determined for the needed item by the purchasing department.

    Request For Quotation : Company or the purchasing department of the company will send this to one or more vendors. This is external procurement document that usually used as bidding process invitation.

    Vendor Selection : Quotation provided by different vendors are evaluated in terms of content .

    PO Processing : In the previous step, the buyer has selected the vendor which will provide the material/service needed in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation).

    Po Monitoring : After the PO has been sent to the vendor, the buyer has the responsibility to monitor whether the vendor delivers the material/service at the right time on the right place and of right quantity.

    Goods Receipt :

    When the vendor delivers the material or perform the service, the responsible person (Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number.) of the company must perform the goods receipt (GR) or service acceptance (SA) transaction.

    Invoice verification : After the vendor delivered the material/service, it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO.

    Payment Processing : After the Invoice Receipt (IR) transaction has been posted, the vendors account payable will increase and the company must process the payment to that vendor as stated in the terms of payment of the PO. The payment Transaction will be performed in FI module. After the payment has been posted, The vendor's account payable will be debited and the cash or bank account will be credited.

    Some of the Main SAP MM Transactions are: ME51N Create Requisition ME21N Create Purchase Order MIGO Goods receipt a PO MIRO Create Invoice

    Tables involved

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