Dear Namarta
The Materials Management (MM) module is fully integrated with the other modules of the SAP System. It supports all the phases of materials management: materials planning and control, purchasing, goods receiving, inventory management, and invoice verification.
MM Purchasing component are as follows:
• External procurement of materials and services
• Determination of possible sources of supply
• Monitoring of deliveries from and payments to vendors
Integration:
•Controlling (CO): materials intended for direct consumption and for services, since these can be directly assigned to a cost center or a production order.
•Financial Accounting (FI): The vendor master record represents the creditor account in financial accounting.
•Sales and Distribution (SD):
•Within the framework of materials planning and control, a requirement that has arisen in the Sales area can be passed on to Purchasing
Process Flow:
1)Determination of Requirements: Through MRP, purchase requisitions
2)Source Determination: helps you identify potential sources of supply, creating requests for quotation (RFQs
3) Vendor Selection and Comparison of Quotations: The system is capable of simulating pricing scenarios
4) Purchase Order Processing: information from the requisition and the quotation to help you create a purchase order. scheduling agreements and contracts are also supported.
5) Purchase Order Follow-Up: The system checks the reminder periods you have specified. up-to-date status of all purchase requisitions, quotations, and purchase orders.
6) Goods Receiving and Inventory Management: Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number
7) Invoice Verification: The system supports the checking and matching of invoices, and clearing invoices for payment.
This is a overview of SAP MM.If u find useful please reward points,
Vivek Maitra
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