MM Module in SAP

What is MM Module in SAP (Material Management )?

SAP MM (Material Management) is a functional module in SAP ERP system which is responsible for all kind of Logistic, Procurement and Inventory related process. It plays a very important role in manufactures Supply Chain. MM Module in SAP

MM Module in SAP
MM Module in SAP

SAP MM is one of the most important modules for the procurement of the material. In this module material and vendor-related transactions are configured.

SAP MM (Material Management) covers all area within Supply Chain process including Material requirement, Source determination, Procurement process, Invoice verification and inventory usage. SAP MM is a part of Logistic Area which manage the purchase related activity of an organization.

 It supports all aspects of material management. It is the backbone of logistic and purchase which incorporates modules like Sales and Distribution, Production Planning, Plant Maintenance, Warehouse Management which are controlled in Materials Management module.

SAP MM is integrated with some other modules of SAP ERP are SAP PP (Production and Planning). SAP SD (Sales and Distribution), SAP FICO (Financial and Controlling), SAP PM (Plant Maintenance) and SAP QM (Quality Management).

Enterprise Structure Configuration in SAP MM.

  • Define Company Code.
  • Transaction Code – OX02.

SPRO–>SAP Reference IMG–>Enterprise Structure–>Definition–>Financial Accounting–>Edit, Copy, Delete, Check Company Code.

Click on the link below to know more about how to define company code in SAP

  • Define Plant.
  • Transaction Code – OX10.

SPRO–>SAP Reference IMG–>Enterprise Structure–>Definition–>Logistic General–>Define, Copy, Delete, Check Plant.

Click on the link below to know more about Define Plant in SAP MM

  • Define Storage Location
  • Transaction Code – OX09.

SPRO –> SAP Reference IMG –> Enterprise Structure –> DefinitionàMaterials Management –> Maintain Storage Location.

To Know more about Define Storage Location please click on mention link.

  • Define Purchase Organization
  • Transaction Code – OX08.

SPRO –> SAP Reference IMG –> Enterprise Structure –> Definition –> Materials Management –> Maintain Purchase Organization.

To Know more about Define Purchase Organization please click on below link.

  • Define Purchase Group
  • Transaction Code – OME4.

SPRO –> SAP Reference IMG –> Enterprise Structure –> Definition –> Materials Management –> Create Purchase Group.

To Know more about Define Purchase Group please click on below link.


  • Material Master.
  1. Create- MM01.
  2. Change- MM02.
  3. Display- MM03.
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  • Vendor Master.
  1. Create- XK01.
  2. Change- XK02.
  3. Display- XK03.

XK01 Crate Vendor Centrally.

FK01 Create Vendor Via Accounting.

MK01 Create Vendor Via Purchasing.

  • Purchase Info Record.
  1. Create- ME11.
  2. Change- ME12.
  3. Display- ME13.
  • Purchasing in SAP MM.

Purchase Requisition.

  1. Create- ME51N.
  2. Change- ME52N.
  3. Display- ME53N.
  • Purchase Order.
  1. Create- ME21N.
  2. Change- ME22N.
  3. Display- ME23N.
  • Request for Quotation.
  1. Create- ME47.
  2. Change- ME48.
  3. Display- ME49.
  • Inventory Management in SAP MM.
  • Goods Receipt.

Transaction Code- MIGO.

Movement Type is 101.

  • Goods Issue.

Transaction Code- MB1A

Movement Type related to Issue

Movement Type related to Issue

For All above said process we required some pre-requisite which we need to configure during implementation like Number range, Material Type, Materials Group, Document type and some other fields which is mandatory required to complete a particular process.For Example, in transaction code MM01 to create a material.

image 31
In this above screen it shows error “Enter a Material type” if I tried to created material without material type, because material type is mandatory field to start the process of material creation. When we try to create a purchase order without crating document type purchase order will ask to create document type first.




Material Masters Tables

MARA: General Material Data.

MAKT: Material Description.

MARC: Plant Data for Material.

MARD: Storage Location Data for Material.

MBEW: Material Valuation.


LFA1: Vendor Master (General Section).

LFB1: Vendor Master (Company Code).

LFM1: Vendor master record purchasing organization data.

LFM2: Vendor Master Record: Purchasing Data.


EBAN: Purchase Requisition.

EKKO: Purchasing Document Header.

EKPO: Purchasing Document Item.

EORD: Purchasing Source List.

EINA: Purchasing Info Record: General Data.

EINE: Purchasing Info Record: Purchasing Organization Data.


MM01: Create Material.

MM02: Change Material.

MM03: Display material.

MM04: Display Changes.

MM06: Flag Material for Deletion.

IH09: Display material: material selection.

MM50: Extend Material Views.

MM60: Material List.

MMBE: Stock Overview.

ME51N: Create Purchase Requisition.

ME52N: Change Purchase Requisition.

ME53N: Display Purchase Requisition.

ME54: Release Purchase Requisition.

ME55: Collective Release of Purchase Requisition.

MB21: Create Reservation.

MB22: Change Reservation.

MB23: Display Reservation.

MB1A: Enter Goods Issue.

MB1B: Enter Transfer Posting.

MB1C: Enter Other Goods Receipts.

ME41: Create Request for Quotation.

ME42: Change Request for Quotation.

ME43: Display Request for Quotation.

ME47: Maintain Quotation.

ME21N: Create Purchase Order.

ME22N: Change Purchase Order.

ME23N: Display Purchase Order.

ME29N: Release Purchase Order.

MIGO: Goods Receipt.

MIRO: Enter Incoming Invoice.

All above said Transaction codes are related to performing any functional process in SAP MM like creation of purchase order, creation of material, goods receipt, goods issue, invoice verification etc.

After creation this functional process our business required the reports for those action which we perform in by using above transaction codes.

We have in SAP some other Transaction Codes are available to list this kind of reports are:

MB51:   Material Doc. List

MB52:   List of Warehouse Stocks on Hand

ME2L:    Purchase Orders by Vendor

ME2M: Purchase Orders by Material

ME2N:  Purchase Orders by PO Number

ME4C:   RFQs by Material Group

ME4L:    RFQs by Vendor

ME4M: RFQs by Material

ME5A:   Purchase Requisitions: List Display

ME5J:    Purchase Requisitions for Project

ME5K:   Requisitions by Account Assignment

MM60: Materials List

According to Business requirement sometime users ask for customizing reports according to there requirements here we go for the Technical Module ABAP who designed the reports according to requirement.


What is Master Data in SAP?

Master Data is the data, which is rarely updated remain constant, which is used to process all transaction and create transnational data and remain constant. Master data is set of reference of business data such as company code, plant code, purchasing group, purchasing organization etc. it is core data of our business to run transactions.
For Example. Material Master, Purchasing Master, Vendor Master, Customer Master, Pricing and Condition Master and Pricing Procedure.

What is Purchasing Process in SAP?

In purchasing process mainly 4 steps user need to process in below mention sequence.
Create Purchase Requisition by run transaction code ME51N then after approval purchase requisition process the same for Quotation by run transaction code ME41 after evaluation all quotation by ME49 process the same for Purchase Order by run transaction code ME21N and now process for invoice by VF01 that’s all in purchasing process.
After that you can process for inbound delivery then goods receipt and invoice verification.

What are the sub module in SAP MM?

MM-IM (Inventory Management) to handle inventory in our business, controlling the flow of our stocks in our business. Goods issue, Goods Receipt, posting of other goods using goods movement.
MM-PUR (Purchasing) to handle the complete procurement process in business, Purchase Requisition, Request for Quotation, Purchase order.
MM-IV (Invoice Verification) to process the invoicing of our purchase order, subcontracting, pipeline etc.
MM-CBP (Consumption Based Planning)
MM-EDI (Electronic Data Interchange)
MM-FT (Foreign Trade).

What is pricing procedure in SAP MM?

We must configure pricing procedure to determine pricing when we create purchase order, Because of pricing procedure calculation is processed in purchase order.
Main concept pricing procedure is combination of different type charges for example gross price, tax, discount, net price etc.
In Pricing procedure, we used our created condition to get value in our purchase order.
Pricing procedure contain below mention things.
Condition table.
Access Sequence.
Condition record.
Schema Group.
Condition Type.
Calculation Schema.
Schema Determination.
To create the pricing procedure we have to first create above things.
The below picture is simple example of pricing procedure.
image 32

What is Purchase Requisition in SAP MM?

After determination of requirement material, we raise a request in system to purchase determine material. The requested material could be raw material it could be Semi finished and could be Finished Material.
To create a purchase requisition in SAP MM we use transaction code ME51N to change it we use ME52N and for display we use ME53N.

What is Request for Quotation in SAP MM?

Request for Quotation is created in system to ask quotation from our vendors in against of created Purchase requisition after approval of purchase requisition by responsible authority of it.
To create Request for Quotation we use transaction code ME41, to change ME42, to display ME43.
After receiving quotation from our all vendors, we will maintain this quotation in our system by transaction code ME47 and ME48 and then it will be evaluated by system by transaction code ME49, after completion of this process we will process purchase order against the same purchase requisition with evaluated quotation.

What is Purchase Info Record?

Purchase info record is part of master data. It stores the information about materials which we procure from particle vendor. There is 4 type of Purchase info records are Standard, Subcontracting, Pipeline and Consignment.
It stores the information in combination of Material, Vendor, Purchase Organization, and plant.
To create Purchase info record we will use transaction code ME11 to change ME12 and for display ME13, the Table in which data stores of Purchase info record is EINA.
image 33
The above all said information is help you to understand the SAP MM and related process of SAP MM. The all transaction will help end-user to understand process and how to run this process.

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