SAP MM integration with other modules

                     

               Material is procured from external or internal sources on the basis of the requirements determined by Material Requirements Planning. The delivery is entered in Inventory Management as a goods receipt. The material is stored (and managed under Inventory Management) until it is delivered to customers (Sales & Distribution), or is used for internal purposes (for example, for production).

                    During all transactions, Inventory Management accesses both master data (such as material master data) and transaction data (such as purchasing documents) shared by all Logistics components.

Integration in Materials Management

As a component of Materials Management, Inventory Management is directly linked with Material Requirements Planning, Purchasing, and Invoice Verification.

Inventory Management provides information for MRP, which takes into account not only physical stocks but also planned movements (requirements, receipts).

When a material is ordered from a vendor, Inventory Management posts the delivery as a goods receipt with reference to the purchase order. The vendor invoice is processed later by Invoice Verification. Here, the quantities and values from the purchase order and the goods receipt document are checked to ensure that they match those in the invoice.

MM with PP module :

SAP MM deals with the material procurement on the basis of Production required, therefore it is linked with PP module. It is integrated in the area like MRPs, Receipt and Issue material against Production Order.

Ø  Material Requirement Planning is based on Stocks, expected receipts, expected issues.

Ø  MRP generates planned orders or purchase requisitions which can be converted into Purchase Order/ Contract.

Ø  Inventory Management is responsible for the staging of the components required for production orders.

Ø  The receipt of the finished products in the warehouse is posted in Inventory Management.

MM with SD module :

 SAP SD module is proportionally linked with MM module because it uses the information of the material when creation of sales order or when the quantity sent for production.

Ø  It is integrated in the area like Delivery, Availability Check, Stock Transfer Requirements etc.

Ø  As soon as the Sales order is created, can initiate a dynamic availability check of stock on hand.

Ø  When the delivery is created, the quantity to be delivered is marked as schedule for delivery. It is deducted from the total stock when the goods issue is posted.

Ø  PO can be directly converted to delivery for a stock transfer requirement.

Ø  It is also possible to create sales order stocks.

MM with WM module :

 The SAP WM module is related to MM module because it maintains information about the material storage and material transfer inside the organization.

Ø  The Inventory Management system can be extended by the Warehouse Management system (LE-WM) which manages storage bins in complex warehouse structures.

Ø  While Inventory Management manages the stocks by quantity and value, the Warehouse Management component reflects the special structure of a warehouse, and monitors the allocation of the storage bins and any transfer transactions in the warehouse.

MM with FICO module :

 The FI module is linked with MM module because every operation performed in MM Module like Goods Receipt and Invoice Receipt directly impact the financial operation of the organization.

Ø  It is integrated in the area like Material Valuation, Vendor Payment, Material Costing, etc.

Ø  Whenever inventory posting are debited, it updates the G/L Accounts online in the background.

Ø  Logistic Invoice Verification will vendor liability in vendor account immediately on posting the document. Any advance given again update the PO History. For every Inventory Posting is corresponding CO document to update profit center accounting reporting Finished Goods costing is link through MM and PP. Procurement of capital item cost can be directly booked against asset number.

MM with QM Module :

The MM module is integrated with QM for Quality Inspection at Goods Receipt.

In the case of goods movement, the system determines whether the material is subject to an inspection operation. If so, a corresponding activity is initiated for the movement in the Quality Management System. Based on quality parameters vendor evaluation is done.

MM with PM module :

The material/service requirement is mentioned in Maintenance Order. This leads to generation of PR. This PR is converted to PO by MM. The goods for a PO will be in warded to Maintenance by MM. The spares which were reserved for maintenance order will be issued by MM against the reservation number.

Inventory Management is linked with Plant Maintenance as follows:

Ø  It is possible to post goods movements with reference to equipment BOMs.

Ø  It is possible to withdraw parts for maintenance orders.

Ø  When serial number management is active, the individual serial numbers are entered in the case of every goods movement. Serial numbers are managed in the Plant Maintenance system.