MM FLOW IN SAP

MM Process Flow

PR >Release the PR>RFQ>Quotation>Quotation Comparison>PO>Release the PO>GR>Invoice

Verification
The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning and
control. (This can cover both MRP proper and the demand-based approach to inventory control.
The regular checking of stock levels of materials defined by master records, use of the order-
point method, and forecasting on the basis of past usage are important aspects of the latter.) You
can enter purchase requisitions yourself, or they can be generated automatically by the materials
planning and control system.
Purchase Requisition
ME51N – Create ME52N – Change ME53N - Display

2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders
and existing longer-term purchase agreements. This speeds the process of creating requests for
quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.
Request for Quotation (RFQ)
ME41 – Create ME42 – Change ME43 – Display ME44 – Maintain Supplement ME45 –
Release
Quotation
ME47 – Maintain ME48 – Display ME49 – Price Comparison

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system adopts information from the requisition and the quotation to help you
create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the
system generate them automatically. Vendor scheduling agreements and contracts (in the SAP
System, types of longer-term purchase agreement) are also supported.
Purchase Order
ME21N – Create ME22N – Change ME23N – Display

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically
prints reminders or expediters at the predefined intervals. It also provides you with an 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.
By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered
goods.
Goods Movement – MIGO

7. Invoice Verification
The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods receipt
data. This speeds the process of auditing and clearing invoices for payment.
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Integration Points for SD (Sales) and MM
1. During the creation of Sales Order Availability check is carried out which is integrated with
Inventory management
2. During the Delivery Creation the Stock is removed from the Inventory (Once u do Delivery a
material document is created triggering the Movement of material)
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Display Document Flow & Status Overview are the two buttons on the right side of application
tool bar to click (See VA03 Display Sales order: Initial screen)

MM Cycle:
Purchase Requisition-> Staff in an organization places Purchase requisition for want of some
goods/products - ME51

Request for Quotation(RFQ)-> The Purchase dept in the organization calls/requests for the
quotation for the products against which PR was raised. - ME41

Vendor Evaluation->after receiving the RFQ's, after comparison a Vendor is finalized based on
the terms and conditions.

Purchase Order (PO) -> Purchase order was issued to that vendor asking him to supply the
goods/products -ME21N

Goods Receipt Note (GRN) ->Vendor supplies the material/Products to the organization
MB01
Goods Issue (GI) -> People receives their respective items for which they have placed the
Requisitions

Invoice Verification-> Along with the Material Vendor submits a Invoice for which the
Company Pays the amount - MIRO

Data to FI -> data will be posted to FI as per the vendor invoices

RFQ to Vendor - ME41

Raising Quotation - ME47
Comparison of Price - ME49
Creation of PO - ME21N
Goods Receipt - MIGO
Invoice (Bill Passing) - MIRO
Goods Issue - MB1A
Physical Inventory - MI01( Create doc)
MI04 (Enter Count)
MI07 (Post)

Common Tables used by SAP MM:

Below are few important Common Tables used in Materials Management Modules:
EINA Purchasing Info Record- General Data
EINE Purchasing Info Record- Purchasing Organization Data
MAKT Material Descriptions
MARA General Material Data
MARC Plant Data for Material
MARD Storage Location Data for Material
MAST Material to BOM Link
MBEW Material Valuation
MKPF Header- Material Document
MSEG Document Segment- Material
MVER Material Consumption
MVKE Sales Data for materials
RKPF Document Header- Reservation
T023 Mat. groups
T024 Purchasing Groups
T156 Movement Type
T157H Help Texts for Movement Types
MOFF Lists what views have not been created
A501 Plant/Material
EBAN Purchase Requisition
EBKN Purchase Requisition Account Assignment
EKAB Release Documentation
EKBE History per Purchasing Document
EKET Scheduling Agreement Schedule Lines
EKKN Account Assignment in Purchasing Document
EKKO Purchasing Document Header
EKPO Purchasing Document Item
IKPF Header- Physical Inventory Document
ISEG Physical Inventory Document Items
LFA1 Vendor Master (General section)
LFB1 Vendor Master (Company Code)
NRIV Number range intervals
RESB Reservation/dependent requirements
T161T Texts for Purchasing Document Types