MM Module

- Introduction

Organizational Units

MM Application Components
MM Application includes the following transactions and
functions

Material Requirement Planning

Material Procurement

Inventory Management

Invoice Verification

Material Valuation

External Services Management

Materials Requirement Planning

Reorder
ReorderPoint
Point
Safety stock
Safety stock
Average consumption
Average consumption
Replenishment lead time
Replenishment lead time

Forecast
Based
Forecast
Based
Historical values to

Time
TimePhased
Phased
Materials are planned

Historical values to
forecast future
forecast future
requirements
requirements

Manual
ManualRe-order
Re-orderPoint
Point

Materials are planned

according to same cycle
according to same cycle

Constant
Constant
Trend
Trend

Automatic
AutomaticReorder
ReorderPoint
Point

Seasonal
Seasonal
Seasonal
SeasonalTrend
Trend

Procurement Cycle

Invoic
Invoic
ee
Verific
Verific
ation
ation

Determ
Determ
ination
ination
of
of
Requir
Requir
ements
ements

Source
Source
Determ
Determ
ination
ination

3
Goods
GoodsReceipt
Receipt

Purchase
Purchase
Order
Order
Follow-up
Follow-up

4
5

Vendor
Vendor
Selection
Selection
and
and
Quotatio
Quotatio
nn
comparis
comparis
on
on

Purchas
Purchas
eeOrder
Order
Processi
Processi
ng
ng

Inventory Management

Transactions that Lead to the changes in stock levels are handled

Goods Receipts
Goods Receipt of Purchase Order
Goods Receipt for Production Order
Return Deliveries (Sales Returns)
Planned and Unplanned Stock With Drawls
Stock Transfers
Reservations
Stock adjustments
Physical Inventory

Inventory Management
Result of Goods Receipt
Material Document is created

PO history gets updated

Result
Resultof
of
GR
GR

Accounting Document
is created

Inspection lot is created

if QM is active
Creation of GR/GI slip

Stock Qty and Value are updated

GR to UR stock
GR to consumption
GR to GR blocked stock
GR to inspection stock

Invoice Verification
It completes the material procurement process,
which started with the purchase requisition and resulted in a goods receipt.
It allows credit memos to be processed, either as invoice reversals or return
deliveries.
Integrated with the components Financial Accounting (FI) and Controlling (CO).
Invoices with purchase order reference
Invoices with goods receipt reference
Invoices without purchase order reference
Automatic Settlements
Evaluated Receipt Settlements
Consignment and Pipeline Settlement

External Services

MM Flow
--

External
Document
ME49

EBAN

---

---

----

---

ME51N

ME47

ME41

Quotation
Maintain

R.F.Q

Quatation
Comparision

---

----

Pur.Req

---

EKKO

----

Internal
Document

V1

V2

V3

AGREEMENT

Contract

Purchase
Order

G.R

Invoice
Receipt

MM

FI

Payment
To Vendor

Posting To
FI

ME21N

MIGO

MIRO