Sunday, January 14, 2018 Prepared By Ramesh Kamishetty

What is SAP?
* SAP Stands for Systems applications and products in
Data processing, SAP is the 4th Largest software
company in the world.

•SAP is the Largest ERP Solution Software Provider.

•SAP Main Product is SAP R/3

•R stands for Real time data processing

•3 Relates to three – tier Architecture

Prepared By Ramesh Kamishetty

Sunday, January 14, 2018
 SAP ECC Real Time 3 Tire Architecture

Presentation Layer

Application Layer

Database Layer

Prepared By Ramesh Kamishetty

Sunday, January 14, 2018
 System Landscape
Landscape is like a server system or like a
layout of the servers or some may even call it
the architecture of the servers. SAP is
divided into three different landscape DEV,
QAS and PROD.
-DEV would have multiple clients for ex: 190- Sandbox, 100- Golden, 180- Unit
Test.
- QAS may again have multiple clients for ex: 300- Integration Test, 700 to 710
Training.
- PROD may have something like a 200 Production.

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
 SYSTEM LAND SCAPE

Development Quality / Testing Production

Server Server Server

Golden
Test client
client

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
Organization Structure
Company

Company code Company code

Plant 1 Plant 2 Plant 1 Plant 2

Storage Storage Storage Storage

Purchase org Purchase org

PGR
Ref Purchase

Sunday, January 14, 2018 Prepared By Ramesh Kamishetty

Over view of SAP MM Module:

Material management deals with managing

the materials(products & services) resources
of an organization with the aim of increasing
Productivity, reducing costs and increase
Optimization and at the same time be flexible
to accommodate changes.

Sunday, January 14, 2018 Prepared By Ramesh Kamishetty

 A Business Process in SAP is termed as “Module”
SAP Materials Management is a part of Logistics area
and helps to manage the Procurement activity of an
Organization from procurement process, Inventory
Management, invoice verification and Material
planning.

Material management is the backbone of the logistic

area which includes modules like 1) SD 2)PP 3)PM 4)
PS 5)WM which are highly dependent on Material
management Module.

Material management is highly integrated with other

Modules like FI,SD,PP,QM,PM.

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
 Procurement process flow

Determination of
Payment Processing
Requirements

Invoice Source
Verification Determination

Procurement

Goods Vender
Receipt Selection

PO PO
Follow up Processing

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
 SAP MM Procurement Cycle

1).Determination of requirement
2).Source determination
3).Vendor selection
4).Purchase order processing
5).Purchase order Follow up
6).Goods Receipt
7).Invoice Receipt
8).Payment processing

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
Sunday, January 14, 2018
Prepared By Ramesh Kamishetty
 Master data in SAP MM

Material Master
Vendor Master
Source list
Purchasing info record
Quota arrangement
Service Master

Prepared By Ramesh Kamishetty

Sunday, January 14, 2018
 Purchsing data in SAP MM

Internal Documents

External Documents

Sunday, January 14, 2018 Prepared By Ramesh Kamishetty

 Internal Documents :
• Purchase Requisitions

External Documents:

• Request For Quotation

• Purchase Order
• Contract
• Scheduling Agreement

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
 Types of Purchase Orders:

•Standard Purchase Orders

•Frame work Purchase Orders
•Subcontracting Purchase Orders
•Third Party Purchase Orders
•Consignment Purchase Orders
•Stock Transport Purchase Orders

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Sunday, January 14, 2018
 Inventory Management

•Goods Receipts

•Goods Issues

•Transfer Posting
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Sunday, January 14, 2018
 Goods Receipts

•Goods Receipts Against Purchase Orders

•Goods Receipts Against Productions Orders.
•Goods Receipts Legacy Stock.

Goods Issues

•Goods Issue to Cost center

•Goods Issue to Production Order
•Goods Issues to Sales Order

Sunday, January 14, 2018

Prepared By Ramesh Kamishetty
 Invoice verification

•Invoice Entry (MIRO)

•Invoice Parking (MIR7)

•Invoice Blocking

•Debit Memo

•Credit Memo

Prepared By Ramesh Kamishetty

Sunday, January 14, 2018
 Thank you

Prepared By Ramesh Kamishetty

Sunday, January 14, 2018