SAP MM - Overview

SAP ERP (Enterprise Resource Planning) is a commercial software that integrates all the
information in a single software, considering various factors such as time and cost. Organizations
can easily meet their business demands with the help of SAP.

SAP Business Process

SAP MM is the short form for SAP Material Management system. The roles of SAP MM in a
business process are as follows −
• A business process in SAP is termed as a “module”.
• SAP MM is a part of logistics functions and it helps in managing the procurement
activities of an organization.
• It supports all aspects of material management (planning, control, etc.).
• It is the backbone of logistics that incorporates modules such as Sales and
• Distribution, Production Planning, Plant Maintenance, Project Systems, and
Warehouse Management.

Features of SAP MM

The features of a SAP MM system are as follows −

• SAP MM is one of the modules of SAP that deals with material management and
inventory management.
• Material Management as a process ensures no shortage of materials or any gaps in
the supply chain process of the organization. SAP MM speeds up the procurement
and material management activities, making the business run smoothly with
complete time and cost efficiency.
• It deals with managing the materials (products and/or services) and resources of an
organization with the aim of accelerating productivity and reducing costs. At the same time,
SAP MM is quite versatile to accommodate changes that are frequent in any business
environment.
• It deals with the Procurement Process, Master Data (Material & Vendor Master), Account
Determination & Valuation of Material, Inventory Management, Invoice Verification, Material
Requirement Planning, etc.
 SAP MM - Screen Navigation
The first step to understand SAP is to have a basic knowledge of its various screens. The following sections
describe how to navigate through the screens available in SAP and how to use the functionalities of the
standard toolbar.

Login Screen

Log on to the SAP ERP server. The SAP login screen will prompt you for the User ID and the Password.
Provide a valid user ID and password and press enter. The user id and password are provided by the system
administrator. The login screen appears as follows −

Standard Toolbar Icon

The following screenshot shows the toolbars available on the SAP screen. −

Given below is a brief description of the available toolbars −

• Menu Bar − Menu bar is the top line of the dialog window in the SAP system.
• Standard Toolbar − This toolbar includes standard functions such as save, top of page, end
of page, page up, page down, print, etc.
• Title Bar − Title bar displays the name of the application/business process you are currently
in.
• Application Toolbar − Application-specific menu options are available on this toolbar.
• Command Field − To start a business application without navigating through menu
transactions, some logical codes are assigned to the business processes. Transaction codes
are entered in the command field to start an application directly.
Standard Exit Keys

Exit keys are used to exit the module or to log off. They are used to go back to the last accessed
screen. The following screenshot highlights the standard exit keys used in SAP −

New Session Icon

For creating a new session, we use the following keys shown in the screenshot below −
Definition >> Create Company Code 1. T Code – SPRO

2. SAP Reference IMG

3. Enterprise Structure >> Definition >> Financial Accounting >> Edit, Copy, Delete, Check Company Code

4. Copy, delete, check company code

5. Select Copy icon

6. Make sure you copy from KR00 company code, and your new Company code will be AA00 for e.g., new code will
have first two characters of your name for e.g., Ajay Ashte = AA followed by two 00 (zeros)

7. Accept the usage of reference G/L accounts from corresponding Chart of Accounts

8. Will use the reference company code local currency USD, and do not need a new currency, hence select No
9. Certain data was not copied (see long text)

Message no. FC125

Diagnosis

When you copy a company code, not all the settings are copied, for example there is some data that must be unique for each
company code. The fields that are not copied from reference company code 3700 are listed below. After copying the company code
data, you must enter the appropriate data in these fields in the target company code manually. The exact procedure is specified for
each field.

Procedure

The following global data is deleted:

• Financial management area

In Customizing for Financial Accounting, maintain the global parameters of the target company code ( Financial Accounting Global
Settings -> Company Code -> Check and Add Global Parameters).

Accept the message and hit Enter button

10. Accept all further information message by selecting Yes. Accept the use of reference number range

11. System will prompt for a Transport Request >> select New icon
Enter short description add your user id at the end of the description >> Company Code for_43MM74

Hit Save icon at the bottom of the screen

Accept the proposed Transport Request number and hit Enter button

Accept the Transport number range message >> Hit Enter button
11. Message will be displayed that new Company code is copied successfully >> Hit enter button

12. Check completed activities and >> hit Exit button

13. Next select >> Edit Company Code Data option

14. Hit Position button and enter your new Company Code number in the search Another entry filed
15. Select your Company Code and hit Display Details button

16. Change the Company Name >> For simplicity let the new Code and Name be the same, add country ‘US’ to the
name and save the record

Make sure you save the data in your own Transport Request number >> Hit Enter button

If you are logged out of the system due to network issue, then on re login you will be prompted to select one of
the following options, in this case choose the first option ‘to continue with this logon and end any other logons’
Create Plant
1. Enterprise Structure >> Definition >> Logistics – General >> Define, copy, delete, check plant

2. Select Copy, delete, change plant

3. Select the copy button

4. Copy from KR00 to create your new Plant. New Plant code will be same as your Company Code

5. Accept the Transport number range and Hit enter on the next screen
6. Save the new Plant code in your own Transport Request number

7. Select the Define Plant option in the next step

8. Search your new Plant

9. Select your new Plant and go to details

10. Change Name 1 and Name 2 >> Save

11. Save the chagnes in your own Transport Request

Create Storage Location
1. Enterprise Structure >> Materials Management >> Maintain storage location

Enter your newly created Plant

2. Add new Storage Locations, use your new Plant code number for Storage Location as well >> Save the records and
Exit from Storage Location creation section
Create Purchasing Organization
1. Enterprise Structure >> Materials Management >> Maintain purchasing organization

Go to New Entries creation

2. Enter New Purchasing Organization, code will be same as your plant code >> Save the new record

Assignment >> Company Code to Company

1. Enterprise Structure >> Assignment >> Assign company code to company

Please note: If not copied from Reference Company Code, then assign KR00 Company to your New Company Code
Assign Plant to Company Code

1. Enterprise Structure >> Assignment >> Assign plant to company code

2. Search your new Plant record and DELETE the copied from Company Code record

Select ‘Delete anyway’ YES

3. Create New Entry with new Company Code and Plant Code >> Save the entry >> And Exit

Assign Purchasing Organization to Company Code

1. Enterprise Structure >> Assignment >> Assign purchasing organization to company code

2. Enter your Company Code against your Purchasing Organization entry and save the entry
Assign Purchasing Organization to Plant

1. . Enterprise Structure >> Assignment >> Assign purchasing organization to Plant

Save the new entry in your own Transport Request and Exit this section

Cerate Purchasing Group

1. Materials Management >> Purchasing >> Create Purchasing Groups

2. Create New Entry

Save the new entry and add it to your own Transport Request and Exit form this section