Standard materials managment document flow

In SAP, Materials Management (MM) involves the procurement and inventory management of goods. The functionality is designed to handle the entire range of material flow. While the requirements for each document can differ depending on the organization’s specific procurement or inventory needs, a standard Materials Management document in SAP often requires the following information:

1. Document Type (e.g., Purchase Requisition, Purchase Order, Goods Receipt, Invoice Verification). Specifies the nature of the transaction. Each document type can define:

  • Fields that are visible or editable.
  • Approval and release procedures.
  • Account assignment categories.

2. Vendor Details. Information about the supplier, including:

  • Vendor code: Unique identifier for the supplier.
  • Address: Vendor’s address.
  • Payment terms: Conditions under which the purchase will be made.

3. Purchasing Organization. Defines the organizational structure for procurement. Also there could be:

  • Purchasing group: Responsible for operational tasks.
  • Plant: Location where the materials are needed.

4. Material Details.

  • Material number: Unique identifier for the material.
  • Material description: A short description of the material.
  • Quantity: Number of units required.
  • Unit of measure: Units in which the material is managed (e.g., pieces, gallons).

5. Dates:

  • Requirement date: The date by which the material is needed.
  • Delivery date: Expected delivery date from the vendor.

6. Pricing Conditions:

  • Price per unit.
  • Currency. The currency in which the transaction is carried out.
  • Tax code. Relevant tax information.

7. Account Assignment:

  • Cost center or Internal Order for which the material is being procured.
  • General ledger account: The account that will be charged for the cost.

8. Texts and Notes: Any additional information or comments that should accompany the document.

9. Attachments: Supplementary documents like specifications, diagrams, etc.

10. Reference Documents: Any prior contracts, requisitions, or vendor quotations related to the document.

This is a generalized outline and the actual requirements can vary significantly depending on the specifics of the business, the SAP module in use, and any customizations made to the system.

Pre-procurement steps

The standard flow for Materials Management (MM)

The standard flow for Inventory Management

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