SAP MM Flow

You can fully understand what SAP MM is all about when you pay attention to its flow. SAP MM flow involves a step by step process. The usual procurement cycle used for a material or service is composed of these phases:

  1. Request determination – the material requisites are identified whether within the user areas or through making a plan and controlling it. This particular phase may cover both the MRP proper as well as the demand-based type of approach when it comes to inventory management. The regular inspection of the materials’ stock levels which was defined by the master records, the utilization of order-point strategy and predicting one the past usage basis are the crucial elements of the latter phase. You may wish to input the purchase requests on your own or these can be automatically generated by the system used in materials planning & control.

  2. Determination of the source – the purchasing element will assist you in identifying the possible supply sources based on the previous orders and in the recent long-term purchase conditions and rules. This will make the process of making requests for quotes faster. The requests can be sent to the vendors on an electronic way through SAP EDI and this method can be used if you desire or if you think that it is the best way to do so.

  3. Selection of the vendor and comparing the quotations – the system has the capability to simulate the pricing situations. This will let you compare the quotations you have received so that you can get the one that matches with your needs and demands. Rejection letters could be sent to vendors automatically.

  4. The processing of the purchase order – the buying system adopts the details gathered during the requisition and quotation. This will be helpful a lot in making the purchase order. Just like the purchase requisitions, you could also make POS alone or you may leave the job to the system that can automatically create one for you. Vendor scheduling terms and contracts are also included.

  5. Follow up of the purchase order – the system will verify all reminder periods that you have denoted. When needed, the system will print the reminders and expediters automatically during the pre-defined intervals. It will also provide you with recent status details about all of the purchase requests, quotations as well as purchase orders you have.

  6. Goods receiving & inventory management – the employees who are assigned in the goods receiving section will verify the receipt of requested goods. It can be done by simply inputting the number of purchase order. By identifying the permissible tolerances, the buyers will have the ability to limit the over and under deliveries of the goods.

  7. Invoice checking – the system can support the inspection and matching process of the invoices. The concerned clerk will be notified about the quantity as well as price variances since the system can access the purchase order as well as the goods receipt details. This will be very helpful in speeding up the auditing & clearing process of the invoices for payout.


SAP MM Flow

You can fully understand what SAP MM is all about when you pay attention to its flow. SAP MM flow involves a step by step process. The usual procurement cycle used for a material or service is composed of these phases:

  1. Request determination – the material requisites are identified whether within the user areas or through making a plan and controlling it. This particular phase may cover both the MRP proper as well as the demand-based type of approach when it comes to inventory management. The regular inspection of the materials’ stock levels which was defined by the master records, the utilization of order-point strategy and predicting one the past usage basis are the crucial elements of the latter phase. You may wish to input the purchase requests on your own or these can be automatically generated by the system used in materials planning & control.

  2. Determination of the source – the purchasing element will assist you in identifying the possible supply sources based on the previous orders and in the recent long-term purchase conditions and rules. This will make the process of making requests for quotes faster. The requests can be sent to the vendors on an electronic way through SAP EDI and this method can be used if you desire or if you think that it is the best way to do so.

  3. Selection of the vendor and comparing the quotations – the system has the capability to simulate the pricing situations. This will let you compare the quotations you have received so that you can get the one that matches with your needs and demands. Rejection letters could be sent to vendors automatically.

  4. The processing of the purchase order – the buying system adopts the details gathered during the requisition and quotation. This will be helpful a lot in making the purchase order. Just like the purchase requisitions, you could also make POS alone or you may leave the job to the system that can automatically create one for you. Vendor scheduling terms and contracts are also included.

  5. Follow up of the purchase order – the system will verify all reminder periods that you have denoted. When needed, the system will print the reminders and expediters automatically during the pre-defined intervals. It will also provide you with recent status details about all of the purchase requests, quotations as well as purchase orders you have.

  6. Goods receiving & inventory management – the employees who are assigned in the goods receiving section will verify the receipt of requested goods. It can be done by simply inputting the number of purchase order. By identifying the permissible tolerances, the buyers will have the ability to limit the over and under deliveries of the goods.

  7. Invoice checking – the system can support the inspection and matching process of the invoices. The concerned clerk will be notified about the quantity as well as price variances since the system can access the purchase order as well as the goods receipt details. This will be very helpful in speeding up the auditing & clearing process of the invoices for payout.