Material Management module (MM) in SAP ERP Solutions

0

Procurement Management

Material procurement for production is calculated from two sources:

  • Material requirements can be issued automatically from MRP (Material Requirement Planning): This function will automatically calculates amount and day that needs to place an order for production depending on minimum in stock and ensures the material is available for production on time. This function helps in cost reduction for the Corporation in terms of reduction in carrying cost of inventory and also ensures that the material availability does not hinder the production process. This is a high-powered function of SAP in comparison with other ERP systems because the performance is very fast and improved for textile and garment industry (calculated by size and colour of every sales order).
  • Manually create purchase requisition by departments.

PO – Purchase Order

This function helps to manage purchase orders and to help track the purchase order through to production order and to sales order. Monitor the procurement progress for production is managed very closely, so that production scheduling is accurate and guarantee to synchronize materials with production progress.

Procure to pay process-MM-ERP SAP solutionGoods receipt

Materials and goods are stored against an order. This help to keep track of stock closely, manage the information of styles. This information is showed on accounting report through BI to make procurement decisions.

After pushing to stock, materials can be identified and pulled to production on time. There is a link between sales order, production order, purchase order and goods receipt.

Accounting Integration

MM module integrates with FI/CO steadily. As soon as receiving stock, MM module will automatically generate entry for vendor debit and payable period.

This function help accountants to reduce input work at the same time help the corporation make payment to vendors timely, so can avoid the charge of late payment.

Comments

comments

Leave a Reply

Your email address will not be published. Required fields are marked *