The sales documents you create are individual documents but they can also form part of a chain of inter-related documents. For example, you may record a customer telephone inquiry in the system. The customer next requests a quotation, which you then create by referring to the inquiry. The customer later places an order on the basis of the quotation and you create a sales order with reference to the quotation. You ship the goods and bill the customer. After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent delivery free of charge creates a document flow or history. The flow of data from one document into another reduces manual activity and makes problem resolution easier. Inquiry and quotation management in the Sales Information System help you to plan and control your sales.
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Determination of Requirements Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.
- Source Determination The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via if desired.
- Vendor Selection and Comparison of Quotations The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.
- Purchase Order Processing The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate POs yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the types of longer-term purchase agreement) are also supported.
- Purchase Order Follow-Up The system checks the reminder periods you have specified and – if necessary – automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
- Goods Receiving and Inventory Management Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods.
- Invoice Verification The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment
The Materials Management (MM) module is a part of logistics and it helps in managing end to end procurements and logistics business process, It is fully integrated with the other modules (SD, FI, CO, PM, QM, MW) of the SAP System.
MM module contains many phases of materials management such as materials planning and control, purchasing, goods receiving, inventory, invoice verification module.
SAP MM Flow:
Purchase Requisition: First the customer prepares the purchase requisition with required goods.
Request for Quotation: As a customer we need to send RFQ to different vendors.
. Purchase Requisition (ME51N)
Material requirement are identified either by the user, department or via material planning and control. For example a MRP Run in production planning or material falling short of reorder-point can automatically generate Purchase Requisition. At the same time PR can be created manually in the system.
2. Source Determination - RFQ (ME41)
Identify the possible source of supply based on the past order and existing long term purchase contract. Then create Request for Quotation, which can be then sent electronically to vendors.
3. Vendor Selection and Comparison of Quotation (ME49)
After receiving quotation system is capable to simulate pricing scenarios, allowing user to compare number of quotations and sent rejection letter automatically.
4. Purchase Order (ME21N)
Data from Quotation or Purchase Requisition can be adopted to create Purchase Orders. Purchase Order is then sent to Vendor to supply the goods.
5. Purchase Order Follow ups ME91, ME91F, ME92F
Reminder can be sent to vendors at predefined intervals.
6. Goods Receipts (MB01)
Goods were received.
7. Invoice Verification (MIRO)
Along with the goods vendor also submits Invoice, system verifies then invoice against the quantity received and PO data. The account payable clerk is notified.
Vendor Evaluation: Once we receive the quotations from different vendors as a customer we analysis all the quotations and finally we select one vendor.
Purchase Order: After vendor evaluation as a customer we need to raise the purchase order.
Goods Receipt: Here we receive the goods with goods receipt as a customer we need to analysis the goods receipt.
Invoice Verification: Once we receive the goods and bills from the vendor as a customer we need to verify all the good, if there is any problem in the goods then the customer informs to vendor.
This function checks whether the foreign trade data in master records is complete and generates a list of any missing data. Complete foreign trade data makes import and export processing faster and improves consistency.
- The function checks these master records for the following foreign trade data:
- Vendor master records for general foreign trade data
- Purchasing info records for vendor declaration data
- Material master records for general foreign trade, legal control, preference processing data and refunds on exports
- Customer master records for general foreign trade, legal control, and documentary payments data
- You can enter selection criteria to define which master records the function checks. For example, you can run the check on materials created in the last three months.
- You can maintain missing data in vendor, material, and customer master records directly from the lists the function creates.
- You can check whether foreign trade data in master records is complete from the Foreign Trade Cockpit.
Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.