Day 1 — Introduction to SAP MM (Materials Management)

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Interview Question

What is SAP MM and why is it used in SAP?

Answer

SAP MM (Materials Management) is a core SAP module used to manage procurement, inventory, and material management activities within an organization. It helps businesses: Purchase materials from vendors Manage inventory levels Track goods movement Verify vendor invoices Ensure materials are available when required SAP MM integrates closely with other modules like SD, PP, WM, and FI to support end-to-end business processes.

Real-Time Example

A manufacturing company needs 100 laptops for new employees. User creates a Purchase Requisition (PR). Purchasing team creates a Purchase Order (PO) to the vendor. Vendor delivers the laptops. Goods Receipt (GR) is posted using MIGO. Stock gets updated automatically. Vendor invoice is verified using MIRO. Finance team processes the payment. This complete procurement cycle is managed through SAP MM.