SAP MM
1.Explain the various functions supported by SAP’s Materials management(MM) module.
The various functions supported by SAP MM are,
Procurement
Inventory management
Invoice verification
MRP(material requirement planning)
2.Explain the term MRP in SAP MM.
MRP determines everything about a material. It determines which material is required, in what quantity when and where according to various information and forecasts.
3.With respect to SAP MM explain ‘plant’.
In SAP MM a plant represents a manufacturing location, distribution centre or a warehouse. Though a plant is not a financial entity it can be still linked to a Business Area. In a plant we actually validate the inventory. During an order entry the system checks for the inventory either at the plant or plant/storage location.
4.Explain the concept of ‘storage location’ in SAP.
A storage location is a sub-division of a plant. It defines a location for materials which can be a warehouse, bin or a storage area of raw materials or work in progress or finished products. The physical inventory , material movement , picking, cycle counting etc are managed at the storage location level.
5.Explain ‘purchasing organization’ in SAP MM.
The organizational structure in SAP MM which is responsible for procurement of materials is called the purchasing organization. Top-most element in organizational structure of MM is the purchasing organization. There are infact 3 forms for purchasing organization,
Cross-client purchasing organization
Plant-specific purchasing organization
Cross company code purchasing organization.
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