SAP MM (Materials Management)
The SAP module that covers procurement, inventory management, vendor evaluation and invoice verification.
Detailed definition
SAP MM (Materials Management) is the SAP module that manages procurement and inventory, sitting at the center of the end-to-end Procure-to-Pay (P2P) flow. Its scope covers purchase requisitions, purchase orders (PO), goods receipt, invoice verification (three-way match) and stock/inventory management. Core master data are the material master, vendor (supplier) master and purchasing info records; their accuracy determines the reliability of the whole process. MM integrates tightly with FI for invoicing and payment, with PP for production material requirements and with WM/EWM for warehouse movements. It supports contract-based purchasing, outline agreements and free-form procurement. A well-configured MM setup is critical for cost control, preventing unauthorized purchases (maverick spend) and optimizing stock levels. Related terms: P2P, SAP FI/CO, MRP, SAP EWM.
Related terms
SAP S/4HANA
SAP's next-generation ERP suite built on the HANA in-memory database, processing finance, logistics, manufacturing and HR data in real time.
SAP FI/CO
SAP's Financial Accounting (FI) and Controlling (CO) modules that together run statutory reporting and management accounting.
SAP SD (Sales & Distribution)
The SAP sales module managing customer orders, pricing, shipping and billing.
SAP PP (Production Planning)
The SAP module for production orders, MRP, capacity planning and BOM management.