Link Between SAP SD and MM Flows
What is Materials Management?
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.
What is Sales and Distribution?
Sales and Distribution module is a part of logistics and it handles all the process of order to delivery, it is fully integrated with the other modules of the SAP System such as MM and PP.
SD contains many phases such as Inquiry, Quotation, Sales Order, Sales Returns, Credit Management, pricing, tax determination, and Goods Delivery modules.
Link Between SAP SD and MM Flows:
2. Once we receive the quotation from the customer then as a vendor we need to check whether we can deliver the goods with customer conditions or not
3. Once we finish the inquiry then as a vendor we need prepare the quotation
4. Once we prepare the quotation as a vendor we need to send quotation to the particular customer
5. Once we receive the quotations from different vendors as a customer we analysis all the quotations and finally we select one vendor
6. After vendor evaluation as a customer we need to raise the purchase order
7. Once we receive the purchase order from customer then as a vendor we need to raise the sales order.
8. While raising sales order we should know the partner functions
Sold-To-Party – who as raised the purchase order
Ship-To-Party – where we need to deliver the goods
Bill-to-party – to whom we have to give the bill
Payer – who is going to pay the money?
9. After raising the sales order as a vendor we need to deliver the goods
10. Deliver the goods
11. Here we receive the goods with goods receipt as a customer we need to analysis the goods receipt
12. As a vendor we need to prepare the bills
13. While delivering the goods we need to send the billing document
14. 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 as a customer you need to inform to vendor.
15. If we receive all the goods then as a customer we need to inform the finance guy
16. Once we deliver the goods with billing vendor finance guy will interact with the customer finance guy.
17. Finally the finance guys interact for the finance settlements
Purchase Requisition – ME51N
Request for Quotation – ME41
Vendor Evaluation – ME61
Purchase Order – ME21N
Goods Receipt – MIGO
Invoice Verification – MIRO
Goods Issue -MB1A
Physical Inventory – MI01
Inquiry – VA11
Quotation – VA21
Sales Order – VA01
Goods Delivery – VL01N
Billing – VF01