SAP TERMINOLOGIES

SAP - System Applications & Products

in Data Processing
SPRO - SAP Project Reference Object
IMG

- Implementation Guide.

MATERIALS MANAGEMENT
The purpose of Material Management is to
procure materials at Right,
Quantity
Quality
Place
Time

ENTERPRISE STRUCTURE

COMPONENTS
Major components of MM
Purchasing
Inventory Management
Invoice Verification

PROCURE TO PAY CYCLE (P2P)

8. PAYMENT
1. DETERMINATION OF
REQUIREMENTS
7. INVOICE
VERIFICATION

Procurement

2. SOURCE
DETERMINATION

6. GOODS
RECEIPT

3. VENDOR SELECTION
5. PO FOLLOW-UP
4. PO PROCESSING

PROCUREMENT
Purchasing materials or services for an
organization
External procurement
Determination of sources of supply
Monitoring deliveries

INVENTORY MANAGEMENT
Management of material stocks
Documentation of Goods movement
Physical Inventory - quantity and value
for balance sheet.

INVOICE VERIFICATION
Incoming invoice for materials or service
received from vendor
Payment
End of supply chain

THANK YOU