Business Processes in SAP MM

Here is the list of business processes in SAP MM. The list is subdivided into three parts:

1. Purchase,
2. Inventory management and
3. Invoice verification

Purchase

Here is the list of purchase related business processes in SAP MM:

Normal Purchase Scenarios

1. Request for quotation
2. Purchase Requisition
3. Purchase order
4. Raw material purchase
5. Asset Purchase
6. Service Purchase
7. Centralized purchase (Centralized contracts)
8. Outline Agreement
   • Contract
   • Scheduling Agreement
9. Release Strategy in PR, PO and Outline Agreement
10. Consumption based planning – MRP (Reorder Planning)
11. Split Valuation

Special Purchase Scenarios

1. Third Party Purchase
2. Subcontracting process
3. Consignment Process
4. Pipeline material purchase
5. Stock Transfer Order (STO)
   • Inter Plant Stock transfer
   • Inter Company Stock transfer

Inventory Management

Here is the list of inventory management related processes:

1. Goods movement
   • Goods Receipt (and reversal)
   • Goods Issue (and reversal)
   • Free of Charge Material (FoC)
   • Scrapping Process
   • Block material
   • Transfer postings
   • Goods movement with Quality Inspection
   • Vendor returns
2. Physical Inventory and Cycle Counting
3. Serial number management
4. Reservation
5. Manage special stocks
6. Inbound delivery or Advance Shipping Note
7. Service Entry Sheet

Invoice processing

List of process in invoice processing:

1. Invoice Posting
2. Invoice parking
3. Invoice Block and Release
4. Purchase order down payment
5. Evaluated Receipt Settlement (ERS)
6. 3 way matching
7. Credit Memo
8. Debitmemo
9. Subsequent delivery
10. Create consignment and Pipeline settlement

Other Business Processes

1. Batch Management
2. Vendor evaluation
3. Accounts maintenance (GR/IR)
4. Month end activities management