Master data remains unchanged in the system over a long period. It forms the operational basis for transaction processing. Material Master
Data required for planning material availability (e.g., MRP type, lot size, safety stock).
This is the integration point between SAP MM and SAP FI (Finance). When goods are received or issued, financial documents must post automatically. Automatic Account Determination Configuration ( OBYC )
A three-digit key used to classify physical stock movements. 101 : Goods Receipt for Purchase Order. 122 : Return delivery to vendor. 201 : Goods issue for a cost center (internal consumption). 261 : Goods issue for a production order. 301 : Plant-to-plant transfer (one step). 561 : Initial entry of stock balances. Stock Types
SAP MM Study Material: The Ultimate Guide to Master Materials Management sap mm study material all u need to study exclusive
: Stores details about suppliers, including payment terms and addresses.
This area deals with the physical and financial movement of goods within the warehouse or plant.
Sending raw materials to get finished goods. Stock Transport Orders (STO): Moving stock between plants. 💡 Pro-Study Tips:
A separate legal entity with its own independent accounting and financial statements (Balance Sheet, P&L). Master data remains unchanged in the system over
1. Need Identification ➔ 2. Source Determination ➔ 3. Vendor Selection ➔ 4. Purchase Order │ 7. Payment ◄─────────── 6. Invoice Verification ◄── 5. Goods Receipt ◄────────┘
When the vendor delivers the goods, the receiving warehouse posts a Goods Receipt against the PO. MIGO
Next came the , the backbone of the system. The guide introduced "The VIPs." There was the Material Master , the detailed ID card for every item; the Vendor Master , the contact list of allies; the Purchasing Info Record , the secret contract between buyer and seller; and the Source List , the approved directory. Elias realized these weren't just data fields; they were the rulebook the system consulted before making a move.
SAP uses accounting keys to decide which General Ledger (G/L) accounts are updated. This is the integration point between SAP MM
Always map a client's physical warehouse and purchasing workflows on paper before touching the SAP system.
Be ready to explain the relationship between PO, GR, and IR, including standard tolerances and variances.
Practice building a complete company infrastructure from scratch: create a new plant, build custom master records, run through a full P2P flow, and successfully clear out variances using MIRO. Share public link
Damaged or rejected stock that cannot be used. Physical Inventory
An operational facility where material is stored, manufactured, or distributed.