SAP MM: materials management that works in standard SAP
Procurement, inventory management and invoice verification: the MM module decides whether purchasing, warehouse and accounting work with the same figures. We know the module from corporate projects in chemicals and retail – in the standard and at its limits.
Our focus areas in MM are procurement, output management, interface configuration, complaints and returns, automatic invoice verification with ERS, account determination and inventory management with material transfer postings (MM-IM).
How you know you need this
When materials management no longer runs in the standard, it usually shows in places like these:
- Stocks are higher than necessary, and yet something is regularly missing.
- Orders bypass procurement by email or phone and only appear in the system with the invoice.
- Invoice verification is stuck on exceptions; quantity and price variances tie up purchasing and accounting alike.
- Supplier data exists several times over in the system, and intercompany deliveries are reconciled by hand.
Where the real work in materials management lies
We think in processes, not module boundaries – from requirement to paid invoice:
- The analysis starts from your figures: purchase order and stock data, the exceptions in invoice verification and the custom developments that have piled up over the years.
- The concept turns on a few far-reaching decisions – release strategies, account determination, candidates for evaluated receipt settlement. They shape the process for years.
- Cleaning up material and supplier master data is a work item of its own before testing. Skip it and the same errors come back in the integration test, then under time pressure.
- Testing spans purchasing, warehouse and finance. Only at invoice verification does it show whether the chain really holds.
What runs the same way before and after in every one of our projects is gathered on the SAP overview. How we work – the shared framework
For a defined process area, such as invoice verification, four to seven months is realistic. A rollout across several countries is a programme with its own plan.
From your side we need one key user per sub-process from purchasing, warehouse or accounting who can decide for their area, and a process owner who tips the balance when goals conflict between departments.
Two examples from our projects
We do not name our clients – but we do name the tasks.
An international retail group, 07/2019 – 12/2024
For more than five years we advised on the SAP processes of one product category in a global S/4HANA transformation – from process design and system integration through to migration, cut-over and testing in five countries.
A wholesale company, 09/2018 – 06/2019
In a Europe-wide S/4HANA implementation we designed the complaints and returns processes in MM and SD for a wholesale company and supported them through to their implementation in the system.
What you end up with
- Cleansed material and supplier master data
- Documented procurement processes in the SAP standard
- Defined release strategies and traceable account determination
- Invoice verification that runs automatically as a rule – with ERS wherever the prerequisites are met
- Trained key users in purchasing, warehouse and accounting
What we do not do
- We do not develop our own code in SAP. We are happy to assess existing custom developments against the standard and often recommend replacing them with it.
- We do not replace your purchasing department. Decisions on suppliers, conditions and stocks stay with you; we make sure the system supports them reliably.
- We do not quote a savings rate up front. What is possible for you is shown by the analysis with your figures.
Typical questions
- How do we bring stocks down without becoming unable to deliver?
- Not by an across-the-board cut, but through clean MRP parameters per material, reliable replenishment lead times and inventory management everyone trusts. Usually the first step is to clean up the data basis – the stocks then follow almost by themselves.
- Can invoice verification be automated?
- Yes, to a large extent. For suppliers with stable prices and goods-receipt-based invoicing, the credit memo can be generated automatically from the goods receipt (ERS). The prerequisite is that prices and conditions are maintained; otherwise you automate the exceptions as well.
- What changes in purchasing with S/4HANA?
- The basic logic stays, but interface and reporting change noticeably: Fiori apps instead of transactions, stocks and requirements in real time without nightly runs, and a simplified data model in inventory management. Custom developments in purchasing should be reviewed – many become redundant through the standard.
- Can you handle intercompany processes?
- Yes. We have designed intercompany processes across many countries and supported their implementation, from purchase orders between group companies to automatic settlement. The demanding part is rarely the customizing but the consistent alignment between the companies.
Initial consultation on SAP MM
Which sub-process hurts most for you – procurement, stocks or invoice verification? Two sentences are enough; we will get back to you within two working days. The same goes for implementation partners who want to pass on a work package on the process side of an MM project.