Material Management Module 4

Materials Management (MM):

A SAP ERP module concerned with helping organizations with material management, inventory management, and warehouse management in the supply chain process.

Purchasing Organization:

A unit where the buying activity for a plant takes place; it is responsible for services and material procurement and is in charge of negotiating the conditions of the purchase with the vendors.

Purchasing Group:

A key unit representing the buyer or group of buyers responsible for certain purchasing activities; this unit also serves as the communication channel for vendors.

Vendor Master:

Master data that contains all the necessary information for business activities with an external supplier.

Material Master:

Master data that contains all the information a company needs to manage a material.

Purchasing Information Record:

Data that allows buyers to determine which vendors have offered or supplied specific materials quickly; it serves as the default information for Purchase Orders.

Purchase Requisition:

An internal document instructing the purchasing department to request a specific good or service for a specified time.

Source List:

A record that specifies the allowed means for procuring material for a certain plant within a given period

Outline Agreement:

Existing longer-term purchasing agreements divided into contracts and scheduling agreements

Request for Quotation (RFQ):

An invitation to a vendor by a Purchasing Organization to submit a bid for the supply of materials or services.

Vendor Evaluation:

A process that helps purchasing evaluate vendors for sourcing while also enabling the company to monitor vendor relations through performance scores and criteria.

Purchase Order:

A formal request to a vendor for a specific material or service under stated conditions.

Goods Receipt:

A process that deals with the goods movement wherein goods are accepted into the system