Title here
Summary here
SAP MM Transactions: Process Flow, Hierarchy & Module Integration
TL;DR
- SAP MM transactional objects span five phases — Purchasing, Inventory Management, Invoice Verification, Physical Inventory, and Reporting — with eighteen objects connecting procurement-to-pay end-to-end.
- The dependency order is strict: Contract / Scheduling Agreement → Purchase Requisition → RFQ → Quotation → Purchase Order → Goods Receipt → Invoice Receipt. Inventory movements (Reservation, Goods Issue, Stock Transport Order, Transfer Posting) operate in parallel.
- Each end-to-end procurement scenario (Contract / Standard / RFQ / Stock Movement / Stock Transfer / Physical Inventory) is covered in detail in MM-B02 onward.
1) Transaction Process Flow
2) Hierarchy Structure
3) ER Diagram
4) Transaction Process
| Phase | Object | Integration | Planned | Actual | Prerequisite | Tr-Cd | Description | Practical Examples | Role |
|---|---|---|---|---|---|---|---|---|---|
| 1 Purchasing | Contract | - | - | - | Vendor Master, Material Master | ME31K/ME32K/ME33K | Register basic agreement with vendor | Conclude an annual quantity contract for 10,000 units | Purchaser |
| Scheduling Agreement | - | - | - | Vendor Master, Material Master | ME31L/ME32L/ME33L | Register delivery scheduling agreement with vendor | Create JIT delivery scheduling agreement | Purchaser | |
| Purchase Requisition | PP | Purchase Requisition | - | Material Master | ME51N/ME52N/ME53N | Create procurement request to purchasing department | MRP run automatically creates raw-material requisition | Purchaser | |
| RFQ | - | RFQ | - | Purchase Requisition, Vendor Master | ME41/ME42/ME43 | Create RFQ to vendor | Send RFQ to three vendors | Purchaser | |
| Quotation | - | - | RFQ | RFQ | ME47/ME48/ME49 | Register vendor’s quotation response | Select lowest-bid vendor and accept quotation | Purchaser | |
| Purchase Order | FI | Purchase Order | Purchase Requisition | Purchase Requisition, Purchasing Info Record | ME21N/ME22N/ME23N | Create purchase order to vendor | Place order for 100 units with selected vendor | Purchaser | |
| 2 Inventory Management | Goods Receipt | FI | - | Purchase Order, Stock Transport Order | Purchase Order, Stock Transport Order | MIGO | Post goods receipt for purchase order / transport order | 100 units of ordered raw material received and posted | Warehouse Clerk |
| Reservation | PP/CO | Reservation | - | Material Master | MB21/MB22/MB23 | Register future goods movement reservation | Reserve 100 units of raw material for production order | Warehouse Clerk | |
| Goods Issue | FI/CO | - | Reservation | Reservation, Material Master | MIGO | Post goods issue for production, delivery, or transport | Issue raw material against production order | Warehouse Clerk | |
| Stock Transport Order | - | Stock Transport Order | - | Material Master | ME21N | Create inter-plant stock transport order | Transfer 500 units from Plant A to Plant B | Warehouse Clerk | |
| Transfer Posting | - | - | - | Material Master | MIGO | Post transfer between stock types or storage locations | Transfer from quality inspection stock to unrestricted stock | Warehouse Clerk | |
| 3 Invoice Verification | Invoice Receipt | FI | - | - | Goods Receipt, Purchase Order | MIRO/MIR7 | Match and post vendor invoice | Match 1,000,000 JPY invoice against received purchase order | AP Clerk |
| Credit Memo | FI | - | - | Purchase Order | MIRO | Post credit memo from vendor | Receive 50,000 JPY credit memo for returns | AP Clerk | |
| Debit Memo | FI | - | - | Purchase Order | MIRO | Post debit memo to vendor | Issue 20,000 JPY debit memo for additional charges | AP Clerk | |
| 4 Physical Inventory | Physical Inventory [Created] | - | Physical Inventory [Created] | - | Material Master | MI01 | Create physical inventory document | Create PI document for storage location 001 for annual count | Warehouse Clerk |
| Physical Inventory [Counted] | - | Physical Inventory [Counted] | Physical Inventory [Created] | Physical Inventory [Created] | MI04 | Enter physical inventory count results | Enter actual count of 98 units (book quantity 100) | Warehouse Clerk | |
| Physical Inventory [Posted] | FI | - | Physical Inventory [Counted] | Physical Inventory [Counted] | MI07 | Post physical inventory differences | Post 2-unit difference as inventory variance | Warehouse Clerk | |
| 5 Reporting | Material Document | - | - | - | Goods Receipt, Goods Issue, Transfer Posting | MB51/MB03 | Display goods movement history | Display monthly goods movement history by material | Warehouse Clerk |
What to Read Next
L1) Big Picture
| ID | Category | Title |
|---|---|---|
| mm-001 | Overview | What is SAP MM? |
L2-A) Master Data
| ID | Category | Title |
|---|---|---|
| mm-a01 | Overview | SAP MM Master Data: Overview, Hierarchy & Relationships |
| mm-a02-01 | Master Data | SAP MM Material Master |
| mm-a04-01 | Master Data | SAP MM Class |
| mm-a04-02 | Master Data | SAP MM Characteristic |
| mm-a06-01 | Master Data | SAP MM Purchasing Info Record |
| mm-a05-01 | Master Data | SAP MM Batch Master |
| mm-a06-02 | Master Data | SAP MM Source List |
| mm-a06-03 | Master Data | SAP MM Quota Arrangement |
| mm-a06-04 | Master Data | SAP MM Price Condition |
L2-B) Transaction
| ID | Category | Title |
|---|---|---|
| mm-b01 | Overview | SAP MM Transactions: Process Flow, Hierarchy & Module Integration 📍 |