SAP MM Process flow

SAP ABAP resources are often encountered with the questions related to basic process flow of few modules. Being the modules which exist generally in every project, SD and MM tops this list. So here I am summing up the flow of these 2 modules.

Source: http://help.sap.com/

Purchasing Requsition PR (Tcode for creation ME51N. Tables EBAN, EBKN)

A purchase requisition is a request or instruction to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in time. 

Source Determination and Request for Quotation RFQ (Tcode for creation ME41. Tables EKKO, EKPO)

With respect to new procurement transactions, you initially wish to fall back on data that is already available in the system. Issuing a one-time purchase order or determining a new source through the more time-consuming process of requesting and processing quotations are functions that will often only take place after you have discovered that there is no suitable source for a certain material or service in the system.

A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation (bid) for the supply of materials or performance of services.

Quotation (Tcode for creation ME47. Tables EKPO, EKKP)

 A quotation is an offer by a vendor to a purchasing organization regarding the supply of materials or performance of services subject to specified conditions.

Vendor Selection and Comparison of Quotation (ME49)

You can compare the prices from all quotations received as a result of a competitive bidding process using the price comparison list. The comparison list ranks the quotations by item from lowest to highest price.

Purchase order PO (Tcode for creation ME21N. Tables EKKO, EKPO) 

Based on all parametrs of a quotation sent by vendors, Vendors are selected from whom the material has to be obtained.  The company  gives  purchase order to the vendor.

Purchase Order Follow ups (Tcode ME91, ME91F, ME92F)

Good's receipt (Tcode for creation MIGO Tables  MSEG)

With the goods receipt (GR) you post the physical inward movement of goods from an external vendor or from production and then complete a goods movement, which leads to an increase in the warehouse stock.

Invoice verification (Tcode for creation MIRO Tables  BSEG) 
In invoice verification incoming invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

Goods Issue (Tcode for creation MIGO, Tables MSEG)

Payment -> payment is done based on invoice verification. this is part of FI/CO

In next post will see the process flow of SD module

Happy learning :)