What integration points does SAP MM have with FI and SD?

Answer 1

What integration points does SAP MM have with FI and SD?

In an SAP MM Course in Pune, students learn that SAP MM (Materials Management) is tightly integrated with SAP FI (Financial Accounting) and SAP SD (Sales and Distribution) to ensure smooth business processes and real-time data flow.

Integration of SAP MM with SAP FI

SAP MM integrates with FI mainly during procurement and inventory transactions:

Goods Receipt (GR)

When goods are received against a Purchase Order, MM automatically posts accounting entries in FI.

Inventory account is debited and GR/IR clearing account is credited.

Invoice Verification (MIRO)

When vendor invoice is posted, MM updates FI by clearing the GR/IR account and posting vendor liability.

Material Valuation

Material valuation in MM determines how inventory values are posted in FI.

Valuation class links materials to correct G/L accounts.

Account Determination

MM uses automatic account determination to post transactions directly into FI without manual entries.

Stock Posting

Any stock movement (goods issue, transfer posting) directly impacts FI accounts.

Integration of SAP MM with SAP SD

In an SAP MM Course in Pune, MM–SD integration is explained through sales and delivery processes:

Sales Order Processing

SD checks material availability from MM stock during sales order creation.

Delivery Processing

When delivery is created in SD, stock is reduced in MM.

Goods Issue (GI)

Goods issue posted in SD automatically updates MM inventory and creates FI accounting entries.

Pricing and Tax Determination

Material master data from MM is used in SD for pricing and tax calculations.

Returns and Credit Memos

Returned goods update MM stock and corresponding financial postings are updated in FI.

Conclusion (Exam / Interview Tip)

As taught in an SAP MM Course in Pune, SAP MM acts as a bridge between logistics and finance, ensuring that material movements automatically generate financial postings and sales processes reflect accurate stock availability.