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SAP MM · LessonReviewed by Arjun, SAP Solution Architect · Updated · Published · SAP S/4HANA 2023 · all levels

SAP MM Configuration

MM configuration (customizing) sets up materials management to match the organisation’s procurement and inventory processes, enterprise structure, master-data settings, purchasing, inventory and valuation. It is done in the IMG (SPRO).

Quick answer

SAP MM configuration covers the enterprise structure of plants, storage locations and purchasing organisations, material master settings such as material types and number ranges, purchasing document types, release strategies and pricing schema, and inventory valuation. The critical piece is automatic account determination in OBYC, which picks the G/L accounts for goods movements and invoices.

Key takeaways
  • Watch out: Account determination (OBYC) errors breaking goods movements.

What MM configuration covers

  • Enterprise structure: plants, storage locations, purchasing organizations, and their assignments.
  • Material master settings: material types, number ranges, field selection.
  • Purchasing: document types, release strategies, pricing schema.
  • Inventory & valuation: movement types, valuation, account determination.

Account determination (critical)

A central part of MM config is automatic account determination (transaction OBYC), which decides the G/L accounts for goods movements and invoice postings. Getting it right is what makes MM-FI integration work; getting it wrong causes "account determination" errors at goods receipt.

Configuration discipline

Like all customizing, MM config is built in DEV, transported through QAS to PRD, and never changed directly in production. Enterprise-structure decisions (plants, purchasing orgs) are foundational and hard to change, so plan them with the end-to-end process in mind.

Common pitfalls

  • Account determination (OBYC) errors breaking goods movements.
  • Poor enterprise-structure design.
  • Configuring directly in production.
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