SAP Logistics Glossary: MM, SD and PP Terms Explained
A practical glossary of important SAP MM, SD and PP terms covering procurement, inventory, sales and production planning.
Material Master
Core data describing a material and the views required by functions such as purchasing, inventory, planning, sales and accounting.
Purchase Requisition
An internal request that expresses a need for a material or service and can become a starting point for procurement.
Purchase Order
A formal purchasing document that records what the organisation intends to buy, from whom, in what quantity and under which commercial conditions.
Goods Receipt
The business event that records receipt of goods and updates relevant stock, document history and potentially accounting information.
Invoice Verification
The procurement step that records and checks the supplier invoice against purchasing and receipt information according to business rules.
Movement Type
A key that categorises a goods movement and helps determine how stock and related system behaviour should change.
Sales Order
A commercial document that records customer demand and the conditions under which the organisation intends to fulfil it.
Delivery
A logistics document used to organise fulfilment activities such as picking, packing and goods issue for relevant sales scenarios.
Billing Document
The SD document used to represent billing of the customer and, when configured appropriately, trigger the related financial accounting impact.
MRP
Material Requirements Planning: a planning process that evaluates demand, stock, receipts and planning parameters to create supply proposals.
BOM
Bill of Material: a structured list of components required for a product or assembly in a manufacturing context.
Work Center
Master data representing a place or resource where production operations are performed and which can carry capacity and costing-related information.