SAP Basics — Start Here

A 10-minute overview of what SAP is, the versions in use, the deployment options, and where MM (Materials Management) sits in the bigger picture. Written for someone with zero prior SAP knowledge.

1. What is SAP?

SAP is an ERP (Enterprise Resource Planning) software made by the German company SAP SE. It helps large organizations manage their business — finance, procurement, manufacturing, sales, HR, warehouse — all in one integrated system.

In one line

SAP is the digital backbone of large companies. When a business event happens — a sale, a purchase, a payment — SAP records it and updates every related part of the business automatically.

Why is SAP so dominant?

Integration: One change updates all related modules — buy material, and inventory + accounting + planning all reflect it instantly.
Standardization: Multinationals use SAP to run the same process in 50 countries with consistent data.
Trust: 77% of global transaction revenue passes through SAP-managed systems. It's the de-facto standard for large enterprises.

2. SAP versions — ECC vs S/4HANA

The two SAP versions you'll hear about most:

Version	Description	Status
SAP ECC 6.0 Classic SAP	The old version (2005–). Runs on traditional databases (Oracle, DB2, SQL Server). T-codes only — no Fiori.	Support ends 2027. Companies migrating away.
SAP S/4HANA Current generation	Rebuilt to run on HANA in-memory database. Simplified data model, real-time analytics, modern Fiori UI.	Current standard. Most new implementations.

Key differences for MM consultants

Aspect	ECC	S/4HANA
Vendor creation	XK01	BP (Business Partner) — XK01 obsolete
Goods movement	MB01, MB1A, MB1B, MB1C, MB31	All replaced by MIGO
Material number length	18 characters	40 characters
UI	SAP GUI only	SAP GUI + Fiori (modern web UI)
Inventory tables	MKPF + MSEG	MATDOC (single unified table) + compatibility views
MRP	MD01 (classic)	MD01N (MRP Live, runs in-memory)

Important

Always confirm which version your project uses. Job postings often say "SAP MM" but really mean "Sourcing & Procurement in S/4HANA" — same skills, modern terminology.

3. Deployment options — where SAP runs

SAP S/4HANA can be deployed in three different ways. The choice impacts what an MM consultant does day-to-day.

Option	Where it runs	Customization	Updates
On-Premise	Customer's own data center	Full freedom — custom ABAP code, full IMG access	Customer's own schedule
Private Cloud	SAP / hyperscaler, dedicated tenant	Near-full freedom; some restrictions	Customer-paced, supported by SAP
Public Cloud (SaaS)	SAP multi-tenant cloud	Restricted — Fiori apps only, no SE38, key-user extensibility	Quarterly automatic by SAP

For learning

We focus on On-Premise first because it's the deepest learning experience — full T-code access, full configuration freedom. Once you master On-Premise, Public Cloud's restricted environment is easy to adapt to.

4. SAP modules — the full landscape

SAP is organized into modules by business function. Here's the full landscape:

Logistics modules (where MM sits)

Module	Full name	What it handles
MM	Materials Management	Procurement, inventory, invoice verification, valuation ⭐ (this course)
SD	Sales & Distribution	Sales orders, deliveries, customer invoicing
PP	Production Planning	Manufacturing, BOM, routings, MRP
QM	Quality Management	Quality inspection, certificates, batch quality
PM / EAM	Plant Maintenance	Equipment maintenance, spare parts management
WM / EWM	Warehouse Management	Bin-level inventory control
LE	Logistics Execution	Shipping, transportation

Other major modules

Module	Full name	What it handles
FI	Financial Accounting	General ledger, AR, AP, asset accounting
CO	Controlling	Cost centers, profit centers, internal orders, costing
HCM / HR	Human Capital Management	Personnel, payroll, time management
PS	Project System	Project structures (WBS), networks
CS	Customer Service	Service orders, contracts

Memory hook: The big logistics modules — MM, SD, PP — are usually pronounced one letter at a time. "M-M consultant", "S-D consultant", "P-P consultant".

5. Where MM sits in the SAP ecosystem

MM is one module inside the bigger "Logistics" area. It integrates with almost every other module:

SAP ERP
├── FI / CO        (Finance & Controlling)
├── HCM            (Human Capital)
└── LOGISTICS      ← physical operations umbrella
    ├── MM         ← Materials Management (you are here)
    ├── SD         (Sales & Distribution)
    ├── PP         (Production Planning)
    ├── QM         (Quality Management)
    ├── PM         (Plant Maintenance)
    ├── WM / EWM   (Warehouse Management)
    └── LE         (Logistics Execution)

MM itself has sub-areas:

Procurement (P2P): Purchase requisitions → POs → goods receipts → invoices → payment
Inventory Management: Goods movements, transfers, physical inventory
Invoice Verification (LIV): Three-way matching of PO, GR, and invoice
Valuation & Account Determination: Stock values, OBYC, MM ↔ FI integration
Master Data: Material master, vendor master (Business Partner), info records, source lists, contracts

How MM integrates with other modules

With…	The integration
FI	Every GR / GI / invoice creates an FI document via OBYC account determination
CO	Account-assigned POs post to cost centers, internal orders, profit centers
PP	MRP creates Purchase Requisitions when production needs raw materials
SD	Stock Transport Orders move stock between plants; third-party orders trigger drop-ship
QM	QM-active materials create inspection lots at GR
PM	Maintenance orders reserve spare parts from MM stock
WM	Bin-level stock layered on top of MM Storage Location

6. Functional vs Technical consultant

Two career paths in SAP — choose based on your strengths.

Aspect	Functional consultant	Technical consultant
Skill	Business process design + SAP configuration	Custom code (ABAP), integrations
Day-to-day	Workshops, IMG configuration, user training	Programming, debugging, custom reports
Background	Business / commerce / accounting	Computer science / programming
Earnings	Strong; senior functionals lead projects	Strong; specialist ABAP/Fiori devs in demand
This course	✅ Yes — MM functional consultant	❌ No — we don't teach ABAP

Tip for switchers

Most MM consultants come from backgrounds in supply chain, procurement, or accounting — not IT. Strong business sense + curiosity to learn SAP > technical background.

7. What's next

Now that you understand what SAP is and where MM sits, move on to the foundation of MM — Organizational Structure.

Step 2 — Org Structure → Back to home

Frequently asked questions

Is SAP only for big companies?

Historically yes — SAP was for enterprises. But SAP Business One targets small businesses, and S/4HANA Cloud has mid-market editions. Most SAP MM jobs are still at large enterprises.

Can I learn SAP without a coding background?

Yes — functional consulting requires zero coding. You'll learn configuration via IMG (Implementation Guide) menus and business process design.

What's the difference between SAP S/4HANA and SAP HANA?

SAP HANA is the in-memory database (the storage layer). SAP S/4HANA is the ERP application built on top of HANA. Think: HANA is the engine, S/4HANA is the car.

How many SAP modules exist?

SAP has 20+ modules. The most common ones for MM consultants to know about are FI, CO, PP, SD, QM, WM, PM. You don't need to know them deeply — just understand how MM integrates with each.