materials management

Materials management manages and controls the movement of materials within a company and in connection with suppliers and customers. The efficient distribution of raw materials, consumables, supplies and other goods in terms of time, space, quantity and quality is the main task of materials management. Control takes place directly in the ERP system.

the materials management in SAP Business One covers all processes for planning, procurement, storage and provision of materials. The aim is to ensure material availability, reduce storage costs and guarantee a consistent supply for production and sales.

Central components in SAP Business One

1. Material Requirements Planning (MRP)

Determination of future requirements based on customer orders, forecasts and stock targets
Consideration of orders, supplier enquiries, production orders
Planning according to Stock heights, Order multiples, Throughput times
Generation of concrete Order recommendations
Integration with resource management and Project planning

2. warehouse management

Management of multiple warehouses and locations
Support for Stock valuation methods like FIFO, average, serial/batch numbers
Recording of Incoming and outgoing goods and Stock transfers
Availability checks and notifications for Minimum stock
Stock counts and posting of variances
Storage bin management (optional)

3. purchasing

Processing of Purchase requisitions, Supplier enquiries, orders and much more.
Integration with goods receipt, returns and incoming invoices
Link with the MRP and the supplier base

4. bill of materials (BOM)

Definition of the composition of an article including material and resources
Support for multi-level parts lists
Basis for Production orders
Recording of prices, quantities and work steps

5. article master data

Management of central planning data per article
Classification in Storage, sales and purchase items
Definition of minimum, maximum and available stocks
Maintenance of MRP-relevant parameters (e.g. order interval, procurement method)

6. resource management

Management of machines, working time and other production capacities
Integration in Production parts lists
Consideration of the Availability in MRP and order planning

Indirect KPIs in the area of materials management

Examples of analysable key figures (not included as standard):

Stock turnover rate
Inventory accuracy
Delivery capability
Procurement lead time
Storage costs per item

System integration

Seamless connection to modules such as Production, purchasing, project management and finance
Automatic document chain from requirement to incoming invoice
Support for MRP-controlled procurement and Warehouse-managed production

Versino Financial Suite

the Versino Financial Suite hebt das Zusammenspiel von Materialwirtschaft und Finanzbuchhaltung in SAP Business One auf ein höheres Qualitäts- und Kontrollniveau. Sie erleichtert und automatisiert das Reporting, die Weiterverarbeitung und Prüfung aller finanzrelevanten Materialbewegungen – ohne in die Kernlogik der Materialwirtschaft selbst einzugreifen. Dies gewährleistet Transparenz, Effizienz und Rechtssicherheit in der gesamten Wertschöpfungskette.

SAP B1 blog