SAP MM Interview Questions and Answers
Q 01. What is an “indirectly created” Purchase Requisition?
An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service Management, or PP Production Planning and Control.
MM Interview Questions for SAP
Q 02. What are the transactions that will result in a change of stock?
A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which increases warehouse stock a Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location to another
Q 03. When would it be prudent to post goods movements via the Shipping Application?
If picking, packing, and transportation operations need to be planned in detail. you can manage movements like returns from customers, vendors, and returns to stock in shipping. Movement Types in shipping start with a 6.
Q 04. How is the GR/IR account related to Inventory?
If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted. If you are not involved in inventory, then the system does not need the GR/IR account when the IR is posted; the system needs a G/L instead of the GR/IR account
SAP MM Interview Questions and Answers
Q 05. What is a Source List?
The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, it will ID both the source of supply and the time period. The Source List facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to select the proffered source during the source determination process
Q 06. What is a Quotation?
Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The
Quotation then needs to be maintained in the “Maintain Quotation: XXXX” screens.
Q 07. Why would an organization need to allow Negative Stocks?
Negative Stocks are necessary when Goods Issues are entered necessarily (business process reasons) before the corresponding Goods Receipts and the material is already located physically in the warehouse.
Q 08. What is a price comparison?
Perform a price comparison using ME49 and one may compare quotations from different vendors.
Q 09. Give some examples of the information relating to a material’s storage/warehousing?
Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also, there are various Storage Strategies information and options.SAP MM Interview Questions and Answers
Q 10. What are some of the options available to transfer materials from one plant to another?
Although it is possible to transfer materials from one plant to another without a Stock Transport Order. many advantages are lost including entering a vendor number planning a goods receipt in the receiving plant, monitoring process from PO history, and the ability to create STO directly from an MRP PR.
Q 11. What are some of the initial configuration steps for Inventory Management?
Plant Parameters, Define System Message Attributes, Number Assignment (Allocate document type FI to transactions), Goods Issues, Transfer Postings, Define Screen Layout, Maintain Copy Rules for Reference Documents, Setup Dynamic Availability Check, Allow Negative Stocks (?).
Q 12. What are some of the data points provided by Purchasing for a material?
Some of the key inputs when creating a material are Base Unit of Measure, Purchasing Group, Reminder days, tolerance levels, shipping instructions, GR processing time, JIT schedule indicator, Critical part (?), etc.
Q 13. What are the key fields for the Material Master?
Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units of Measure Groups.
Q 14. What needs to be present for Material Type to be automatically copied from one view to another?
When creating any view, the Industry Sector and Material type will be automatically copied from an existing view, so long as at least one view exists.
Q 15. When can a Production Resource/Tool be defined as a material?
A Production Resource / Tool can be defined as material if purchasing and inventory functions are to be carried out for that PRT. The information required to be input is dependent upon which department views are being created. Thus, material master information is typically entered at different times by numerous system users. Note that to add a view, the “Create Material” transaction is used rather than the “Change Material” transaction.SAP MM Interview Questions and Answers
Q 16. What are the components of the Master Data that detail a company’s procurement; used by, Vendor Evaluation for example?
The key components of Master Data are Info Record (ME11), Source List (ME01), Quota Arrangement (MEQ1), Vendor (MK01), Vendor Evaluation (ME61), and Condition Type (MEKA).
Q 17. How do you create a Source List?
Use Transaction ME01. Enter the Material Number and the Plant Data. Enter source list records, validity period, period of time material is procurable, Vendor Number, responsible Purchasing Organization (or the number of the Agreement or Contract), PPL (if the material can be procured from another plant), Fixed Source (?), MRP control. Also, a check should be done to see whether any source list records overlap. To do so, choose Source List Æ Check.
MM Interview Questions for SAP
Q 18. How do you access the Materials Management Configuration Menu?
Transaction Code OLMS has a host of options that are not accessible through the IMG.
Q 19. What data does the Information Record contain?
The Information Records has data on Units of Measure, Vendor price changes after a certain level, what materials have been procured by a specific vendor, price and conditions for relevant Purchase Organization, Tolerance limits for over/under delivery, Vendor evaluation data, planned delivery time, and availability time the vendor can supply the material.
Q 20. How do we get a proper list of vendors to send an RFQ?
Either use the Information Record to see who has sold a particular material to the organization in the past, or go through the Source List.
Q 21. Define consignment stock.
During the consignment process, when a vendor provides material or goods, the company stores them in their stores. The vendor remains the owner of the material until a customer takes it. The liability arises as soon as the material is removed from the stores.
Q 22. Can we receive the goods before the scheduled delivery date in the scheduling agreement?
No, we cannot receive the goods before the scheduled delivery date. GR can be posted on or after the scheduled dates. Though, SAP has provided some OSS notes to resolve this. (708973, 741385)
MM Interview Questions for SAP
Q 23. What is Quota Arrangement in the SAP system?
A particular material can be procured from different vendors depending upon the requirement. So, the total requirement of material is distributed to different vendor’s i.e. quota is assigned to each source of supply. This is known as quota arrangement.SAP MM Interview Questions and Answers
Q 24. What is a Batch?
A batch is a group of materials combined quantity-wise for various reasons. Very often, the materials with the same characteristics and values are grouped into a batch. For example, in the chemical industry, a certain number of containers of a specific product may be considered a batch as these products were produced at the same time and have the same physical and chemical characteristics.
Q 25. What is movement type and mention a few standard movement types?
Movement types are used as indicators of what is the purpose of the goods movement (e.g. from the storage location to a storage location, receipt from the purchase order, issue for the delivery, receipt from production).
Q 26. What is the Transaction Code to create a Material Type?
MOS2 is the transaction code to create a material type.
Q 27. How to delete a Batch?
You can delete a batch by using the MSC2N transaction code. You can delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
Q 28. What is the Master production schedule (MSP)?
It is a plan for individual commodities to be produced in each time period such as staffing, production, etc. It is mostly linked with manufacturing in which the plan denotes when and how much of each product will be demanded.
Q 29. What is the process order?
Process Orders (PP-PI-POR) are the central component used for the accurate planning and execution of process manufacturing. A process order represents the production of batches (materials) in a production run or the rendering of services.
Q 30. What is meant by scales?
You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the price is 140. Scales cannot be used directly in PO but can be pulled into the PO from various master data like info records, quota arrangements.
Q 31. Which are the Main Master Files used in MM?
- Material master file 2. Inventory master file 3. Vendor master file
Q 32. Can you Release the Po Item by Item When you have a Multiline-item Po?
No, you cannot release the PO item by item.
Q 33. Is it possible that you can use scales in Quotation?
No
Q 34. How to Release Purchase Order? and tell which transaction Code is used to display as well as reset the Release of Po?
You can release a purchase order at the header level, You cannot release a single item in the purchase order, and need to release all the items at a time. The ME29N transaction code is used to display as well as reset the release of the purchase order.
SAP MM Interview Questions
Q 35. Define ERS.
ERS stands for Evaluated Receipts Settlement. It refers to the process of settling down receipts of the goods automatically. In this process, an agreement is made between the vendor and the user that vendors do not prepare an invoice for the goods ordered. the system would automatically generate and post the invoice document based on the purchase order and receipts of goods.
Q 36. Why is the record of the information of purchase useful?
It is essential because it collects various information on the vendor and the materials supplied by them. For instance, the current price at which the vendor is selling the material is recorded in the purchase record.
MM Interview Questions for SAP
Q 37. Define purchase requisition.
A purchase requisition is a primary document, that is used as part of the accounting method to launch a merchandise or supply purchase. By processing a purchase order, suitable controls can monitor the legitimacy of purchase and identify the business requirement for the products.
Q 38. What Is Stochastic Block?
Stochastic Blocking is the process of checking the incoming invoices. In this process, blocking of the invoices is done randomly. Invoices with high values have the highest probability to get blocked. It is set for the whole invoice instead of at the item level. When the posting of the invoice is done, and R is set in the Payment Block field in the document header data.
Q 39. How can Batch Records be changed?
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is:
SAP Menu -> Logistics -> Materials Management -> Material Master -> Batch -» Change.
You can change the batch record, but you should note that these changes are also available for review.
Q 40. What is Internal Procurement?
Internal Procurement is the process of getting material and services from among identical companies. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when a trade occurs between them it will be recorded.
Q 41. Give the Names of the Tables from the Material Master Data is Stored?
The MARA and MARC are the two tables
MM Interview Questions for SAP
Q 42. What are the components of the Master Data that detail a company’s Procurement used by, Vendor Evaluation for example?
The key components of Master Data are:
Info Record (ME11)
Source List (ME01)
Quota Arrangement (MEQ1)
Vendor (MK01)
Vendor Evaluation (ME61)
Condition Type (MEKA).
Q 43. What is the code used in the addition of the view of material?
The code used for the transaction of the material view is MM50.
MM Interview Questions for SAP
Q 44. A Purchase Requisition is an internal document or an external document?
The internal document is the phase in which the purchasing department comprises informed regarding the requirement of items or services required for business purposes.
Q 45. List the different accounts used in Invoicing?
Vendor accounts
Stock accounts
GR/IR clearing account
Q 46. What Is Release Code in MM?
The release code is a two-character field or ID that represents the person responsible for the approval of the release procedure
SAP MM Interview Answers
Q 47. How many Company Codes can be assigned to a Plant?
You can assign only one company code to a plant.
Q 48. What are the different types of ERPs?
Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel, BAAN. These are some of the different types of Enterprise Resource Planning.
Q 49. Can you include An Roh (raw Material) Type In the Sales View?
Usually, the raw material is not included in the sales view. However, the raw materials can be included in the sales view only, when they are sold to procure finished products in return
MM Interview Questions for SAP
Q 50. What is Material Status?
It is 2 digit code and is used to determine the material usability
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