SAP MM INTERVIEW QUESTIONS & ANSWERS

HANDS ON TIPS FOR CRACKING THE INTERVIEW

SAP MM
REAL TIME INTERVIEW QUESTIONS
BY KS

400 INTERVIEW QUESTIONS & ANSWERS

Transaction Codes , Tables , Implementation Project
SAP MM INTERVIEW QUESTIONS & ANSWERS

Introduction :
Thanks For Buying This SAP MM INTERVIEW QUESTIONS Book. This
book is designed to suit the needs of students / professionals who intend to prepare
for interview calls on SAP MM . Often for the purpose of preparing you to
struggle to look for important topics & browse through some voluble concepts,
which you feel might be asked in an interview. Such a frantic search consumes a
lot of time & energy, as it requires goes through huge volume of SAP MM
Technology. So in order to solve this dilemma we come up with SAP MM
INTERVIEW QUESTIONS book, which will equipped to deal with such
problems.

All the best .

SAP MM INTERVIEW QUESTIONS & ANSWERS 1

1. What is SAP MM ?
Answer : SAP MM is known as SAP Material Management system. SAP MM role in
business process is as follows:

• A business process in SAP is termed as “Module”.

• SAP Materials Management (MM) is a part of Logistics area and helps to manage
the procurement activity of an organization from procurement.
• It supports all aspects of material management (planning, control etc).
• It is the backbone of the Logistics area which incorporates modules like Sales and
Distribution, Production Planning, Plant Maintenance, Project Systems,
Warehouse Management which are extremely obsessed on Materials Management
module.

Features of SAP MM
The features of SAP MM system are as follows:
• SAP MM is one of the modules of SAP that deals with material management and
inventory management.
• Material Management process ensures that there is never a shortage of materials
or any gaps in the supply chain process of the organization. SAP MM speeds up
the procurement and material management activities making the business run
smoother with complete time and cost efficiency.
• It deals with managing the materials (products and or services) resources of an
organization with the aim of accelerating productivity, reducing costs and increase
improvement and at a similar time be versatile to accommodate changes in day to
day life.
• It deals with the Procurement Process, Master Data (Material & Vendor Master),
Account Determination & Valuation of Material, Inventory Management, Invoice
Verification, Material Requirement Planning etc.
SAP MM INTERVIEW QUESTIONS & ANSWERS 2

2. How can you define an MM module ? What its importance in sap r/3 ?

Answer : MM stands for Materials Management and is a part of the Logistics functional
area of SAP R/3. It is an important SAP R/3 module because it helps manage broad-level
business activities, such as procurement, valuation and assignment, batch management,
and materials storage. Since materials are the most precious resource of an organization,
extreme care needs to be taken in all the processes related to materials management.
Efficient materials management is the essence of the MM module of SAP R/3.

3 . How is the MM module integrated with other modules of SAP?

Answer : The MM module deals with materials procurement on the basis of the
production required; therefore, it is linked with the PP module.

• The SD module is proportionally related to the MM module, because it uses

information about the quantity of material sent for production.
• The WM module is related to the MM module, because the MM module
maintains information about materials storage and materials transfers inside an
organization.
• The FI module is also related to the MM module, because every operation
performed in the MM module directly impacts the financial processes of the
organization.

4. What are the main components of the MM module? How are these
components used in SAP?
Answer : The MM module deals with materials procurement on the basis of the
production required; therefore, it is linked with the PP module.

• The SD module is proportionally related to the MM module, because it uses

information about the quantity of material sent for production.
• The WM module is related to the MM module, because the MM module
maintains information about materials storage and materials transfers inside an
SAP MM INTERVIEW QUESTIONS & ANSWERS 3

organization.
• The FI module is also related to the MM module, because every operation
performed in the MM module directly impacts the financial processes of the
organization.

5. What is the organizational structure in the MM module?

Answer : The organizational structure in the MM module is a hierarchy in which

various organizational units are arranged according to their tasks and functions. The
different organizational units that constitute the organizational structure of the company
are as follows:

• Client— A self-contained unit in the SAP system with separate master records and
its own set of tables.
• Company code— The smallest organizational unit. You can create an independent
set of accounts for this unit for the purpose of external reporting.
• Plant— An organizational unit where materials are produced or goods and
services are provided. You can divide an enterprise into various plants according
to production, procurement, maintenance, and materials planning.
• Storage location— An organizational unit where the goods produced in the plant
are stored.
• Warehouse number— An alphanumeric key that represents a warehousing system,
which is made up of different organizational and technical storage areas.
• Storage type— An area such as a goods receipt area, goods issue area, or picking
area. Also the physical or logical division of a complex warehouse.
• Purchasing organization—An organizational unit that procures materials and
services and negotiates with vendors to purchase materials or goods.
• Purchasing group— An alphanumeric key for a buyer or a group of buyers who
are involved in purchasing activities. The purchasing group is responsible for
materials procurement and dealing with vendors.

6. What are the levels of organizational units of Enterprise Structure in R/3?

SAP MM INTERVIEW QUESTIONS & ANSWERS 4

Answer : The client is the highest level unit of the organizational units in
Enterprise Structure in SAP R/3. The client is followed by the company code, which
represents a unit with its own accounting, balance, and profit and loss (P&L). The next
level of organizational units in Enterprise Structure is the plant, which represents an
operational unit of a company.

7. Define Client. What is its importance in SAP?

Answer : A client can be defined as a person, company, or organization that purchases

goods from another person, company, or organization. In terms of SAP, a client is
defined as a unit that has its own master records and a set of tables. The client is
important in SAP because it stores and maintains data about the organization where SAP
is implemented.

8. How to create a client in MM module?

Answer : You can create a client in the MM module either by using the transaction
code SCC4 or by performing the following steps:

• Select SAP Menu > Tools > Administration > Administration > Client
Administration.

• Double click SCC4–Client Maintenance. The display view Clients: Overview

screen appears.
• Select Display > Change. The information dialog box appears.
• Click Continue. The change view Clients: Overview screen appears, where you
can create a new client.

9. Define company. How is it different from a client? What are the data in
MM that are maintained at the company code level?
Answer :
• A company is an organizational unit for which individual financial statements are
drawn per the relevant commercial laws. A company consists of one or more
SAP MM INTERVIEW QUESTIONS & ANSWERS 5

company codes. Within a company, all company codes must use the same
transactions in addition to the same fiscal year breakdown; however, company
code currencies can vary.
• A company is different from a client because a client can itself be a company, or
an organization that has multiple companies. For example, the owner of the entire
SAP system is a client. The system will have only one operational client, but the
client may further have a group of companies. The following data are held at the
company code level:

o Material number
o Classification data
o Multilingual description
o Units of measure
o Technical data

10. How to create a company code in SAP?

Answer :
In SAP, a company code is created using the transaction OX02. The company code field
is represented by a four-character alphanumeric string. You can create a company code
in SAP by performing the following steps:

o Open the SAP Customizing Implementation guide.

o Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy,
Delete, Check Company Code. The Choose Activity dialog box appears.

o Double-click Edit Company Code Data. The change view Company Code:
Overview screen appears where you can create a company code.

11. How can you assign a company code to a company in SAP?

 SAP MM INTERVIEW QUESTIONS & ANSWERS 6

· In SAP, a company code is created using the transaction OX02. The company code
field is represented by a four-character alphanumeric string. You can create a company
code in SAP by performing the following steps:

o Open the SAP Customizing Implementation guide.

o Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy,
Delete, Check Company Code. The Choose Activity dialog box appears.

o Double-click Edit Company Code Data. The change view Company Code:
Overview screen appears, where you can create a company code.

12. How many charts of accounts can be assigned in a company?

Answer : Yes. One chart of accounts can be assigned to several Company Codes.
However, the reverse is not possible; i.e., you will not be able assign more than one
chart of accounts to a single Company Code.

13. How many company codes can be assigned in one chart of accounts?

Answer : You can assign many company codes to a chart of accounts.

14. How many company codes can be assigned to a company?

Answer : You can assign only one company code to a plant.

15. What is a plant in MM?

Answer :
A plant is an organizational unit where materials are produced or goods and services are
provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A
plant is allocated to one company code, and a company can have many plants. In the
organizational unit, a plant can be at one of the following locations:
 SAP MM INTERVIEW QUESTIONS & ANSWERS 7

· Corporate headquarters
· Central delivery warehouse
· Manufacturing facility
· Regional sales office

16. How is a plant defined in MM?

Answer : You can define a plant in the MM by performing the following steps:

· Select IMG > Enterprise Structure > Definition > Logistic–General > define,
Copy, Delete, Check Plant.

· Click Execute. The Choose Activity dialog box appears.

· Select Define Plant to create a plant. The change view Plants: Overview
screen appears.
· Click New Entries. The New Entries: Details of Added Entries screen appears.
· Specify the plant code in the plant field.
· Click the address icon to display the Edit Address field.
· Specify the required values in the fields, such as Title, Name, and Search Term
1/2.
· Click OK. The New Entries: Details of Added Entries screen appears again.
· Click the Save icon to save the newly defined plant.

17. What are the prerequisites for creating a plant?

Answer :
There are three prerequisites that are required in order to create a plant. They are as
follows:
· Company calendar —Comprised of work days, public holidays, and company
holidays. Every SAP system is provided with a company calendar that can be modified
per the schedule of the company.
 SAP MM INTERVIEW QUESTIONS & ANSWERS 8

· Country key —Helps in defining a plant.

· Region key —Refers to a state or province that is associated with the country. It is
required along with the country key.

18. How many company codes can be assigned to a plant?

Answer : You can assign only one company code to a plant.

19. Can a company code be assigned to many plants?

Answer : You can assign many plants to one company code.

20. What is the menu path to assign a plant to a company code?

Answer : You can assign a company code to a plant by navigating the following menu
path: SAP Menu > Tools > Customizing > IMG > Execute Project > Display IMG (SAP
reference IMG) > Enterprise Structure > Assignment > Logistics-General > Assign
Company Code to Plant.

21. Define Storage location in SAP.

Answer :
· A storage location is defined by performing the following steps:

o Select Tools > Customizing > SAP Reference IMG > Edit Project.
o Select Enterprise Structure > Definition > Materials Management > Maintain
Storage.
o Click the clock icon . The Determine Work Area: Entry dialog box appears.
o Specify the value (P001) for the plant in the dialog box.
o Click the check mark icon . The change view Storage Locations: Overview
screen appears.
o Click New Entries. The New Entries: Details of Added Entries screen appears.
o Specify the value of the storage location and description fields.
 SAP MM INTERVIEW QUESTIONS & ANSWERS 9

o Click the Save icon to save the storage location.

o Click the Exit icon to create the storage location.

22. How will you define a storage location?

Answer :
A storage location is defined by performing the following steps:

· Select Tools > Customizing > SAP Reference IMG > Edit Project.

· Select Enterprise Structure > Definition > Materials Management >

Maintain Storage.

· Click the clock icon . The Determine Work Area: Entry dialog box appears.

· Specify the value (P001) for the plant in the dialog box.

· Click the check mark icon . The change view Storage Locations: Overview
screen appears.

· Click New Entries. The New Entries: Details of Added Entries screen appears.

· Specify the value of the storage location and description fields.

· Click the Save icon to save the storage location.

· Click the Exit icon to create the storage location.

23. How is a storage location assigned to a plant?

Answer :
· You can assign a storage location to a plant either by using the transaction code
SAP MM INTERVIEW QUESTIONS & ANSWERS 10

OX09 or by performing the following steps:

o Open the SAP Customizing Implementation guide.

o Select Enterprise Structure > Definition > Materials Management > Maintain
Storage Location. The view cluster Maintenance: Initial Screen window appears
with the Determine Work Area: Entry dialog box opened.
· In the Determine Work Area: Entry dialog box, enter a plant number and click
Continue. The change viewStorage Locations: Overview screen appears where you can
assign a storage location to the plant.

24. Can storage locations be created automatically? How can they be created
automatically?
Answer :
Storage locations can be created automatically when an inward goods movement for a
material is performed. In order to create storage location automatically, open the SAP
Implementation guide and click Materials Management > Inventory Management and
Physical Inventory > Goods Receipt > Create Storage Location Automatically.

25. What are the essential components in SAP MM?

Answer :

• Determine requirements
• Source determination
• Vendor Selection
• Order Processing
• Order follow up
• Goods receipts and Inventory management
• Invoice Verification
26. Mention what are the types of special stock available?

Answer : The types of special stock available are subcontracting, consignment, project,
pipeline, sales order, stock transfer, returnable packaging with customer, etc.
27. List out important field in purchasing view?
SAP MM INTERVIEW QUESTIONS & ANSWERS 11

Answer : The critical fields in purchasing view are

• Base unit of measure

• Order unit
• Purchasing group
• Material group
• Valid from
• Tax indicator for material
• Manufacturer part number
• Manufacturer, etc.
28. Explain the importance of the batch record?

Answer : A batch tells about a quantity of a particular product, which is processed or

produced at the same time with the same parameters. The materials produced in such
batch have the same values and characteristics. While, the batch record gives the
information about a particular batch product and helpful in knowing whether the product
has gone through GMP (Good Manufacturing Process).

29. Explain how you can link a document to a vendor master record?

Answer : To link the document with the vendor master record by using the XK01
transaction code or by using the following menu path

• SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor
> Central > XK01- Create.
30. Mention what are the major purchasing tables? List the transaction codes for
them?

Answer : • Purchase EKBNàrequisition

EBKNà• Purchase requisition account assignment
EKABà• Release documentation
EKBEà• History of purchase documents
31. Mention what are the data contained in the information record?
SAP MM INTERVIEW QUESTIONS & ANSWERS 12

Answer : The information record contains data related to the units of measurement,
such as the products, vendor price, materials used by specific vendors, etc. It also
contains information on the tolerance limit of the under delivery of data, vendor
evaluation data, planned delivery time, availability status for goods.
32. Mention what is the transaction code to delete a batch?

Answer : The transaction code MSC2N is used to delete a batch. By flagging the batch
master record, you can delete a batch record alternatively.
33. Mention what is the transaction code used to extend the material view?

Answer : To extend the material view transaction, code MM50 is used.

34. Explain how you can change the standard price in the master material?

Answer : The standard price for the material data cannot be updated or changed
directly. However, to change the standard price you can perform the following steps

• Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-
ZKDAT) for the materials
• Select Logistics > Material Management > Valuation > Valuation Price Determination
> Future Price
35. What is ‘MRP’?
Answer : ‘MRP (Material Requirements Planning)’ is nothing but the determination of
which materials are required, when and in what quantities, based on current information
and forecasts.

36. Explain the Basic ‘Organizational Structure’ in MM.

Answer : The major Organizational Elements of MM include:
• Purchasing Organization
• Plant
• Storage Location
The Purchasing Organization is typically attached to one Company Code. But a single
Company Code can have one or more purchasing organizations. One or more Plants are
attached to a purchasing organization. One or more Storage Locations are attached to a
plant. One or more plants are assigned to a Company Code, but one plant is attached to
SAP MM INTERVIEW QUESTIONS & ANSWERS 13

only one Company Code.

Depending on how the purchasing organization has been structured, you may come
across three types of structures as detailed below:
• Cross-Plant Purchasing Organization - The purchasing organization caters to
more than one plant of the same Company Code.
• Plant-Specific Purchasing Organization - Each Plant has it is own purchasing
organization.
• Cross-Company Code Purchasing Organization - A single purchasing
organization is responsible for the procurement activities of more than one
Company Code. The plants attached to this purchasing organization are also
cross-Company Code. In this case, the purchasing organization is not attached to
any of the Company Codes; instead, the various plants are attached to the
purchasing organization. This kind of purchasing organization is known as a
central purchasing organization. This kind of organizational structure is essential
in the case of centralized procurement in an enterprise.

37. Define ‘Plant’ in SAP.

Answer : ‘Plant’ in SAP can denote a manufacturing location, distribution center, or a
warehouse. With unique numbers identifying each of the plants, though these are all not
all necessarily financial entities, they can still be linked to a Business Area. The Plant is
the place where you normally valuate the inventory in SAP. The system, however,
checks for the inventory either at the Plant or Plant/Storage Location during an Order
entry.

38. Explain the ‘Storage Location’ in SAP.

Answer : A sub-division of a plant, the ‘Storage Location,’ defines a location for
materials that can be a warehouse, bin, or a storage area of raw materials/WIP/finished
product. You will manage the physical inventory, material movement, picking, cycle
counting, etc., at the storage-location level. In Warehouse Management, the storage
location is further subdivided.

39. Explain the ‘Purchasing Organization’ in SAP.

Answer : This refers to the organizational structure in SAP that is responsible for
procurement of materials. The ‘Purchasing Organization’ is the top-most organizational
element in MM, and this can take any one of three forms such as (1) Cross-plant
purchasing organizations (catering to more than one plant but within the same Company
Code), (2) Plant-specific purchasing organizations (with a 1:1 relationship with the
plant), and (3) Cross-company code purchasing organizations (catering to more than one
Company Code). Entrusted with the activity of negotiating the price, delivery
SAP MM INTERVIEW QUESTIONS & ANSWERS 14

conditions, etc., of materials from vendors, the Purchasing Organization can further be
subdivided into purchasing groups.

40. Explain the ‘Purchasing Group’ Concept in MM.

Answer : The ‘Purchasing Group’ carries out the actual activities of purchasing, and is
assigned to a material in the material master. The activities of several purchasing
organizations can be done by one purchasing group.

41. Explain the ‘Valuation Area’ Concept in MM.

Answer : The valuation of a material is done at the ‘Valuation Area,’ which can either
be at the Company Code level or the Plant level. The level at which the valuation needs
to happen is defined in the customizing. Note that once it is defined, you will not be able
to change it later!
When the valuation is at the Company Code level, then the valuation of a material is
uniform across the plants attached to that Company Code. On the other hand, if the
valuation is at the plant level, then the value of the material is plantspecific and will vary
from one plant to another. If you are using PP (Production Planning)/MRP in your
company, then the valuation has to be at the plant level.

42. What is a ‘Factory Calendar’?

Answer : A ‘Factory Calendar’ is a calendar that is country-specific with a list of public
holidays (maintained via the Holiday Calendar) and working days, which are Client-
independent. The factory calendar helps in controlling goods issues/receipts. Each plant
is assigned a factory calendar, and the calendar must be activated (through ‘CTS
functionality’) before using it.

43. Explain How SD and MM are Connected in SAP.

Answer : The goods/services from a plant can be sold by one or more sales
organizations. It is also possible that single sales organizations sells goods/services for
several plants. When the sales organizations sells for more than one plant belonging to
one or more Company Codes, then this is called inter-company sales, and will require
you to make some special configurations in the system. A sales organization, attached to
a Company Code, is further divided into distribution channels and divisions in SD. A
division typically represents a product line, and is assigned to a material in the material
master.

44. Outline the Functions Supported by ‘Material Master.’

Answer : The ‘Material Master’ is the central master record catering to various
business functions in Logistics. The data stored in this master support a variety of
business functions and operations such as:
SAP MM INTERVIEW QUESTIONS & ANSWERS 15

• Production Planning
• MRP
• Procurement
• Invoice Verification
• Inventory Management
• Product Costing
• Sales and Distribution
• Quality Management
The data is stored, within a material master, at different organizational levels. The
general data is valid for all the Company Codes at the Client level. The purchasing
information is valid at the plant level. The sales information is valid at the sales
organization/distribution channel. Lastly, when Warehouse Management is activated, the
data is maintained at the warehouse number/storage type level.

45. Explain Why a ‘Material Master’ is Divided into ‘Views.’

Answer : Since the information in a material master needs to be maintained by a
number of users across several modules, SAP has structured the master into a number of
Views for facilitating easier access and updating of data. The views include:
• Basic Data
• Classification
• Sales
• Purchasing
• Purchase Order text
• Accounting
• Foreign Trade
• Work Scheduling
• Forecasting
• Storage
• Costing
• Plant/Storage Location stock
• MRP
46. What Information is Available in the ‘Accounting View’ of a ‘Material
Master’?
Answer : The most important information maintained in the ‘Accounting View’ of a
SAP MM INTERVIEW QUESTIONS & ANSWERS 16

material master is the valuation class, which needs to be assigned to individual

materials. The valuation class, in turn, helps in determining the relevant GL accounts for
posting valuation-relevant transactions such as GR, GI, etc.
You will maintain the price control indicator in the accounting view, which enables
determining how the stock of a material is to be valued (at Standard price (S) or Moving
average price (V)).

47. Why do You Need ‘Material Types’ in MM?

Answer : One way to group materials is by ‘Material Type’ (the other being by Industry
Sector’). This grouping helps determine what information or data is to be made available
at the material master level for a particular material.
The material type (for example, FERT, HAWA, HALB, ROH, and so on) is used to
control:
• Which Views can be maintained on the master record
• Which Fields are mandatory, optional, or for ‘display only’ in the material master
• What kind of Procurement is allowed for that material (internal or external or
both)
• How to Number (Internal/External) and what Number Range is allowed
• Whether Quantity and/or Value updating should be done in a particular Valuation
Area
• Which GL Accounts will be posted to (via the Valuation Class) during goods
movement
• The default Item Category Group (S&D)
• The default Price Control Indicator (S or V) and
• Whether the default Price Control Indicator is changeable during material master
maintenance

48. Explain the ‘Price Control Indicator.’

Answer : The ‘Price Control Indicator’ is used by SAP to determine how a material
will be valuated, by default. The indicator can be set to:
• Standard Price (S) or
• Moving Average Price (V)
When you set the indicator to ‘S,’ the system carries out all the inventory postings at the
standard price. The variances due to a different price of a material in goods movement
or invoice receipts if any, are all posted to price difference accounts. As a result, the
standard price remains the same, unless it is changed intentionally by manual
SAP MM INTERVIEW QUESTIONS & ANSWERS 17

processing. This will be necessary only when the difference between the standard and
moving average prices becomes very large. (While updating the price difference
accounts, however, the system also updates the moving average price with these
variances, so that you get a chance to adjust the standard price should the difference
between the standard and moving average prices becomes very substantial.)

On the other hand, when you set the indicator to ‘V’ then all the goods receipts (GR)
will be at the GR value. The system will then adjust the price in the material master by
the GR price. However, if there is a difference between the moving average price of the
material and the goods movement/invoice receipt, then the price difference is moved to
the stock account, and the price of the material in the material master is adjusted
accordingly.

49. Explain ‘Prices Maintenance’ for Materials Transferred from ‘Legacy’ to

SAP.
Answer : Before you transfer the initial inventory from a legacy system to SAP, you
need to create the relevant master data for the materials.

If you are planning to maintain a standard price for the materials, then you will create
the material masters with ‘S’ as the price control indictor in SAP. With this control,
when you enter the material inventory, the system valuates this stock with the standard
price defined. In this case, you enter a new price and the system posts the price
difference (between the standard price and the new price you entered) to a price
difference account.

Similarly, if you are planning to maintain a moving average price for materials, then you
will create the material masters with ‘V’ as the Price Control Indictor in SAP. With this
control, when you enter the material inventory, the system valuates this stock with the
moving average price defined. In this case, you enter a new price and the system adjusts
the moving average price accordingly. If you enter only the quantity, and not any new
price, the system continues to valuate the stock at the original moving average price, and
the price of the material does not change.

50. What is the ‘Material Status’?

Answer : The ‘Material Status’ is a 2-digit code enabling you to control the usability of
material for various MM and PP applications. This status key also controls warehouse
management, transfers order instructions, quality inspection instructions, decides how
the system behaves when a product cost estimate is created, and so on.
The material status can be maintained as (1) Plant-specific material status, (2) Cross-
plant material status, and (3) Distribution material status.
SAP MM INTERVIEW QUESTIONS & ANSWERS 18

51. What is the ‘EAN’?

Answer : The ‘EAN (International Article Number),’ equivalent to the UPC (Universal
Product Code) of the United States, is an international standard number for identifying a
material, which SAP allows you to assign (done in the ‘Eng./Design or Units of
Measure’ screen) to the materials. The EAN is normally assigned to the manufacturer of
a material. Made up of a prefix (to identify the country or company from where the
material originates), article number, and a check digit (ensures correctness of an EAN
number so that no incorrect entries are scanned or entered into the system).

52. What are Some of the ‘Partner Functions’ of a ‘Vendor’?

Answer : Through the definition of ‘Partner Functions’ in the Vendor Master, SAP
helps to designate vendors for different roles. The partner role is designated by a 2-digit
code.
· VN Vendor
· PI Invoice Presented by
· OA Ordering Address
· GS Goods Supplier
· AZ Payment Recipient
A partner schema (also known as a partner procedure) is assigned to a vendor account
group. The procedure specifies which partner roles are ‘allowed’/‘mandatory’/‘can be
changed’ for a vendor master with that account group. You may assign three different
partner schemas to an account group, one for each level of purchasing data, i.e., one at
the purchase organization level, one at the VSR level, and one at the plant level. This
enables maintaining different partners at different organizational levels.

53. What is a ‘Batch’ in the Context of ‘Batch Management’?

Answer : Representing a quantity of material with a homogenous set of
properties/characteristics produced during a particular cycle of manufacturing, a ‘Batch’
is a subset of inventory quantity, which cannot be reproduced again with the same
properties. A batch is linked to the classification system, and you can use it only when
the classification system has been set up properly for batch management.

A batch is unique for a single material, and is unique at the Client level as well. That is,
you will be able to use a batch number only once in the Client regardless of the plant and
material. The batch will be known only in the plant where it was created. The batch
numbers can either be manually assigned or system generated.
SAP MM INTERVIEW QUESTIONS & ANSWERS 19

54. What are the Possible Values for ‘Procurement Types’?

Answer : The possible values for ‘Procurement Types’ are:
• No procurement
• External procurement
• In-house production
• Both procurement types
55. What are the ‘prerequisites’ for an ‘MRP Run’?
Answer : The following are the ‘prerequisites’ for an MRP Run:
• MRP activated
• Valid MRP data for the material
• Valid MRP type
• Valid material status
56. What is an ‘MRP Area’?
Answer : An ‘MRP Area’ is not an organizational structure, but a unit for which you
can carry out Consumption-based MRP. The MRP area is used to carry out MRP for the
components provided to a sub-contractor. There are three types of MRP areas that you
will come across:
• MRP Area for Storage Locations
• MRP Area for Subcontracting Vendor Stock
• MRP Area for the Plant
57. What is an ‘MRP List’?
Answer : An ‘MRP List’ displays the results of the last ‘planning run.’ Using a
‘collective display’ format, you will be able to display planning details for a number of
materials for a given set of ‘selection parameters.’

58. Explain the ‘Re-Order Point’ Procedure.

Answer : The ‘Re-Order Point’ is the level of inventory that triggers material
procurement. Once the inventory falls below this level, you need to create the order
proposal either manually or automatically by the system.
In the case of the manual re-order point procedure, you will define the reorder point and
the safety stock in the material master. On the other hand, in the automatic re-order point
procedure, the system will calculate the re-order point and the safety stock based on the
next period’s consumption pattern.
SAP MM INTERVIEW QUESTIONS & ANSWERS 20

59. Explain the ‘Inventory Management’ Submodule.

Answer : The ‘Inventory Management’ submodule deals with the GR/GI of materials
from/into the inventory. It also manages the transfer of materials from one storage
location to another. As an important element of MM, this module is integrated with SD,
PP, QM, and PM modules.

60. What is ‘Goods Movement’?

Answer : ‘Goods Movement’ represents an event causing a change in the stock, with
the change being value or status, stock type, or quantity. It also represents the physical
movement of stock from one location to another. Goods movement is classified into:
• Receipt of goods/services
• Issue of materials
• Stock transfers
61. What Happens During a ‘Goods Issue’?
Answer : The ‘Goods Issue (GI)’ results in a reduction in the stock quantity/value. The
GI can be Planned (via sales order, production order, return delivery, delivery for
internal, use etc.) or Unplanned (drawing a stock for a sample, scrapping, etc.).
The GI results in:
• Creation of a Material/Accounting document
• Update of Reservation for the issue (if any)
• Update of GL accounts
• Update of ‘points of consumption’ if applicable (cost center, project, etc.)
• Update of Stock quantity
62. Explain ‘Stock Transfers.’
Answer : The physical movement of stock between locations is called a ‘Stock
Transfer,’ which can be within a plant or between plants. Stock transfers can be carried
out either in a single step or in two steps. The stock transfer may be from:
• Company to Company
• Plant to Plant
• Storage Location to Storage Location
If there is a logical change in the stock type/status, then this kind of ‘transfer’ is called a
‘transfer posting.’ The transfer posting may be from:
• Product to Product
• Quality Inspection to Unrestricted Use
SAP MM INTERVIEW QUESTIONS & ANSWERS 21

• Consignment Store to Storage Location

63. What is a ‘Stock Type’?

Answer : Used in the determination of available stock of a material, the ‘Stock Type’ is
the sub-division of inventory at a storage location based on the use of that inventory. In
SAP, there are many kinds of stock types:
• Unrestricted (use) stock (the physical stock that is always available at a
plant/storage location)
• Restricted (use) stock
• Quality inspection stock (not counted for unrestricted use and may be made
available for MRP)
• Stock-in transfer
• Blocked stock (not to be counted as unrestricted stock and is not available for
MRP)
Besides all of the above, which are all known as valuated stocks, you will also come
across one more type called ‘GR blocked stock,’ which is a non-valuated stock.
The GR-blocked stock denotes all the stock accepted ‘conditionally’ from the vendors.
This stock is not considered available for ‘unrestricted use.’ You will use the Movement
Type 103 for the GR-blocked stock and Movement Type 101 is used for a normal GR.

64. Material number has to be 30 Digit. So how to get this is SAP? The present
18 Digit is NOT at all sufficient for the business?
Answer : It has to be Alpha Numeric or sometimes only numbers. It must be external
numbering system only & not the SAP generated internal number range because
material number or name is given by Vendors.
Ex: ABC1234, 89900-0098-8987, Y778-009,
77777766665444433322211-A, etc

Solution: not possible according to sap standards but still with the help of Abap people
we can do it, the answer on top is correct, but also think about usability. You have 30
digits that mean over a trillion variable materials... do you have a trillion materials?

65. what is the difference between new developed Zreports and Ztransctions
codes Explain Steps of Scheduling Agreements JIT (just in time) in Detail?
SAP MM INTERVIEW QUESTIONS & ANSWERS 22

Answer :
a) Create Material with JIT attributes in Material Master
b) Create Info record
c) Create Source list
d) Create Scheduling Agreements using ME31N.
e) Update Info record and Source List with Scheduling agreement number to
enable MRP scheduler to pick the Source and automatically generate schedule lines for
the material and identified vendor

66. Is there any special indicator to identify subcontract item in the material
master?
Answer : Material Master -> MRP2 View ->
Enter Procurement Type "F" External Procurement
Enter Special Procurement Key "30" Subcontracting
After MPR run, for any shortfall, system will generate the
PR with item category as "L"

67. The Communication Structure in release Strategies. What is that link the release
strategy takes?
Answer : Communication Structure "CEBAN" to Create Purchase Requisition.
Communication Structure "CEKKO" to Create Purchase Order.
Communication Structure "CESSR" to Create Service Entry Sheet.
Release procedure is of 2 types.
1. with classification
2. without classification
Only purchase requisitions can be released without classification.(Item level).
Other purchasing documents can only be released at header level.

68. How many levels of approval can be allowed in Release Strategies –

Answer : 8 - Maximum of 99 levels can be set in standard SAP

69. The PO table name @ header, Item, Delivery Schedule –

Answer : PO Header table: EKKO
PO Item level Table: EKPO
Delivery Schedule: EKET

70. How to codify items in Material Master

end-to-end implementation stored in data base, codify all items material master in data
SAP MM INTERVIEW QUESTIONS & ANSWERS 23

base of master data.

71. What are difference payment terms in company code level and purchase organisation
level--- Payment term from purchase org will be selected when you raise a invoice with
reference to PO, and payment term from company code will be selected when you raise
FI invoice (Without PO reference).

72. In a Hospital a material which is medisin they procured it and issue to CC

and all stock is consumed. now stock is "0" Payment made to vendor company.
but after 8 months all a batch testing govt. org. issues a circular that the batch
which you have purchased is not effective. then Vendor company provided new
material free of cost again. in this synerio how to inward that new stock. ?
Answer : You prepare the fresh PO with "free issue" tick in me21n so system will not
ask the rate for the same. GRN can make against the same but accounting document will
not be generated.
Solution: The followings are different procedures:
1. You can process through PO using the FREE Check box.
2. Receive the material through MIGO using Goods Receipt/ Others using 501
movements type (Without Purchase Order).

73. How we receive by products, scrap material from subcontract vendor what
movements types we use while doing this ---
Answer : mataining this material in BOM as a negative & receive this from sub
contractor thro.545 movement.
Solution: 2
By product, scrap materials can be received from Subcontractor by maintaining this
product as -ve component. When GR receipt is done supplied components will get
consumed through movement type 543.-VE component will appear as "Material
Provided to Vendor" Mov type will appear 545.Now do the 542 for respective -ve
component to get the same in Unrestricted use

74. FI - MM integration is as below at a very basic level to answer your question: In

Material Master, you assign valuation class under Accounting view DeterminationUnder
each transaction key you assign GL accounts for each of the Valuation Class.When
transactions are posted for a particular material, system determines the GL account from
Transaction and Valuation Clas

75. What is meant by a client in the SAP R/3 System?

Answer : Commercial and organizational unit with in R/3, with its own data, master
SAP MM INTERVIEW QUESTIONS & ANSWERS 24

records and set of tables. Cliet forms a Corporate group

76. For Implementation , the Automatic Account Determination with T.Code

are as follow:
Answer : 1.OX14: Active Valuation Area
2.OMSK: Valuation Class with Account category reference,
3.OMWM: Active Valuation Grouping Code,
4.OMWN: Active Movement type with G/L account,
5.OMWD: Assign Valuation Grouping Code to Valuation Area,
6.OBYC / OMWB: Active Chart of account,Valuation Grouping Code,Account
Grouping Code,Valuation Class and G/L accounts & then setting for excise for
company code & plant . For Roll out , the above steps hold good for Automatic Account
Determination but depends how your business functionality extended to new breach
from corporate office Re: MM FI Integration Part and Steps - For Implementation.

77. User exit:

when I want create PURCHASE ORDER my vendor is same for my purchase
organisation and purchase group.

Tables names and description

User exits (Function module exits) are exits developed by SAP. The exit is implementerd
as a call to a functionmodule. The code for the function module is writeen by the
developer. You are not writing the code directly in the function module, but in the
include that is implemented in the function module.

78. SAP allows you to add your own functionality to SAP’s standard business
applications without having to modify the original applications. This can be
done in four ways :
Customizing
Enhancement
Modification
Custom Development

79. i have requirement like this, i have to automatically fill storage location in PO items
before saving. i. e if user enter or leave it blank in storage location input field in PO
items, i have to save the PO based on some conditions automatically. i.e i will get
storage locations based on some condition and i will update this storage location before
saving POor creating PO. i have tried changing content in PO enhancement
SAP MM INTERVIEW QUESTIONS & ANSWERS 25

MM06E005, EXIT_SAPMM06E_012

80. What are the various functions /features in Purchasing?

Answer :
The purchasing view consists of RFQ / Quotation, Purchase Requisition (PR), Purchase
Order (PO), Master Data that has several fields like info record, source list, conditions,
vendors etc. and finally Outline Agreements.

81. What are the essential components in SAP MM?

Answer :
· Determine requirements

· Source determination

· Vendor Selection

· Order Processing

· Order follow up

· Goods receipts and Inventory management

· Invoice Verification

82. What is a GR blocked stock and when is it used?

Answer :
The GR blocked stock is an option used in the goods receipt process when you are not
sure about the quality of the goods received. In such a case, the stock is maintained as
GR blocked either from a material viewpoint or exclusively for a purchase order item.

83. Mention what are the types of special stock available?

Answer :
The types of special stock available are subcontracting, consignment, project, pipeline,
sales order, stock transfer, returnable packaging with customer, etc.
84. What are the different kinds of special stocks available?
SAP MM INTERVIEW QUESTIONS & ANSWERS 26

Answer :
Special stocks available are consignment stocks (from vendor), subcontracting stocks (to
sun-contractor), project stocks, pipeline materials, sales order stocks, stock transfer and
third party.

85. List out important field in purchasing view?

Answer :
The critical fields in purchasing view are
· Base unit of measure

· Order unit

· Purchasing group

· Material group

· Valid from

· Tax indicator for material

· Manufacturer part number

· Manufacturer, etc.

86. What is a release strategy? What are release groups and codes?
Answer :
The procurement process in SAP needs to be controlled by introducing authorizations at
important stages. This is taken care by the release strategy, which has different codes for
assigned users. For example, if the value of a PO is more than a certain pre-defined
limit, then it has to be approved by the SCM manager with a certain release code. Every
company will have different approval mechanisms and the release strategy can be
defined by the users.
Release groups are a set of release codes that are used for authorizing a purchasing
document or approving a release strategy. Release code is a 2-character ID that allows a
person to approve or clear a PR or a PO and they are controlled by a step-by-step
authorization system. For example, Code 10 is assigned to the person who creates the
PO, Code 20 is the release code assigned to the Purchase manager for approval.
Subsequently, the Department Head will use Code 30 to approve the release strategy,
followed by the Operations Director, who will use Code 40 for final approval.
SAP MM INTERVIEW QUESTIONS & ANSWERS 27

87. Mention what are the data contained in the information record?
Answer :
The information record contains data related to the units of measurement, such as the
products, vendor price, materials used by specific vendors, etc. It also contains
information on the tolerance limit of the under delivery of data, vendor evaluation data,
planned delivery time, availability status for goods.

88. How do you create a pricing procedure?

Answer :
The steps involved in creating a pricing procedure are:
1. Create condition tables 2. Create access sequence according to the various condition
tables 3. Create condition types 4. Assign access sequence to condition type 5. Create
the pricing procedure 6. List down all the condition types in order so as to suit the
business and pricing requirements.
89. Explain what is CBP? What is the difference between CBP and MRP?
Answer :
CBP is the past consumption values of stock; it is used to forecast future requirements.
On the basis of past consumption values, the net requirement of goods is calculated.
The difference between CBP and MRP is that when you plan materials using MRP, you
have to predict the materials requirement based on sales and operations planning (SOP).
While in CBP you have to predict the material requirement based on historical demand
for materials.

90. How is shelf-life managed in SAP? Explain the full-cycle.

Answer :
In SAP, there are basically two types of shelf-life:
1. Total Shelf Life – In case the total shelf life is maintained, then it’s mandatory to enter
the minimum shelf life also. During the process of Goods Receipt (GR), the user will
have to enter the manufactured date of the item so that the expiry date is automatically
calculated by the system.
2. Minimum Shelf Life – The date of minimum durability of the item are specified by
using date markings like ‘use-by’ or ‘best-before’. During the process of Goods Receipt
(GR), the user will have to enter the date of GR so that the system can check if the
material is usable according to the requirements in material master. If the minimum
remaining shelf life condition is not satisfied, then the system will not accept the goods
receipt.
 SAP MM INTERVIEW QUESTIONS & ANSWERS 28

91.Mention what is the transaction code to delete a batch?

Answer :
The transaction code MSC2N is used to delete a batch. By flagging the batch master
record, you can delete a batch record alternatively.

92. How does the consignment cycle operate?

Answer :
The various steps in consignment cycle are:
1. Create consignment info record with proper tax code 2. Create Purchase order with
item category K 3. Create output condition record for KONS (output type) 4. Authorize
Goods Receipt (GR) 5. Payment is settled through MRKO transaction even if invoice
verification is not done

93. Explain what are the accounts created in SAP MM?

Answer:
Assignment of account is necessary for the purchase order item, it is important in SAP
MM as it determines following things
· Account assignment type

· Account that will be charged when you post the invoice or goods receipt

· Account assignment data that you should provide

94. What are batches and how are they searched?

Answer :
A batch is a collection of similar items from your stock that have the same
characteristics. For example, all food items produced on a particular day belong to one
batch.
Batches are searched using the standard facility (match code, key F4) based on the
batch names or other properties that distinguish them from others.

95. Mention what is the transaction code used to extend the material view?
Answer :
To extend the material view transaction, code MM50 is used.
SAP MM INTERVIEW QUESTIONS & ANSWERS 29

96. What are the kinds of info records available?

Answer :
Standard, consignment, subcontracting and pipeline

97. Explain how consignment stocks are created?

Answer :
In the normal purchase order or requisition, consignment stocks are created. While
creating consignment stocks things to be considered is that you must enter K category
for the consignment item. As a result, the goods issued are posted to consignment stores
and invoice receipt is not generated.

98. What is MRP? And how is Lot Size used?

Answer :
MRP is short for Materials Requirements Planning and it is a production planning
technique that’s used to manage the manufacturing process. It is basically used to
determine your Material Planning procedure by specifying the various conditions like
Reorder Point, Seasonal Requirement, Replenishment, Vendor Managed, Forecast Based
and Master Production Scheduling (MPS). Lot size specifies the nature of material
requirement in terms of Weekly, Monthly, Quantity and Maximum Replenishment.

99. What is the difference between a Purchase Requisition and a Purchase

Order?
Answer :
A PR is an internal document that sends notification to purchase department when some
material is service is required. PR can be generated by department that needs any
material or service.
· A PO is a document sent to vendor by purchaser which is an official request of
mentioned material or services. POs are generally binding on purchaser, though it
depends on terms and conditions mentioned in PO.

100. What are different Info Records types?

Answer :
Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.
SAP MM INTERVIEW QUESTIONS & ANSWERS 30

101. What is a consignment Stock?

Answer :
The stock supplied by the vendor is in the purchasing company’s premises but the
company has no liability for the same. The liability for the company will only arise one
the goods are issued from the consignment stock for use. However, in this case, even
before the use, purchasing company can check in system how much stock is lying in
inventory.
·

102. What is Sub-Contracting cycle in MM?

Answer :
In Sub-contracting, we send raw material or input material to sub-contractor and then
receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input
material is sent to vendor for processing with movement type 541. When GR is done
using movement type 101, movement type 543 takes place automatically and takes care
of consumed material.
·
103. What is meant by Scales in MM?
Answer :
When we maintain price in Info Records, we can make use of scales. It is used when
price of a material is dependent on quantity purchased. For eg. For 500 pieces of
material ABC, price is Rs. 10, however, if the order quantity is more than 500, price is
Rs. 9. Scales are maintained in various master data like info record, quota arrangement
etc. from where scales can be pulled in a Purchase Order.

104. How to Flag a material for deletion?

Answer :
A material must be flagged for deletion before deleting it using Archive and Delete
program. A deletion flag can be set at client level, plant level or storage location level.
Whatever level you flag a material for deletion, it is flagged for deletion at all
corresponding lower levels. Transaction MM06 is used to flag a material for deletion.

105. Can a material be used after flagging it for deletion?

Answer :
Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It
will just trigger a warning message whenever the material is used. If you want a material
to be blocked for any use with immediate effect, you should use a material status which
SAP MM INTERVIEW QUESTIONS & ANSWERS 31

is there in Basic View 1 for general level or in MRP 1 view for plant level blocking.

106. What is the function of OBYC?

Answer :
OBYC is t-code used for configuring Automatic Account Posting.
Postings are made to G/L accounts automatically in the case of Inventory Management
and Invoice Verification relevant to Financial and Cost Accounting.

107. What is valuation grouping code related to OBYC?

Answer :
Valuation grouping code is used to group the valuation area, In SAP, we can have
valuation level at Company code level or at plant level.

General practice is to use the valuation area at plant level, because valuation may differ
from one plant to another. The valuation grouping code makes it easier to set automatic
account determination. If we need to define common account determination for several
valuation areas, we can assign same valuation grouping code to all those valuation areas.
We can maintain the valuation group code in OMWD for various valuation areas.
·
108. What types of special stocks are available?
·
Answer : Various special stock types available in SAP are Consignment,
Subcontracting, pipeline, project, sales order stock, Returnable transport packaging,
stock transfer, and the third party.

109. What is the difference between Contracts and Scheduling Agreements?

Answer :A contract is a pre-determined long term agreement to supply material or

service for a certain period of time. Specific delivery dates are not mentioned in the
contracts. Contracts can be of two types: Value Contract or Quantity contract

In Scheduling agreements, we can enter scheduling lines which gives details of quantity
that should be delivered on specific date. Plant must be entered in SA so that materials
can be delivered at plant. These are generally used for materials whose requirements are
predictable.

110. How can we create new transaction codes in SAP?

Answer : New transaction codes can be created using t-code SE93.

SAP MM INTERVIEW QUESTIONS & ANSWERS 32

111. What are release procedures with and without classification?

Answer :Release Strategy with Classification:

PR can be released at header level as well as item level.
It can be used for both internal/external documents.
Can be set on any field available in structure CEBAN

Release Strategy without Classification:

PR can be released only at item level.
It can be used only for internal documents such as PR.
This strategy can be used only on 4 parameters which are Account assignment category,
Plant, Material Group and value of PR.

112. What is meant by batches?

Answer :
A batch is a subset of the total stock of a material. It represents a homogeneous unit
which has unique specification. Normally, a batch is assigned to the quantity of material
produced during a given production run. A batch number uniqueness can be assigned at
any of the following 3 levels:

At client level: The same batch number can be assigned only once within the entire
client.
At material and plant combination level: Same batch number can be assigned to material
with different specification in each plant.
At material number level: A batch assigned to a material has the same specification for
all plants where material is extended. Batch number can be reassigned with a different
specification for each material.

113. How to handle free items in PO?

Answer :
While creating PO, we can tick the item as free item in item overview section of PO.
The price will be zero for free marked item.

114. What information is maintained in Accounting View of material master?

Answer :
Accounting view is a plant specific view. Besides other information, it contains
important information such as valuation class and price control. Valuation class helps in
SAP MM INTERVIEW QUESTIONS & ANSWERS 33

determining the relevant GL account used for account posting. It is also used while
configuring OBYC settings. Price control indicator determines if material is maintained
at Standard price(S) or Moving average price (V).
115. What is the use of Material types?
Answer :
‘Material Types’ is used to group various materials based on some common properties. It
helps in maintain material master data for a particular material. Using material types, we
can control which all views are required for a material type, which fields are required or
optional, the material number range etc.

116. What is the use of ‘Partner Functions’ for a vendor?

Answer :
Partner Function is used to define responsibilities and duties of other business partners.
Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address),
GS(Goods supplier), PI(Invoice presented by) etc.

117. What is the use of ‘Material Status’?

Answer :
Material Status helps in determining the usability of a material. It is a 2-digit code which
can be maintained as plant specific material status, cross-plant material status, and
distribution material status.

118. What is the ‘Price Control Indicator’?

Answer :
‘Price Control Indicator’ is maintained in accounting view and is used to determine how
a material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If
the indicator is set to S, all inventory postings are posted at standard price maintained in
material master. If there are variances in any transaction due to different price, the
variance is posted in price difference account.

If price control indicator is set at V, goods received will be done at GR price. The
moving average price will be adjusted in material master using weighted average
formula. If goods movements or invoice receipts are posted using a price that differs
from the moving average price, the differences are posted to the stock account.

119. What are various types of Stock transfer?

Answer :
The physical movement of stock between different physical locations is called as ‘Stock
SAP MM INTERVIEW QUESTIONS & ANSWERS 34

transfer’. Stock transfer can be either a single step process or a two-step process. Various
Stock transfers are:

Inter Company (Company to Company)

Inter Plant/Intra Company (Plant to Plant)
Intra Plant (Storage location to Storage location)

120. What are various Stock Types?

Answer :
In SAP, commonly used stock types are:

Unrestricted Stock (Stock that is available for use)

Restricted Stock
Quality Inspection Stock (Not the unrestricted stock but can be considered for MRP)
Blocked Stock (Stock rejected by quality or production)
GR Blocked Stock (Conditionally accepted stock. Not the unrestricted stock)

121. What are various procedures for counting Physical Inventory?

Answer :
Physical Inventory procedures in SAP MM are as follows:

Periodic Inventory (All stocks are counted on a pre-determined date)

Continuous Inventory (stocks are counted continuously during the entire fiscal year)
Cycle Counting (Counting is done at fixed intervals)
Inventory Sampling (Randomly selected material stocks are physically counted on the
balance sheet key date. If variances are small enough, it is presumed that the book
inventory balances for the other stocks are correct.)
·
122. What is the use of ‘Split Valuation’?
Answer :
Within a valuation area, sometimes, we need to valuate various stocks of a material
separately. It can be because of different origin, quality, status, etc. We use split
valuation in such cases. In this case, material is managed at several partial stocks which
are sub-stocks of main material stock. Any transaction, relevant for valuation, is carried
at this partial stock level. In accounting view, we define if we need split valuation for
any material.
·
SAP MM INTERVIEW QUESTIONS & ANSWERS 35

123. What are the various stock valuation methods?

Answer :
Stock revaluation can be done by following three methods:

LIFO(Last In First Out): Materials received last are consumed first. You can assume
example of elevator where people who enter last exit first!
FIFO(First In Firs Out): Materials received first are consumed first.
Lowest Value Method: Stocks are valued at their original price or the current market
price whichever is lower.

124. What are the industry-specific solutions available in mySAP?

Answer : The mySAP ERP application provides business solutions for almost every
industry, including automotive, chemical, and media. Various industry-specific solutions
available in mySAP include the following:

· mySAP Automotive
· mySAP Aerospace and Defense
· mySAP Consumer Products
· mySAP Banking
· mySAP Chemicals
· mySAP High Tech
· mySAP Engineering and Construction
· mySAP Healthcare
· mySAP Higher Education and Research
· mySAP Insurance
· mySAP Media
· mySAP Oil and Gas
· mySAP Mill Products
· mySAP Mining
· mySAP Public Sector
· mySAP Pharmaceuticals
· mySAP Service Providers
· mySAP Retail
· mySAP Telecommunications
· mySAP Utilities

125. What is SAP R/3?

Answer :
SAP MM INTERVIEW QUESTIONS & ANSWERS 36

· SAP R/3 is an ERP software that was officially launched in 1992. It is a

replacement for the SAP R/2 mainframe computing-based ERP software and is based on
client-server computing. With the advent of client-server computing, SAP AG in
Germany (founder of the SAP ERP software) launched SAP R/3 to provide client-server-
based real-time business solutions. The letter "R" in SAP R/3 represents the real-time
business data processing, while the number "3" represents the three tiers in client-server
computing.
· The three tiers in client-server computing are: presentation (client), application
(business logic), and database (stores the actual business data).
· SAP R/3 integrates various business areas, such as sales, purchase, and
procurement, by using different functional modules, such as Materials Management
(MM), Sales and Distribution (SD), Financial (FI), Controlling (CO), and Human
Resource (HR).
· Different versions of SAP R/3 include 3.1i, 4.0b, 4.5b, 4.6b, 4.6c,ECC 5.0,ECC
6.0; the latest version is ECC 6.0.

126. How different versions of SAP evolved?

Answer :
Since its inception, SAP has continued to support changing business processes and to
adapt itself to the needs of organizations. In order to support the most current business
strategies, SAP has evolved over time and progressed through the following versions:
· SAP R/1—This was the first version of SAP and was developed for financial
accounting systems. This version is no longer available.

· SAP R/2—This was the second version of SAP. It replaced the R/1 version in
the 1970s and was a mainframe-based business application. SAP R/2 supported multiple
currencies and languages to help internationalize business management. This version is
also no longer available.
· SAP R/3— This version replaced SAP R/2, adding support for client-server-
based distributed systems. This new version of SAP is multi-platformed, meaning it can
be installed and used on multiple platforms, such as Windows or UNIX.

127. Why are industry-specific solutions used in SAP R/3?

Answer :Industry-specific solutions are used in the SAP R/3 ERP application in order to
SAP MM INTERVIEW QUESTIONS & ANSWERS 37

automate various business processes for almost every industry, including automotive, oil
and gas, and chemical. By automating business processes, the SAP R/3 application helps
organizations meet the following challenges:

o E merging markets— Earning revenue in emerging markets

o Competition—Maintaining successful business operations in a world of fierce
competition
o Increasing demands— Handling increasing and varying customer demands
o Labor issues— Solving the problems that arise for business operations requiring
efficient skilled labor
o Workforce shortages—Solving the problem of a shortage of skilled personnel
· The importance of industry-specific solutions comes from a very basic
foundation of thought: every type of business is unique and therefore needs to be catered
to accordingly. The same philosophy may not be applicable for automotive businesses
and integrated steel plants, because both require entirely different approaches to business
planning. The automotive industry is based on the assembling of equipment and parts–
discrete manufacturing, whereas the integrated steel plant is a continuous manufacturing
unit. Therefore, each business's functionalities are different in areas such as production
and inventory management.

128. What benefits are envisaged after implementing SAP in any

organization?
Answer :
After the installation of SAP R/3 in an organization, the following changes will occur:
· Improvement in project management and project execution capabilities
· Integration of suppliers and subcontractors
· Optimization of sales-order capabilities
· Comprehensive business support specific to a particular industry type
· Minimal cost of ownership
 SAP MM INTERVIEW QUESTIONS & ANSWERS 38

· Uniformity of business processes

· Ability to make safe strategic choices

129. What are the different Modules in SAP R/3?

Answer :
To integrate various business processes, SAP R/3 comes with various modules, such as
MM, SD, and CO. These modules are further grouped into various business-functional
areas. The functional areas and the SAP R/3 modules in those functional areas are as
follows:

· Financial applications—Deals with an organization's financial matters, such as

preparing and analyzing financial documents and reporting the document output to the
appropriate authorities for further processing. To manage all these concerns, the
following SAP R/3 modules are grouped in this functional area:

o FI—Financial Accounting

o CO—Controlling

o EC—Enterprise Controlling

o IM—Investment Management

o TR—Treasury

· Human resources—Deals with documents related to an organization's human

resources department. The SAP R/3 modules grouped in this area help an organization to
manage processes such as salary creation and distribution, employees' payroll across the
organization, and transferring data to other relevant departments, such as finance. This
area consists of the following modules:
o Personnel Management
o Time Management
SAP MM INTERVIEW QUESTIONS & ANSWERS 39

o Payroll
o Training and Event Management
o Organizational Management

· Logistics applications—This is the largest area covered by SAP R/3. This area
helps manage broad-level business processes such as sales and distribution of products,
materials management, production planning, and quality management. This area consists
of the following modules:

o MM—Materials Management
o SD—Sales and Distribution
o PP—Production Planning
o PM—Plant Maintenance
o LO—Logistics
o QM—Quality Management
o PS—Project System
o WM—Warehouse Management

130. What are the core functionalities of the SAP system?

Answer :The core functionalities of the SAP system are Sales and Distribution (SD),
Materials Management (MM), Financial Accounting (FI), and Production Planning (PP).
In the first phase, companies implement the SAP software with these core
functionalities. Later, in the second and third phases, they may also introduce other
functionalities, such as Controlling (CO), Warehouse Management (WM), and Human
Resource (HR). However, the types of modules and the phasing of implementation
depends solely on the type of industry in which the client works, as well as the
organization's readiness and the urgency with which the integrated enterprise system,
such as SAP, must be adopted.
SAP MM INTERVIEW QUESTIONS & ANSWERS 40

131. What is Master data in MM module?

Answer :
The master data in the MM module acts as reference data, defining various business
entities and playing a key role in the core operation of the business.

132. How is master data important in MM module?

Answer :
The master data in the MM module contains all of the basic information needed to
manage material. The data is stored and sorted on the basis of different criteria, such as
the descriptive nature of the material (size, dimension, and weight) and the control
functions of the material (material type and industry sector). Apart from data maintained
by the user, the master data also stores data that is automatically updated by the system
(such as stock levels).

133. What are the various types of master data in MM module?

Answer :
The different types of master data in the MM module are as follows:

· Material master
· Vendor master
· Purchasing information record
· Source list
· Quota arrangement
134. What is a Material Master file?
Answer :
A material master file stores and maintains all of the information related to managing a
material. The material master is sorted on the basis of different criteria.

135. Why are material master records used in SAP?

Answer :
Material master records are used in the SAP R/3 system to manage material-specific
data. The material information stored in material master records is used by all logistics
areas in the SAP R/3 system. The material master records integrate all material-specific
data into a single database object that eliminates the problem of data redundancy.
SAP MM INTERVIEW QUESTIONS & ANSWERS 41

Because material master records store data in a single database object, the same data can
be shared by all departments, such as purchasing, inventory management, materials
planning, and invoice verification.

136. How is the information of material master records updated?

Answer :
You can manually update the information in the material master records, however, there
are some exceptions for which the information can be updated by the SAP R/3 system
only, for example, administrative data.

137. What are the types of industry sectors defined in Material Master data?
Answer :
· The different types of industry sectors defined in the material master data are
as follows:

o Aerospace and defense

o Beverage
o Chemical industry
o Food and related products
o Mechanical engineering
o Pharmaceuticals
o Plant engineering/construction
o Retail
o Retailing
o Service providers
138. What data in material master is maintained at the client level?
Answer :
The general data, i.e., the data applicable to the company as a whole, is stored at the
client level.

139. What are the data in material master that are maintained at the company
code level?
Answer :
SAP MM INTERVIEW QUESTIONS & ANSWERS 42

The data that is specific to a particular company and the plant and storage areas assigned
to that company is maintained at the company code level.
140. What are the plant-specific data in material?

The MRP data and forecast data are the plant-specific data in the material master.

141. What is the lot size attribute of a material?

Answer :
· The lot size attribute represents the reorder quantity for a material. A material
can have a periodic, optimum, or static (fixed) lot size.
142. How is material information structured in material master records?
Answer :
Material information is structured in material master records on the basis of different
criteria, such as the material's master detail (including its name, size, dimension, and
weight), which shows its descriptive nature, and the material's detail related to control
functions (such as material type, price control, and industry sector). Material master
records also store information about the data that can be automatically updated by the
system. For example, the stock level can be automatically updated by the system on the
basis of the material data update.

143. What is a batch?

Answer :
A batch is a group of materials combined into one quantity for various reasons. Very
often, materials with the same characteristics and values are grouped into a batch. For
example, in the chemical industry, a specified number of containers of a specific product
may be considered a batch if they were produced at the same time and have the same
physical and chemical characteristics.

144. Why is batch record important?

Answer :
· A batch represents a quantity of a particular material processed at the same
time with the same parameters. These materials, produced as one batch, have the same
characteristics and values, which may vary from the materials of another batch produced
on the same day.

· A batch record is important because batch records indicate that the batch
conforms to the current Good Manufacturing Procedures (GMP). The batch record also
contains specific information about the product tested, analytical methods, and test
SAP MM INTERVIEW QUESTIONS & ANSWERS 43

results.
145. How to create a batch?
Answer :
You can create a batch record manually by using the transaction code MSC1N. The
navigation path for creating a batch is: SAP Menu > Logistics > Materials Management
> Material Master > Batch > Create.

146. What are the important fields in a batch master record?

· The important fields in a batch master record are as follows:

o Production date— Refers to the date when the batch was produced.
o Self-life expiration date— Refers to the date when the life of the batch will
expire.
o Available from— Refers to the date from which the batch will be available to
other departments.
o Batch status— Allows the batch to be classified as having restricted or
unrestricted use.
o Next inspection— Refers to the next quality inspection date of the batch.
o Vendor batch— Refers to the batch number assigned by the vendor.
o Class— Allows the user to sort the batch for use in specific classes.
o Characteristics —Helps in assigning a class to the batch.
o Release status —Specifies the status of the batch.
o Linked document —Helps the user to link the documents related to the batch.
o Document type —Allows the user who is purchasing the batch to specify a
document.
o Document —Helps the user to select the relevant document.
o Document part —Allows the user to enter the part of the document that is related
to the batch.
o Version —Specifies the document version of the batch.
SAP MM INTERVIEW QUESTIONS & ANSWERS 44

147. How can batch records be changed?

Answer :
· 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.
· It is important to note that these changes to the batch record will also be
available for review.
148. How to delete a batch?

You can delete a batch by using the MSC2N transaction code. You can alternately delete
a batch record by flagging the batch master record. For this, you need to first select the
batch in the Change mode.

149. What is Batch Information Cockpit?

The Batch Information Cockpit (BIC) is the main switching point, having a wide range
of options for scrutiny and control of batches. It stores at a single location all the
information related to the analysis of a particular batch.

150. What are the levels at which a batch number can be configured?

A batch number can be configured at several different levels: client level, plant level,
and material level. You can select a batch number at any of the following levels:
· Client level— When you configure a batch at the client level, you need to
assign the batch number only once throughout the whole client. Only one batch number
exists for each material assigned at this level.
· Plant level —In SAP, the plant level is the default level for the batch number.
At plant level, a batch number is unique for a plant and material. This means that you
can have a batch of the same number at a different plant within the same company.
· Material level —At this level, material numbers are assigned to the products.
The material number helps to differentiate between two products in case their batch
numbers are the same. The materials are identified by the combination of the material
number and batch number.
151. How are batch numbers assigned?
SAP MM INTERVIEW QUESTIONS & ANSWERS 45

The batch number is predefined in SAP. You can change the batch numbers either by
using the OMAD transaction code or by using the navigation path IMG > Logistics-
General > Batch Management > Batch Number Assignment > Maintain Internal Batch
Number Assignment Range.
Follow either of the two configuration steps to change the batch number:
· You can assign a batch number internally using the internal number range,
either by using the OMCZ transaction code or by following the navigation path Display
IMG > Logistics-General > Batch Management > Batch Number Assignment >
Activate Internal Batch Number Assignment > Activate Batch Number Assignment.
· You can also configure the system to allow automatic numbering of a batch by
following the navigation path Display IMG > Logistics-General > Batch Management
> Batch Number Assignment > Activate Internal Batch Number Assignment > Internal
Batch Number Assignment for Assigned Goods Receipt.
152. What is a serial number?

A serial number is assigned to an item to identify it and to store information about it. A
serial number is mostly used to refer to equipment such as motors, drills, or vacuums. In
MM, an item of material contains a serial number as well as a material number. This
combination helps to uniquely identify an item of material.

153. What are the types of special stocks available?

Answer :
Special Stocks available - Sale Order Stock / project Stock / Subcontractor Stock.

154. What are the types of info records?

Answer :
Type of info records are Standard, Pipeline, Consignment and Subcontracting.

155. Tell me about the subcontracting cycle.

Answer :
Subcontracting Cycle - You define procurement type for the material procured from
subcontracting as "F 30".
External procurement from subcontractor - BOM is defined for the material. Then you
place PO with item category L on the S/C & you transfer the material to S/C in
transaction MB1B mvmt type 541 & prepare S/C official receipt of payment for
SAP MM INTERVIEW QUESTIONS & ANSWERS 46

excisable material sent to S/C transaction J1IF01. Send material to S/C. After processing
receive material in transaction MIGO. Refer the S/C official receipt of payment in
MIGO. Reconcile the official receipt of payment & material doc in trans J1IFQ &
complete the official receipt of payment in transaction J1IF13.

156. How are free items managed in a PO?

Answer :For free items you have to tick free item check box which is at item level.
After ticking this box you will able to manage free items in purchase order.

157. What is a reference purchase organization? When can it be used?

Answer :It is reference for all the other existing Purchase Organization.

It is not assigned to either to plant or company code.

The contracts, terms and conditions can be utilized by other Purchasing Org.

158. What is GR blocked stock? When it can be used?

Answer :GR blocked stock- If you wish to accept goods from a vendor conditionally
(because a certificate is missing), you initially post the goods to the goods receipt
blocked stock.

159. What are the important fields in purchasing view?

Answer :Order Unit, Purchasing group, material group, Plant sp. Material status, Auto.
PO, batch Management, Purchasing value key, GR processing time, Post to inspection
stock, critical part, source list, JIT shed. Indicator, MPN. These are all important field
we use in purchasing depending on material type and mainly depends on company
business process.
160. How to edit the description name of a storage location?
Answer :It is very simple, go to OX09 and straight away you can change the Storage
location name. Only thing is that you should have access to change it and in view mode
it is greyed out and not possible to change. If you want to change the address of S.Loc,
select the desired S.Loc double click on address folder in left side, it allow you to
maintain the address too.
SAP MM INTERVIEW QUESTIONS & ANSWERS 47

161. Is it possible to maintain the same material master with same code in all plants
in a company. Our client is using same materials in all their four plants?
Answer :Material numbers are always maintained at Company code level. If you look at
the Material master data, some data is maintained at Company code level, some at Plant
level and some at Storage location level. If you have all the 4 plants attached to one
company code, they should have the same material number. What you need to do is to
extend the material to all the 4 plants if thats your requirement. Also, if you have your
valuation area as your Plant, then you have the flexibility to maintain Plant specific
pricing for the same material.
You can use MM01 T code to copy material from old plant to new plant. But check for
the required details in your new plant and make changes accordingly.
162. Where we do the configuration for the cost centre allocation, because
whenever we GR a material, accounting document is created for that particular
material. How that particular material go in to the particular accounting (G/L
account)
Answer :In Tcode: OBYC -- Automatic Postings.
for Inventory Posting Trns Key is: BSX
for Off setting entries like Goods issue, initial stock......Trans Key is : GBB
Based on the Movement types, Valuation class it will be assigned to a G/L account.
You can refer the configuration in Tcode: OBYC
163.Could any one can explain complete configuration of pricing procedure &
application.
Answer :The Basic thing is Condition Technique. In which there are
1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.
A Access Sequence access a Condition Record of a Condition Type in a Condition Table
is a Condition Technique.This is a simple logic
Here the Condition Type is very important like PB00, PBXX,RA01 etc.
In the background every Condition Type has its own defition means the purpose of the
Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is
to be defined to work this functions. Normally we use the existing ones without any
risk. But some cases, we have to Create a New Condition Types as per the organisation
requirement.
The Pricing Schema is useful to minimise condition types while mention prices for
Vendor on the basis of Pricing Schema which we defined according to organisation
requirement.
The Pricing Schema means the calculations procedure of Condition Type.
SAP MM INTERVIEW QUESTIONS & ANSWERS 48

Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means

RA01 is based on PB00 like that we have to define in the Pricing Schema
which makes easy to use in real time.
Here PB00 has the Access Sequence - 0002.
But RA01 does not have the Access Sequence.Why because it is a dependent on PB00.
But both are Condition Types.
In the system, by default some standard Scheme will be there at Vendor Schema Group
in the Vendor Master Screen means the standard one is assigned which is very lengthy
which may fullfil our requirement. But some cases which may not fullfil our
requirement, in such we have to define.
For the configuration, I may not able to explain properly through here but will give some
idea.
Configuration: SPRO - IMG - Material Management - Purchasing - Conditions - Define
Price Deternmination Process:
1. Define Access Sequence
2. Define Condition Type
3. Defince Calculation Schema:- Here you have to define the Schema - Define Schema
group
1. Define Schema Group vendor
2. Define Pricing Schema group
3. Schema group for Purchase Organisation
4. Assign Schema group to Purchase Organisation - Define Schema determination
1.define calculation schema for Standard purchase organisation
After completion of the Schema Group, we have to assign it to Vendors.
Then whenever we use any transaction with this Vendor, the concerned Schema will
work as configured by us.
The Pricing in MM is vast because each Condition have its own importance and each
Access Sequence have its own importance. So you need not bother about this. First you
learn how to define the Calculation Schema through the above.
164. In ME23N what is the difference between PO Quantity and Scheduled
Quantity?
Answer ::
PO Quantity which is known as committed quantity by vendor to supply as and when on
or before specific delivery date.
Scheduled Quantity is the quantity to be delivered by the vendor in respect of schedule
line as planned. The total PO quantity can be dragged and partially divided into different
SAP MM INTERVIEW QUESTIONS & ANSWERS 49

segment of delivery date for different quantum of material .This quantity is referred to
by GR and IV for checking purposes also.

165. When do we need a new document type in purchase order?

Answer :
1) Suppose you want a separate report for import PO and domestic Po in t-code like
ME2N, ME2L. In that case we have to define new Po document type so we can get
report by document type and same will applicable to Asset purchasing also.
2) You want different pricing procedure assignment in MM, then in that case PO
document will help like import and domestic pricing procedure.
3) Suppose in service PO user may forget to use item categories D or he may used
different item categorizes other than D, so in that case we can define new document type
and allow only item categories D so he cannot use the wrong item categories in PO.

166. How many Po type are there?

Answer :
In purchasing document types are divided in two types:
a) Internal purchasing document
Example: purchase requisition
b) External purchasing document
Example: quotation, purchase order, contract, schedule agreement.

167. At which level is the purchase order history kept?

How can we access ( see ) it?
Answer :
PO history is updated in table: EKBE and if you go to see, there is a field client and
purchasing document/plant.
PO history updation depends upon transaction and event type where there are different
type of transaction key:
1 Goods Receipt
2 Invoice Receipt
3 Subseq. Debit/Credit
4 Down Payment
SAP MM INTERVIEW QUESTIONS & ANSWERS 50

5 Payment
6 Goods Issue for Stock Transfer
7 Consumption (Subcontracting)
8 Delivery (Stock Transfer)
9 Service Entry Sheet
A Down Payment Request
C Down Payment Clearing
Q Comparison for Internally Posted Material (Only IS-OIL)
R Return Delivery via Delivery Note
P Invoice Parking
V Down Payment Request Clearing

You can see that PO history is updated at PO line item level and also see it at the header
level then in status tab, you can see the the following gets updated

- Ordered
- Delivered
- Still to delivered
- Invoiced
- Down paymts

168. Where is the purchase order text stored?

Answer :
It is stored in the tables STXH, STXL. Text gets stored as object ID and text ID.

169. How to edit created P.O.? If user want to change some data like price, data
etc. in a created purchase order but system is not allowing it. As a support SAP
MM functional consultant what you would do?
Ans:
This is an open question without direct answers and you should suggest the possibilities:
If you have made goods receipt against PO, then you cannot make any change to the
price and other condition details in PO if not you will be able to do it.
SAP MM INTERVIEW QUESTIONS & ANSWERS 51

Also, check whether user have authorisation for ME22N.

The Price came from Inforecord (if you have maintained the inforecord for material and
vendor combination), then in this case you cannot directly change the Price in PO. If you
want to change then check PO condition type is it PBXX, then you can change.
There is a procedure called as the field selection. When a purchase order is created, then
it requires a release. In the release procedure you can maintain the fields which cannot
be changed as per the field selection. For example, if I am an approver and I approved a
purchase order for 10 pieces and released it, in this case if the changes are allowed for
the quantity then the total release procedure becomes useless.
170. What is Source List and what is the transaction code for creating Source List?

Answer :To identify sources of supply for materials a source list is used. To create a
source list the transaction code used is ME01.
171. For creating a purchasing info record what are the pre-requisites?

Answer :The pre-requisites for creating a purchase info record are

• Material Number
• MPN ( Manufacturer Part Number )
• Vendor Number
• Organizational level code
172. Explain the terms Planned delivery and GR processing time?

Answer :Planned delivery means number of calendar days required to obtain the
material, and GR processing means number of workdays required after receiving the
material for inspection and placement into storage.
173. What is purchase requisition as related to SAP? Mention the document types
that are used in purchase requisition?

Answer :Purchase requisition in SAP determines both stock and non-stock items to the
purchasing department. It can be done either manually or automatically, the document
types used in purchase requisition are
SAP MM INTERVIEW QUESTIONS & ANSWERS 52

• RFO ( Request For Quotation )

• Outline Agreement
• PO ( Purchasing Order )
174. Explain how consignment stocks are created?

Answer :In the normal purchase order or requisition, consignment stocks are created.
While creating consignment stocks things to be considered is that you must enter K
category for the consignment item. As a result, the goods issued are posted to
consignment stores and invoice receipt is not generated.
175. Explain how is the vendor return processed without a purchase order
reference?

Answer :First you have to observe the return column and then select — Item Detail >
MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the
intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end,
you have to ensure that the document is a return purchase order, and then the document
is saved.

You can also use transaction code M21N for this purpose

176. Explain how you can create a vendor account group in SAP?

Answer :To create vendor account group in SAP

• Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor
Accounts > Master Records > Preparation of creating vendor master records > Define
Accounts groups with Screen Layout
177. Explain what are the accounts created in SAP MM?

Answer :Assignment of account is necessary for the purchase order item, it is important
in SAP MM as it determines following things

• Account assignment type

SAP MM INTERVIEW QUESTIONS & ANSWERS 53

• Account that will be charged when you post the invoice or goods receipt
• Account assignment data that you should provide
178. Explain what MRP (Material Requirement Planning) list is and what is the
transaction code to access MRP list?

Answer :MRP list is the initial working document from which the MRP controller starts
working, and it consists of planning results information for the material. For an
individual item, you can access the MRP list by using the transaction code MD05. You
can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List-
Material
179. Explain what is CBP? What is the difference between CBP and MRP?

Answer :CBP is the past consumption values of stock; it is used to forecast future
requirements. On the basis of past consumption values, the net requirement of goods is
calculated.

The difference between CBP and MRP is that when you plan materials using MRP, you
have to predict the materials requirement based on sales and operations planning (SOP).
While in CBP you have to predict the material requirement based on historical demand
for materials.
180. What are the types of special stocks available?
Answer :Subcontracting, consignement, pipeline, project, sales order, RTP, stock
transfer ,third party.
181. What are the types of inforecords?
Answer :Standard, consignment,subcontracting & pipeline.
182. What is meant by consignment stock?
Answer :The stock supplied by the vendor is in the companies premises with the
company having no liability for the same. The liability for the company will only be
affected when the goods are issued from the consignment stock for use.
183. What are the steps involved in consignment cycle?
Answer :Create consignment info record with proper tax code, create Po with item
SAP MM INTERVIEW QUESTIONS & ANSWERS 54

category K, maintain output condition record for KONS, process GR, no invoice
verification done, but settlement is done through MRKO transaction.
184. Tell me about the subcontracting cycle.
Answer :The Po is created with item category L , the goods is transferred to
subcontractor by 541 movemet. for this movement note no accounting docs take place.
When GR is done automatically, 543 movemnt takes place which take care of the
consumption of components from stock.
185. How are the byproducts taken care of in subcontracting?
Answer :You can add these by products in the BOM for the header matl.
186. What is meant by scales?
Can scales be used in standard purchase order? 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 prices is 140 .
Scales cannot be used directly in PO but can be pulled into the PO from various master
data like info record, quota arrangement.
189. What is the difference between a contract and a scheduling agreement?
Answer :With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can maintain different
pricing conditions for each and every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery schedule
line via Transaction ME38 or MRP running (with the appropriate setting of Source List).

3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation
(subject to the Document Type LP or LPA) with the selection of either FRC or JIT
delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to the
customizing in the Document Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used.

190. What is meant by batches? How can the batches be searched?

SAP MM INTERVIEW QUESTIONS & ANSWERS 55

Answer :A batch is a subdivision of your stock of a material having the same

characteristics.
For instance:
- food production uses batches to indicate the day of production.
- paint production uses batches based on production date and the used ingredients. It is
very hard to reproduce the same color in exactly the same way at two different moments.

- ore may be divided in batches based on their mineral content.

You can search batches using the standard search facility (match code, key F4) based on
the naming convention of the batches or, if you use batch classification, based on the
characteristics of the batches.
191. How is a shelf-life item managed in SAP? What is the full cycle?
What are the settings required for quota arrangement?
Answer : To set up a quota arrangement for the procurement of a material, proceed as
follows:
Master data -> Quota arrangement -> Maintain, enter the material and plant number,
press ENTER to display the overview screen for the quota arrangement periods, Enter a
validity period for quota arrangement, Enter date until which the quota arrangement is
valid. The start date is calculated by the system. Press ENTER .
Select the quota arrangement and choose Goto -> Item overview to display the item
overview screen of the quota arrangement. Enter a quota arrangement item for each
source of supply you want to include in the quota arrangement.
You must enter the following data.
- Procurement type
- Special procurement type, Enter k in the S column, for example, if a consignment
arrangement for the material exists with the vendor.
- Vendor number
- Procurement plant (supplying plant):
- Quota column, enter the quota assigned to each item.
Press ENTER .
The percentage distribution of the quotas is calculated and displayed automatically by
the system.
Save the quota arrangement. The system assigns a number to the quota arrangement
item automatically

192. What are the differences between release procedure with classification and
release procedure without classification? When are they used?
Answer :Release procedure with classification means the Purchase requsition can be
SAP MM INTERVIEW QUESTIONS & ANSWERS 56

released both at item level & at the header level. Release procedure with out
classification can also be used for PR which is used for item level release only. all other
external documents cannot be relesed with classification. The two procedures are
mutually exclusive (that is to say, you must decide in favor of one of them only - you
cannot use both).
193 Is it possible to have a release procedure without classification for a PO?
Answer :No
194. What is the maximum number of levels available in SAP?
Answer :Did not get this question …pls clarify.
195. Is it possible to have scales in a quotation?
Answer :No
196. What is GR blocked stock? When it can be used?
Answer :Whenever you are not sure about the quality of the product received, you can
put in GR blocked stock.

198. How to give specifications for developments?

Answer :We normally prepare a business requirement document in which we specify
what is required. what field & tables have to be referred for the required development.
199. How to create PR or PO by MRP?
Answer :The PR is created according to the safety stock mentioned for the material or
can be triggered from a requirement . For creating a PO, you need to have the scheduling
agreement in place .After the MRP is run the schedule lines are generated which are
nothing but the PO.
200. What are the steps in automatic account assignment configuration?
Define Valuation Classes. (OMSK)
Answer :
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Valuation Classes.

Define Valuation Control. (OMWM)

Answer :
SPRO -> Material Management -> Valuation & Account assignment -> Account
201. Define Account Grouping for Movement Types (OMWN)
SAP MM INTERVIEW QUESTIONS & ANSWERS 57

Answer :
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Account Grouping
for Movement Types.

202. Group Together Valuation Areas (OMWD)

Answer :
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Group Together Valuation
Areas

203. Configure Automatic Postings (OMWB) or OBYC

Answer :
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Configure Automatic
Postings

204. What is meant by access sequence? When it is used?

Answer :An access sequence is a search strategy with the aid of which the SAP System
searches for valid condition records of a certain condition type.

For example, you can stipulate for a price that the SAP System first searches for a price
for a specific plant, and then for a generally applicable price.

For condition types for which you wish to maintain conditions with their own validity
period, you must assign an access sequence. With this, you define which fields the SAP
System checks in searching for a valid condition record.

Example:

An access sequence has been assigned to condition type PB00 so that prices can be
maintained in purchasing info records and contracts.

No access sequence has been assigned to condition type RC00 because it does not have
a validity period of its own. In the standard system, it is always maintained
simultaneously with the price and is valid for the period of the price.
SAP MM INTERVIEW QUESTIONS & ANSWERS 58

205. How does the PO pick up the pricing schema?

Answer :The calculation schema picks up using vendor schema (if you assign
calculation schema only to vendor schema then it will pick the same calculation schema
for the vendors assigned to particular vendor schema even though the Pur. Org is
different, the condition is the vendor record must be exist in all Pur. Org) or purchasing
org schema (if you assign calculation schema only to purchasing schema then the PO
will pick up same calculation schema for different vendors), or both at time (if you
wants separate pricing for domestic and foreign vendor under one Pur. Org maintain two
vendor schemas different for two vendors and assign it to purchasing org schema).

206. What are the types of special stocks available?

Answer :Special stocks and special procurement types are divided into the following
areas:

- Consignment

- Subcontracting

- Stock transfer using stock transport order

- Third-party processing

- Returnable transport packaging

- Pipeline handling

- Sales order stock

- Project stock

207.What MRP procedures are available in MM-CBP (Consumption Based

Planning)?

Answer : Various material planning methods are used in MRP (Material Requirements
Planning). Reorder point procedure (VM) Forecast-based planning (VV) Time-Phased
materials planning (PD) These are specified in material creation (MM01) under the MRP
SAP MM INTERVIEW QUESTIONS & ANSWERS 59

1 tab.

208. Under what conditions are “planned orders” created? What may planned
orders be converted to and how is that conversion accomplished?

Answer : Planned orders are always created when the system creates an internal
procurement proposal. In the case of vendor procurement, the MRP Controller may
create a planned order or directly create a PR. The next step for a planned order is to be
converted to a PR so it goes to purchasing and is to eventually become a PO. A planned
order can be converted to a PR using transaction code MD14.

209. What are the organizational levels of the Enterprise Structure in R/3? A:
Answer : The top level of the organizational plan is the Client, followed by Company
Code, which represents a unit with its own accounting, balance, P&L, and possibly
identity (subsidiary). The next level down is Plant, an operational unit within a company
(HQ, Assembly Plant, Call Center, etc.). The Purchasing Organization is the legally
responsibly group for external transactions. This group is further subdivided into
Purchasing Groups.

210. What are the different ways to organize purchasing organizations?

Answer : A Purchasing Organization may be responsible for multiple plants and this is
referred to as “Distributed Purchasing”. On the other hand, “Centralized Purchasing”
features one Purchasing Organization per Plant. A Purchasing Organization doesn’t
necessarily need to be assigned to a Company Code. This would enable procurement for
every company code as long as buyers are acting for an individual Plant, and that Plant
is assigned to the Purchasing Organization. Hence, a plant may be assigned to more than
one Purchasing Organization.

211. What are “Special Stocks”?

Answer : Special Stocks are stocks that are accounted for but are not owned by the
client, or are not stored at a regular facility. Consignment, sales order, and project stock
SAP MM INTERVIEW QUESTIONS & ANSWERS 60

are examples.

212. What are some of the options available to transfer materials from one plant to
another?

Answer :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 a MRP PR.

213. What are some of the common Stock Transport Order Movement Types?

Answer : One step transfers of materials can be posted using MT 301. Other various
transport scenarios differ in the MTs by the Goods Issues and Good Receipts. Common
Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt
often uses MT 101.

214. What is the difference between a Purchase Order and a Purchase Requisition?
Answer : A Purchase Requisition is a document type that gives notification of a need
for materials or services. A Purchase Order is a document type that is a formal request
for materials or services from an outside vendor or plant. Procurement types may be
defined at the line item and can be standard, subcontracting, consignment, stock transfer,
or an external service.

215.What is an “indirectly created” Purchase Requisition?

Answer : 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. The “directly created” Purchase Requisition, on the other hand, is created
by a person manually in the requesting department specifying what materials/services,
units, and a delivery date.

216. What is an RFQ and how is it different from the Quotation Form?
SAP MM INTERVIEW QUESTIONS & ANSWERS 61

Answer : A RFQ is a purchasing document and an invitation to a vender(s) for

quotation regarding needed materials or services. If multiple an RFQ is sent to multiple
vendors, the system can automatically determine the best quote and send rejection letters
in response to all others. The RFQ and the Quotation Form are one in the same in the
system as vendor’s quotes are entered directly in the RFQ.

217. What are the transactions that will result in a change of stock?

Answer : A Goods Receipt is a posting acknowledging the arrival of materials from a

vendor or production, which results in an increase in warehouse stock, a Goods Issue
which results in a reduction in stock, or a Stock Transfer moving materials from one
location to another.

218. When would it be prudent to post goods movements via the Shipping
Application?

Answer : If picking, packing, and transportation operations need to be planned in

detail. Also, in shipping, you can manage movements like returns from customers,
vendors, and returns to stock. Movement Types in shipping start with a 6.

219. What is a Reservation?

Answer : A Reservation is a document used to make sure that the warehouse keeps a
certain amount of a material or materials ready for transfer at a later date. It contains
information on what, quantity, when, where from and to. Reservations help effective
procurement by utilizing the MRP system to avoid out of/lack of stock situations.

220.Can you manually generate a Purchase Requisition referencing a Purchase

Order or a Scheduling Agreement?

Answer : A Purchase Requisition cannot be created with reference to either of these, as

they are documents controlled by the purchasing organizations. Requirements can be
automatically generated with MRP that reference a Scheduling Agreement if the source
list is maintained for item-vendor combination.

221. How is GR/IR account related to Inventory? _

SAP MM INTERVIEW QUESTIONS & ANSWERS 62

Answer : 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 about 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.

222.How do planned and unplanned consumption affect Movement Types?

Answer : In a customized Movement Type, you have defined which consumption value
gets posted in the movement. Many will always be planned or unplanned, but for some
there is a dependency on if the movement references a reservation. This would be
planned consumption.

223. What are Departmental Views?

Answer :All functional areas of the system use the same material master data. The
material master data is defined in individual screens (departmental views) that can be
added as needed. Thus a material can be created with only basic data and other
departments can add other information later as it becomes available.

224. Is Material Data valid for all organizational levels?

Answer : Control of master data depends largely on how each company sets up its
Organizational levels - centralized or decentralized. Some material data is valid for all
organizational levels while other data is valid only at certain levels. (I.e.: client, plant,
sales org., etc.).

225.Why would you want to create physical inventory sheets to perform an

inventory cycle-count on a material or materials?

Answer : For a cycle counting procedure, physical inventory documents need to be

created. These are used to record inventory levels of the material being cycle counted.
Use transaction MICN. Click on the Execute button. On screen “Batch Input: Create
Physical Inventory Documents for Cycle Counting”, perform the following, Click on the
Generate Session button and Click on the Process Session button. This procedure details
how to create the physical inventory documents for cycle counting in a batch, rather than
one at a time, based on certain criteria. This would print physical inventory documents
for all material/batches that meet those requirements.
SAP MM INTERVIEW QUESTIONS & ANSWERS 63

226. What is the difference between a Blanket Purchase Order and the Framework
Order?

Answer : In general, the Blanket POs are used for consumable materials such as office
paper with a short text, with item category B. There need not be a corresponding master
record, for the simplicity of the procurement. The FO, Framework Order, document type
is used. Here, the PO validity period as well as the limits are to be mentioned. The GR,
or Service Entry for the PO are not necessary in the case of Blanket POs. One need not
mention the account assignment category during creation of the PO. It can be U, or
unknown and be changed at the time of IR.

227. What is Release Procedure?

Answer : Release Procedure is approving certain documents like PRs or POs by criteria
defined in the configuration. It is sensible to define separate release procedures for
different groups of materials for which different departments are responsible, and to
define separate procedures for investment goods and consumption goods.

228.If you have a multi-lineitem PO, can you release the PO item by item?

Answer :No, a PO is released at the header level meaning a total release or “With
Classification”. PRs, on the other hand, have two release procedures possible. “With
Classification” as described above, and “Without Classification” where it is only
possible to release the PR item by item.

229. What is a Material Type?

Answer : A Material Type describes the characteristics of a material that are important
in regards to Accounting and Inventory Management. A material is assigned a type when
you create the material master record. “Raw Materials”, “Finished Products”, and
“Semi-Finished Products” are examples. In the standard MM module, the Material Type
of ROH denotes an externally procured material, and FERT indicates that the relevant
material is produced in-house.

230. What is a price comparison?

Answer : Perform a price comparison using ME49 and one may compare quotations
from different vendors.
SAP MM INTERVIEW QUESTIONS & ANSWERS 64

231. What is a Source List?

Answer :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.

232. What are the various “steps” in the MM Cycle from material creation through
invoice?

Answer : The following creates a rough picture of the MM Cycle. Create material,
create vendor, assign material to vendor, procure raw material through PR, locate vendor
for certain material, processing GR, goods issue, and invoice verification.

233. Give some examples of the information relating to a

material’sstorage/warehousing?

Answer : 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.

234. What are the various features of Consignment Stocks?

Answer :Consignment Stocks remain the legal property of the Vendor until the
organization withdraws the material from the consignment stores. The invoice can be
due at set periods of time, for example monthly, and it is also a configuration possibility

SAP-MM Interview Questions have been designed especially to get you acquainted
with the nature of questions you may encounter during your interview for the subject of
SAP-MM. As per my experience, good interviewers hardly planned to ask any
particular question during your interview, normally questions start with some basic
concept of the subject and later they continue based on further discussion and what you
answer:

235. What do you know about SAP?

SAP MM INTERVIEW QUESTIONS & ANSWERS 65

Answer : SAP stands for “Systems, Applications and Products in data processing”.
Amongst the software provider, SAP comes up as the world’s third largest. 5 IBM
employees founded SAP in 1972 in Walldorf, Germany.

236. What are Features of SAP ERP?

Answer : SAP is an enterprise resource planning software which is produced by the
German corporation. SAP is a enterprise information software that was basically
designed to manage resources, information and activities that are required to complete
business processes like procurement and managing orders, billing of orders and
management of human resources.

237. What are the organizational levels in SAP R/3?

Answer : The top level of the organizational structure is the client, followed by
company code, which represents a unit with its own accounting unit. The next level
down is plant where procurement activities take place. A plant will produce goods and
makes goods available for the company. The purchasing organization is the legally
responsible for procurement transactions. This group is further subdivided into
purchasing groups.

238 What are important steps in procurement life cycle?

Answer : Procurement Process starts with gathering requirements, then creating a
purchase requisition and then we create a formal document that has to be sent to vendor
i.e. purchase order. After this goods will be supplied by vendor and goods receipt is
done along with invoice verification. Then vendor is paid for supplied goods and
services.

239. What do you mean by special stocks?

Answer : Special stocks are stocks that are managed differently as these stocks did not
belong to company and these are being kept at some particular location.

240. How stock is being transferred from one plant to another plant?
Answer : Stock within plants is transferred with the help of stock transport order. One
plant order the goods internally from another plant(receiving plant/issuing plant) with
the help of stock transport order.

241. What are some of the movement types for stock transport order?
SAP MM INTERVIEW QUESTIONS & ANSWERS 66

Answer : One step transfers of materials can be posted using movement type 301.
Other movement types are 303, 351, 641, or 643 in the stock transport order.

242. What is difference between purchase requisition and purchase order?

Answer : Purchase requisition is an internal document and it is a request that is made
to purchasing organization to procure certain list of material while purchase order is
formal document that is given to vendor containing list of items to be procured from
vendor.

243. What is a RFQ and how it is different from quotation?

Answer : RFQ is request for quotation and it is a form of invitation that is sent to
vendors to submit quotation indicating pricing and their terms and conditions while
quotation is a reply by a vendor in response to request for quotation.

244. What are transactions that will cause change in stock?

Answer : Goods receipt and goods issue will cause change in stock as goods receipt
will increase warehouse stock and goods issue will decrease warehouse stock.

245. What do you mean by reservation?

Answer : Sometimes, stock need to be blocked in advance so that it can be available at
a particular point of time. This is known as reservation. Reservation ensures that stock
is available and it can be used when required. Reserved quantity can be viewed by
tcode MMBE.

246. Can you manually create purchase requisition with reference to documents
such as purchase order or scheduling agreement?
Answer :No, purchase requisition cannot be created with either of these as it is an
internal document which is controlled by purchase organization.

247. Is material and vendor data available at all organizational levels?

Answer : Yes, material and vendor data is available at all levels as it is normally
created for company and it is valid for the levels below company.

248. What do you mean by release procedure?

Answer :Release procedure means approval of documents like purchase orders and
purchase requisition manually by the criteria defined in the configuration.

249. If you have multiple line items in purchase order, can you release line by line
SAP MM INTERVIEW QUESTIONS & ANSWERS 67

that purchase order?

Answer :No, release is done only at header level in a combined way for all line items
in case of purchase order.

250. What do you mean by material type?

Answer :Materials with some common attributes are grouped together and they are
assigned to a material type. This will differentiate materials and allow organization to
manage different materials in systematic manner in accordance to company’s
requirement.

251.What is a source list?

Answer : Source list include list of possible sources of supply for a material over a
given framework of time. A particular material can be ordered from different vendors in
different time intervals. This information can be maintained in a source list.

252. What do you mean by consignment stock?

Answer : In Consignment, material is available at our store premises, however it still
belongs to the vendor(seller)/Owner of the material. If you utilize the material from
consignment stocks, then you have to pay to the vendor.

253.What is invoice verification?

Answer : Once goods are procured from vendor and placed in company’s premises
through goods receipt then we need to pay to vendor for acquired goods and services.
The amount to be paid along with details of material is provided by vendor in form of
document that is known as invoice. Before paying to vendor we need to verify the
invoice. This process of verifying invoice and paying to vendor is known as invoice
verification.

254.What do you mean by outline agreement?

Answer : Outline agreement is a long term purchasing agreement with vendor
containing terms and conditions regarding the material that is supplied by vendor.
Outline agreement are valid up to certain period of time and cover a certain predefined
quantity or value.

255. What is difference between contract and scheduling agreement?

Answer : Contract is a long term outline agreement between vendor and ordering party
SAP MM INTERVIEW QUESTIONS & ANSWERS 68

over predefined material or services over certain framework of time whereas scheduling
agreement is a long term outline agreement between vendor and ordering party over a
predefined material or service which are procured on predetermined dates over a
framework of time.

256. What is difference between planned and unplanned services?

Answer : In planned services at the time of procurement specifications like quantity
and price are known in advance. It means nature and scope of service is clear before
procurement whereas in unplanned services at the time of procurement specifications
like quantity and price are not known in advance. It means nature and scope of service
is not clear before procurement. These services can be extended as per the requirement.

257. What is quota arrangement?

Answer : A particular material can be procured from different vendors depending upon
the requirement. So, total requirement of a material is distributed to different vendor’s
i.e. quota is assigned to each source of supply. This is known as quota arrangement.

258. What do you understand by posting period?

Answer : Various documents like purchase order, request for quotation, goods receipt
are essential documents in a business. These documents need security i.e. if any of
documents is posted incorrectly then business can be affected at various concern levels.
So, to secure these documents we have a concept of posting period. Posting period
means it will allow you to post and make changes in the documents only in a specific
time period.

259. Explain what is SAP MM?

Answer :SAP MM (Material Management) is a functional module in SAP that deals

with procurement handling and material management. The MM module contains master
data, system configuration and transactions to complete the procure to pay process.

260. Let’s start with an easy one. What is SAP MM and name the modules that the
MM module Affects?

Answer :The SAP MM module is the materials management module within SAP. The
materials module affects the production planning, or PP module, since it affects
SAP MM INTERVIEW QUESTIONS & ANSWERS 69

production costs and the production process. It also affects the SD, or sales and
distribution module, since it indicates the quantities of materials sent to production. The
MM module affects the warehouse management, or SAP WM module, since it contains
the information about materials stored and the transfer of materials within the
organization. Finally it also affects the financial accounting module since material costs
and management affect general accounting within the organization.

Learn about the SAP MM module with this SAP MM course, designed by industry
experts, developed to teach you everything you need to know to become a SAP MM
consultant. The course includes over thirty lectures that will teach you how to start
working with SAP purchasing and material master. The course includes lessons on
materials planning, invoice verification, materials control, warehouse management and
inventory management.

261. What is a ‘Material Ledger’?

Answer :A ‘Material Ledger’ is nothing but a tool for inventory accounting that
provides new methods for ‘price control’ for ‘material valuation’ (you can store the
material inventory values in more than one currency). It makes it possible to keep the
‘material price’ constant over a period of time (say, over the life of a production order).
The moving average price field is used to store a ‘periodic price.’ This periodic price
stays constant and is the price used for valuation until you close the material ledger. At
closing, the periodic price is updated based on the actual value of invoice receipts
received for that material during the period.

262. Explain ‘Split Valuation.’ Why is it Necessary?

Answer :‘Split Valuation’ allows substocks of the same material to be managed in
different stock accounts. This allows substocks to be valuated separately, and every
transaction is carried out at the substock level. So, when processing a transaction, it is
necessary to mention the substock.
The ‘split valuation’ is necessary if the material has:
• Different Origins
• Various Levels of Quality
SAP MM INTERVIEW QUESTIONS & ANSWERS 70

• Various Statuses
It is also required in situations where you need to make a distinction between ‘in-house
produced materials’ and ‘materials procured externally,’ or if there is a distinction
between ‘different deliveries.’

263. Explain the Basic Steps in ‘Configuring Split Valuation.’

Answer :The five basic steps for ‘Configuring Split Valuation’ are:
• Activate ‘Split Valuation’
• Define ‘Global Valuation Types’. For each Valuation type’ you need to specify: (a)
whether ‘external’ purchase orders are allowed, (b) whether production orders are
allowed, and (c) the account category reference.
• Define ‘Global Valuation Categories’. For each valuation category specify: (a)
default ‘valuation type’ to be used when purchase orders are created and whether
this default can be changed, (b) default valuation type to be used when production
orders are created and whether this default can be changed, and (c) whether a
‘valuation record’ should be created automatically when a GR is posted for a
valuation type for which no record yet exists.
• Allocate ‘Valuation Types’ to the ‘Valuation Categories’
• Define which of the ‘Global Categories/Types’ apply to which ‘Valuation Areas’

264. Outline ‘Stock Valuation Methods’ for Material Revaluation.

Answer :There are three methods with which you can revaluate your stock for Balance
Sheet purposes. Irrespective of the method you select, you will be able to valuate your
stock either at the Company Code level or at the Valuation Area level:
· LIFO (Last-In-First-Out): This method is based on the assumption that the
materials received last were the ones issued/consumed first. The valuation is based on
the initial receipt.
· FIFO (First-In-First-Out): Here the assumption is that the materials
received first are the ones consumed/issued first. So, the valuation is based on the most
recent receipt. The FIFO method can also be used in conjunction with the lowest value
method. By this you can determine whether the system should make a comparison
between the FIFO determined price and the lowest value price. You can also determine
whether the FIFO price should be updated in the material master record.
· Lowest Value Method: Here, the stocks are valued at their original price
or the current market price whichever is lower. This method is suitable when the
inventory needs to be valued to take into account material obsolescence, physical
SAP MM INTERVIEW QUESTIONS & ANSWERS 71

deterioration, or changes in price levels.

265. How Does ‘Automatic Account Assignment’ Work in MM?
Answer : 1. ‘GL accounts’ are assigned to ‘Transaction Keys’ (BSX,
WRX, PRD, UMG, GBB, etc.).
2. Transaction Keys identify which GL Accounts are to be debited or
credited.
3. Transaction Keys are assigned to ‘Value Strings’ (for example, WA01).
4. ‘Movement Types’ (for example, 901) are associated with a ‘Value
String.’
266. Explain ‘Automatic Account Assignment’ Configuration in MM.
Answer : There are four steps required to complete the ‘Automatic Account
Assignment’ configuration settings for MM:
• Finalize the ‘valuation level.’
• Activate the ‘valuation grouping code’ option. (For this you need to group
valuation areas using valuation grouping codes.)
• Maintain ‘valuation classes’ and ‘account category references’ and their linkage to
‘material types.’
• Maintain the ‘GL accounts’ for each combination of Chart of accounts, valuation
grouping code, valuation class, and transaction key.
You may use the ‘automatic account determination wizard’ to complete the
configuration settings, as the wizard guides you step-by-step.

267. Explain the ‘Transaction Keys’ in MM.

Answer : Also known as ‘process keys,’ the ‘Transaction Keys’ are pre-defined in the
system to enable transaction postings in Inventory Management and Accounting
(Invoice Verification). For each of the movement types in MM, there is a value string
that stores these possible transactions.
The pre-defined transaction keys are:
• BSX (used in Inventory Postings)
• WRX (used in GR/IR Clearing Postings)
• PRD (used to post Cost/Price differences)
• UMB (used to post Revenue/Expenses from revaluation)
• GBB (used in offsetting entries in Stock postings)
BSX, WRX, and PRD are examples of transaction keys that are relevant for a GR with
reference to a purchase order for a material with standard price control. The transaction
key UMB is used when the standard price has changed and the movement is posted to a
SAP MM INTERVIEW QUESTIONS & ANSWERS 72

previous period. Likewise, GBB is used to identify the GL account to post to as the
offsetting entry to the stock account (when not referencing a purchase order) such as
miscellaneous goods receipts, goods issues for sales orders with no account assignment,
and scrapping.

268.How Does the System Determine the Correct ‘GL a/c’ for a Posting?
Answer :Imagine that you are posting a goods movement.
• Since the goods movement is from a plant, and the plant is assigned to a Company
Code, the goods movement identifies the relevant Company Code.
• As the Company Code has already been assigned to the Chart of Accounts, the
system is able to identify the GL accounts.
• The plant also determines the valuation area (and the optional ‘valuation grouping
code’).
· Since each movement type is assigned to a ‘value string’ which in turn is
identified with a transaction key, the goods movement determines the correct transaction
key.
• Since each of the transaction keys is associated with the relevant GL accounts,
through the value string, the movement type now identifies the relevant GL
Account, and the transaction is posted.

269.What is meant by scales?

Answer :We can fix a price in the info record for range of qty from 1-100 price Rs.100
& if the order qty is 101- 500- the prices is Rs.90.Also scales cannot be used directly in
PO but can be pulled into the PO from various master data like info record, quota
arrangement etc.

270. How is Stock Transfer Done between the Plants? What are One-step and Two-
step Stock Transfer?
Answer : Stock transfer between different plants is performed in Inventory
Management. A stock transfer can happen between plants with the same or different
company codes. In a stock transfer between plants, the sales department in the issuing
plant and the purchasing department in the receiving plant are involved. The stock
transfer between plants can be performed in a one-step or two-step procedure.
• One-step stock transfer—Refers to the procedure in which the quantity of stock
issued from the issuing plant is the same as the quantity of stock received at the
SAP MM INTERVIEW QUESTIONS & ANSWERS 73

receiving plant. In this type of stock transfer, the entry for posting the transfer of
stock is made in Inventory Management. The transfer posting can then be planned
with or without a reservation and valuated in the issuing plant. In the case of
plants having different company codes, two accounting documents are created for
transfer posting. The quantity of the transferred stock is posted from the
unrestricted use stock of the issuing plant to the unrestricted-use stock of the
receiving plant. The unrestricted-use stock in the issuing plant therefore decreases
by the amount of the transferred stock and the unrestricted-use stock in the
receiving plant increases by the amount of the transferred stock.
• Two-step stock transfer—Refers to the procedure in which the stock remains in
transit until it is received at the receiving plant. In a two-step stock transfer, the
decrease in stock in the issuing plant is posted first. The quantity of the transferred
stock is then managed in the stock in transfer in the receiving plant. When the
placement is posted in the receiving plant, the transferred stock becomes part of
the unrestricted-use stock in the receiving plant. In a two-step stock transfer, the
transfer posting cannot be planned by creating a reservation. Similar to the one-
step stock transfer, two accounting documents are created for the transfer posting
in case there are plants that have different company codes.
271. What is the Difference between Stock Transfer and Transfer Posting?
Answer :Stock transfer is the physical movement of goods from one store to another
store or one plant to another plant. Transfer posting is the movement of goods from one
stock type to another or from one storage location to another storage location within a
plant.

272. How is Stock Transferred with and without Delivery?

Answer :A stock transfer can be made with or without delivery. In a stock transfer
without delivery, inventory management as well as purchasing on the receiving end are
involved. In addition, it is a two-step stock transfer procedure. In a stock transfer
without delivery, the following steps occur:
• The receiving plant enters an STO with the stock transport order type and U-item
category.
• The STO is then used to plan the goods movement.
• The goods issue is posted to the STO in the issuing plant.
• The goods are posted as in-transit stock in the receiving plant with movement type
351.
• The stock is in the stock overview of the issuing plant with the Release Stock
Transport Order type. Now select Inventory Management > Goods Movement >
Transfer Posting from the menu.
• As soon as the stock is received at the receiving plant, the goods receipt is posted
SAP MM INTERVIEW QUESTIONS & ANSWERS 74

and the stock is changed from in-transit to unrestricted-use stock.

• The goods receipt is entered with reference to the PO by selecting Inventory
Management > Goods Movement > Goods Receipt > For Purchase Order from the
menu.
A stock transfer with delivery is done through shipping. Such a stock transfer can be
achieved using a one-step or two step transfer procedure. In this stock transfer,
purchasing, shipping, and inventory management are involved. In a stock transfer with
delivery through shipping, the following steps occur:
• The receiving plant enters an STO with the UB order type and the U-item
category.
• Select Purchasing > Purchase Order > Create > Stock Transfer from the menu.
• The shipping point in the issuing plant enters a replenishment delivery in
shipping.
• When the goods issue is posted, the material is assigned to the receiving plant for
accounting purposes.
• A materials document and a financial accounting (FI) document are created.
• Select Logistics > Sales and Distribution > Shipping and Transportation >
Outbound Delivery > Create >Collective Processing of Documents Due for
Delivery > Purchase Orders from the menu.
· For a two-step procedure, select movement type 641.
· For a one-step procedure, select movement type 647. Note that in this case, the
goods receipt does not need to be posted.
· As soon as the stock is received at the receiving plant, the goods receipt is posted
and the stock is changed from in-transit to unrestricted-use stock.
· The goods receipt is entered with reference to the PO by selecting Inventory
Management > Goods Movement >Goods Receipt > For Purchase Order from the menu.

273. How is Stock Transferred in a Cross-Company Scenario?

Answer :Stocks can be transferred between plants that belong to different company
codes. Such a stock transfer process can be done in any of the following ways:
· One-step plant-to-plant stock transfer
· Two-step plant-to-plant stock transfer
· STO without delivery through shipping
· STO with delivery through shipping
274. How Can We Post a Goods Issue in the Case of an STO?
Answer :A goods issue indicates an outward movement of stocks from an issuing plant,
SAP MM INTERVIEW QUESTIONS & ANSWERS 75

that is, a decrease in stocks due to the removal of stocks from the issuing plant. The
goods issue for an STO can be posted in Inventory Management or Shipping. When the
goods issue is posted in Inventory Management, the goods receipt can be posted with a
reference to the STO. To post a goods issue in Inventory Management, perform the
following steps:
• Select Goods Movement > Transfer Posting in the Inventory Management menu.
• Enter the issuing plant and the issuing storage location for the individual
materials.
• elect movement type 351.
To post the goods issue in Shipping, perform the following steps:
• Select Logistics > Logistics Execution > Outbound Process > Goods Issue for
Outbound Delivery > OutboundDelivery > Create > Collective Processing of
Documents Due for Delivery > Purchase Orders. The PO tab now appears
selected.
• Enter the necessary information on the Purchase Orders page.
• Select Execute. A list of deliveries is displayed.
• The posting of the goods issue results in the following:
• During the creation of a material document for plants belonging to different
company codes, an accounting document is also created.
• Creation of a goods issue slip.
• Decrease in the stocks in the issuing plant. The stocks are in transit to the
receiving plant.
• Creation of posting lines on the accounts of the accounting system.
• An update of the consumption, reservation, and order.
• Creation of a transfer requirement when the Warehouse Management System
manages the storage location.
• Creation of an inspection lot when inspection processing is connected.
• Creation of a PO history.

275. How Can We Monitor Stock in Transit?

Answer :Stock in transit refers to the stock that is removed from the issuing plant but
has not yet arrived at the receiving plant.
The stock in transit can be viewed and monitored by using the following approaches:
Stock overview—To view the stock in transit by using stock overview, perform the
following steps:
In the Inventory Management menu, Select Environment > Stock > Stock Overview.
· Select the material and the receiving plant.
· Evaluate the stock overview of the selected plants.
· Select a particular plant and detailed display. The stocks (including the stocks in
SAP MM INTERVIEW QUESTIONS & ANSWERS 76

transit) in the selected plant are displayed.

276. What are some of the common Stock Transport Order Movement Types?
Answer :One step transfers of materials can be posted using MT 301. Other various
transport scenarios differ in the MTs by the Goods Issues and Good Receipts. Common
Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt
often uses MT 101.

277.. What is the Transaction Code to Create Movement Types? How Can We
Create Movement Types?
Answer :OMJJ is the transaction code to create movement types.
Perform the following steps to create movement types:
· Select the standard movement type 201 from the Determine Work Area Entry
dialog box.
· Click the copy icon and then overwrite 201 with Z01.
· Select the new movement type Z01 from the Determine Work Area Entry dialog
box.
· Select Reversal > Follow-On Movement.
· Enter the reversal movement type.
278.. What is a Reservation? What Transaction Codes are Used with Reservations?
Answer :A reservation is a document that ensures the availability of materials in the
warehouse when materials are required for transfer to a customer. It contains
information, such as which materials are needed, what quantities of materials are
required, and when or where the materials are needed. It helps the MRP system to avoid
lack of stock in the warehouse.

The following transaction codes are used with reservations:

· MB21—Creates a reservation
· MB22—Changes a reservation
· MB23—Displays a reservation
· MB25—Displays lists of reservations
SAP MM INTERVIEW QUESTIONS & ANSWERS 77

279. A material does not have a master record. How can we procure that?

Answer :There may be instances when a material does not have a master record. You
can perform different functions in different situations to procure the master record. For
example:
· You can create a material master record if there is no material master record
for a particular material.
· You can extend the material master record if the material master record exists
for a particular material but the user department does not have the master data.
· You can also extend the material master record if the material master record
exists for a particular material and the user department has the master data but it has
been entered in a different organizational level.
280. State the importance of classification data.

Answer :Classification data allows you to search for materials on the basis of the
characteristic values entered into the classes. This feature is very useful when the
customer wants to search for a particular vendor and particular batches.

281. What is an ABC indicator?

Answer :An ABC indicator is an indicator assigned by the ABC analysis procedure. An
ABC indicator provides details of the consumption value of the material involved in the
ABC analysis. The ABC analysis is performed by multiplying the current price of the
materials by their quantity. The different consumption values are given as follows:
· A materials—Important parts, high usage/consumption value
· B materials—Less important parts, medium usage/consumption value
· C materials—Relatively unimportant parts, low usage/consumption value

282. What are the main master files used in MM?

Answer :The following are the main master files used in MM:
SAP MM INTERVIEW QUESTIONS & ANSWERS 78

· Material master file

· Inventory master file
· Vendor master file
283. Give some example of master data in material management (MM).

Answer :Material master, material master general data (MARA), tax Classification
material (MLAN), info records, source list, and vendor master are examples of master
data in MM.

284. How is the vendor created?

Answer :You can create a vendor by using the transaction code XK01 and performing
the following steps:

· Add the vendor name, company code, purchasing organization, account group,
and vendor address.
· Add the country, bank key, bank account, and the name of the account holder.
· Save the data.
· This creates a vendor record in the system.
285. What is vendor master data?

Answer :Vendor master data contains details of each vendor that supplies materials or
services to an enterprise. The vendor master data is stored in individual vendor master
records consisting of data, such as the vendor's name, the vendor's address, the currency
used for the transaction, payment terms, and the contact person's name (on the sales
staff).

286. What are the different sections in vendor master data?

Answer :Following are the three sections in vendor master data:
General data— Provides general information about the vendor that can be entered into
the system for creating vendor records. General data can provide the name, address,
telephone, and fax of the vendor through specified search terms. Additional information
can also be added to the vendor master record by the accounting and purchasing
departments using the transaction code XK01.
SAP MM INTERVIEW QUESTIONS & ANSWERS 79

Accounting data —Refers to financial information entered at the company code level.
The financial information includes tax information, bank details, reconciliation account,
payment terms, payment methods, and dunning information. You can enter this financial
data using the transaction code FK01.
Purchasing data —Refers to data entered while creating a vendor at the purchasing
organization level. Different purchasing organizations have different purchasing data.
The purchasing data includes partner functions, purchasing default fields, and invoice
verification indicators. You can enter this data using the transaction code MK01.
287.. What are the different fields in vendor master data?
Answer :The different fields in vendor master data are as follows:
o The name and address of the vendor
o The currency in which the transaction will be done
o The terms and conditions of payment
o The names of important contact persons
o The accounting information, such as the reconciliation account in the
general ledger
288.. How do we create a vendor number range?
Answer : When you create a number range, it is important to remember that vendor
numbers, such as material numbers, can be assigned externally or internally. You can
create vendor number ranges by selecting the following navigation path: IMG >
Financial Accounting > Vendor Accounts > Master Data > Preparations for Creating
Vendor Master Data > Create Number Ranges for Vendor Accounts.
· For configuring the vendor number range, you should enter a unique
number for the range, which is a two character field, and then specify the limit for the
number range. The current number field is used to define the current number. The Ext.
field Specifies whether the number range is defined externally by the user.
· 34. What is dunning procedure? How can it be configured?
· Sometimes, you may need to send a payment reminder or a dunning notice
to a person or an organization to remind them of their outstanding debts. The process by
which the system controls dunning is called dunning procedure. Dunning procedure can
be configured by using the FBMP transaction code or the following navigation path:
SAP MM INTERVIEW QUESTIONS & ANSWERS 80

IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions > Dunning > Dunning Procedure > Defining Dunning Procedures.
289. How do we assign material to vendors?
Answer :Select the following navigation path to link vendors to materials: SAP Menu >
Logistics > Material Management > Purchasing > Master Data > Info Record >
Create. Alternatively, the ME11 transaction code is used for this purpose.
290. What is the transaction code to access the Materials Management Configuration
menu?
Answer : The OLMS transaction code is used to access the Materials Management
configuration menu.
291. What are the various transaction codes to access the MM configuration?
Answer :The following are the various transaction codes to access the MM
configuration:
Transaction Description
Code
OLMD Accesses Material Management-Consumption Based Planning
(MM-CBP)
OLMB Accesses Material Management-Inventory Management (MM-
IM)
OLME Accesses Material Management-Purchase (MM-PUR)
OLML Accesses Material Management-Warehouse Management
OLMS Accesses the material master data
OLMW Enables valuation and account assignment

292. Write the names of some important MM tables

Answer :The following table lists the important MM table names:
Table Name Purpose
EINA Used for general data of the (purchasing) information record
MARC Used in plant data for materials
EINE Used for purchasing organization
MAST Used for bills of material (BOM) link
SAP MM INTERVIEW QUESTIONS & ANSWERS 81

Table Name Purpose

MKPF Used for header material document
MAKT Used for material description
MARD Used in storage location data for material
MARA Used for general materials data
MBEW Used for material valuation

293. What are purchasing information records?

Answer :Purchasing information records, also known as info records, contain
information related to the material and the vendor who is supplying the material. They
also contain details about the material, such as the current price.
294. What are the categories of purchasing information records?
Answer : The categories of purchasing information records are as follows:
• o Standard—Contains information for the standard purchase order. In
this type of purchasing info record, you can create info records for materials and
services that do not have master records.
• o Subcontracting —Contains ordering information for subcontract
orders.
• o Pipeline— Contains information on commodities that are sent
through a pipeline, such as oil or water.
• o Consignment— Contains information on materials that are in the
vendor's possession and are kept by the vendor at some other premises at his own
cost.
295. What are the prerequisites for creating a purchasing info record?
Answer : The prerequisites for creating a purchasing info record are as follows:
• Material number —Before creating a purchasing info record, the material number
of the material master record should be known.
• Manufacturer part number (MPN) material number —Before ordering a material
that has an MPN, you must know its MPN material number.
• Vendor number —You should also know the number on the vendor master record.
SAP MM INTERVIEW QUESTIONS & ANSWERS 82

• Organizational level —If the purchasing info record is for a particular purchasing
organization or plant, then the code specific to that purchasing organization or
plant is required.
296. How can we create a purchasing information record?
Answer :You can create a purchasing information record either manually or
automatically by setting the Info Update indicator when maintaining a quotation, a
purchase order, or an agreement.
297. Can a purchasing info record be created without a material number?
Answer :Yes, you can create a purchasing info record without a material number. If the
material does not have a material number, you will need the following information to
create the purchasing info record:
• Material short text
• Order unit
• Material group
• Short term key
298. How can we create an information record based on the material master?
Answer : First, you need to create the info record by selecting SAP Menu > Master
Data > Info Record > Create. Enter details such as vendor number, material number,
purchase organization, or plant number. Then enter the number of the information record
(in case of external assignments). Next, enter the general data for vendors, ordered
quantity, origin of data, supplying information, and customs tariff number. Then enter
the planned delivery time, purchasing groups, and standard purchasing quantity. Check
the control data and take the default value of tolerance data and the purchasing group
from the material master record. Finally, enter the net price and then select Go To >
Texts to display the text overview. If the PO text is already defined, it appears in the
material master record; otherwise, it needs to be entered. After all these entries have
been made, the record is saved.
299. What is the document management system (DMS) in SAP?
Answer :The DMS in SAP helps you store external documents, such as pictures of the
goods or material. By using the DMS, you can set the maximum size of the picture that
can be uploaded in a document. The DMS helps to link these external documents with
the appropriate SAP objects.
SAP MM INTERVIEW QUESTIONS & ANSWERS 83

300 . What are the special stocks used in MM?

Answer :
• Special stocks are stocks that are managed separately regardless of whether they
belong to your company. The company manages a material by using a data record,
which contains all the required information. The different types of special stocks
are as follows:
• Sales order stock
• Returnable packaging with customer
• Consignment stock at customer
• Vendor consignment stock
• Returnable transport packaging
• Subcontracting
• Pipeline
301 . What are the differences between company-owned special stocks and externally-
owned special stocks?

Answer :The differences between company-owned special stocks and externally-owned

special stocks are listed in the following table:
Company-Owned Special Stocks Externally-Owned Special Stocks

Stocks that belong to the company Stocks that belong to the wholesaler
but are stored with the wholesaler or the customer but are stored at the
or the customer are called company are called externally-
company-owned special stocks. owned special stocks.

Company-owned special stocks are Externally-owned special stocks are

managed at the production level. managed at the place where they are
stored.
SAP MM INTERVIEW QUESTIONS & ANSWERS 84

302. Why is negative stock needed in an organization?

Answer :Organizations need negative stock when a material is shipped to a customer

and production is not confirmed or there is not enough stock to satisfy the requirement.
The system still allows the issuing of the material, and inventory shows a negative
quantity of stock until the production of the material is confirmed.

303. What are special procurement types?

Answer :In a normal purchasing system, the customer purchases the goods from the
wholesaler/retailer and the possession of the goods transfers from the wholesaler/retailer
to the customer. This might not be the case with special procurement types, where the
transfer of goods may not necessarily be from the wholesaler/retailer to the customer
directly. For example, you might order a good for a friend of yours, who, in turn,
purchases the good from the wholesaler/retailer and then transfers the good to you. The
friend is the third party involved in this process. Therefore, the possession of the good
indirectly transfers to the customer. This type of procurement is called the special
procurement type. The special procurement type defines the external procurement or in-
house production of the material. The following list shows the special procurement types
available in the SAP system:
· Consignment
· Subcontracting
· Stock transfer using the stock transport order (STO)
· Production in another plant
· Third-party processing
· Returnable transport packaging
· Pipeline handling
304. Define consignment stock. What are the main features of consignment stock?

Answer : Consignment, in a general sense, is the act of holding the ownership of

materials but storing the materials at some other premises until the materials are sold or
shifted somewhere else. The stored materials are known as consignment stock in the
SAP MM INTERVIEW QUESTIONS & ANSWERS 85

SAP system. Therefore, stock that is stored at the customer's premises but is the
supplier's property until the stock is transferred to the customer's stock list is called the
consignment stock. The main features of the consignment stock are as follows:

· You can combine the consignment stock with your available stock at any point
in time.
· You can evaluate the consignment stock in any currency.
· The price of the consignment stock fluctuates. This means that you can
determine the price of the consignment according to the market conditions.
· You can price the consignment stock in any unit.
· You can use different features of purchasing, such as discounts, in the
consignment stock.
· The consignment stock is evaluated at a price quoted by different vendors.
305. How is the pricing of consignment stocks done? What information does
consignment info record contain?

Answer : Prior to ordering a material from a vendor or posting a goods receipt to the
consignment stock, you need to obtain the consignment price. If the consignment
material is ordered from several vendors, the system maintains the consignment stock of
each vendor separately. The reason the system maintains the consignment stock
separately is that the price of the consignment stock may vary from one vendor to
another.
· The consignment information (info) record contains the consignment price
required for the purpose of material valuation and accounting.
306. How are the consignment stocks created?

Answer :Consignment stocks are created in the normal purchase order (PO) or
requisition, but the main thing to consider is that you must enter the K category for the
consignment item. As a result, the goods issued are posted to consignment stores and the
invoice receipt is not generated.

307. Define the consignment cycle?

Answer : Consignment cycle is similar to the purchase cycle, except that when you
SAP MM INTERVIEW QUESTIONS & ANSWERS 86

create goods receipts of the consignment stocks, only quantity (QTY) is updated and no
accounting documents are created. Once the goods are utilized, consignment is settled.
The value of the consumed or issued consignment stocks is taken from the active
purchase info record.
308. How is consignment material procured?
Answer :
Consignment material is procured through purchase requisitions, POs, and outline
agreements.

309. How can we see the consignment stocks in SAP?

Answer :
You can see the consignment stocks in SAP by using the following functions:
· Display consignment info record
· Display the stock overview
· Display consignment stocks
310. How can we take consignment stocks into our own stock?
Answer :
You can take consignment stocks from the vendor into your own stock by performing
the following steps:

· Select Goods Movement > Transfer Posting to display the initial screen.
· Enter the plant name and the location where you want to store the materials.
· Select Movement Type > Transfer Posting > Consignment > Consignment to
Own.
· Select Continue to display the collective entry screen.
· Enter the name of the vendor, the materials, and the quantity of materials.
· Enter the receiving storage location if you want to store the materials in
another storage location.
· Post the document. This makes the vendor liable to change the storage
location of the materials.
SAP MM INTERVIEW QUESTIONS & ANSWERS 87

311. Can we do the physical inventory check of consignment stocks?

Answer :
Yes, you can do the physical inventory check of consignment stocks. To do the physical
inventory check, perform the following operations:
· Create a physical inventory document
· Enter the physical inventory count
· Post the inventory differences
312. How can you do invoicing in case of consignment stocks?
Answer :
You can invoice in the case of consignment stocks by performing either of the
following:

· Invoice with PO
· Invoice without PO
313. What do you mean by subcontracting?
Answer :
Subcontracting can be defined as the processing of materials by an external supplier.

315. How is subcontracting used in case of MM?

Answer :
Subcontracting is the process by which the vendor receives the materials to produce the
end product. Subcontracting involves the following procedures:

· You order the end product by using the subcontract order. The components
that the vendor needs to manufacture the end product are mentioned in the PO.
· During the inventory management process, the components are posted to the
stock of material provided to the vendor. Later, the components are supplied to the
vendor.
· The vendor then processes the service and delivers the materials ordered. The
consumption of the components is posted.
· If, after posting the goods receipt, the vendor notifies you that the quantity of
the components actually consumed is different than planned in the PO, you must make
an adjustment.
SAP MM INTERVIEW QUESTIONS & ANSWERS 88

· The vendor then charges for the service, for which the invoice is posted in
Invoice verification.
316. What information does the subcontracting info records contain?
Answer :
A subcontracting info record consists of ordering information related to subcontract
orders. For example, if you entered into a contract with an outside source for the
assembly of a component, the subcontracting info record would contain the price
specified by the vendor for the assembly work.

317. How do we create subcontracting PO?

Answer :
· Perform the following steps to create a subcontracting PO:
o Enter the material to order and the category of the item for subcontracting (L) in
the order item.
o Press the Enter key to display the screen for component processing.
o In the component processing screen, enter the components required by the
vendor to manufacture the ordered material (end product). When entering the
components, you need to take care of the following points:
o You do not need to enter the date required for the components. The system
proposes this date when you press the Enter key. It is calculated as follows:
Delivery date of the item (planned delivery time)
o If you do not wish the quantity of the components to be altered, even if the order
quantity of the end product is changed, then set the indicated field to fixed quantity.
o If you want to allocate a particular batch of the component to the vendor for the
manufacture of the ordered material, enter the desired batch.
o To determine whether or not the components are available on the date required,
select Component List > Component Availability.
o When you enter a bill of material as the material in the subcontract order, the
components are automatically created.
o You can also determine the components in the bill of material at a later date (for
example, if the bill of material is subsequently changed) by selecting Item > Go to >
Components > New BOM Explosion. The existing entry of the components is removed
and again determined in the bill of material.
SAP MM INTERVIEW QUESTIONS & ANSWERS 89

o Save the PO.

318. How can we view the stocks provided to vendor?

Answer : The stocks of material provided to a vendor can be viewed by using the SC
Stock Monitoring for Vendor report. The report can be accessed by selecting Purchase
Order > Reporting > SC Stocks per Vendor from the menu. With this report, the current
status of the stocks, planned issues, and planned receipts can be viewed.

319. How are components (materials) provided to vendor?

Answer :
The components, or rather the quantities of the components required to manufacture the
end product, are provided in the stock of material to be provided to the vendor. The
stock of material provided to the vendor is the total valuated stock that is available for
MRP. The total valuated stock is managed at the plant level, at the site of the vendor.
This stock can be either an unrestricted-use or quality-inspection stock. The unrestricted-
use stock refers to the valuated stock of a material that is owned by the company and
does not have any restrictions on its usage. The quality-inspection stock is intended to be
used only for quality inspection. The components can be provided to a vendor in the
following ways:
· Posting the components from the unrestricted-use stock
· Receiving the components from another vendor

320. How are components consumed in case of subcontracting?

Answer : In subcontracting, the end product is ordered by using a subcontract order.

The materials or components required by the vendor to manufacture the end product are
mentioned in the PO. The components are posted to the stock of the material provided to
the vendor during inventory management. When the components are supplied to the
vendor, the vendor manufactures the end product and delivers it. At this point, the goods
receipt is posted with a reference to the subcontract order. The goods receipt also
contains the posting of the consumption of the components from the stock of material
provided to the vendor. If the components consumed by the vendor are more or less than
that specified in the PO, an adjustment needs to be posted to correct the consumption of
components.

321. What MRP procedures are available in MM-CBP (Consumption Based

SAP MM INTERVIEW QUESTIONS & ANSWERS 90

Planning)?
Answer : Various material planning methods are used in MRP (Material Requirements

Planning).

Reorder point procedure (VM)

Forecast-based planning (VV)

Time-Phased materials planning (PD)

These are specified in material creation (MM01) under the MRP 1 tab.

322. Under what conditions are “planned orders” created? What may planned

orders be converted to and how is that conversion accomplished?

Answer : Planned orders are always created when the system creates an internal

procurement proposal. In the

case of vendor procurement, the MRP Controller may create a planned order or directly

create a PR. The

next step for a planned order is to be converted to a PR so it goes to purchasing and is to

eventually

become a PO. A planned order can be converted to a PR using transaction code MD14.

323. What are the organizational levels of the Enterprise Structure in R/3?
SAP MM INTERVIEW QUESTIONS & ANSWERS 91

Answer : The top level of the organizational plan is the Client, followed by Company

Code, which represents a

unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next

level down is

Plant, an operational unit within a company (HQ, Assembly Plant, Call Center, etc.). The

Purchasing

Organization is the legally responsibly group for external transactions. This group is

further

subdivided into Purchasing Groups.

324. What are the types of special stocks available?

Answer : Subcontracting, consignement, pipeline, project, sales order, RTP, stock

transfer ,third party.

325. What are the types of inforecords?

Answer : Standard, consignment,subcontracting & pipeline.

326. What is meant by consignment stock?

Answer : The stock supplied by the vendor is in the companies premises with the

company having no liability for the same. The liability for the company will only be

affected when the goods are issued from the consignment stock for use.
SAP MM INTERVIEW QUESTIONS & ANSWERS 92

327. What are the steps involved in consignment cycle?

Answer : Create consignment info record with proper tax code, create Po with item

category K, maintain output condition record for KONS, process GR, no invoice

verification done, but settlement is done through MRKO transaction.

328. Tell me about the subcontracting cycle.

Answer : The Po is created with item category L , the goods is transferred to

subcontractor by 541 movemet. for this movement note no accounting docs take place.

When GR is done automatically, 543 movemnt takes place which take care of the

consumption of components from stock.

329. What are the different ways to organize purchasing organizations?

Answer : A Purchasing Organization may be responsible for multiple plants and this is

referred to as “Distributed Purchasing”. On the other hand, “Centralized Purchasing”

features one Purchasing Organization per Plant.A Purchasing Organization doesn’t

necessarily need to be assigned to a Company Code. This would enable procurement for

every company code as long as buyers are acting for an individual Plant, and that Plant

is assigned to the Purchasing Organization. Hence, a plant may be assigned to more than

one Purchasing Organization.

340. What are “Special Stocks”?

Answer : Special Stocks are stocks that are accounted for but are not owned by the
SAP MM INTERVIEW QUESTIONS & ANSWERS 93

client, or are not stored at a regular facility. Consignment, sales order, and project stock

are examples.

341. What are some of the options available to transfer materials from one plant to

another?

Answer : 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 a MRP PR.

315. How are the byproducts taken care of in subcontracting?

Answer :You can add these by products in the BOM for the header matl.

316. What is meant by scales?

A: Can scales be used in standard purchase order? 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 prices is 140 .

Scales cannot be used directly in PO but can be pulled into the PO from various master

data like info record, quota arrangement.

317. What is the difference between a contract and a scheduling agreement?

Answer : With regard to Outline Agreement:

SAP MM INTERVIEW QUESTIONS & ANSWERS 94

1. You can create the centrally contract (cross-plant) where you can maintain different

pricing conditions for each and every plant

2. You have to create the Release Order with reference to Outline Agreement.

3. No detailed delivery schedule can be made in the Release Order.

4. No Release documentation is created.

5. Only time-dependent conditions can be created.

6. Some Item Category 'M' and 'W' can be used.

With regard to Scheduling Agreement:

1. The Plant Location must be entered in the Scheduling Agreement.

2. We do not have to create any other purchasing document except for delivery schedule

line via Transaction ME38 or MRP running (with the appropriate setting of Source List).

3. Delivery Schedule line items are created subject to your specific requirement.

4. Can create both Scheduling Agreement with and without Release Documentation

(subject to the Document Type LP or LPA) with the selection of either FRC or JIT

delivery schedule.

5. Either time-dependent or time-independent conditions can be created subject to the

customizing in the Document Type of the Scheduling Agreement.

6. Item Category 'M' and 'W' can not be used.

318. What are some of the common Stock Transport Order Movement Types?
SAP MM INTERVIEW QUESTIONS & ANSWERS 95

Answer : One step transfers of materials can be posted using MT 301. Other various

transport scenarios differ

in the MTs by the Goods Issues and Good Receipts. Common Goods Issues may use

MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.

319. What is the difference between a Purchase Order and a Purchase Requisition?

Answer : A Purchase Requisition is a document type that gives notification of a need

for materials or services. A Purchase Order is a document type that is a formal request

for materials or services from an outside vendor or plant. Procurement types may be

defined at the line item and can be standard, subcontracting, consignment, stock transfer,

or an external service.

320. What is an “indirectly created” Purchase Requisition?

A: 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. The “directly created” Purchase Requisition, on the other hand, is created by a

person manually in the requesting department specifying what materials/services, units,

and a delivery date.

321. What is an RFQ and how is it different from the Quotation Form?

A: A RFQ is a purchasing document and an invitation to a vender(s) for quotation

SAP MM INTERVIEW QUESTIONS & ANSWERS 96

regarding needed materials or services. If multiple an RFQ is sent to multiple vendors,

the system can automatically determine the best quote and send rejection letters in

response to all others. The RFQ and the Quotation Form are one in the same in the

system as vendor’s quotes are entered directly in the RFQ.

322. What are the transactions that will result in a change of stock?

A: A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or

production, which results in an increase in warehouse stock, a Goods Issue which results

in a reduction in stock, or a Stock Transfer moving materials from one location to

another.

323. When would it be prudent to post goods movements via the Shipping

Application?

Answer : If picking, packing, and transportation operations need to be planned in

detail. Also, in shipping, you can manage movements like returns from customers,

vendors, and returns to stock. Movement Types in shipping start with a 6.

324. What is a Reservation?

Answer : A Reservation is a document used to make sure that the warehouse keeps a
SAP MM INTERVIEW QUESTIONS & ANSWERS 97

certain amount of a

material or materials ready for transfer at a later date. It contains information on what,

quantity,

when, where from and to. Reservations help effective procurement by utilizing the MRP

system to avoid out of/lack of stock situations.

325. Can you manually generate a Purchase Requisition referencing a Purchase

Order or a Scheduling Agreement?

Answer : A Purchase Requisition cannot be created with reference to either of these, as

they are documents controlled by the purchasing organizations.Requirements can be

automatically generated with MRP that reference a Scheduling Agreement if the source

list is maintained for item-vendor combination.

326. How is GR/IR account related to Inventory?

Answer : 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 about 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.

327. How do planned and unplanned consumption affect Movement Types?

SAP MM INTERVIEW QUESTIONS & ANSWERS 98

Answer : In a customized Movement Type, you have defined which consumption value

gets posted in the movement. Many will always be planned or unplanned, but for some

there is a dependency on if the movement references a reservation. This would be

planned consumption.

328. What are Departmental Views?

Answer : All functional areas of the system use the same material master data. The

material master data is defined in individual screens (departmental views) that can be

added as needed. Thus a material can be created with only basic data and other

departments can add other information later as it becomes available.

329. Is Material Data valid for all organizational levels?

Answer : Control of master data depends largely on how each company sets up its

Organizational levels - centralized or decentralized. Some material data is valid for all

organizational levels while other data is valid only at certain levels. (I.e.: client, plant,

sales org., etc.).

330. Why would you want to create physical inventory sheets to perform an

inventory cycle-count on a material or materials?

Answer : For a cycle counting procedure, physical inventory documents need to be

created. These are used to record inventory levels of the material being cycle

counted.Use transaction MICN. Click on the Execute button. On screen “Batch Input:
SAP MM INTERVIEW QUESTIONS & ANSWERS 99

Create Physical Inventory Documents for Cycle Counting”, perform the following, Click

on the Generate Session button and Click on the Process Session button. This procedure

details how to create the physical inventory documents for cycle counting in a batch,

rather than one at a time, based on certain criteria. This would print physical inventory

documents for all material/batches that meet those requirements.

331. What is the difference between a Blanket Purchase Order and the Framework

Order?

Answer : In general, the Blanket POs are used for consumable materials such as office

paper with a short text, with item category B. There need not be a corresponding master

record, for the simplicity of the procurement. The FO, Framework Order, document type

is used. Here, the PO validity period as well as the limits are to be mentioned.The GR,

or Service Entry for the PO are not necessary in the case of Blanket POs. One need not

mention the account assignment category during creation of the PO. It can be U, or

unknown and be changed at the time of IR.

332. With which modules in SAP is the inventory management integrated?

Answer : Inventory management is an important part of the SAP MM module. The
business activities of an organization revolve around the inventory of materials, which
serves as the input for the manufacturing process or the inventory of prepared goods for
delivery or sale. The material is purchased from the appropriate vendors on the basis of
requests from the materials requirement planning (MRP) module. The delivered items
are recorded as the goods receipt in inventory management. The materials are then
stored, either for delivery to the customer or for manufacturing processes. Inventory
management is integrated with other modules, such as financial accounting (FI), sales
and distribution (SD), production planning (PP), project system (PS), and quality
SAP MM INTERVIEW QUESTIONS & ANSWERS 100

management (QM).

333. How is the inventory management integrated with MM?

Answer :Inventory management is directly linked with the MM module because any
movement of goods to and from inventory happens under the MM module. MRP,
purchasing, and invoice verification are some of the MM components that are also
linked with inventory management. After material is ordered it is posted as a goods
receipt with reference to the purchase order. The actual data of the quantities are checked
in the vendor's invoice.
334. What are the initial configuration steps for inventory management?

The steps for inventory management are as follows:

· Defining plant parameters
· Defining system message attributes
· Defining number assignment
· Defining goods issue, transfer posting, screen layout
· Maintaining copy rules for reference documents
· Setting up dynamic availability checks
· Confirming the negative items
335. What is Goods movement? What type of documents is created after goods
movement?
Answer : Goods movement refers to the movement of stock. This movement of stock
could be either inbound from the vendor, outbound to a customer, between different
plants, or even between different stocks within a plant. After goods movement, the SAP
system creates two types of documents: material documents and accounting documents.

336. What are the goods movements that take place in MM?
Answer : The goods movements can be defined as the physical or logical movements of
materials that lead to a change in stock levels or results in material consumption. The
goods movements are part of the MM policy. The goods movements in SAP are as
follows:
o Goods receipt— Represents the physical movement of goods or materials into
SAP MM INTERVIEW QUESTIONS & ANSWERS 101

the company. It increases the stock quantity. The goods receipt can be of the following
types:
Goods receipt with reference to a purchase order
§ Goods receipt with reference to a Production order
§ Goods receipt without reference
o Goods issue— Represents the physical movement of goods or material ouTof the
company. It reduces the stock quantity. The goods issue can be of the following
types:
§ Goods consumption in the company
§ Goods delivery to customers
o Stock transfer— Represents the movement of materials from one location to
another location. The locations can be either within the same plant or different
plants.
o Transfer posting— Represents the stock transfer that can either be physical or
logical. In logical stock transfers, goods are transferred only in records, while the
actual stock transfer does noToccur. Some examples of physical stock transfer are:
§ Stock transfer between two storage locations in a plant
§ Stock transfer between two plants
§ Transfer of materials to customer consignment stock

· Some examples of logical stock transfer are:

o Release of materials from stock in quality inspection
o Transfer of materials from vendor consignment stock to own stock
o Batch splitting
o Transfer posting material-to-material

337. What is Goods Receipt & Goods Issue?

Answer : Goods receipt is the process that enables the receipt of material from a vendor
SAP MM INTERVIEW QUESTIONS & ANSWERS 102

or from the in-house production process. There are other types of goods receipts in SAP
that include initial stock creation. The goods receipt process also increases stock due to
one of the following processes:
o Receipt of production order
o Receipt of purchase order
o Initial inventory entry
o Others
Goods issue is a process in which the stock in the warehouse is reduced due to any
of the following reasons:

o Shipment to a customer
o Stock withdrawal for a production order
o Return of materials
o Material required for sampling
o Scrapping of materials

338. Why is goods receipt important to a company?

Answer : Goods receipt indicates a receipt or inward movement of stock of
materials or goods. When an external vendor provides stock to the company, the goods
receipt is generated as a purchase order, and when the material is produced in-house, the
goods receipt is generated as a production order. A goods receipt is important to a
company because using a goods receipt moves material into stock, updates the stock
levels, and thereby indirectly enables the production process.
14. How is a goods receipt performed?
· The steps to perform a goods receipt are as follows:
o Enter the header data.
o Select the movement type and the purchase order number.
· The document is posted in the database.
339. How do you post the goods if the PO number is not known?
Answer : If the purchase order number is not known, you must enter search criteria for
SAP MM INTERVIEW QUESTIONS & ANSWERS 103

the purchase order in the initial screen. As a result, the list of purchase orders is
displayed. The desired purchase order items can then be copied.
16. How is the vendor returned processed without a purchase order reference?
· You first need to observe the Return column and then select Item Detail >
MIGO_GR > Goods Receipt for Purchase Order. If the intention is to deduct the stock,
then movement type 161 is used; otherwise, 162 is used to undo the changes. Lastly, you
must ensure that the document is a return purchase order. The document is then saved.

· Alternatively, you can use the M21N transaction code for this purpose.
340. What happens when a goods receipt is posted?
Answer : While posting a goods receipt, the following events occur:
· The material document is created.
· The accounting document is created.
· Three printed versions of goods receipt notes are modified.
· The stock level changes.
341. What is the result of goods movement?
Answer : The following events are initiated when goods movements take place:
· First, a materials document is generated, which is proof of the goods
movements.
· Accounting documents are generated if the movement of goods requires a
change in the financial accounts.
· The stocks of the materials quantities are updated.
· The stock values in the material master are updated.
· Financial and material documents are updated.

342. Distinguish between assigning company codes and plant codes

Answer :A company code must be assigned to a plant. You can only assign one
SAP MM INTERVIEW QUESTIONS & ANSWERS 104

company code to each plant. A plant code can be assigned to a company and many plant
codes can be assigned to a single company.

343. What are the types of master data stored in the materials management
module?

Answer :The material management module stores the material master data, the
purchasing information records and the vendor master data.

344. What is a material master and why are they used?

Answer :The material master stores all of the information that allows for the
management of the different materials within the organization, sorted based on different
criteria. Materials are stored as a single database object within the system to ensure that
all redundancy and duplication of data can be avoided. As a single database object, all
other departments have access to and can share the same data. Departments such as
inventory department, the purchasing department and materials planning, all use the
same single database object for materials.

345. Name some of the industry sectors defined in the material master data

Answer :Industry sectors defined in the material master data include the beverage
industry, the chemical industry, the aerospace and defense industry, the pharmaceutical
industry, the food and related products industry, the plant engineering industry, the
construction industry, services industry, and the retail industry.
346. What Functions are Supported in the SAP ‘Material Management’ (MM)?
Answer :The MM module of SAP supports the following functions:
· MRP (Material Requirements Planning)
· Procurement
· Inventory Management
· Inventory Valuation
· Invoice Verification
SAP MM INTERVIEW QUESTIONS & ANSWERS 105

347. Explain ‘Return Delivery.’

Answer :You will use ‘Return Delivery’ when you return goods to the supplier (vendor)
for reasons such as damaged packaging, etc. Note that the ‘reason for return’ is
mandatory as this will help you, later on, to analyze problems with a vendor. The system
uses the Movement Type 122, and will create a return delivery slip, which will
accompany the goods being returned.
If the ‘return’ is from a ‘GR-blocked stock,’ you need to use a different Movement Type:
104.

348.What are All the Various Types of ‘Physical Inventory’?

Answer : The following are the different types of ‘Physical Inventory’ in SAP MM:
• Periodic inventory (All the stocks are physically counted on a ‘key date’ (balance
sheet date), and all the stock movements are blocked during physical counting)
• Cycle counting (Physical counting is done at periodical intervals)
• Sampling (Randomly selected stocks are counted physically, and the system uses
this information to ‘estimate’ stock value on a given date)
• Continuous (Stocks are tracked continuously throughout the fiscal year, with
physical stock taking once a year, at least!)

349. In which of the following cases can you define scales for the condition type
Answer :
a. Purchase order
b. Contract
c. Info record
d. Vendor
e. Quotation
f. Scheduling agreement

350. What is meant by one-time vendor?

Answer : You can create special master records for vendors from whom you only
procure a material once or very rarely. These are called one-time vendor master records
and, in contrast to other master records, you can use a vendor master record for several
vendors. Therefore, no vendor-specific data is stored for one-time vendors. You can
control this using the relevant field selection for account groups for one-time vendors.
When you create a purchasing or accounting document using a one-time vendor, the
system automatically branches to an additional data screen on which you enter specific
data, such as the vendor’s name, address, or bank details. If an RFQ or a PO is sent to a
SAP MM INTERVIEW QUESTIONS & ANSWERS 106

one-time vendor, the vendor data must be entered manually.

351. What is ReleaseProcedure?

Answer : Release Procedure is approving certain documents like PRs or POs by criteria

defined in theconfiguration. It is sensible to define separate release procedures for

different groups of materials for which different departments are responsible, and to

define separate procedures for investment goods and consumption goods.

352. If you have a multi-line-item PO, can you release the PO item by item?

Answer : No, a PO is released at the header level meaning a total release or “With

Classification” PRs, on the other hand, have two release procedures possible. “With

Classification” as described above, and “Without Classification” where it is only

possible to release the PR item by item.

353. What is a Material Type?

Answer : A Material Type describes the characteristics of a material that are important

in regards to Accounting and Inventory Management. A material is assigned a type when

you create the material master record. “Raw Materials”, “Finished Products”, and

“Semi-Finished Products” are examples. In the standard MM module, the Material Type

of ROH denotes an externally procured material, and FERT

indicates that the relevant material is produced in-house.

SAP MM INTERVIEW QUESTIONS & ANSWERS 107

354. What is a price comparison?

Answer : Perform a price comparison using ME49 and one may compare quotations

from different vendors.

355. What is a Source List?

Answer : 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.

356. What are the various “steps” in the MM Cycle from material creation through

invoice?

A: The following creates a rough picture of the MM Cycle. Create material, create

vendor, assign material to vendor, procure raw material through PR, locate vendor for

certain material, processing GR, goods issue, and invoice verification.

357. Give some examples of the information relating to a material’s

storage/warehousing?

Answer : Some examples are Unit of Issue, Storage Conditions, Packaging

Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also, there are
SAP MM INTERVIEW QUESTIONS & ANSWERS 108

various Storage Strategies information and options.

358. What are the various features of Consignment Stocks?

Answer : Consignment Stocks remain the legal property of the Vendor until the

organization withdraws the material from the consignment stores. The invoice can be

due at set periods of time, for example monthly, and it is also a configuration possibility

that the organization will take ownership of the stock after a certain period of time.

Consignment Stock is allocated to the available stock because the Consignment Stock is

managed under the same material number as your company’s stock. The most important

characteristic of Consignment Stock is that it isn’t valuated. When the material is

withdrawn, it is valuated at the price of the respective vendor. Before procuring the

stock, consideration should be given if one consignment is coming from multiple

vendors. If so, we can manage all of them independently at the price of the individual

vendors. In the Info Record, we will maintain three different prices for the same material

for three different vendors.

359. What is a Quotation?

Answer : 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

SAP MM INTERVIEW QUESTIONS & ANSWERS 109

performance of service(s) subject to specified conditions. The Quotation then need to be

maintained in the “Maintain Quotation: XXXX” screens.

360. What is the Source List?

A: The Source List identifies preferred sources of supply for certain materials. If the

Source List has been properly maintained, it will identify both the source of a material

and the period of time in which you can order the material from the source.

361. What is an Invoice Verification?

Answer : The Invoice Verification component completes the material procurement

process and allows credit memos to be processed. Invoice Verification includes entering

invoices and credit memos that have been received, checking accuracy of invoices with

respect to price and arithmetic, and checking block invoices (these are the ones which

differ too much from the original PO).

362. What are the different types of Invoice Verification?

Answer : Invoices based on Purchase Orders. With purchase-order-based Invoice

Verification, all of the items of a purchase order can be settled together, regardless of

whether or not an item has been received in several partial deliveries. All of the

deliveries are totaled and posted as one item. Invoices based on Goods Receipts. With
SAP MM INTERVIEW QUESTIONS & ANSWERS 110

goods-receipt-based Invoice Verification, each individual goods receipt is invoiced

separately. Invoices without an order reference. When there is no reference to a PO, it is

possible to post the transaction directly to a Material Account, a G/L Account, or an

Asset Account.

You can park Invoices that reference POs and GRs as well as Invoices with no reference

in the system. When you park a document or change a parked document, neither

substitution nor validation is supported. The system only carries out these functions after

you actually post a parked document.

363. Why would an organization need to allow Negative Stocks

Answer : Negative Stocks are necessary when Goods Issues are entered necessarily

(business process reasons) prior to the corresponding Goods Receipts and the material is

already located physically in the warehouse.

364. What is meant by batches? How can the batches be searched?

Answer : A batch is a subdivision of your stock of a material having the same

characteristics.

For instance:

- food production uses batches to indicate the day of production.

- paint production uses batches based on production date and the used ingredients. It is

very hard to reproduce the same color in exactly the same way at two different moments.
SAP MM INTERVIEW QUESTIONS & ANSWERS 111

- ore may be divided in batches based on their mineral content.

You can search batches using the standard search facility (match code, key F4) based on

the naming convention of the batches or, if you use batch classification, based on the

characteristics of the batches.

365. What are the settings required for quota arrangement?

Answer : To set up a quota arrangement for the procurement of a material, proceed as

follows:

Master data -> Quota arrangement -> Maintain, enter the material and plant number,

press ENTER to display the overview screen for the quota arrangement periods, Enter a

validity period for quota arrangement, Enter date until which the quota arrangement is

valid. The start date is calculated by the system. Press ENTER .

Select the quota arrangement and choose Goto -> Item overview to display the item

overview screen of the quota arrangement. Enter a quota arrangement item for each

source of supply you want to include in the quota arrangement.

You must enter the following data.

- Procurement type

- Special procurement type, Enter k in the S column, for example, if a consignment

arrangement for the material exists with the vendor.

- Vendor number

- Procurement plant (supplying plant):

SAP MM INTERVIEW QUESTIONS & ANSWERS 112

- Quota column, enter the quota assigned to each item.

Press ENTER .

The percentage distribution of the quotas is calculated and displayed automatically by

the system.

Save the quota arrangement. The system assigns a number to the quota arrangement

item automatically

366. Business Processes in SAP MM :

Purchase:
1. Request for Quotation
2. Purchase with reference to cost center
3. Sub-contracting
4. Consignment
5. Pipeline purchase
6. Consumption based planning (MRP)
7. Purchase against sales order
8. Third Party Purchase
9. Asset purchase
10. External Service Management
11. Stock Transport Order
12. Order acknowledgement
13. Advance shipping notification
14. Vendor Evaluation
15. Release Strategy
Inventory Management
1. Goods Receipt
2. Goods Issue
3. Scrap process
4. Physical Inventory process
5. Transfer Posting
6. Quality Inspection
SAP MM INTERVIEW QUESTIONS & ANSWERS 113

7. Reservation
Invoice Verification
1. Invoice Verification Process
2. Document Parking
3. Taxes
4. Variance
5. Blocking and release invoice
6. Subsequent Debit/ Credit
7. Credit Memos
8. ERS
Other Process
1. Batch Management
2. Valuation & Account assignment
Master Data in SAP MM
1. Material Master
2. Vendor Master
3. Service Master
4. Purchase Info Record
5. Source List
6. Quota Arrangement

367. How do you set ‘Automatic Account Assignment’ in MM?

Answer : Once OBYC settings are properly done, system finds the correct G/L account
using the following data:
Chart of Accounts: Chart of Accounts is determined based on plant or company code
used in transaction
Valuation Grouping Code: It is determined based on the valuation area. Valuation
Grouping Code is maintained in t-code OMWD.
Transaction Key: eg. BSX, GBB etc. Transaction keys are determined automatically
from the transaction (invoice verification) or the movement type (inventory
management).
Account grouping /Account Modifier (only for offsetting entries, consignment liabilities,
and price differences)
SAP MM INTERVIEW QUESTIONS & ANSWERS 114

Valuation class of material or (in case of split valuation) the valuation type: The
valuation class allows you to define automatic account determination that is dependent
on the material. This can be achieved by assigning different valuation classes to the
materials in material master (Accounting view) and by assigning different G/L accounts
to the posting transaction for every valuation class

368. What are ‘Transaction Keys’ while setting OBYC?

Answer : Since each movement type is assigned to a ‘value string’ which in turn is
identified with a transaction key, the goods movement determines the correct transaction
key. Transaction Keys’ are pre-defined in the system to enable transaction postings in
Inventory Management and Accounting (Invoice Verification). Examples of pre-defined
transaction keys are:

BSX (Inventory Postings)

WRX (GR/IR Clearing Postings)
PRD (Cost/Price differences)
UMB (Revenue/Expenses from revaluation)
GBB (Offsetting entries in Stock postings)

BSX, WRX, and PRD are relevant for a GR with reference to a purchase order for a
material with standard price control. The transaction key UMB is used when the
standard price has changed and the movement is posted to a previous period. GBB is
used to identify the GL account to post to as the offsetting entry to the stock account
(when not referencing a purchase order) such as miscellaneous goods receipts, goods
issues for sales orders with no account assignment, and scrapping etc.
·
369. What is a Business Area?

Answer : The business area is an organizational unit within financial accounting. It

corresponds to a defined business segment or area of responsibility, to which value
movements recorded in Financial Accounting can be assigned. It is usually derived
automatically as it linked to other organizational units. For eg. Business area for a
combination of plant and division is maintained by t-code OMJ7.
·
370. What is a Cost Center?

Answer :Cost Center accounting is used for controlling purposes. It is an organizational

unit within a controlling area which represents a defined location of cost incurrence. For
SAP MM INTERVIEW QUESTIONS & ANSWERS 115

example, any department can be a cost center for recording all expenses incurred for that
department.

371. What is a Profit Center?

Answer : Profit Center Accounting evaluates the profit or loss of individual,

independent areas within an organization. Profit center is an organizational unit in
controlling to recognize your profit. Profit center is attached to material master at plant
level.

372. How to create Tax calculation procedure in MM?

Answer : Tax can be calculated for each line item of a PO separately based on the tax
code. Earlier TAXINJ, which is a formula based tax procedure, was used. Now,
TAXINN, which is a condition based tax procedure, is generally used. Tax procedure
contains the condition type and necessary specification for each condition type. Account
keys are assigned to condition types and these account keys determine the G/L to which
the tax amount is to be posted(OB40). These account keys are maintained using t-code
OBCN. (All these transactions are under Financial Accounting Global Settings >> Tax
on Sales/Purchases >> Basic Settings). Tax codes are assigned to country codes and
country are linked with tax procedure. Thus, based on tax code, corresponding tax
procedure is determined and then calculation is done based on condition types in that tax
procedure.

373. How is scrap material taken care of in sub-contracting?

Answer :
Scrap can be maintained in BOM as operational scrap, component scrap, By-Product or
Co-Product. Common practice is to maintain scrap as by-product and receive it back
along with processed material.

374. How are the by-products taken care of in sub-contracting?

Answer :
When you create BOM using CS01, we can maintain main components with + ve
quantities and By Products / Scraps with - ve quantities.
When you make Goods Receipt for Subcontracting Purchase Order with 101 movement
SAP MM INTERVIEW QUESTIONS & ANSWERS 116

type, components are automatically consumed with movement type 543 By Products /
Scrap are updated as stock provided to vendor movement type 545. Now we can receive
this scrap/ By product back in company’s inventory using movement type 542 (reversal
of 541) with t-code MB1B.

375. What are the commonly used movement types in Sub-Contracting process?
Answer :
541 - Issues of goods from warehouse to subcontractoru2019s stock
542 - Reversals of goods issues from warehouse to subcontractoru2019s stock
543 - Consumption from subcontracting stock (Automatic updating during GR)
544- Co-products receiving
545- Goods receipt of by-products from subcontracting (Stock provided to vendor)
101 – Finished good/ Sub-Contracted good received after processing

376. What are accounting entries in standard sub-contracting process?

Answer :
Accounting entries in standard sub-contracting process are as follows:

For finished goods received:

Debit stock account of assembly(FG) (BSX)
Credit Change in Stock (BSV)

For amount payable to vendor:

Debit SC/JW charges (FRL)
Credit GR/IR (WRX)

For material provided to vendor:

Debit Consumption Account of components (GBB-VBO)
Credit Stock account of components (BSX)

If there is a price difference and customization is done for accounting for price
difference in subcontracting, PRD transaction key comes in picture.

377. What are the possible values of procurement type in Material Master?
Answer :
Procurement type is maintained in MRP1 view of material master. This is a plant
specific view as MRP is done at plant level. Various procurement types in material
master are as follows:
SAP MM INTERVIEW QUESTIONS & ANSWERS 117

In-house production (E)

External procurement (F)
No procurement
Both Procurement types (X)

378. What are the requirements for an ‘MRP Run’?

Answer :
MRP should be activated in that plant
Master Data for MRP should be maintained (Planning Calendar etc.)
MRP data for material should be maintained
MRP1 view should be maintained (e.g.. Reorder point, Safety stock etc.)
MRP2 view should be maintained (e.g.. Plan delivery time etc.)
MRP can be run using MD03

379. What is a MRP Area?

Answer :
MRP Area is an organizational unit for which material requirement planning can be
carried out independently. MRP Areas are of three types:

Plant MRP Area

MRP Areas for Storage Locations
MRP Areas for Subcontractors

After defining MRP areas, MRP area is assigned to material in material master.
380. What is MRP list?

The system creates MRP lists during the planning run. The MRP list always displays the
future stock/requirements situation at the time of the last planning run. The MRP list is
stored in the system until it is either deleted manually or replaced by a new list from a
subsequent planning run.

381. What MRP procedures in Consumption Based Planning?

SAP MM INTERVIEW QUESTIONS & ANSWERS 118

MRP procedures in CBP are as follows:

Reorder Point Procedure
Forecast based Planning
Time phased material planning

382. What is the difference between standard purchasing organization and

reference purchasing organization?
Purchasing organization is an organizational unit within Logistics. A standard
purchasing organization must be provided to one or more plants for which it is directly
responsible for procurements.
A purchasing organization is assigned to reference purchase organization to avail
conditions and centrally agreed contracts or release orders contained in the assigned
reference purchasing organization

383. Why do we use document types in SAP?

Document types are used to distinguish the business transactions to be posted. It also
helps in determining the account types to be posted and subsequent transactions to
complete the process. Document types are defined at client level.

384. Can we receive the goods before the scheduled delivery date in scheduling
agreement?

No, we cannot receive the goods before 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)

385. Can changes be made in PO once it is released?

This can be controlled by settings given in release indicator in PO release procedure. If it

is a significant change, it will re-trigger approval cycle.

386. What is the use of ‘Info Update’ indicator in purchasing documents?

This indicator is used to decide if the info record is to be created/updated or not based
on this purchasing document.

387. What is a Material Ledger?

A material ledger retains all transactions that relate to the purchase and use of materials
 SAP MM INTERVIEW QUESTIONS & ANSWERS 119

for producing goods. Material ledger data is valuation and control data for a material in a
plant for a specific posting period. Material ledger contains data for material movements
that are relevant to the valuation of the material.

388. What is a ‘Return Delivery’?

Return Delivery is used if we want to return goods to a vendor for any reason such as
bad quality, or bad packaging etc. In normal cases, return delivery is done by movement
type 122. For creating return delivery, reason for return is a mandatory field.

389. How to deactivate a vendor so that it cannot be used for further transactions?
·
A vendor can be blocked at various levels as follows:

All Company Code

Single Company Code
All Purchasing Organization
Single Purchasing Organization

390. What is EAN?

An article can be carried in different units of measure. An European article number

(EAN) is created as a unique indicator for each of these units of measure. The most
important use of EANs within a company is to identify articles at the point of sale (POS)
using the barcode.

391. What are basic tables used for Material Master?

Some of the basic tables used in Material master are:

MAKT: Material Descriptions

MARA: General Material Data
MARD: Storage Location Data for Material
MVER: Material Consumption
MARC: Plant Data for Material
MVKE: Sales Data for Material
SAP MM INTERVIEW QUESTIONS & ANSWERS 120

MAST: Material to BOM link

MARM: Unit of Measurement
MBEW: Material Valuation

392. What is the difference between release startegy for a PR and that for a PO?

Basic difference is that PR can released at a line item level or at a header level.
However, PO can be released only at header level.

393. What is STO? What are its Advantages?

STO is the acronym for stock transport order. It can be defined as a PO used to transport
material from one plant to another within the same corporate enterprise. For example,
you would use the STO for transferring materials between two plants or between the
enterprise and a third-party contractor. With the help of the STO, the cost incurred due to
the delivery of the transfer materials is added to the transferred materials. The
advantages of transferring materials with an STO are as follows:
· A goods receipt can be generated at the receiving plant.
· A transport vendor and delivery costs can be specified in the STO.
· The purchase requisitions created in the MRP can be changed to an STO, because
the STO is part of the MRP.
· The goods issued can be specified by using a delivery through Shipping (LE-
SHP) or Inventory Management (MMIM).
· The goods receipt can be posted directly to consumption.
The PO history can be used to monitor the entire process of stock transfer

394. Problem is that after goods receipt and AFTER invoice verification, reversal of
goods receipt is being done. Client wants this more controlled as the GRIR account
is being affected. So no reversals to be done after Invoice verification. How to
approach this?
Make this setting: SPRO > Materials Management > Inventory Management and
Physical Inventory > Goods Receipt > For GR-Based IV, Reversal of GR Despite
Invoice
Here remove the tick against Mvt 102 & 122.
Now the system will not allow to return the Good at any case. *-- B.Anand daivaraja
SAP MM INTERVIEW QUESTIONS & ANSWERS 121

395. I have created a new vendor. Later I found that there were some mistakes and
that I want that the system should not allow me to make any PO or post any entries
to this vendor. How to deactivate this vendor?
You can block a vendor at the following levels:
All company code
Single company code
All Purchase org
Single Purchase org

396. Where to Get the Goods Movement Type List?

Step 1) Run spro command/TC
Step 2) Then move to "SAP Reference IMG" screen
Step 3) Then navigate following path:
IMG --> Materials Management --> Inventory Management and Physical Inventory -->
Movement Types --> Copy, Change Movement types
Here with "Copy, Change Movement types" option a help tutorial is available
(rectangular blue colour icon). In that go to "Further information" section where you
can find a big list of movement types with some brief explanation.

397. Where the schedule margin key is customized?

You define the order float in the scheduling margin key, The scheduling margin key is
copied from the material master. The float before production or float after production
and the release period are defined in the scheduling margin key
For Customizing for Shop Floor Control, by choosing Operations --> Scheduling -->
Define Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material
master) and is transferred when the production order is created. These values can be
changed in the production order.
398. What is the function of OBYC?
Function of the OBYC stand for Configure Automatic Postings. In this step, you enter
the system settings for Inventory Management and Invoice Verification transactions for
automatic postings to G/L accounts.
Postings are made to G/L accounts automatically in the case of Invoice Verification and
SAP MM INTERVIEW QUESTIONS & ANSWERS 122

Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption account.
399. Tell me what is *make to order*?
Make-to-order production is a process in which a product is individually manufactured
for a particular customer. In contrast to mass production for an unspecified market where
a material is manufactured many times, in make-to-order production a material is
created only once though the same or a similar production process might be repeated at a
later time.
In global trade, you often need to process several different kinds of transactions at the
same time. The Trading Execution Workbench (TEW) provides a central cockpit where
traders can process trading contracts and their subcomponents, such as purchase orders
and sales orders and follow-on documents. In addition, TEW automates a large part of
the data entry, making processing quicker, easier, and more error-free.
400. How to delete a material completely?
Try MMDE transaction but be careful this will remove all material from Client.
401. What is the use of Tables in MM. i.e. How the tables get created?
Through SE11 you can create a new Table. In MM if you create a Material Master
MARA, MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master
LFA1, LFB1 & LFM1 will be updated. The same applies to EKKO,EKPO for P.O,
MSEG & MKPF for MIGO & RBKP for MIRO.

402. If in any error, only the message no. ! or the table no. is shown , then how to
resolve the error using message no. or table no.?
Contact ABAP or BASIS person to resolve this.
403. How to create new transaction codes?
In transaction code SE93 you can create, Change & Display a Transaction Code.
SAP MM INTERVIEW QUESTIONS & ANSWERS 123

Overview Of SAP MM Implementation Project

In every implementation project, there will be groups of SAP team members in each area
where you have a project manager with all the team leads (or at least an experience
consultant) with proper project plan.

Regarding configuration, no books will be needed (I hope all agree, what we studied in
college, we just do 1-2% of that with real business task) and can be done as per business
scenarios.
1st step:
You can start with designing the SAP MM organization structure by having purchasing
organization, plants and storage locations and all assignment with plants assigned to
company code.

2nd step:
This where you will be designing master data like designing material master, designing
vendor master and designing service master. For designing material master, you have
new own customized material types, material numbering, material group, account
category reference and purchasing group with logic behind material numbering.
For designing vendor master, you have new own customized vendor account group, with
logic behind material numbering.

3rd step:
You will be designing purchasing document types (PR, RFQ and PO) and its number
ranges.
4th step:
You will be designing MM pricing procedure where new customize new condition types
may be needed. If CIN involved,

5th step:
You can start with designing tax procedure with designing new condition types for non-
deductable and deductable taxes with excise setting for plant and company code. If
purchasing process needed approval, then

6th step:
SAP MM INTERVIEW QUESTIONS & ANSWERS 124

You can get started with designing release strategy with creating release class and
release characteristics.
7th step:
Here you can get started with inventory management control where goods receipt, goods
issue and stock transfer process, if require, you may go for new movement type creation.
8th step:
This will be the details configuration for logistic invoice verification with again where
you can set your tolerance limit.
9th step:
What will be left behind is the MM-FI automatic account determination, generally done
in OBYC t.code before activating valuation area in OX14 and activating valuation
grouping code in OMWM with assigning valuation area to valuation grouping code in
OMWD t.code. Also if tax involved all tax G/L account need to be assigned in OB40
t.code.

The above can be designed and kept ready before starting material management
configuration in the system and later as and when required you add new configuration as
business needed and its true business differs from company to company.

Inventory Management tcodes MM-IM

MIGO - Goods Movement
SAP MM INTERVIEW QUESTIONS & ANSWERS 125

MB1B - Transfer Posting

MB51 - Material Doc. List
MB1A - Goods Withdrawal
MB1C - Other Goods Receipts
MB5B - Stocks for Posting Date
MB52 - List of Warehouse Stocks on Hand
MB01 - Post Goods Receipt for PO
MB31 - Goods Receipt for Production Order
OMJJ - Customizing: New Movement Types
MB21 - Create Reservation
MBST - Cancel Material Document
MB90 - Output Processing for Mat. Documents
MB5L - List of Stock Values: Balances
MB5T - Stock in transit CC

Purchasing tcodes MM-PUR

ME21N - Create Purchase Order
ME22N - Change Purchase Order
ME23N - Display Purchase Order
ME51N - Create Purchase Requisition
ME21 - Create Purchase Order
ME2N - Purchase Orders by PO Number
ME2O - SC Stock Monitoring (Vendor)
ME11 - Create Purchasing Info Record
ME52N - Change Purchase Requisition
ME9F - Message Output: Purchase Orders
ME59N - Automatic generation of POs
ME29N - Release purchase order
ME28 - Release Purchase Order
ME22 - Change Purchase Order
ME59 - Automatic Generation of POs

Invoice Verification tcodes MM-IV

MIRO - Enter Incoming Invoice
SAP MM INTERVIEW QUESTIONS & ANSWERS 126

MR21 - Price Change

MIR7 - Park Invoice
MRKO - Settle Consignment/Pipeline Liabs.
MR8M - Cancel Invoice Document
MRBR - Release Blocked Invoices
OMRI - C MM-IV Item Amount Check Parameters
MRRL - Evaluated Receipt Settlement
MIR4 - Call MIRO - Change Status
MIRA - Fast Invoice Entry
MIR6 - Invoice Overview
OMR6 - Tolerance limits: Inv.Verification
MRIS - Settle Invoicing Plan
MIR5 - Display List of Invoice Documents
MR22 - Material Debit/Credit

External Services tcodes MM-SRV

ML81N - Service Entry Sheet
AC03 - Service Master
AC10 - Class Hierarchy with Services
AC01 - Service Master
ML81 - Maintain Service Entry Sheet
ML85 - Collective Release of Entry Sheets
ME2S - Services per Purchase Order
ML84 - List of Service Entry Sheets
AC06 - List Display: Service Master
ML33 - Create Vendor Conditions
ML83 - Message Processing: Service Entry
AC02 - Service Master
ML45 - Display Service Conditions
ML91 - Stand. Values f. Ext.Services Mgmt.
ML10 - Create Model Service Specifications

Consumption-Based Planning (See Also PP-MRP) tcodes MM-CBP

WRP1 - Replenishment: Procurement
MPR1 - Forecast Adopted from External Data
OWD1 - Maintain rounding profiles
MPR2 - Deletion of Forecast Data
WFCS01 - Run Sales Forecast
WVM2 - Transfer stock/sales figures
SAP MM INTERVIEW QUESTIONS & ANSWERS 127

WR60 - Replenishment: Parameter Overview

WVM3 - Display material data transferred
WAHD2 - Change Alternative Historical Data
WVM7 - Assignment of PO Data to Vendor
WFCS02 - Delete Sales Forecast
WVM1 - Execute customer replenishment
WRMO - Replenishment monitor
WAHD3 - Display Alternative Historical Data
WVM4 - Display PROACT data received

Electronic Data Interchange tcodes MM-EDI

PRICAT - PRICAT: Maintain mat. as per catalog
PRICATCUS1 - Pricat: Customizing for V_pricat_001
PRICATCUS2 - Pricat: Customizing for V_pricat_002
PRICATCUS3 - Pricat: Customizing for V_Pricat_003
PRICATLOG - PRICAT: Display application log

MM General tcodes
MIGO - Goods Movement
MIRO - Enter Incoming Invoice
ME21N - Create Purchase Order
ME22N - Change Purchase Order
MB1B - Transfer Posting
MB51 - Material Doc. List
ME23N - Display Purchase Order
MB1A - Goods Withdrawal
MB1C - Other Goods Receipts
ME51N - Create Purchase Requisition
MB5B - Stocks for Posting Date
MR21 - Price Change
ML81N - Service Entry Sheet
MB52 - List of Warehouse Stocks on Hand
MB01 - Post Goods Receipt for PO
SAP MM INTERVIEW QUESTIONS & ANSWERS 128

Additional Material Functions tcodes SD-MD-MM-CS

MATERIAL_INFO - Material Information
WSD_CBP - Close-By Plants Application
WSD_KEYWORD - Keyword maintenance

MATERIAL MASTER TABLES – MM01

MARA – MATERIAL MASTER – GENERAL DATA

MAKT - MATERIAL MASTER- DESCRIPTION
MARM – MATERIAL MASTER – UNIT MEASURE
MARD- MATERIAL MASTER – STORAGE LOCATION
MARC – MATERIAL MASTER – PLANT DATA

VENDOR MASTER TABLE – XK01

LFA1 – VENDOR MASTER – GENREAL DATA
LFB1- VENDOR MASTER- COMPANY DATA
LFM1- VENDOR MASTER – PURCHASE ORG – PURC DATA
LFM2 – VENDOR MASTER– PLANT – VENDOR SUBRANGE- PURC DATA

PURCHASE INFO RECORD TABLES – ME11

EINA – PIR- GENERAL DATA
EINE- PIR – PURCH ORG DATA
KONH – PIR – CONDITION HEADER
KONP – PIR - CONDITION ITEM

PIR REPORTS – PURCHASE INFO RECORD

ME1L – LIST OF VENDORS PRICES—BY VENDOR
ME1M – LIST PIR BY MATERIAL WISE
ME1P – ORDER PRICE HITORY – PO CHANGES FOR MATERIAL

SOURCE LIST TABLES – ME01

EORD – TABLE

QUOTA ARRANGEMENT – MEQ1

EQUK – TABLES – QUOTA FILE HEADER
EQUP – TABLES – QUOTA FILE ITEM

PURCHASE REQUESTION – ME51N

SAP MM INTERVIEW QUESTIONS & ANSWERS 129

EBAN – TABLES
EBKN – TABLES
RFQ – ME41

PR RELEASE PROCEDURE
CEBAN – COMMUNICATION STRUCTURE

PO – TABLES
CEKKO –
CEKPO –