SAP MM Interview Questions and Answers




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Top SAP MM Interview Questions and Answers - 2021 [UPDATED]

Are you looking for SAP MM Interview Questions and Answers? Than you are at the Right Place. Browse through Popular and Most Asked Interview Questions for SAP MM.  There is a Huge Demand for SAP MM Professionals in the Market. These Questions are suitable for both Freshers and Experienced Professionals and are based on Trending Topics and as per Current Industry Requirements.

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SAP MM Interview Questions and Answers

  • 55 Questions

SAP MM is basically a functional module which handles the material management.

The module consists of three main functionalities…the master data, how the system is configured and transactions to complete the procurement for payment.

The full form of SAP is Systems, Applications and Processing the data. ERP means enterprise resource planning.

ERP was first launched in Mannheim, Germany in the year 1972.

SAP is the most popular software application as it is the one widely used to provide business solutions for large, medium and small scale enterprises. This is done by absorbing and processing data quickly. Also if there are any problems, SAP is able to provide solutions on a time-sensitive basis.

some of the components of SAP MM are as follows…defining the requirements, verifying bills, processing orders, making sure clients are followed up with and reminders are sent, handling receipts and managing the existing inventory.

The code that is used for the material view is MM50.

The code that is used to delete a specific batch is MSC2N.

In order to delete a batch record permanently, one needs to flag the batch of the master record.

In order to identify where the materials come from; the main supply home, a source list needs to be created.

The code that is used for creating the source list is known as ME01.

The components that are needed are as follows… the material number, the manufacturer’s part number, the vendor’s number and the organization’s level code.

The number of business days during which the recipient would get the goods or materials which have been promised to them, is known as planned delivery.

After receiving the goods and materials, the time a recipient has to inspect and put the said items in storage is considered to be GR processing time.

RFQ stands for request for quotation.

RFQ is generally used in vendor management. When the pricing quotes need to be given, or types of goods and materials need to be listed, or even for the delivery date of the items that have been procured, an RFQ is utilized at that time.

When the stock is blocked ahead of time so that it is available when required, it is known as Reservation.

The code that is used for Reservation is MMBE

CBP denotes the consumption value of goods and materials so that future requirements can be forecasted on the basis of the same.

The type that is used for the reversal of the issuing of goods is 262.

The verifying of the invoice is the last step in the procurement cycle.

Here are some of the movement types for stock transport order… 351, 641 and 643.

Purchase requisition is a request made to the organization to procure goods or materials or services which may enhance the products. A purchase order is the final list of items that the organization gives its approval and budgets for. Pi A purchase order is what finally goes to any vendor.

Some of the different types of ERP’s are as follows…SAP, People Soft, Oracle, BAAN, etc.

No, it cannot be termed as a database.

The unit that gives information about where to look for in-depth information for a specific subject is known as MetaData.

The data that gives information about transactions that occur daily, weekly, monthly or on any predetermined time frame are known as transaction data.

In Material Management, the system provides company with materials, inventory and warehouse capabilities. Basically, it makes sure that materials will be available in proper quantities and without any restriction to use.

Purchasing Group, Material Group, Source List, Mater Data (Conditions, Info Record, Vendors)

The pricing procedure assigned to a vendor has a calculation schema attached to it. This schema defines the various conditions pre-requisite, calculation & sequence in the PO. Generally, only one type of pricing procedure is followed for all the vendors.

Consignment Stock Project Stocks Orders on Hand Pipeline Stocks Subcontracting

The confirmation control key regulates whether the confirmations are relevant for goods receipt or material planning and whether confirmations are expected for a specific purchase order.

To trigger an output type, we need to create an output type and define Partner Function and Output Type when will the be output will get trigger.

For Purchase Order, assignments of account are necessary to determines below things: Account assignment type Account that will be charged when you post the invoice or goods receipt Account assignment data that you should provide

CBP is the past consumption values of stocks which is used to forecast future requirements. On the basis of the past consumption values, the net requirement of goods is calculated. The difference between CBP and MRP is that when you plan materials using MRP, we have to predict the materials requirement based on sales and operations planning (SOP). While in CBP we have to predict the material, requirement based on historical demand for materials.

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 RFO (Request for Quotation) Outline Agreement PO (Purchasing Order)

Source List is basically a list of suppliers who is going to supply the respective material. We can create a Source List in ME01.

The standard price for the material data cannot be updated or changed directly in material master. 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

Release procedure with classification means the Purchase requisition can be released both at item level & at the header level. Release procedure without classification can also be used for PR which is used for item level release only. all other external documents cannot be released with classification. The two procedures are mutually exclusive

A Contracts is a type of procurement plan by which the release orders (releases) can be issued for materials or services agreed as necessary for a certain period overall. The contracts are of two types: Quantity Contracts – Use this type of contract if the total quantity to be ordered during the period of validity of the contract is known in advance. Value Contracts – Use this type of contract, if the total value of all release orders issued against the contract shall not exceed a certain predefined value. But Scheduling agreement is a form of procurement plan under which the materials are purchased on dates within a certain time.

Planned Delivery is basically the number of calendar days required to obtain or deliver to customer.

101 Goods Receipt for Unrestricted Stocks 103 Goods Receipt for Blocked Stock 105 Release from Block to Unrestricted 122 Return to vendor from Unrestricted 124 Return to vendor from blocked stock 301 Plant to Plant transfer. 309 Material to Material transfer 311 Transfer from Storgae Location to Storage Location.

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

Yes, even after flagging a material for deletion, we can use it till it is actually deleted. It will just trigger a warning message whenever the material is used. If we want a material to be blocked for any use with immediate effect, we should use a material status which is there in Basic View 1 for general level or in MRP 1 view for plant level blocking in material master.

The physical movement of stock between different physical locations is called as ‘Stock 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)

In SAP MM, there are basically two types of shelf-life: Total Shelf Life – In case the total shelf life is maintained in material master, 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 manufacturing date of the item so that the expiry date is automatically calculated by the system based on the maintenance of shelf life in material master. 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.

Partner Function is used to define responsibilities and duties of other business partners. Few of the standard partner function in MM are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier), PI(Invoice presented by).

All materials are counted at some point in the year, but that can be at any day appointed for. Sp that we can count some material in February, others in April and so on. A single material can be counted on a single date. This type of inventory is mainly utilized in warehouse management-based warehouses, but it can be done in inventory management too.

One of the mandatory things to create inbound delivery for a purchase order is the confirmation key which needs to be Inbound Delivery until unless you set this the system will throw error while creation of Inbound Delivery. To Create an Inbound Delivery, you need to use Transaction VL31N.

Purchase Order: EKKO – Purchase Order Header EKPO – Purchase Order Item EKKN – Account Assignment In Purchasing Document Material: MARA – General Material Data MARC – Plant Data for Material MARD – Storage Location Data for a Material Delivery : LIKP – Delivery Header Data LIPS – Delivery Item Data

To create vendor account group in SAP we need to use the below path. Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout

MIGO or Movement in Goods Out is used for goods movement such as goods issue, goods receipt, plant to plant transfer, storage location to storage location transfer, etc. Basically, MIGO is booked by the logistics department where the goods are actually received.

Goods receipt is the physical inbound transfer for goods or material into the warehouse. It is the transfer of goods which is used to post goods received from external vendors or from in-plant production. All goods receipts result in an increase in stock in the warehouse. Post-Goods Receipt is used to post the receipt of goods with reference to the purchase order with which the goods were ordered. If the material is delivered for some purchase order, it is important for all the departments involved that the goods receipt entry in the system references this purchase order.

A production order determines which material is to be prepared, at which location, and at what time and how much quantity is required. It also defines which components and sequence of operations are to be used and how the order costs are to be resolved. A purchase order is a formal request or guidance from a purchasing organization to a vendor or a factory to supply or provide a certain quantity of goods or services at or by a certain point in time.