SAP MM Interview Questions
Q1. Explain what is SAP MM?
Ans: SAP MM (Material Management) is a purposeful module in SAP that deals with procurement dealing with and fabric management. The MM module includes grasp data, gadget configuration and transactions to complete the procure to pay system.
Q2. What is using SAP Material Management module?
SAP Materials Management (MM) is part of Logistics region and enables to manipulate the procurement pastime of an company from procurement.
It supports all aspects of material management (planning, manipulate etc).
It is the backbone of the Logistics location which incorporates modules like Sales and Distribution, Production Planning, Plant Maintenance, Project Systems, Warehouse Management which might be extremely enthusiastic about Materials Management module.
Q3. What do you apprehend from Procurement method in SAP MM?
Ans: Every company acquires fabric or services to finish its enterprise desires. The method of purchasing materials and acquiring offerings from companies or dealers is procurement.
Q4. Explain steps in Procurement Lifecycle?
Requirement and Information Gathering
Procurement manner begins with amassing information approximately product and its quantity. Then for required products and services, it's miles essential to search for providers who can satisfy the necessities.
After gathering requirements one will look for the suppliers who can satisfy the necessities. Based on that quotation request or data request can be made to providers or direct touch may be made with them.
Once the provider is known product/carrier exceptional is checked, and any necessities for services such as set up, warranty and its protection are investigated. Some samples of the goods can be received for fine examination.
Some negotiations with suppliers is made regarding price, availability and delivery time table of the goods/offerings. After this a settlement is signed that could be a binding prison report between provider and ordering party. A settlement will include all necessary data like rate and amount of cloth, shipping date, etc.
Ordered cloth can be shipped, added to the ordering party and supplier is paid thus. Training and Installation of product or services will also be covered.
Consumption, Maintenance and Disposal
As the products/service is ate up the overall performance of the goods or offerings is evaluated and any observe up service aid if required is analyzed.
Q5. What is External Procurement?
Ans: External procurement − It is the process of purchasing goods or services from outside providers. There are 3 basic varieties of external procurement generally supported by the Purchasing element of IT machine.
One time orders are normally used for fabric and offerings which might be ordered irregularly.
Longer-term contracts with the following issue of release orders - For materials which are being ordered regularly and in large quantities, we are able to negotiate cope with the seller (dealer) for pricing or situations & report then in a agreement. In a contract you also specify the validity date.
Longer-time period scheduling agreements and shipping schedules - If a material is ordered on an ordinary basis and is to be brought in keeping with an actual time agenda, you then set up a scheduling agreement.
Q6. What is Internal Procurement?
Internal Procurement − Large corporate corporations can also own multiple separate corporations or corporations. Internal Procurement is process of getting fabric and services from amongst equal organisation. So, every of those companies keeps a complete bookkeeping system with separate Balance, Profit & Loss Statements so that after alternate happens among them it will be recorded.
Q7. What is Special Procurement?
Special stocks are shares which can be managed otherwise as those stocks did no longer belong to agency and those are being saved at a few precise location.
Q8. What is Consignment Stock?
Material that is available at our store premises, however it nonetheless belongs to the seller (supplier)/Owner of the material. If you utilize the material from consignment shares, then you have to pay to the vendor.
Q9. What are the common assignment sorts in SAP MM device?
Plant to Company code
Purchasing organization to organization code
Purchasing enterprise to Plant
Standard purchasing organisation to plant
Q10. What are the one-of-a-kind Info report sorts?
Q11. How do you flag a material for deletion?
Ans: A deletion flag may be set at patron level, plant degree or garage region level. Transaction MM06 is used to mark a cloth for deletion.
Q12. What is the usage of Purchase Info Record?
Ans: Purchasing info document stores statistics on material and dealer offering that material. For Example: Vendors modern-day charge of a selected cloth is saved in data document.
Q13. Where do you hold Purchase Info Records in SAP MM?
Ans: Purchase information report can be maintained at plant level or at buying organization degree.
Q14. What is Purchase Order?
Ans: Purchase order is the formal and final confirmation of the requirements that's sent to vendor to supply fabric or services. Purchase order will encompass vital statistics like name of fabric with its corresponding plant, details of purchasing employer with its company code, name of seller, and date for delivery of material.
Q15. What do you apprehend by Goods Receipt in SAP system?
Ans: After processing of purchase order by means of dealer, material is delivered to ordering party and this manner is known as as items receipt. So, items receipt is the phase wherein the fabric is received through the ordering celebration and the situation and satisfactory are established. Once material is established in opposition to best then goods receipt is published.
Q16. How do you put up items receipt?
Ans: Path to post Goods Receipt −
Logistics ⇒ Materials Management ⇒ Inventory control ⇒ Goods motion ⇒ Goods movement
Q17. How can you create a Purchase Order from Purchase Requisition?
Ans: Purchase Order from buy requisition may be created by using following below steps −
Q18. What is Request for Quotation RFQ?
Ans: Request for quotation is a shape of invitation this is despatched to companies to put up quotation indicating pricing and their terms and situations.
RFQ carries information about goods or services, amount, date of delivery and date of bid on which it is to be submitted.
Q19. What is the usage of report type in SAP gadget?
Ans: In SAP system, you operate Document Type to outline one-of-a-kind methods or tactics for a transaction.
Q20. What is free item in SAP machine?
Ans: The Price will be marked 0 for free object. We can tick the object as free object even as growing PO in gadget.
Q21. Why do you use Material kind?
Ans: Material type in SAP device is used to group various materials based totally on some not unusual homes.
Q22. What is Material Status?
Ans: It is two digit code and is used to decide the fabric usability.
Q23. What are the specific stock kinds in SAP machine?
Quality Inspection Stock
GR Blocked Stock
Q24. What do you apprehend by using GR Blocked stock?
Ans: This is conditionally conventional stock and no longer the unrestricted stock.
Q25. What are the exclusive Stock switch sorts in SAP gadget?
Q26. What is Intra plant inventory switch kind in SAP MM?
Ans: Storage Location to Storage Location
Q27. What is an Outline agreement?
Ans: Outline agreement is a long term purchasing settlement with vendor containing terms and conditions regarding the cloth this is furnished by way of vendor.
Outline settlement are valid as much as sure period of time and cowl a sure predefined amount or cost.
Q28. Is it viable that you may use scales in Quotation?
Q29. What do you recognize through Material Master? How Material master is maintained in SAP gadget?
Ans: Material master consists of data associated with one-of-a-kind fabric types like finished product, uncooked cloth. Material master may be used for figuring out a product, purchase fabric, goods problem or properly receipt, MRP and manufacturing affirmation.
For Material master information, use T-code: MM01 or go to Logistics → Production → Master Data → Material Master → Material → Create (General) → without delay
Q30. What is the use of BOM usage kind 1 in SAP machine?
Ans: It is used for Production
Q31. How do you create Purchase Order or Purchase Requisition from Material Requirement Planning?
Ans: The PR is created consistent with the safety inventory mentioned for the fabric or can be prompted from a requirement. For growing a PO, you need to have the scheduling agreement in region. After the MRP is run the agenda strains are generated which might be nothing however the PO.
Q32. What is MRP run in SAP gadget?
Ans: MRP run or making plans run is an engine which is used to fill demand and supply gap. Issues & Receipts are known as MRP Elements. Issues consist of PIRs, Dependent Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, and many others. And receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule traces, and so forth.
Q33. How do you check Stock Requirement List in SAP device?
Ans: This is used to peer current stock and deliberate receipts. Use T-code: MD04
Enter Material and Plant to see list.
Q34. What is the use of MRP listing?
Ans: MRP List is used to generate static report that consists of planning run fabric sensible and it presentations time of MRP run on the top.
Use T-Code: MD05
Q35. What is the Production Order?
Ans: A Production order is used to define the fabric to be produced, plant vicinity in which production needs to be carried out, date and time of manufacturing, amount of goods required. A Production Order also defines which components and sequence of operations are for use and how the order fees are to be settled.
Q36. How do you take a look at the to be had stock at any point of time?
Ans: You can use Stock evaluation to test the available inventory at any factor of time. Stock evaluate may be checked the usage of T-Code: MMBE
Q37. What is a Contract?
Ans: Contract is a long time outline settlement between supplier and ordering birthday celebration over predefined material or services over certain framework of time. There are two types of agreement −
Quantity Contract −
In this form of settlement universal value is laid out in terms of total amount of cloth to be provided by using dealer.
Value Contract −
In this sort of settlement universal price is specified in terms of total quantity to be paid for that cloth to the vendor.
Q38. What is the motion kind for Goods difficulty reversal?
Ans: Movement kind is 262 in Goods issue reversal.
Q39. What is the use of Material Document List?
Ans: Material record list is used to generate any items motion together with goods receipt, items trouble for a production order, and many others.
Q40. Can you generate packing/selecting lists for items difficulty in SAP MM?
Ans: In SAP EWM you can generate packing listing.
Q41. What is a Scheduling settlement?
Ans: Scheduling settlement is a long term define agreement among dealer and ordering celebration over a predefined fabric or service which can be procured on predetermined dates over a framework of time.
Q42. What is Quota Arrangement in SAP system?
Ans: A particular material may be procured from exclusive providers relying upon the requirement. So, general requirement of a cloth is shipped to unique dealer’s i.E. Quota is assigned to every supply of supply. This is referred to as quota arrangement.
Q43. How do you check Quota Rating?
Ans: Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
Q44. What is the usage of Posting Period in SAP system?
Ans: SAP ERP systems have been designed in order that commercial enterprise may be carried out in an efficient way. Various files like buy order, request for citation, goods receipt are important files in a enterprise. These documents want security i.E. If any of documents is posted incorrectly then enterprise may be affected at diverse difficulty levels. So, to comfortable these files we have a concept of posting period. Posting duration manner it's going to let you publish and make adjustments inside the files most effective in a specific term.
Q45. How do you outline Posting Period in a organization?
Ans: Posting period for a corporation can be described using 5 fields which are as follows −
Maintain Fiscal Year Variant
Assign Fiscal Year Variant to Company Code
Define Variants for Open Posting Periods
Assign Variant to Company Code
Open and Close Posting Periods
Q46. What is the final step in Procurement cycle?
Invoice verification marks the quit of procurement after purchase order and items receipt.
Invoice posting will replace all related documents in monetary and accounting.
Blocked invoice that fluctuate from real invoice can be processed via bill verification.
Q47. What are the unique Procurement types that you may create Purchase requisition?
Ans: Purchase requisition can be created for the following procurement types −
Standard − Getting finished fabric from seller.
Subcontracting − Providing uncooked fabric to seller and getting finished cloth.
Consignment − Procuring fabric that is stored in enterprise’s premises and paying to seller for that.
Stock switch − Getting fabric from inside the company.
External carrier − Getting offerings like preservation from 1/3 birthday celebration vendor.
Q48. A Purchase requisition is an internal file or external document?
Ans: Internal record, it's miles the phase in which purchasing branch is informed approximately the requirement of objects or offerings required for commercial enterprise reason.
Q49. What are the exceptional sort of Basic Procurement?
There are 2 sorts of Basic procurement which might be proven beneath −
Procurement for Stock vs Consumption
External vs Internal Procurement
Q50. What is the distinction among Procurement for stock vs consumption?
Procurement for Stock − A inventory material is a material that is stored in stock. These materials are saved in stock as soon as obtained from the seller. The inventory of this fabric maintains on increasing or decreasing based on amount of the quantity received or issued. To order a material for inventory, the material have to have a master document in the gadget.
Procurement for Direct Consumption − When procurement is for direct intake i.E. It will be fed on as quickly as it's miles acquired, the consumer have to specify the consumption cause. To order a cloth for consumption, the fabric may additionally have a master file inside the system.