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SAP MM Interview Questions and Answers

MM Interview Part 2

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100% found this document useful (1 vote)
901 views16 pages

SAP MM Interview Questions and Answers

MM Interview Part 2

Uploaded by

sanjanasingh29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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7/4/2019 SAP MM Interview Questions and Answers


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Home » SAP MM (Materials Management) » MM (Materials Management) Interview Questions

MM (Materials Management) Interview

Questions

SAP MM FAQ's

1) What are the integral components in SAP MM?

The Components of SAP MM are listed below:

Purchasing
Inventory management

Invoice verification
Physical inventory
Valuation
Materials requirements planning
Materials master
Service master
Foreign trade/customs

2) Mention t-code to create Purchase Requisition in MM?

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Transaction code ME51N can be used to create Purchase Requisition in MM

3) What are the various types of Basic Procurement?

Basic procurement is of 2 types as listed below:

Procurement for Stock vs Consumption


External vs Internal Procurement

4) List few of the Common Stock Transport Order


Movement Types?

By utilizing MT 301, one step transfers of materials can be posted. The other different
transport scenarios vary in the MTs by the good receipt and good Issues. Common

Goods Issues may utilize MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt
generally uses MT 101.

5) What Is the difference between a Purchase


requisition and a Purchase Order?

A Purchase Requisition is a type of document which notifies the need for services or

materials, whereas a Purchase Order is a document type which is a more formal


request for materials or services from a plant or an outside vendor. Procurement types

can also be defined at the line item and can be either subcontracting, stock transfer,
standard, consignment or an external service.

6) List the difference between SAP MDM and SAP MM?

MM (Material Management) is a module which deals with the day to day operations of
inventory management (stuff related to material valuation, storage, requirement

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planning etc ) and Procurement processes ( is related to goods, receipt, Purchase


orders BOMs etc).

MDM refers to Master Data management, It is business specific data, which


encompasses information regarding vendor/customer names, Product descriptions,

along with banking information.

7) What is Pricing procedure in MM?

In the MM module, the Pricing procedure is a channel for determining the prices in

purchasing documents. This give us functionality for assigning different calculation


types for various needs. During PO and RFQ creation In MM module, the pricing

procedure is utilized. The total value of material is based on all the addition and
subtraction such as surcharge, discount, tax, freight, etc.

8) What are the steps needed to configure pricing


procedure in SAP MM?

Maintaining Condition Table

Maintaining Access Sequence


Maintaining the Condition type

Maintaining the Calculation Schema


For the vendor, maintaining the Schema Group

For Purchasing Organizations, maintaining the Schema Groups


Assigning Schema Group to Purchasing Organization
Maintaining Schema Determination

Assigning Schema group to Vendor

Maintaining condition record

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9) What are the various steps involved in Procurement


Cycle of SAP MM?

Determining the requirements of material

Determining the source


Selecting the vendor and Comparing the Quotations

Purchase Order Processing

Purchase Order Follow-Up

Receiving Goods and managing Inventory


Verifying the Invoice

Payment to vendor

10) How can we post goods receipt?

In T-Code: MIGO navigate to post Goods Receipt using the path given below −

Logistics -> Materials Management -> Inventory management -> Goods movement ->

Goods movement

11) How can a user link a document to a vendor master


record?

By using the XK01 transaction code the user can successfully link the document with
the vendor master record or by utilizing the following menu path:

SAP Menu -> Logistics -> Material Management -> Purchasing -> Master Data ->
Vendor -> Central -> XK01-> Create.

12) What do you mean by Special stocks?

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Special stocks are all those stocks which are managed separately as they don’t belong

to your company or these are stored at a specific location.

13) What are the various Special Procurement Types in


SAP?

Lister below the following special procurement types available in the SAP System:

Consignment

Subcontracting

Stock transfer using stock transport order


Third-Party Processing

Returnable transport packaging

Pipeline Handling

14) What is Consignment Stock?

SAP Consignment is defined as a process in which the user purchases the goods from a

vendor, however, doesn’t valuate that stock. The user must make the payments to the
vendor, only when goods are withdrawn from his store. Best example would be the Car

shop which purchases the goods from its vendors for advertisement and display

purposes and only once cars are sold, the vendor charges him.

The entire process of Consignment in SAP MM is managed by an item category in

purchasing document and there are certain prerequisites/steps meant for the
consignment process to work.

15) How would the user change unit of measures in


mmr?

Please follow the steps below:

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Go to mm02 t.code
Enter your mat number

Now select the over screen and then select basic data 1,

Now you will find basic unit of measure which you can modify.

16) How can G/L Accounts for MM Account


Determination be verified?

The program RM07C030 verifies all the G/L account definition in your Material Master
valuation class. User can Search it via Company code and Valuation area.

17) In Materials Management (MM), what is Data


Archiving?

Data archiving removes mass data which is no longer required by the system (but that

still should be available for reporting) from the database. The SAP data archiving

concept is typically based on the archiving objects of the Archive Development Kit
(ADK).

18) Define Stock Population?

The stock population is known as the total of all stock management units which are
encompassed in an inventory sampling. All these stock management units are
exclusively defined through the allocation of the stock management levels to a given

inventory sampling. As a result of this, the stock population is also defined when the
user allocates the level of the stock management.

19) How to make a Dummy Reservation?

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The user can try to create a new movement type with reference to 201 movement

type.

20) How can the user include new custom field in

Services tab for a Service PO item?

The user can modify the description in the In the user field by customizing (SPRO) and
appended a search help to it.

21) How to modify the Valuation Class in SAP MM?

User has to Go to t-code MMAM - This t-code is meant for altering the material type
and not the valuation class.

If the user modifies the material type in MMAM transaction, then automatically the

valuation class will be altered in the material master. The system will accept the
changed material type valuation class which was initially created for that material type.

22) Is it possible to verify all the archive postings of a

certain material?

Please try with MBAL - Archived Material Documents.

First, select the option Database table and then in the 'Tables and Archiving Objects'
you are required to choose the second option 'Tables from which data is archived'

23) Can we send a multilevel BOM to a Subcontractor in

purchase order?

There is no feature available in the subcontracting to have multilevel BOM, we have two
options

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First, is to attach the BOM as Document in the PO for the appropriate component
The second option is to add the relevant component in same order with delivery to

same vendor as a subcontractor with BOM.

24) What is subcontracting process?

Subcontracting is defined as one of the procurement processes available in MM. In this

process, the components are shared with the vendor for getting the final product. The
material which must be produced by the vendor can be ordered as a subcontract item
in a purchase requisition, purchase order, or scheduling agreement. Each of the

subcontract item has one or more sub-items which contains the individual components
the vendor is required to perform the subcontract work or value-added service.

25) How will the user consider Subcontracting PO

components which are not sent by my company to


vendor however they are added by the

vendor(subcontractor)?

We recommend you to get an updated invoice in which the cost of Nut Bolt and Gasket
etc. are all added. Thereby, you can either alter the PO price as per that price or make

the invoice accordingly. By doing this the system will automatically update the
Material/Product cost accordingly.

26) How to create movement type?

Assume we are creating movement type 281 Goods issue for a network

Please follow the steps below:

First, navigate to Transaction OMJJ


Now the standard movement type 201

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Then click on copy and overwrite the 201 with 281


Now click the Enter button, then click on Copy all
Please select the new movement type 281

Now On the left-hand column screen, click on Reversal/follow-on movement


At last fill in the reversal movement type

27) What is RTP?

RTP (Returnable Transport Packaging) is referred to a multi-trip packaging medium (for


instance, containers or pallets) through which the goods can be transported multiple
times between customers and vendors. Returnable transport packaging from a vendor

which is stored at a place on your premises is treated as a special stock and is clearly
assigned as a belonging to the vendor. RTP is vendor's property, therefore, it is
excluded from the customer’s valuated stock.

28) How can the user post returnable Transport


Packaging (RTP) Quantities at Goods Receipt for

Purchase Order?

A quantity of returnable transport packaging can be entered at goods receipt for a


purchase order, as listed below:

In Inventory Management menu, navigate to Select -> Goods movement ->


Goods receipt -> For purchase order -> PO number known -> or path PO

number unknown.
On the initial screen please enters the movement type (101) and also the order
number (or the selection criteria for the purchase order).

Now please select and copy the required items.


Now in the overview screen, choose Edit -> W/o purchase order -> Enter.

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A popup window will appear, Please enter the movement type and the special

stock indicator (e.g. 501 M ) for the quantity of returnable transport packaging.
Now please enters the returnable transport packaging items.
At last, post the goods movement.

29) How can you transfer Posting of RTP stock between


Storage Locations?

A transfer posting of RTP stock between two storage locations is entered as

listed below:

In Inventory Management menu, navigate to Goods movement -> Transfer

posting -.
Now enter data to the initial screen:
Now nvigate to Movement type Transfer posting -> RTP stock -> SLoc to SLoc -

> ( -> 311 M ->).


Now give the plant and the issuing storage location.
Give vendor and the receiving storage location on the next screen.

Please enter all the items.


At last, post the goods movement.

30) What is the difference between the stock transfer

between two plants belonging to same company code

and those belonging to different company code?

Stock Transfer Order (STO) for Intra Company

The stock transfer between two plants are done with one Company code

Purchase Order Type 'UB' is used in this case


Delivery Type 'NL' is used
Goods Movement type is 641 for Intra Company
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Item Category in delivery is NLN

Stock Transfer Purchase Order (STPO) for Intra Company

Two Different Company Codes are required for Stock Transfer Purchase Orders
between two plants

Purchase Order Type 'NB' is used in this case


Delivery Type 'NLCC' is used
Goods Movement type is 643 for Inter-Company

Item Category in delivery is NLC

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