Hi,

Please gothrough these questions, which is important for the MM interview.

1. What is the difference between the stock transfer between two plants belonging to same company code and those
belonging to different company code?

Intercompany STO
Stock transfer between plant to plant, where plants belong to different company codes.

Delivery- The procedure for delivering on the basis of a purchase order from another plant should be similar to
delivering on the basis of sales order from the customer.
Billing- The delivering plant will be charging the receiving plant for the material

Purchase order type - NB

Delivery type - NLCC
Movement type - 643
Item category in delivery - NLC
The delivering plant can then create a delivery and an intercompany billing document on the basis of this purchase
order.
Intracompany STO
Stock transfer between plant to plant belonging to same company codes.
It is done through creating STO
Purchase order type - UB
Delivery type - NL
Movement type - 641
Item category in delivery - NLN

2. What are the fields in Purchasing view?

Purchase group
Purchase value key
Material group
Base unit of measure
Batch management indicator
GR processing time
Quota arrangement usage number
Source list indicator
Post to inspection stock
In accounting view
Valuation class
Valuation category
Price control
Standard price, Moving average price
In MRP view
MRP type, MRP group, Lot size
Fixed lot size, max, min lot size

3. What are the steps in automatic account assignment config.

 Define valuation control - OMWM
Group together valuation area - OMWD
Define valuation class - OMSK
- Account category reference
- Valuation class
- Material type/account category
Define account grouping for movement types - OMWN
Configure automatic postings - OMWB
Account assignment - OBYC

SOME MORE QUESTIONS

Question:
You wish to procure a material using a purchase order. You wish to take delivery of the material at different times. A
graduated discount scale exists for the material. How do you proceed if you wish to take advantage of the discount
arrangement?

Answers:
A) Enter several order items with the same material number and different delivery dates.
B) Enter one order item with the material number and assign the material to different accounts.
C) Enter an order item with the material number and create a number of schedule lines.
D) Enter a number of purchase orders for the material and specify different delivery dates.

Question:
In the purchase order on which the goods receipt is based, you defined a purchase order unit that differs from the
purchase order unit. What is the significance of the purchase order price unit and what should you take note of in the
case of a goods receipts?

Answers:
A) The purchase order price unit is stored in the material master record or purchasing info record and defines the unit
of measure in which the material is ordered.
B) The system establishes the relationship between the purchase order price unit and the purchase order unit
conversion in the purchase order.
C) At the time of goods receipt, both the quantity in the purchase order unit and the quantity in the purchase order
price unit have to be entered, however, the quantity in purchase order piece unit is calculated by the system. You
have to change it when the calculated quantity differs from reality.
D) Both at the time of goods receipt and invoice verification, the material is valuated on the basis of the purchase
order unit.

Question:
You enter a goods issue and receive the following message: "W: On , only 0.000 pieces are available". What do you
conclude from this?

Answers:
A) No stocks of the material exist anywhere in the entire plant. Therefore, nothing can be withdrawn.
B) Only the specified storage location does not contain any stocks of the material. Therefore, nothing can be
withdrawn.
C) The material exist in the specified storage location on the current day, however, it is unavailable, because of other
reservations.
D) The message represents a warning which you can ignore by pressing the
ENTER key.

Question:
Which of the following statements on procuring a material of the material type NLAG are correct?

Answers:
A) The purchase order must be account assigned.
B) The goods receipt must always be unvaluated.
C) When you enter an invoice, you can change the account assignment as long as the goods receipt was unvaluated.
D) When the material is for consumption, no document is ever created in Financial Accounting.

Question:
Which of the following stock transfer are relevant to valuation?

Answers:
A) Stock transfer from storage location to storage location in the same plant or company code.
B) Stock transfer from consignment stores of vendor XY to our unrestricted-use stock in storage location 0001.
C) Stock transfer from stock in quality inspection in storage location 001 to stock in quality inspection in storage
location 0002 in the same plant.
D) Stock transfer of a material from storage location 0001 from plant 0001
to plant 0002. The plants belong to the same company, however the valuation areas are different (valuation level is
plant).

Interview Questions on SAP MM

1. What are the types of special stocks available?
Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer , third party.
2. What are the types of inforecords?
Standard, consignment, subcontracting & pipeline.
3. What is meant by consignment stock?
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.
4. What are the steps involved in consignment cycle?
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.
5. Tell me about the subcontracting cycle.
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.
6. How are the byproducts taken care of in subcontracting?
You can add these by products in the BOM for the header matl.
7. 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.
8. What is the difference between a contract and a scheduling agreement?
With regard to Outline Agreement:
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.
12. How is a shelf-life item managed in SAP? What is the full cycle?
13. What are the settings required for quota arrangement?
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
14. What is meant by MRP Type and lot sizing?
15. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in
consumption-based planning if VB is selected as MRP type?
16. How are free items managed in a PO? yu need to tick the tem as free in the PO. The price will be zero for such
PO's.
17. What are the differences between release procedure with classification and release procedure without
classification? When are they used?
Release procedure with classification means the Purchase requsition can be 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).
18. Is it possible to have a release procedure without classification for a PO?
No
19. What is the maximum number of levels available in SAP?
Did not get this question …pls clarify.
20. Is it possible to have scales in a quotation?
No
21. What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received, you can put in GR blocked stock.
22. How are the variations in subcontracting taken care of in SAP?
23. How to give specifications for developments?
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.
24. How to create PR or PO by MRP?
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.

MORE Questions

1. What are the types of special stocks available?

Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third party.
2. What are the types of inforecords?
Standard, consignment,subcontracting & pipeline.
3. What is meant by consignment stock?
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.
4. What are the steps involved in consignment cycle?
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.
5. Tell me about the subcontracting cycle.
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.
6. How are the byproducts taken care of in subcontracting?
You can add these by products in the BOM for the header matl.
7. 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.
8. What is the difference between a contract and a scheduling agreement?
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.
9. How does the system calculate taxes?
10. How does the system calculate nondeductible taxes?
11. What is meant by batches? How can the batches be searched?
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.
12. How is a shelf-life item managed in SAP? What is the full cycle?
13. What are the settings required for quota arrangement?
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
14. What is meant by MRP Type and lot sizing?
15. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in
consumption-based planning if VB is selected as MRP type?
16. How are free items managed in a PO? yu need to tick the tem as free in the PO. The price will be zero for such
PO's.
17. What are the differences between release procedure with classification and release procedure without
classification? When are they used?
Release procedure with classification means the Purchase requsition can be 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).
18. Is it possible to have a release procedure without classification for a PO?
No
19. What is the maximum number of levels available in SAP?
Did not get this question …pls clarify.
20. Is it possible to have scales in a quotation?
No
21. What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received, you can put in GR blocked stock.
22. How are the variations in subcontracting taken care of in SAP?
23. How to give specifications for developments?
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.
24. How to create PR or PO by MRP?
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.
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
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.
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.
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 Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption account.
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.
How to delete a material completely?
Try MMDE transaction but be careful this will remove all material from Client.
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.
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.
How to create new transaction codes?
In transaction code SE93 you can create, Change & Display a Transaction Code.