SAP MM Interview Questions Answers | SAP MM Online Training

SAP MM Interview Questions Answers

  1. Explain what is SAP MM?

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 procedure to pay process.

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

The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with the customer, etc.

  1. List out the important field in purchasing view?

The critical fields in purchasing view are

  • The base unit of measure
  • Order unit
  • Purchasing group
  • Material group
  • Valid from
  • Tax indicator for material
  • Manufacturer part number
  • Manufacturer, etc.
  1. Mention what is the transaction code to delete a batch?

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

  1. For creating a purchasing info record what are the pre-requisites?

The pre-requisites for creating a purchase info record are

  • Material Number
  • MPN (Manufacturer Part Number )
  • Vendor Number
  • Organizational level code

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  1. Explain how is the vendor return processed without a purchase order reference?
  • 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
  1. Explain what are the accounts created in SAP MM?
  • Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things
  • Account assignment type
  • An account that will be charged when you post the invoice or goods receipt
  • Account assignment data that you should provide
  1. Explain what is CBP? What is the difference between CBP and MRP?

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.

  1. Can you elaborate about SAP and how it is useful in Industries?

SAP stands for Systems, Applications and Processing the Data.  It is the most popular software application used to provide enterprise business solutions. This ERP software application was first introduced in Germany (Mannheim) in the year 1972. ERP stands as Enterprise Resource Planning.
It provides solutions by incorporating various business tasks like sales, purchase, and production.  SAP obtains details from one business process and integrates it into another business process, thus speeding up the business process.  It is broadly used in industries, since it updates and process important data very quickly and used by the department to determine how to prepare the products and also it can program business process and provide real-time solutions for business.

  1. Do you know about organizational structure in the MM module?

The structure in the MM module is a ladder in which various organizational unis are arranged designed according to the functions and tasks of each of them. The units that make the structure of the organization are as given below.

The first is the client and this unit is independent. This unit has a different record system and well as its own table sets. The second is the company code. This is one of the smaller units of the organization. For the need of external report, one can make a self-reliant account sets for the unit of company code. The third is the plan. This is where the supplies are formed and the services and goods are given. The industry can be broken down into different plants based on maintenance, supplies, production, procurement etc.  The next is the location of the storage. The produced goods are kept in this unit. The next is the number of the warehouse this shows the system of the warehouse. It is different for every area of storage and organization. After that is the storage type which tells one the different areas such as issuing area, area for picking up the goods etc. The next is the organization of the purchasing which is the unit that negotiates with others for purchasing and also obtains the services and the material. The next is the group purchasing which a code for an individual buyer or a group who actually purchase the materials. This unit is also partially involved in negotiating and obtaining the goods.

  1. What is the code used for extension of the view of material?

The code used for the transaction of the material view is MM50.

  1. What do you mean source list and what is the code of the source list?

The source list is to identify the home of the supply from where the materials come. The code for creating the source list: ME01.

  1. What is known as RFQ?

RFQ is an abbreviation for Request for Quotation. It is a kind of form which is given to the vendors for them to submit any quotation which is indicative of the terms and conditions and the price of the goods and materials. It has details of the quantity of the goods, information about the goods, and the delivery date when the form is to be submitted.

  1. What is CBP?

CBP essentially means the consumption value of the materials in the past. It is used to know about the requirements in the future. Based on the consumption of the services in the past, the average requirement of the goods can be calculated.

  1. What is the type for the reversal of the issue of the goods?

The transactional type for the reversal of the issue of the goods is the number 262.

  1. How is quota rating checked?

The formula for checking the quota rating is the addition of the base quantity of the quota and the allocated quantity quota and divides it by the overall quota.

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  1. How does one do a verification of the invoice?

When the invoice is related to an existing sheet then every information which is relevant is taken out by the system. This includes material, vendor, delivery and its terms, payment etc. One has to enter the invoice and the system takes out the account, tax, discount and corrections which are relevant. If the invoice is been posted data like the average of the price are reorganized.

  1. How are parked documents showed?

Parked documents are showed with the codes FBV3 and FB03. FBV3 displays the parked sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs to know if any documents still need approval or if they still need completion.

  1. What are the different types of ERPs?

Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel, and BAAN. These are some of the different types of Enterprise Resource Planning.

  1. What is NetWeaver?

NetWeaver is an incorporated technology in which every product in the MySAP group can be used in a single go of a server which is known as SAP Web Application Server. This technology is very useful and helps the user efficiently. One of the advantages of using this is that the data related to SAP can be accessed by the enterprise through or even through mobile. This is not only cost effective but also time effective. If one uses this a lot of money is saved which could otherwise go in training a new user in the SAPclient.

  1. Explain about Metadata, Transaction data, and master data? Can SAP be called a type of database?

Metadata: Metadata informs a person about the information of a data. This gives a person in-depth information about the hierarchy of the information or it is also called as Meta Objects. There are many types of Metadata. Some of the metadata’s are structural metadata, descriptive metadata, reference metadata, statistical metadata, and administrative metadata. Each of these types has a different kind of function in a system.

Next is the transaction data. This is nothing but the information pertaining to the transactions which happen on the day to day basis. After that comes the master data. Data provides essential information about the materials, the employees and even information related to the customer of that service. One can also call it the data of reference. For instance: the person orders for a product which is 20 units. So instead of asking for the customer’s address 20 times, the same information can be used from the master data of the customer.

SAP cannot be called as a database. Since it is an application it uses the databases which are provided by other retailers. These retailers include Server, Oracle, SOL, and many other retailers.

  1. Tell me about the subcontracting cycle?

The Po is created with item category L, the goods are transferred to the subcontractor by 541 movements. For this movement note, no accounting docs take place.  When GR is done automatically, 543 movement takes place which takes care of the consumption of components from stock.

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

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

  1. 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.

  1. 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 into 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.

  1. 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, and 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

  1. 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 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 (that is to say, you must decide in favor of one of them only – you cannot use both).

  1. Is it possible to have a release procedure without classification for a PO?


  1. Is it possible to have scales in a quotation? 


  1. 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.

  1. 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.

  1. 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 by 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.

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