SAP MM Interview Questions and Answers

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 procure to pay process.

• Determine requirements
• Source determination
• Vendor Selection
• Order Processing
• Order follow up
• Goods receipts and Inventory management
• Invoice Verification

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

The critical fields in purchasing view are

• Base unit of measure
• Order unit
• Purchasing group
• Material group
• Valid from
• Tax indicator for material
• Manufacturer part number
• Manufacturer, etc…

A batch tells about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While, the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process).

To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path

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

• Purchase requisition  EKBN
• Purchase requisition account assignment  EBKN
• Release documentation  EKAB
• History of purchase documents  EKBE

The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.

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

To extend the material view transaction, code MM50 is used.

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

To identify sources of supply for materials a source list is used. To create a source, list the transaction code used is ME01.

The pre-requisites for creating a purchase info record are

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

Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.

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)

In the normal purchase order or requisition, consignment stocks are created. While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated.

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.

To create vendor account group in SAP

• Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout

Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things

• Account assignment type
• Account that will be charged when you post the invoice or goods receipt
• Account assignment data that you should provide

MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results information for the material. For an individual item, you can access the MRP list by using the transaction code MD05. You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material

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.

We can fix a price in the info record for range of qty from 1-100 price Rs.100 & if the order qty is 101- 500- the prices are Rs.90. Also, scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement etc.

The process for deleting the materials permanently from material master is by using transaction code MM70 and the navigation is

Material Master > Other > Reorganization > Material > Choose

Then build variant with selection range of material master records to be selected for deletion and maintain run parameters and then execute.

Using Transaction Code MM71 navigate as follows:

Material Master > Other > Reorganization and then build the second variant, maintain run parameters and execute.

It is also important to remove the records manually form info records, PO, PR reservation etc… for successful deletion of the material.

Various material planning methods are used in MRP (Material Requirements Planning).

• Reorder point procedure (VM)
• Forecast-based planning (VV)
• Time-Phased materials planning (PD)

These are specified in material creation (MM01) under the MRP 1 tab.

The Function OBYC stands for Configure Automatic Postings. When the system settings are entered for the Inventory Management and Invoice Verification transactions the automatic posting to G/L accounts. Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management where the transactions are relevant to Financial and Cost Accounting.

To make the period indicator in the MRP2 view as “P” the transaction variant SHD0 and then SE93 is used.

The maintained source list requirement in OME5 was not maintained the source list for the material, Po can’t be released. So it is required to maintain source list for all materials in the plant where the indicator is set if maintain source list at plant level is maintained or it can make use of info record to do so automatically.

The lists of Info Records types are Standard, Consignment, Subcontracting and Pipeline.

The Consignment stock is a stock that is supplied by the vendor is in the company’s 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.

No, it is not possible to have scales in a quotation

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

The procedure to create PR is 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 is nothing but the PO.

Special Stocks that are available are Subcontracting, consignments, pipeline, project, sales order, RTP, stock transfer, and the third party.

The steps that are involved in consignment cycle is by creating consignment info record with proper tax code, maintain output condition record for KONS, no invoice verification done, create Po with item category K, process GR, but settlement is done through MRKO transaction.

The Contract agreement or the Outline Agreement is that create the centrally contract (cross-plant) where it can maintain different pricing conditions for each and every plant. It creates the Release Order with reference to Outline Agreement. No detailed delivery schedule can be made in the Release Order. No Release documentation is created. Only time-dependent conditions can be created, Some Item Category ‘M’ and ‘W’ can be used. 

Whereas the Scheduling Agreement is the Plant Location what must be entered in the Scheduling Agreement. It’s no need to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List). Delivery Schedule line items are created subject to your specific requirement. It can create both Scheduling Agreement with or without release of Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement. Item Category ‘M’ and ‘W’ cannot be used.

The release procedure with classification deals with the purchase requisition it can be released both at item level and at the header level. Coming to release procedure without classification can also be used for purchase requisition which is used for item level release only. All other external documents cannot be released with classification These two procedures are mutually exclusive to say, it has to be decided in favor of one of them only.

The procedure to give specifications are normally prepared for the business requirement document in which we specify what is required, what field and tables have to be referred for the required development.