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 procure to pay process.
2) What are the essential components in SAP MM?
– Determine requirements
– Source determination
– Vendor Selection
– Order Processing
– Order follow up
– Goods receipts and Inventory management
– Invoice Verification
3) 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 customer, etc.
4) List out important field in purchasing view?
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.
5) Explain the importance of the batch record?
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).
6) Explain how you can link a document to a vendor master record?
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.
7) Mention what are the major purchasing tables? List the transaction codes for them?
• Purchase requisition EKBN
• Purchase requisition account assignment EBKN
• Release documentation EKAB
• History of purchase documents EKBE
8) Mention what are the data contained in the information record?
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.
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9) 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.
10) Mention what is the transaction code used to extend the material view?
To extend the material view transaction, code MM50 is used.
11) Explain how you can change the standard price in the master material?
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
12) What is Source List and what is the transaction code for creating Source List?
To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.
13) 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
14) Explain the terms Planned delivery and GR processing time?
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.
15) What is purchase requisition as related to SAP? Mention the document types that are used in purchase requisition?
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 )
16) Explain how consignment stocks are created?
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.
17) 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
18) Explain how you can create a vendor account group in SAP?
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
19) 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
– Account that will be charged when you post the invoice or goods receipt
– Account assignment data that you should provide
20) Explain what MRP (Material Requirement Planning) list is and what is the transaction code to access MRP list?
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
21) 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.
22) 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.
23) How are the byproducts taken care of in subcontracting?
You can add these by products in the BOM for the header matl.
24) 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.
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25) 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.
26) 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.
– 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.
27) 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
28) 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).
29) Is it possible to have a release procedure without classification for a PO?
30) What is the maximum number of levels available in SAP?
Did not get this question …pls clarify.
31) Is it possible to have scales in a quotation?
32) 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.
33) 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.
34) 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.