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Questions and Answers

300+ TOP Sap Mm Interview

Questions and Answers
Q1. Why Is Batch Record Important?

A batch represents a quantity of a particular material

processed at the same time with the same parameters.
These materials, produced under one batch, have the same
characteristics and values. However, these characteristics
may vary from the materials of another batch produced on
the same day.
 A batch record is important as having a batch record
indicates that it conforms to the current Good
Manufacturing Procedures (cGMP) and contains
specifications of the product tested, analytical methods,
and test results.

Q2. How Do You Display Parked Documents?

There are two possible transactions to use here. They are FB03
and FBV@The first shows all posted document types. This is the
best choice if you think the document has been posted to you
actual balance. The later shows only parked documents that
have not yet posted to your expenditure balance. These
documents are still encumbrances. It is the best choice if you are
trying to find which documents are still awaiting completion or
approval. This transaction is very similar to the FBV2 transaction
used with P-Card reconciliation and marking parked documents
complete.
Q3. What Is The Difference Between External Procurement And
Internal Procurement?

In the external procurement, the procurement of raw material,

trading goods, and services is made from the external supplier
for the organizational units of an enterprise that need such items
or services.

In the internal procurement, the procurement of raw material,

trading goods, and services is made from an organizational unit
of an enterprise for other organizational units of the same
enterprise that needs such items or services.

Q4. What Is Forecasting In Sap System?

Forecasting is a future prediction which is an uncertain process.

Most business decisions are based on forecasts, such as decision
of material requirements. While making business decisions,
forecasts are continuously needed. The impact of the forecast on
actual results is first evaluated and the initial forecasts are
updated and then accordingly the decisions are modified.

Q5. State The Importance Of The Vendor Evaluation In The

Purchase Department?

Vendor evaluation is an important function of the purchase

department as it supports in optimizing the procurement process
by selecting vendors to supply materials or services.

Q6. What Do You Mean By Forecast-based Planning?

Forecast-based planning is a process used in consumption-based

planning which depends on predictions of future requirements
calculated on the basis of forecast.

Q7. Can Forecast Model Be Selected Automatically?

The forecast model can be selected automatically by entering the

value J in the Forecast Model field in the Material Master record
where the value J is used for Automatic Model Selection.

Q8. Define Client. What Is Its Importance In Sap?

A client can be defined as a person, company, or an organization

that purchases goods from another person, company, or
organization and pays for that. In terms of SAP, a client can be
defined as a unit that has its own master records and a set of
tables. It is important in SAP because it stores and maintains
data about the organization where SAP is implemented.

Q9. What Is Sales Order Stock?

The stocks assigned to a sales order but still available in the

company premises is called the sales order stock.
 The raw material ordered by the customer for processing a
specific order and finished goods are the type of materials
that come under the category of sales order stock.

Q10. How Is The Sto Different From The Standard Po?

In STO, UB document type is used and it also requires a

supplying plant for the movement of materials, whereas in the
standard PO, NB document type is used and requires a vendor
for the procurement of material.
Q11. What Sap Program Is Used To Update Or Create Material
Master Records?

RMDATIND is used to update Material Master Records and can be

used for such assignments as extending all materials to a new
plant.

Q12. How Do Planned And Unplanned Consumption Affect

Movement Types?

In a customized Movement Type, you have defined which

consumption value gets posted in the movement. Many will
always be planned or unplanned, but for some there is a
dependency on if the movement references a reservation. This
would be planned consumption.
Q13. Name Some Of The Data Points Provided By Purchasing For
The Materials.

Some of the data points provided by purchasing for the materials

are Base unit of measure, purchasing group, remainder days,
shipping instructions, tolerance levels, GR processing time,
critical part, and JIT schedule indications.

Q14. How Do You Generate An Automatic Po After Creating A Pr

Using A Particular Material?

In MMR and VMR check Auto PO (MM02/XK02).

Maintain the Source List and select the indicator for the source
list record as MRP relevant (ME01). If more than one source list
record is generated, make one of them fixed. Run MRP and the
PRs generated will be pre-assigned with the source of supply
(MD01). Enter ME59 for automatically creating POs from PRs.

Q15. What Are Purchasing Information Records?

The purchasing information records, also known as info record,

contain information related to the material and vendor who is
supplying the material. It also contains details about the
material, such as the current price of the material.

Q16. What Is A Material Master File?

The complete information related to managing a material is

stored and maintained in a data record in the material master,
which is sorted on the basis of different criteria.

Q17. How Do You Change Characteristic?

Use Transaction Code CT0@Follow these steps: Format (numeric,

character, etc.), Unit of Measure, Templates, Required Entry,
Intervals as Values (?), descriptions for texts for characteristics
and characteristic values, display options for characteristics on
the value assignment screen, Allowed Values, Default Values that
are set automatically on the Value Assignment Screen.
Q18. What Is An Account Assignment Category In A Po
Document?

The Account assignment category field plays an important role in

the purchasing documents. It contains many control functions
that help to determine the objects that are charged in case of an
ordered material. The ordered material must be procured for
direct usage or consumption. With the help of account
assignment category in the purchasing documents, the cost of the
material can be allocated to a single Controlling object or it can
be allocated among various Controlling objects.

Q19. How Is The List Of All Reservations In The Systems

Displayed?

The reservation list can be displayed by running the RM07RESL

report.

Q20. What Is Source List? What Is The Menu Path To Define A

Source List?

A source list is used to identify sources of supply for certain

materials. The following is the menu path to define a source list:
Select Logistics -> Materials management -> Purchasing -> Source
list.
Q21. What Is The Difference Between A Blanket Purchase Order
And The Framework Order?

In general, the Blanket POs are used for consumable materials

such as office paper with a short text, with item category B.
There need not be a corresponding master record, for the
simplicity of the procurement. The FO, Framework Order,
document type is used. Here, the PO validity period as well as the
limits are to be mentioned. The GR, or Service Entry for the PO
are not necessary in the case of Blanket POs. One need not
mention the account assignment category during creation of the
PO. It can be U, or unknown and be changed at the time of IR.

Q22. What Are The Account Assignment Categories In A Purchase

Order?

SAP provides you with a number of account assignment

categories that you can use for a purchase order. An account
assignment category indicates the account assignment details
that are required

Q23. What Are The Organizational Levels Of The Enterprise

Structure In R/3?

The top level of the organizational plan is the Client, followed by

Company Code, which represents a unit with its own accounting,
balance, P&L, and possibly identity (subsidiary). The next level
down is Plant, an operational unit within a company (HQ,
Assembly Plant, Call Center, etc.). The Purchasing Organization is
the legally responsibly group for external transactions. This
group is further subdivided into Purchasing Groups.

Q24. What Is The Menu Path To Create A Document/e-mail

Notification For Your Supplier?

The following is the menu path to create a document/e-mail

notification for your supplier:
Select Material Management-> Logistics Invoice Verification ->
Message Determination.

Q25. What Are The Different Types Of Forecast Model?

The following are the different types of forecast model:

 Constant
 Trend
 Seasonal
 Seasonal trend

Q26. What Is Tax Code?

The tax code defines how the tax will be calculated and posted in
SAP R/3 System. Each item on which the tax is applicable is
allocated to a tax code. The R/3 System reads this tax code for
each item and calculates tax for it. This tax and tax code is a part
of Purchase order.

Q27. What Is Sap R/3?

SAP R/3 is an ERP software officially launched in 199@It is a

replacement for the SAP R/2 mainframe computing based
ERP software and is based on client-server computing.
With the advent of client-server computing, SAP AG,
Germany (founder of the SAP ERP software), launched SAP
R/3 in the market to provide client-server based real-time
business solutions. The letter R in SAP R/3 represents the
 real-time business data processing, while 3 represents the
three-tiers in client-server computing.
 The three-tiers in client-server computing are:
Presentation (Client), Application (Business logic), and
Database (Stores the actual business data).
SAP R/3 integrates the various business areas, such as sales,
purchase, and procurement, by using its different
functional modules, such as Material Management (MM),
Sales and Distribution (SD), Financial and Controlling
(FICO), and Human Resource (HR).
Different versions of SAP R/3 are 3.1i, 4.0b, 4.5b, 4.6b, and
4.6c with the latest version 4.7@

Q28. Where Do We Define Payment Terms In Po?

The payment terms in PO represent the agreements of customers

and vendors. You can define the payment terms in PO in the
master records of customers and vendors.

Q29. What Is The Source Of Error “not Allowed” In Case Of

Custom Movement Type Creation?

You need to check the allowed transaction for the customized

movement types and use the OMJJ transaction code.

Q30. How Is Stock Transfer From One Storage Location To

Another Done?

The stock transfer from one place of location to another place of

location is carried out in a plant. The posting of this kind of
transfer is done without entering the value of the stock material
as the management of the items is done within the same plant.

Q31. What Are The Main Master Files Used In Mm?

The following are the main master files used in MM:

 Material master file

 Inventory master file
  Vendor master file

Q32. State The Differences Between The Purchase Requisition

With A Master Record And Without A Master Record?

In case of the purchase requisition with the master record, the

source list, information record, and vendor evaluation are
present in the system. In this case, the outline agreements are
generated due to the changing of the short-term purchasing into
the long-term agreement. As a reason, the purchase order cannot
be issued against a purchase order, but only an agreement can
be set up. If the material master is not present, then the material
is ordered as a consumable item. The account assignment is done
by specifying the consumption accounts against this acquisition.
For example, the purchase information related with this
requisition can be assigned to a specific cost center.

Q33. What Are The Different Ways Of Organizing Purchasing

Organizations?

The different ways to organize purchasing organizations is

distributed purchasing and centralize purchasing. Distributed
purchasing represents multiple purchasing organization for
multiple plants and centralized purchasing represents one
purchasing organization per plant.

Q34. What Are The Plant-specific Data In Material?

The MRP data and forecast data are the plant-specific data in
material.

Q35. What Are The Prerequisites Of Creating A Purchasing Info

Record?

The prerequisites of creating a purchasing info record are as

follows:

 Material number — Before creating a purchasing info

record, the material number of the  Material Master record
 should be known
 Manufacturer Part Number (MPN) Material number —
Before ordering a material having a  MPN, you must know
its MPN material number
 Vendor number— The number of the vendor master
record should also be known
 Organizational level — Suppose the purchasing info
record is for a particular purchasing  organization or plant
then the code specific to that purchasing organization or
plant is  required

Q36. How To Delete A Batch?

You can delete a batch by using the MSC2N transaction code.

You can delete a batch record by flagging the batch master
record. For this, you need to first select the batch in the Change
mode.

Q37. What Are The Various Steps Of The Mm Cycle?

The following are the different steps of the MM cycle:

 Create material
 Create vendor
 Assign material to vendor
 Procure raw material by using purchase requisition
 Locate vendor for certain material
 Process goods receipts
 Goods issue, and
 Invoice verification

Q38. What Is Non-valuated Material?

The material that is maintained on the basis of the quantity

rather than its value is called the non- valuated material. The
non-valuated material can only be withdrawn from the stores or
warehouses  only when it is transferred to “valuated” stock.

Q39. What Is A Centrally Agreed Contract?

A centrally agreed contract type is created without specifying the
name of the plant. The plant specification is provided at the time
of creating the contract release order. In centrally agreed
contract, different conditions for individual plants can be
maintained easily. Moreover, different ordering addresses or
goods suppliers in the vendor master record can also be
specified in this type of centrally agreed contract. The centrally
agreed contract is useful in the enterprises that have a central
purchasing department and the materials are required to be
bought for different plants. In this case, they create a high-level
contract used by the other department-specific purchase
organizations within the enterprise. The use of such centrally
agreed contracts usually results in more favorable conditions of
purchase and helps maintain consistency in process of
purchasing throughout the enterprise.

Q40. Why Would An Organization Need To Allow Negative

Stocks?

Negative Stocks are necessary when Goods Issues are entered

necessarily (business process reasons) prior to the corresponding
Goods Receipts and the material is already located physically in
the warehouse.

Q41. What Do You Mean By A Reservation?

A reservation is a document that ensures availability of

materials in the warehouse when materials are required for
transferring materials to a customer. It contains information,
such as which materials are needed, what quantities of materials
are required, and when or where the materials are needed. It
helps the Material Requirement Planning (MRP) system to avoid
lack of stock in the warehouse.

Q42. Define Time-phased Planning.

Time-phased planning is an MRP procedure, where materials are

planned to be delivered in a particular time interval. In the time-
phased planning technique, there is a planning file that contains
an MRP date to plan the delivery of materials. When the material
master is created and is reset for each running plan, then MRP
date is set. If you need to plan the delivery of a material earlier
than the specified MRP date, you can enter an MRP date while
running the plan. For example, if the running plan is set to
Wednesday, you can get it forwarded to Monday.

Q43. Give Some Example Of Master Data In Material

Management (mm).

Material master, material master general data (MARA), tax

classification material (MLAN), info records, source list, and
vendor master are the examples of master data in MM.

Q44. What Transaction Code Is Used To Convert Planned Orders

(po) Into Requisitions In Material Requirement Planning (mrp)?

The OPPR transaction code is used to convert Planned Orders

(PO) into requisitions in Material Requirement Planning (MRP).

Q45. Name The T Code For Invoice Verification?

An invoice is verified by using the OLMR T code.

Q46. What Are The Initial Configuration Steps For Inventory

Management?

The steps for the inventory management are as follows:

 Defining plant parameters

 Defining system message attributes
 Defining Number Assignment
 Defining good issue, transfer posting, screen layout
 Maintaining copy rules for reference documents
 Setting up dynamic availability checks
 Confirmation of the negative items

Q47. How Is A Class Created?

A class is a collection of the group of the characteristics for a
particular object. You need to enter the class name and a
description for it and then select the group. After saving the
details, the class is created. Alternatively, you can use CL01 T-
code for this purpose.

Q48. What Is The Lot Size Attribute Of A Material?

The lot size attribute represents the reorder quantity for a

material. A material can have a periodic, optimum, or a static or
fixed lot size.

Q49. Which Documents Are Used As References When We Create

Po?

At the time of creating PO, we take the reference of Purchase

Requisition, Request for Quotation, and any other Purchase
orders. However, it is not necessary to take the reference of these
documents as most of the values are automatically taken by the
SAP R/3 system.

Q50. How To Create Movement Type?

Perform the following steps to create a movement type:

1. Select the standard movement type 201 from the Determine
Work Area Entry dialog box.
2. Click the copy icon and then overwrite 201 with Z01.
3. Select the new movement type Z01 from the Determine Work
Area Entry dialog box.
4. Select Reversal-> follow-on movement.
5. Enter the reversal movement type.

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