practical-oriented SAP MM (Material

Management) interview questions and answers

1-10: Master Data & Basic Configuration

1. What is the difference between a material type and a material group?

o Material Type: Defines the properties and behaviour of a material (e.g., raw
material, finished goods).

o Material Group: Groups materials with similar attributes (e.g., electrical

items, chemicals).

2. How do you create a material master in SAP MM?

o Use transaction code MM01, enter material type, industry sector, and
relevant views.

3. What is a purchase info record? How is it created?

o It stores data about a material and a vendor. Created via ME11.

4. What is the role of valuation class in SAP MM?

o It determines the G/L account for material transactions.

5. How do you extend an existing material to another plant?

o Use MM01, select the required views, and enter the new plant.

6. What is the purpose of the number range in material master?

o It controls how materials are numbered, either manually or automatically

(MMNR).

7. What is a batch in SAP MM?

o A batch represents a specific subset of materials (e.g., different production

lots).

8. How do you change the material master record?

o Use MM02 to modify an existing material.

9. What is the difference between plant and storage location?

 o A plant is a company’s production or purchasing unit, while a storage location
is a subdivision within a plant to store materials.

10. How do you delete a material from the system?

• Use MM06 for marking for deletion.

11-20: Procurement Process & Purchase Orders

11. What are the different types of procurement in SAP MM?

• External Procurement (standard purchase order)

• Stock Transfer (between plants)

• Subcontracting (raw materials sent to vendor for processing)

12. What is the difference between a contract and a scheduling agreement?

• A contract is a long-term purchase agreement, whereas a scheduling agreement

contains specific delivery schedules.

13. How do you create a purchase order?

• Use ME21N, enter vendor, material, plant, and quantity.

14. What is the difference between a planned and unplanned goods receipt?

• Planned: Predefined in PO; Unplanned: Directly received (MIGO without PO).

15. How do you post a goods receipt against a purchase order?

• Use MIGO, select "Goods Receipt," enter PO number.

16. What is the function of movement type in SAP MM?

• Defines material movement (e.g., 101 for goods receipt, 201 for issue to cost centre).

17. How do you handle free items in a purchase order?

• Set the price as zero and check the "Free Item" indicator.

18. What are release strategies in SAP MM?

• They control approval workflows for purchase documents.

 19. How do you perform an invoice verification?

• Use MIRO to match invoice with PO and GR.

20. What is a consignment stock?

• Vendor-owned stock stored at company premises, payment made only when

consumed.

21-30: Inventory Management & Goods Movements

21. What is the difference between a reservation and a transfer posting?

• Reservation: Blocking stock for future use.

• Transfer Posting: Moving stock without physical movement.

22. What is movement type 261?

• Goods issue for a production order.

23. How do you perform a stock transfer between two plants?

• Use transaction code MB1B with movement type 301.

24. What is a physical inventory process in SAP MM?

• Counting stock, comparing with system records, and adjusting differences (MI01,
MI04, MI07).

25. How do you reverse a goods movement in SAP?

• Use MIGO and select "Cancellation" or use movement type 102 (for GR).

26. What is unrestricted, blocked, and quality stock?

• Unrestricted: Available for use.

• Blocked: Not available for use.

• Quality inspection: Awaiting approval.

27. What is the difference between MB1A, MB1B, and MB1C?

• MB1A: Goods issue

• MB1B: Stock transfer

 • MB1C: Goods receipt without PO

28. How do you check stock overview?

• Use transaction code MMBE.

29. How do you post a scrapping of materials?

• Use MB1A with movement type 551.

30. What is automatic account determination in SAP MM?

• It links material movements to G/L accounts based on valuation class and

movement type.

31-40: Pricing, Valuation & Invoice Verification

31. What are the pricing conditions in SAP MM?

• Examples: PB00 (gross price), RA01 (discount), FRA1 (freight).

32. What is the difference between moving average price and standard price?

• Moving Average Price: Changes with each purchase.

• Standard Price: Fixed for a period.

33. How do you handle price differences in invoice verification?

• Set tolerances in OMR6 and handle differences in MIRO.

34. What is an account assignment category?

• It defines how costs are assigned (e.g., K = Cost Center, P = Project).

35. What is the purpose of split valuation?

• To value the same material differently based on batch, quality, or procurement type.

36. How do you perform invoice blocking and release?

• Blocked due to price/quantity variance; released via MRBR.

37. What is LIV (Logistics Invoice Verification)?

• The process of matching invoices with POs and GRs.

38. How do you handle credit memos in SAP MM?

 • Use MIRO and select "Credit Memo".

39. What is the function of transaction MR11?

• Adjusts GR/IR clearing account differences.

40. What is ERS (Evaluated Receipt Settlement)?

• Automatically settles invoices based on PO and GR.

41-50: Special Procurement & Reporting

41. How do you configure subcontracting in SAP MM?

• Use PO with item category L, send components via movement 541, and receive
finished goods via 101.

42. What is the difference between standard, subcontracting, and pipeline

procurement?

• Standard: Normal PO.

• Subcontracting: Raw materials provided to vendor.

• Pipeline: Materials supplied directly via pipeline (gas, water).

43. How do you analyze purchase order history?

• Use ME23N or MB51.

44. What is source list and how do you maintain it?

• It controls preferred vendors for materials (ME01).

45. How do you find pending purchase orders?

• Use ME2N.

46. How do you track vendor performance?

• Use MKVZ.

47. What reports are available in SAP MM?

• MB5B (stock), ME2L (vendor purchase orders).

48. What is the T-code for automatic reorder point planning?

• MD02.

49. How do you archive old purchase orders?

• Use SARA.

50. What is SAP Ariba and how does it relate to SAP MM?

• Cloud-based procurement solution integrating with MM.