SAP MM QUESTION AND ANSWERS

1. Define SAP MM?

SAP MM, which stands for SAP Material Management, is a software module within SAP
software. The main function of SAP MM is to manage a company’s materials. The
functionality involves many tasks, from purchasing and inventory control to warehousing
and material valuation.

2. How can SAP MM benefit businesses?

The following are the main benefits of the SAP MM module:

 Streamlines procurement processes: From purchase requisitions to orders or in-

between communication, everything is controlled and managed with SAP MM.
 Optimizes inventory levels: The feature of real-time data tracking in SAP MM
reduces the issue of stockouts and overstocking
 Improves cost control: Get real-time information on material costs.
 Enhances visibility and reporting: The software allows you to track the movement
of materials, stock levels, and vendor performance simultaneously. This improves the
transparency and reporting system.

3. What core data sets (master files) are essential for running
SAP MM?
 Material Master: This will give you complete information on every material. The
information consists of descriptions, classifications, and pricing for every material.
 Vendor Master: Contains information on store suppliers, their contact details,
payment terms, and purchasing conditions.
 Purchasing Info Record: The purchase info record combines the most used material
and vendor masters for faster purchase order creation.

4. Which components are fundamental for running SAP

Material Management effectively?
These master files are crucial, but other necessary components include functionalities for:

 Creating purchase requisitions and purchase orders.

 Managing goods receipts and inventory levels.
 Processing invoices and managing vendor payments.
 Generating reports on material usage and costs.
5. Explain the terms goods receipt and post-goods receipt.
 Goods Receipt: This process involves the recording of goods received physically
and the final verification of ordered goods against the purchase order.
 Post-Good Receipt: The final step of the goods receipt process is updating the
inventory record and accounting entries.

6. How does SAP MM categorize different types of inventory

(stock) within a company?
SAP MM consists of various stock categories listed below:

 Project Stock: This option will specify the materials that are dedicated to specific
projects.
 Returnable Packaging: Reusable packaging is tracked within the system.
 Consignment Stock: Materials that are owned by the vendor but kept at the
customer’s location are referred to as consignment stock.

7. Can you explain the concept of consignment stock in SAP

MM
This stock type in the SAP MM module permits customers to use the vendor’s materials
without officially buying them. The vendor has the authority to take back the stock
ownership and refill it as needed based on consumption.

8. Is a purchase requisition an internal document used

within the company or an external document sent to
vendors?
A purchase requisition comes under the internal document type category. The document is
generated within a department that requests the procurement team to purchase specific
materials.

9. Explain the different info record types in SAP MM.

There are two types of info records:

 Fixed Info Record: Data of mostly used purchased materials from a single vendor is
stored in the fixed info record.
 Info Record with Source List: Similar to fixed, but restricts purchases to vendors on
a pre-approved source list.
10. What special stocks does SAP MM offer?
You already read about the consignment stock, in addition to that there are two more stocks
available in SAP MM :

 Pipeline Stock: Those materials that have not reached the desired location or in
other terms moving between locations (For example: during transportation of goods).
 Blocked Stock: The materials that are not usable due to quality issues or other
restrictions are considered blocked stock.

11. What assignment types are typical in SAP Material

Management?
The two common types of assignment in the SAP material management system are

 MRP Type: It helps in the planning strategy for a material (For example, MRP, reorder
point).
 Special Stock Type: Assigns a material to a specific special stock category (e.g.,
consignment, project).
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12. What key fields are in the purchasing view of SAP MM?
The purchasing view in SAP material management contains important information for
procurement, like:

 Order Unit: The total no of materials that are ordered. The quantity may be in a box,
a dozen, or pieces.
 Minimum Order Quantity: Minimum order amount that is compulsory in a single
purchase order.
 Source List: This will check if any pre-approved vendor list exists for this material.
 Info Record: Links to the relevant purchasing info record for the material.

13. Why is the batch record significant in SAP MM?

Batch records play a vital role in tracking the specific characteristics and expiry dates of a
material batch. Both of these pieces of information are important for:
  Quality Control: This function will track materials from the starting point. In case, if
any issue is created, the system can identify the defective batch and will recall those
specific ones.
 Costing: Since materials from different batches can vary in terms of qualities. This
depends on the situation when they were made (like a newer batch vs. an older one).
This system assigns different costs based on these specific traits.

14. How do you connect a document to a vendor master

record?
Yes, there is an option to link documents (like purchase orders) to a vendor master record.
You can select and enter the vendor’s unique identification number during document
creation, and your document is linked. This establishes the connection between the
purchase and the supplier.

15. Which transaction code removes a batch in SAP MM?

If it’s too necessary then only delete a batch in SAP MM, otherwise it is not recommended.
For deleting a batch, enter a transaction code MB1A. You can choose alternative options
like blocking the batch if deletion is not necessary.
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16. How do you authorize a purchase order release? Which

Transaction Code shows and resets the purchase order
release?
Before sending it to the vendor, a purchase order is released. Purchase required internal
approval. There are two options available for purchase order release

 Firstly, you can release directly from the document.

 Secondly, use transaction code ME21N.
If, you want to check and view the release status of a purchase order or want to reset a
previous release, use the transaction code ME22N. This option gives you an option for
modifications before sending the order to the vendor.

17. Which transaction code extends the material view in SAP

MM?
The transaction code for extending the material view in SAP MM depends on the two
situation
If you are creating a new material record, then use the code MM01. This option will allow
you to assign different values, like purchasing or sales.
In the second case, if you already have a material record and want to modify something,
then use the transaction code MM02.

18. What does Source List mean to you? Which transaction

code is utilized for Source List creation
A source list is defined as the pre-approved vendor list eligible for the supply of specific
materials. This list will create limited options for vendors for the supply of materials and
make the process easier. You can create a source list using the transaction code ME01.

19. In SAP MM, what is the abbreviation ERS?

ERS stands for External Representation Source. ERS gives you the option to integrate an
external source of supply (like a webshop) to a material within SAP MM. This allows easy
integration of external procurement options with your internal material management system.

20. What conditions must be met to create a purchasing info

record in SAP MM?
There are two pieces of data required for creating a purchasing info record in SAP MM:
Valid Material Master: This record contains information about the material like, its
description, quantity, and classification.
Vendor Master Record: Vendor master data stores information about vendors, their contact
details, payment, policies, and details on pre-negotiated pricing agreements.

21. How do you mark material for deletion in SAP MM?

In SAP MM, by using a deletion flag, you can indicate any particular data as inactive for
future use. This process can be performed through a material master record by inserting a
transaction code MM06.
Data marked under a flagged category can not be used for new transactions but is
accessible for viewing historical data.
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22. How do you modify the standard price of the SAP master
material?
In the SAP material master system, the standard price represents the average price paid for
the material.
To update the price, follow the steps: Logistics > Valuation > Valuation Price Determination
path within SAP. This will allow you to show changes in market prices or supplier
negotiations.

23. What does purchase requisition mean to you?

An internal document generated by a department within a company stating the requirement
of material is called a purchase requisition. After generating the document, it is sent to the
procurement team for initiating the purchasing process.

24. What does RFQ stand for in SAP MM? What’s its
purpose?
RFQ stands for Request for Quotation. This document is created and sent to potential
vendors, asking for bids for the required specific materials. This data helps to compare
prices and terms from different vendors and choose the best for a purchase order.

25. What do production and purchase orders mean to you?

Production Order: A purchasing order is an internal document stating the in-house
manufacturing of a product. The details specified in the documents are the materials,
quantities, and routing needed for production.
Purchase Order: An external document used to purchase materials from external vendors.
The document outlines the specific materials, quantities, pricing, and delivery terms agreed
upon with the supplier.

26. What is the purpose of the Purchase Info Record?

A purchase info record is a combination of the material master and vendor master data.
This record keeps all the necessary data within, like standard price, order unit, and
preferred vendor for a particular material. This document reduces the task of re-entering all
the mentioned information each time a purchase order is created.

27. How can you create a vendor account group in SAP

MM?
We can create vendor account groups by using the transaction code XK01. The vendor
account group maintains all the vendors with similar characteristics in a single place. This
simplifies the vendor management process. For example, we have created a group for all
stationery suppliers.

28. In SAP MM, what are the various procurement types for
creating purchase requisitions?
According to the purchasing need, you can classify the purchase requisition:

 External Procurement: Purchases from external vendors.

 Consignment Stock: Requesting the vendor to refill the materials in the consignment
stock location.
 Internal Procurement: This helps to transfer materials between internal storage
locations within the company.
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29. What does master data mean to you?

Master data act as the base of SAP modules. This particular data remains constant
throughout the procurement process. In SAP MM, material master, vendor master, and
purchasing info record data serve as the master data.

30. What does consumption-based planning (CBP) mean to

you?
CBP stands for Consumption-based planning. It is a planning strategy that depends on
historical data on actual material consumption. By using data from past usage patterns, it
forecasts future material requirements.

31. Define the term material requirement planning (MRP).

MRP works as a planning methodology for calculating the requirement of materials for
production plans. This mainly focuses on the Bill of Materials (BOM), Master Production
Schedule (MPS), and current inventory levels.

32. How do MRP and CBP differ?

 MRP: Proactive, uses forecasts and MPS to anticipate needs.
 CBP: Reactive, adjusts plans based on actual past consumption data.
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33. What does a transaction code signify in SAP MM?

A transaction code is a shortcut specific to SAP that allows users to navigate directly to a
particular function or process within the system. For example, ME21 is the transaction code
for creating a purchase order in SAP MM.

34. What does the term ” material ledger” signify in SAP

MM?
The material ledger helps track all the financial transactions for a specific material. It
provides additional insights like:

 The cost of material over time by considering factors like purchases, consumption,
and revaluation.
 Share insight on profitability for specific materials.
 Variance analysis to identify cost deviations from planned budgets.

35. How can a vendor return be handled without referencing

a purchase order?
In a few cases, SAP MM permits the processing of returns without a purchase order
reference. Mostly, it is considered for damaged goods received outside a formal purchase
order process. Use transaction code ME21 (Create Purchase Order) with a specific return
movement type to document the return.

36. What does the term Master Production Schedule (MPS)

mean in SAP MM?
The MPS defines the planning of the production of finished products that a company wants
to produce in a specific period. This plays a major role in material requirements planning
(MRP) in SAP MM.

37. What is the purpose of the Confirmation Control Key

(CCK)?
The CCK determines when and how production confirmations are created within SAP MM.
This helps in managing, how workers report after production is completed by showcasing
inventory updates and cost calculations.

38. What does the term “Batch Information Cockpit” mean

in SAP MM?
This is a centralized information hub providing comprehensive data on material batches. It
allows users to:
  Analyze characteristics, expiry dates, and locations.
 Track batch lifecycles and initiate quality checks.
 Manage tasks and prioritize specific batches for use.

39. What is the Lot Size in SAP MM?

The lot size determines how much quantity of a material is produced or purchased in a
single order. Lot size impacts factors like:

 Inventory levels: If the lot size is smaller, then the storage requirement is also less,
but the order frequency is higher.
 Production efficiency: Larger lot sizes can reduce setup times but tie up capital in
inventory.

40. What purpose does ‘Split Valuation’ serve in SAP MM?

In SAP MM, with the help of split valuation, different price valuations can be assigned for
different purposes. This can be helpful for:

 Accounting vs. Tax: The major advantage of split valuation is that it allows for
maintaining separate valuations for book value and tax purposes.
 Standard vs. Moving Average Price: This helps to track the standard price
alongside the actual average cost of purchased materials.

41. What accounts are established in SAP MM? Why is

assigning these accounts important?
Following are the three different accounts created in SAP MM:

 Material accounts: Material accounts represent the value of materials in inventory.

 Expense accounts: This allows you to track costs associated with material
purchases.
 Revenue accounts: This account stores revenue earned after selling finished
products.
All these accounts are important for tracking the financial health of a company and for cost
analysis.
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42. How can you view the complete list of reservations in the
system?
By using the transaction code MB25, you can view a complete list of all reservations in the
system. Reservations “earmark” for a specific material quantity allows you to save the
product for usage for a particular purpose (For example, production orders or sales orders).
This prevents the material from being used elsewhere.

43. What types of ERPs exist?

There are many ERP vendors in addition to SAP, and each vendor has its strengths and
functionalities. A few common examples include:

 Oracle NetSuite
 Microsoft Dynamics 365
 Infor CloudSuite Industrial
 IFS
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44. What does “External Procurement” mean?

When a company does not produce any materials itself and purchases them from any
external vendors, it is called external procurement. SAP MM allows for managing the
complete external procurement lifecycle that starts from creating purchase requisitions to
receiving and managing vendor invoices.

45. How is pricing calculated in MM?

There are different methods SAP MM deploys for calculating the prices of materials:
Standard Price: A pre-defined average price for a material that will be updated from time to
time.
Moving Average Price: The average cost of all materials purchased to date, automatically
updated with each new purchase.
FIFO (First-In, First-Out): Values inventory assuming the first materials purchased are the
first ones used, impacting cost calculations.

46. What does the “subcontracting cycle” refer to in SAP

MM?
A functionality in SAP MM that permits companies to outsource any specific production
steps from external subcontractors. SAP MM allows managing the overall process that
includes sending materials to the subcontractor, receiving finished components, and settling
payments.

47. What are Cost Centers?

Those functions or departments within a company that are not directly associated with
generating revenue but control expenses are considered cost centers. For example, it
includes HR, marketing, and IT. Their primary role is to keep costs under control and
aligned with budgets.

48. Explain MIRO in short.

MIRO stands for Materials Management: Invoice Receipt. MIRO is used in SAP MM for
checking and verifying invoices that vendors have generated for purchased materials. This
involves verifying invoice details against purchase orders and goods receipts before
creating a payable to the supplier.

49. Can a purchase requisition be modified after it’s been

submitted for approval?
Yes, you can make changes to a purchase requisition after creating it, but with limitations. A
Few minor changes or modifications are allowed. However, making large changes requires
creating a new requisition to make sure the process followed is right and approved by the
authority.

50. What information is typically included in a source list

within SAP MM?
Source lists are generated using the transaction code ME01 in SAP MM. This function
defines a set of pre-approved groups of vendors that are eligible to supply specific
materials. This process streamlines the purchasing process by offering limited options for
reliable suppliers.

51. What are the different levels of invoice verification

available in SAP MM?
There are multiple invoice verification methods in SAP MM:

 Two-way Match: Verifies the invoice matches the corresponding purchase order and
goods receipt.
 Three-way Match: This requires a physical verification method by ensuring the
received materials match both the purchase order and invoice details.
 Four-way Match: This process uses a price verification step that mainly compares
the invoice price against pre-negotiated terms or contracts.

Material Master Data: Tables

 MARA - General Data, material type

 MAKT- Short Texts, descriptions

 MARM- Conversion Factors

 MVKE - Sales Org, distribution channel

 MLAN - Sales data, tax indicator, tax

 MARC - classification

 MBEW - Plant Planning Data

 MLGN - Valuation Data

 MLGT - Warehouse Management Inventory Data

 MVER - Warehouse Management Storage Type

 MAPR - Data
 MARD - Consumption Data

 MCHA - Pointer for Forecast Data

 MCHB - Storage location data

Purchasing:

 EKPO - Purchasing Document Item

 EKKO - Purchasing Document Header

 EBAN - Purchase Requisition

 EKBE - History per Purchasing Document

 EKET - Scheduling Agreement Schedule Lines

 EINE - Purchasing Info Record: Purchasing Organization Data

 EKKN - Account Assignment in Purchasing Document

 EINA - Purchasing Info Record: General Data

 EKES - Vendor Confirmations

 EBKN - Purchase Requisition Account Assignment

 EORD - Purchasing Source List

 T024 - Purchasing Groups

 EKBZ - History per Purchasing Document: Delivery Costs

 AMPL - Table of Approved Manufacturer Parts

 EKAN - Vendor Address: Purchasing Document

Inventory Management:

 MSEG - Document Segment: Material

 MKPF - Header: Material Document

 RESB - Reservation/dependent requirements

 MARI - Short document: material movement

 ISEG - Physical Inventory Document Items

 RKPF - Document Header: Reservation

 T156 - Movement Type

 IKPF - Header: Physical Inventory Document

 T156T - Movement Type Text

 CHVW - Table CHVW for Batch Where-Used List

 T156SY - Mvt Type: Qty/Value Update: System Table; Rel. 4.6A

 MMIM_REP_PRINT - Print Settings, Reporting MM-IM

 T156S - Movement Type: Quantities/Value Posting (Until Rel. 4.5B)

 T156W - Posting string values

 T156M - Posting String: Quantity

Invoice Control:

 RSEG - Document Item: Incoming Invoice

 RBKP - Document Header: Invoice Receipt

 BSIM - Secondary Index, Documents for Material

 RKWA - Consignment Withdrawals

 RBCO - Document Item, Incoming Invoice, Account Assignment

 RBKP_BLOCKED - Logistics Invoice Verification: Blocked Invoices

 RBKP_V - Generierte Tabelle zu einem View

 V_169P_MB - Generierte Tabelle zu einem View

 T149D - Global Valuation Types

 RBDRSEG - Batch IV: Invoice Document Items

 RBTX - Taxes: Incoming Invoice

 RBWS - Withholding Tax Data, Incoming Invoice

 RBKPB - Invoice Document Header (Batch Invoice Verification)

 RBDIFFKO - Invoice Verification - Conditions

 RBEX - Persistent Key Figures Header and Item

 What do you know about SAP MM?
This is one of the most common SAP MM module interview questions. You can
answer it this way –

“SAP MM is short for Materials Management. It is an important component of SAP ERP

systems and focuses on procurement processes, inventory management, and logistics.
Essentially, SAP MM helps businesses efficiently manage their materials and resources
to optimize operations and reduce costs.”

Can you explain the essential components in SAP MM?

In SAP MM, there are several key components.

 Procurement: Handles purchasing goods and services.

 Inventory Management: Manages stock levels and movements.
 Material Requirement Planning (MRP): Ensures materials availability.
 Vendor Evaluation: Assesses supplier performance.
 Invoice Verification: Verifies incoming invoices.
These components collectively streamline material management processes to ensure
operational efficiency.

What are some common assignment types in the SAP Material Management system?
In SAP Material Management (MM), common assignment types include,

Purchase Orders: Used to procure materials or services from vendors.

Goods Receipts: Confirm receipt of materials from vendors into inventory.
Transfer Postings: Move materials from one location to another within the organization.
These assignment types are essential for managing procurement, receipt, and internal
movement of materials in the SAP MM system.

Difference between a Purchase Request and a Purchase Order.

A Purchase Request is simply a notification that items are needed, while a Purchase
Order is a formal request for goods or services.

Purchase Orders are sent to vendors or manufacturing facilities to initiate the

procurement process.

Different types of purchases, like stock transfers or external services, have specific
definitions for their details within these documents.

Explain in detail the order of purchase.

A purchase order (PO) is a formal document created by a buyer and sent to a seller to
confirm the buyer’s desire to purchase goods or services. It outlines the quantity and
type of items required, along with details like payment terms and delivery instructions.

SAP MM Interview Questions for Experienced

Here are some experienced interview questions on material master in SAP MM:
What is the code for deleting a particular batch?
To delete a batch in SAP MM, use transaction code MSC2N. Alternatively, you can flag
the batch in the master record, allowing for the complete deletion of the batch record.

What does RTP stand for?

RTP stands for “Returnable Transport Packaging.” It includes reusable containers or
pallets used to move goods between retailers and customers.

RTP, belonging to the supplier, is stored on the customer’s premises and labelled
accordingly. The stock value doesn’t include RTP since it’s the supplier’s responsibility,
not the customer’s.

What does the code MM03 do?

The code MM03 in SAP MM allows users to display material master data. It provides
detailed information about a specific material, including its description, stock levels, and
relevant data.

MM03 helps users access crucial details about materials, aiding in inventory
management and procurement processes.

List the difference between SAP MDM and SAP MM.

SAP MM (Material Management) handles daily inventory operations and procurement
tasks like storage, material valuation, and purchase orders.

On the other hand, SAP MDM (Master Data Management) focuses on vital business
data such as vendor/customer details and product descriptions, including banking
information. MM deals with inventory and procurement, while MDM manages critical
business data.

What is CBP?
CBP stands for Cross-Border Planning, involving international procurement and logistics
management. It includes handling customs processes, taxes, and meeting cross-border
trade rules. Effective CBP ensures smooth global supply chain operations and
minimizes risks.

SAP MM Interview Questions for 3 Years’ Experience

Here are some important SAP MM 3 years’ experience interview questions and
answers:

What is the planned delivery and GR processing time?

Planned delivery time refers to the estimated business days for receiving materials. GR
processing time indicates the business days allotted for inspecting and storing materials
after their arrival.

How does the OBYC valuation grouping code function?

The OBYC valuation grouping code in SAP allows for specifying valuation either at the
plant or company code level. Using a coding system, the value area is segmented.
Valuation grouping codes streamline automatic account determination settings, enabling
common account determination across multiple valuation areas. OMWD records the
valuation group code for more than one valuation domain.

What does the term “batches” refer to in SAP MM?

In SAP MM, “batches” represent smaller units used to manage material inventory.
They’re unique entities that can’t be divided further.

In manufacturing, a batch is the quantity of a substance produced in one production run.

Batches have different levels of exclusivity, allowing for flexible management across
clients, materials, and plants.

How are parked documents shown?

Parked documents are displayed using codes FBV3 and FB03. FBV3 reveals parked
sheets, while FB03 shows posted sheets. FBV3 is handy to check for pending approval
or completion of documents.

What is known as RFQ?

RFQ stands for Request For Quotation. It’s a form vendors receive to provide price
quotes, including terms and conditions for goods or materials. It includes details like
quantity, product information, and submission deadlines.

SAP MM Interview Questions for 10 Years Experience

Here are some commonly asked SAP MM consultant interview questions for
experienced:

What is NetWeaver?

NetWeaver is a technology that integrates all products in the MySAP group into a single
server called SAP Web Application Server. It’s highly beneficial, allowing efficient
access to SAP data from enterprise systems or mobile devices. This saves both time
and money, as it eliminates the need for extensive training for new SAP users.

17. Explain the concept of scaling in MM.

When adding prices to the database, you can use scales. If the price per unit decreases
with higher quantities ordered, scales come in handy.

For instance, if you buy material JKR, it might cost Rs. 20 for 100 pieces, but the price
drops to Rs. 15 for orders exceeding 100. Scales can be pulled into a Purchase Order
from various sources like records or structures.

What is vendor master data?

Vendor master data comprises details about companies supplying goods/services to an

organization. Each vendor has a unique record storing essential information like their
name, address, currency used, payment terms, and sales contract.
 Explain the various Special Procurement Types in SAP.
In SAP MM, there are several Special Procurement Types:

 Stock Transfer: Transferring materials from one storage location to another within the same
company code.

 Subcontracting: Outsourcing certain production processes to external vendors.

 Consignment: Sending materials to a customer’s site without transferring ownership until they
are used.

 Pipeline: Managing materials in transit from a supplier to a receiving location.

 Returnable Transport Packaging (RTP): Handling reusable packaging materials for

transportation.

 Third-Party Processing: Involving a third-party vendor to fulfil customer orders directly.

 Direct Production: Initiating production directly from a sales order without creating a planned
order or production order.

What are the various steps involved in Procurement Cycle of SAP MM?

Here are the various steps involved in the Procurement Cycle of SAP MM:

 Requirement Determination:
 Source Determination
 Vendor Selection
 Purchase Order Processing
 Goods Receipt
 Invoice Verification
 Payment Processing
 Material Storage
 Inventory Management
 Reporting and Analysis

Capgemini SAP MM Interview Questions

Here are some important SAP MM questions and answers for

the Capgemini interview:

Can you explain the importance of material valuation in SAP MM and how it impacts
inventory management?

Material valuation in SAP MM is crucial as it determines the monetary value of inventory

items. It impacts inventory management by influencing decisions related to purchasing,
pricing, and stock levels. Accurate valuation ensures financial transparency, aids in cost
control, and facilitates effective inventory planning and management.

Can you provide an example from your previous experiences where you successfully
improved inventory management efficiency using SAP MM, and how do you envision
implementing similar improvements at Capgemini?
“In my previous role, I introduced automated inventory tracking in SAP MM, reducing
manual errors and ensuring real-time visibility of stock levels.

I plan to implement similar improvements at Capgemini by optimizing inventory

processes, streamlining material movements, and utilizing SAP MM’s reporting
capabilities to identify and address inefficiencies promptly.

This approach will enhance inventory accuracy and operational efficiency for
Capgemini’s procurement operations.”

Infosys SAP MM Interview Questions

Here are some SAP MM questions asked in the Infosys interview:

How do you ensure data accuracy and integrity within SAP MM, particularly in material
master data management?

“To maintain data accuracy in SAP MM, I conduct regular audits of material master
data, verifying information against source documents.

I enforce strict data entry standards and perform validation checks to identify and rectify
errors promptly. Additionally, I implement access controls to restrict unauthorized
changes and ensure data integrity throughout the material management process.”

Infosys places a strong emphasis on innovation and digital transformation. Can you
provide examples of how you’ve utilized SAP MM to drive innovation in procurement
processes, and how do you plan to incorporate similar initiatives at Infosys?
24.
“In my previous role, I integrated SAP MM with IoT devices to enable real-time
monitoring of inventory levels, leading to proactive replenishment and reduced
stockouts.

I also implemented machine learning algorithms to analyze historical procurement data

and predict future demand, enhancing forecasting accuracy.
At Infosys, I aim to explore emerging technologies like blockchain and AI to further
innovate procurement processes and drive digital transformation initiatives.”

TCS SAP MM Interview Questions

Here are some SAP MM implementation interview questions asked at TCS:

Can you discuss the importance of integration between SAP MM and other modules,
such as SAP SD or SAP PP, and how it enhances overall business processes?

“Integrating SAP MM with modules like SAP SD and SAP PP is crucial as it ensures
smooth coordination between different aspects of our business.
By connecting these modules, we can streamline processes such as order fulfilment
and production planning, leading to improved efficiency and better customer
satisfaction. It’s essential for optimizing our overall business operations and achieving
our goals.”
How do you ensure SAP MM implementations meet client expectations and uphold TCS’s
reputation for high-quality solutions?
“I make sure SAP MM implementations align with client needs by closely collaborating
with stakeholders, understanding their requirements, and customizing solutions
accordingly.

By adhering to TCS’s standards for excellence and continuous communication, I aim to

deliver high-quality solutions that exceed client expectations.”

Accenture SAP MM Interview Questions

Here are some important interview questions for SAP MM consultant at Accenture:

How do you handle challenges in SAP MM implementations, such as data migration or

system integrations, and ensure successful project delivery?

“I address challenges in SAP MM implementations by conducting thorough planning,

identifying potential risks, and developing contingency plans.
I collaborate closely with stakeholders to streamline data migration and system
integration processes, ensuring smooth project delivery while adhering to timelines and
quality standards.”

How do you promote collaboration with cross-functional teams during SAP MM

implementations and uphold Accenture’s commitment to teamwork?

“I foster collaboration by facilitating open communication and regular team meetings.

Using simple, accessible tools and encouraging feedback ensures alignment and
teamwork.
Upholding Accenture’s commitment to collaboration, I prioritize transparency and
shared goals to deliver successful SAP MM implementations.”

1. What aspects of SAP MM are most dependent on what other aspects?

The purpose of asking about your top priorities is to determine how well they align with
those of the firm that is conducting the interview. Give a summary of the SAP MM
features that, in your opinion, are the most important. It could be useful if you
elaborated on the mental process that you were using.
Example: "There are numerous aspects of material management that are essential to
its success; however, I would single out the following as being particularly essential:
determining needs and potential suppliers; selecting vendors; processing orders;
following up on orders; maintaining stock records, and arranging for payments. The
following components are my top choices since I consider them to be extremely
important to the successful operation of the system as a whole.

2. How do I go about changing the Valuation Class in SAP MM?

The user must Enter T-Code MMAM is a t-code that only allows you to change the
material type; you are unable to alter the valuation class. The valuation class in the
material master is promptly brought up to date after any time an end-user modifies a
material type using the MMAM transaction. Even if the valuation class of a material is
changed after the system has initially generated it, it will still be recognized as
belonging to the same material by the system.

3. What exactly does it mean when people talk about the stock population?

The term "stock population" refers to the total number of stock management units that
are accounted for during an inventory take. Every single one of these SMUs is stated
in terms of stock management levels, which are then given to a particular inventory
sample. When an administrator sets a stock management depth, the population of the
stock is also defined at that time.

4. What exactly does "Data Archiving" mean for those who are not familiar with
MM?

Large amounts of data that are no longer required by the system can be removed from
the database through the process of data archiving. However, this data is still
maintained so that it can be used for reporting. The concept of SAP data archiving
relies heavily on objects that can be created with the SAP Archive Development Kit
(ADK).

5. What is consignment inventory?

When a buyer obtains inventory from a supplier but refrains from evaluating the worth
of the item, this is an example of an SAP Consignment transaction. When a user
makes a purchase from a vendor, that user is required to make a payment to the
vendor before removing the item (or items) purchased from the vendor's store. The
finest illustration of this would be a car dealership that makes promotional purchases
from its suppliers but does not pay for those purchases until after a vehicle has been
sold.
 The Consignment process in SAP MM is controlled by a particular item category in the
purchasing document. In addition, the process requires a few more parameters to be

adjusted and activities to be carried out before it can be considered successful.

6. How does MM calculate prices?

Establishing the costs that are specified in the order paperwork may be done with the
help of the Pricing method that is contained inside the MM module. As a result of this,
we now have the capacity to define particular kinds of computations that are suitable
for application in a wide variety of settings. A pricing procedure is utilized by MM
whenever the company is writing up a purchase order or a request for a quotation.
The total value of a material is calculated by taking into account a variety of costs and
expenses, such as surcharges, discounts, taxes, and freight.

7. What sets SAP MDM and SAP MM apart from one another, and how do those
differences manifest themselves?

 The MM (Material Management) module focuses on inventory management (which might

include concerns such as material value, storage, and requirement planning, among other
things), as well as procurement (is related to goods, receipt, Purchase orders, BOMs etc).
 The term "master data management" (MDM) refers to the process of organizing and managing
a company's most significant data, including but not limited to lists of customers and suppliers,
product descriptions, and financial information.

8. Difference between a Purchase Request and a Purchase Order?

In contrast to a Purchase Order, which is a more formal request for goods or services
from a manufacturing facility or an external vendor, a Purchase Requisition only
serves as a notification of the need for these items. A Purchase Order is a more
formal request for goods or services from a manufacturing facility or an external
vendor. In addition, procurement categories such as stock transfer, standard,
consignment, and external services each have their own line-item definitions that may
be accessed as necessary.

9. Which forms of stock transport order movement occur the most frequently,
and what are examples of those types?

When utilizing MT 301, posting material transfers just requires a single operation to be
completed. Other alternative transit scenarios in MTs vary in the amount of positive
feedback they receive and the number of challenges they face. Message types (MTs)
303, 351, 641, and 643 are all ones that you are permitted to use in the STO. All of
these are considered to be concerns with common goods. The MT 101 criteria is
typically applied for determining which STO receipts are considered to be good.
10. What is the subcontracting process in SAP MM?

Subcontracting is one form of procurement that falls under the category of MM. The
vendor receives all of the components that are required to finish the product as part of
the process described below. In a buy requisition, purchase order, or schedule
agreement, the material that the vendor is required to provide can be purchased as a
subcontract item instead. The subcontracting process involves the breaking down of
items into their component components, which are then reassembled into the full
product or service that the vendor needs to carry out the subcontracting task or deliver
the value-added service.

11. How beneficial is it to have a record of the details of the items that I have
purchased?

This is a question that a future employer might ask you in order to evaluate how well
you comprehend the importance of SAP to their business. Please provide a
description of the type of record, the information that ought to be preserved, and the
justifications for doing so.

Example: "The SAP is responsible for keeping a record of all of our acquisitions,
including the specific items, pricing, and vendors from whom we purchased them. In
the future, this will make it possible for you to easily compare and contrast your
present shopping habits with those of the past in a rapid and straightforward manner.

12. How would you evaluate a potential vendor to determine if they were a good
fit for your company to collaborate with?

Even though it is most typically the job of the purchasing department, an employer
may ask you this in order to determine whether or not you are aware of the relevance
of vendor evaluation. Your comments should be prioritized according to their
importance, and you should expound on the relevance of vendor evaluation wherever
possible.

Example: "If I were in charge of purchasing for your company, the criteria that I would
base my decisions on would be the same as those used by your procurement team.
The factors that would be most important to me would be cost, level of quality, speed
of delivery, and level of service and support. In order for SAP MM to be able to
optimize the procurement process, one of the most important pieces of information
that it needs to have is a list of the suppliers that it is most likely to deal with.
 13. How many different kinds of shopping are there to choose from?

There are two distinct types of requests that can be made during the procurement
process: routine purchases and one-time requests. The most fundamental type of
procurement can either be done externally (from sources outside the organization) or
internally (from inside the organization) (from within the organization).

When you buy anything from a company that is not your own, this action is referred to
as "external procurement," whereas when you buy something from a subsidiary of
your own company, this action is referred to as "internal procurement." Those things
that are bought for stock and those that are used immediately in the operation of the
business are both included in the definition of "basic procurement." There is a wide
variety of specialized procurement methods available, and the method that is
appropriate for a given circumstance will change from transaction to transaction.

14. What are the different stages in the process of purchasing something?

The first thing you should do before making any kind of purchase is to determine what
it is that you need, how much of it you will require, and whether or not you will
additionally require anything else. Finding potential vendors and subsequently getting
in touch with them to request price estimates is the very final step in the process. To
obtain a sample of the product whenever one has the opportunity to do so, I feel it is
prudent to do so in order to guarantee the product's quality. There is a possibility that
you will be able to negotiate the price of the product with the vendor as well as the
delivery date. After signing a contract and negotiating the terms on paper, we pay the
supplier once the goods have been delivered.

15. For further explanation, could you please define PR and PO?

 The phrases "purchase request" (PR) and "purchase order" (PO) are interchangeable and
refer to the same thing.
 A purchase requisition is a form that is used internally by an organization to alert purchasing
or other relevant departments of a requirement to make a purchase. This form is also known
as a purchase order. An example of an external document would be the transmission of a
purchase order to a supplier along with a list of items that need to be acquired.

16. What exactly are the responsibilities of the consultant when working with
SAP MM?

The most important responsibility of an SAP MM consultant is to see a project through

from beginning to end and to make certain that end users of the software are able to
successfully implement the software to achieve their individual objectives. I have
expertise in conducting a gap analysis of existing IT infrastructure, writing user guides,
and creating a workflow that covers the entire order-to-cash process.
17. What are the Applications developed by SAP for a variety of industries?

SAP has the capacity to expedite and better coordinate business activities such as
sales, purchasing, and manufacturing by bringing together relevant data from across
various departments. These functions include sales, purchasing, and production.
Because of the lightning-fast processing rates it offers, businesses have the potential
to gain access to real-time data and even automate certain aspects of their
procedures.

18. What does MRP do in a SAP environment?

The MRP run, which is often referred to as the planning run, is the mechanism that
closes the gap between supply and demand. Both shipments and returns are included
in the category of MRP Elements. Examples of issues include things like Production
Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving
Stock Transfer Orders, and Schedule Lines. Examples of receipts include things like
PIRs, Dependent Requirements, Order Reservations, Sales Orders, and Issuing Stock
Transfer Orders.

19. Then, what really does RTP stand for?

The term "Returnable Convey Packaging" (RTP) is used to refer to packaging

materials (such as containers or pallets) that may be reused more than once to move
items between retailers and customers. RTP stands for "Returnable Convey
Packaging." The reusable transport packaging from a supplier that is stored on your
premises is regarded as a one-of-a-kind product and is obviously labelled to indicate
that it belongs to the supplier. There will be no consideration given to the RTP's
contribution to the stock value because it is the responsibility of the vendor, not the
client.

20. How does MM calculate prices?

Establishing the costs that are specified in the order paperwork may be done with the
help of the Pricing method that is contained inside the MM module. As a result of this,
we now have the capacity to define particular kinds of computations that are suitable
for application in a wide variety of settings. A pricing procedure is utilized by MM
whenever the company is writing up a purchase order or a request for a quotation.
The total value of a material is calculated by taking into account a variety of costs and
expenses, such as surcharges, discounts, taxes, and freight.

21. What exactly is the role that the SAP Posting Period plays?

Enterprise Resource Planning (ERP) systems from SAP were designed in order to
facilitate the simplification of business procedures. Documents such as the purchase
order, the request for quotation, and the product receipt are crucial to the operation of
a business. Any of these documents being posted in an inappropriate manner could
have severe repercussions for the operations of the company. As a result, the idea of
a posting time was conceptualized in order to guarantee the confidentiality of these
documents. During the time that the papers are being posted, you will have the
opportunity to both upload and revise them.

22. What does a copy of the Production Order contain?

A Production order will detail the required quantity of goods, the type of material to be
manufactured, the facility at which the manufacturing must take place, the day and
time of production, and the date and time of manufacturing. A Production Order not
only contains the materials and procedures that are going to be used, as well as the
mode of payment that is going to be used for the order, but it also specifies any unique
handling instructions that may be required.

23. What is the SAP Material Management (MM) system?

Material Management is an abbreviation for "Materials Management," whereas SAP

stands for "Systems Applications and Products." Material Management is an
abbreviation for "Materials Management." A unified operation can be easier to develop
with the assistance of the SAP software package. You won't have any trouble keeping
track of your orders or supplies when you use the MM module from SAP.

24. What are the steps involved in transitioning from MRP to a Purchase
Requisition or Purchase Order?

The PR is created in response to a demand or the material's defined safety stock

requirements. Before an order of purchase (PO) can be made, it is important to have
the scheduling agreement in place. After the MRP has been executed, the schedule
lines, which are effectively the same thing as the PO, are generated.

25. What exactly does it mean to "receive goods" when you're talking about
SAP?

Goods receipt is the term used to describe the process by which a vendor satisfies a
customer's request and then ships the products to the buyer. At this point, the
individual who placed the order will have received the material, at which point the
condition of the item and its overall quality will be evaluated. The entry for the receipt
of the goods is not made until after the material quality has been verified.

26. Can you explain what exactly is meant by the term "consignment stock"?

Merchandise that is on Consignment, Merchandise that is shown in the store but does
not belong to the proprietorship of that business, even though the customer can buy it
there. You are obligated to compensate the vendor in the event that you use their
consignment supplies.
27. What does it imply to do a "Special Procurement"?

Purchases Made on Their Own Contingent, these shares do not technically belong to
the company, therefore the corporation has to take extra precautions with them. They
are kept in a separate vault from the main one.

28. Describe the idea behind internal procurement, which is the eighth question
in this list.

Purchasing Done Within the Organization Large corporations frequently has

ownership interests in more than one entity. Purchasing goods and services from
within an organization is an example of an activity known as internal procurement.
Therefore, in order to document any transactions that may take place between them,
each of these businesses keeps its own set of books, which includes its own Balance
Sheet, Profit and Loss Statement, and Cash Flow Statement. This is done in order to
document any transactions that may take place between them.

29. The definition of what is meant by the term "External Procurement"

When the company is in need of certain goods or services, the next obvious step is to
search for providers located outside the company. An IT system's Purchasing
subsystem will normally be responsible for facilitating the three types of external
purchases that are the most popular.

One-time orders are the most efficient method for placing orders for infrequently
required materials and services.

Extending the length of contracts and giving early termination notices - For materials
that are ordered in large quantities and on a regular basis, we can negotiate terms
with the seller and formalize them in a contract to ensure that the price and terms are
consistent across all orders. It is possible to stipulate a maximum amount of time for
the validity of a contract.

Plans and engagements for the immediate and intermediate future - If you need to
order the same thing on a daily basis and have it delivered at the exact same time
each day, you should make a schedule arrangement for yourself.

30. What does RTP stand for?

The term "Returnable Convey Packaging" (RTP) is used to refer to packaging

materials (such as containers or pallets) that may be reused more than once to move
items between retailers and customers. RTP stands for "Returnable Convey
Packaging." The reusable transport packaging from a supplier that is stored on your
premises is regarded as a one-of-a-kind product and is labelled to indicate that it
belongs to the supplier. The stock value does not take into account RTP because it is
the responsibility of the vendor and not the customer.
SAP MM Interview Questions for Experienced
1. What is RFQ process in SAP MM?

A Request for Quotation, or RFQ, is a formal request for an estimate of the cost. A request
for pricing information as well as terms and conditions is being sent to possible vendors. An
RFQ will typically include information regarding the delivery timeline, quantity, goods or
services offered, and submission date.

2. What is meant by the term "the subcontracting cycle" in MM?

The transfer of raw or input materials to a third party in exchange for delivery of the finished
product is what is meant by the term "subcontracting." On a purchase order, products that are
going to be carried out by a third party are placed in the "L" category. The seller is given a
shipment of type 541 when the raw ingredients are delivered to them. When the GR of type
101 is responsible for taking care of material consumption, movement type 543 is
automatically triggered.

3. When does the status of "planned orders" change to "active"? When and how could an
order that was previously booked be changed to something else?

When the system develops a proposal for internal procurement, it also generates a planned
order simultaneously at the same time. When purchasing from a supplier, the MRP Controller
has the option of either putting in a scheduled order or submitting a purchase request.

The next step in the process for a planned order is to generate a purchase request (PR), which
will then be forwarded to buying to be turned into an actual purchase order. It is possible to
convert a PR into a scheduled order through the utilization of the MD14 transaction code.

4. The issue that has to be answered is "How are Source Lists made?"

Deal with the ME01 Transaction. You will need to provide the Material Number as well as the
Plant Information in this form. Source List Records, Validity Period, Material Availability
Period, Vendor Number, Responsible Purchasing Organization, Agreement/Contract Number,
PPL (if the material can be acquired from another facility), Fixed Source (? ), and MRP
Control are some of the things that should be included in this section. In addition, it is
advisable to check to see if the source list contains any entries that are identical to others.

5. Is it possible to make any changes to a Purchase Requisition after it has already been
created?

Yes. To complete this transaction, please utilize ME52N. Check to see if a PO was created in
response to the PR that was submitted. In that event, the Purchasing Committee really needs to
be aware of the situation. Make sure that you check the current standing of the PR. If this is the
case, the extent to which you are permitted to make changes to the document will depend on
and might require approval.

Determine whether or not MRP was responsible for the development of the PR. In this
situation, you do not have much influence on the process of change. Every change that is made
to a file is logged and saved so that it can be referred to at a later time. Information regarding
who made edits and when, in addition to the data that was changed, is logged.

6. What is vendor master data?

The term "vendor master data" refers to the collection of information that an organization
maintains on all of the companies that provide it with goods and services. The individual
vendor master records store the master data that pertains to each individual vendor. This
information may include the name and address of the vendor, the transaction currency, the
payment conditions, and the name of the point of contact (on the sales staff).

7. What exactly is the difference between a goods receipt and a post goods receipt?

A post-goods receipt is a document that verifies that the item that was purchased was delivered
to the buyer. The act of physically bringing materials and items into the warehouse is known
as goods receiving and falls under the purview of this process. The transportation of items
either from within the company's production facility or from outside vendors is included.
When a goods receipt is issued, there will invariably be a larger quantity of stock available.

After you have received all of the items that you acquired through a purchase order, you will
need to jot down some information on a document that is referred to as a post-things receipt.
When materials are supplied in response to a purchase order, the necessary references in the
system need to be updated, and this responsibility falls on all relevant departments.

8. What is MIRO?

MIRO means "transfer of funds in and out." It is in charge of the verification processes for the
bills that are submitted by the supplier. To put it another way, MIRO is what MIRO employs.

9. Kindly elaborate on what you mean when you say "consumption-based planning"
(CBP)?

Consumption-based planning refers to the practice of making plans according to existing levels
of consumption (CBP). With its assistance, it is possible to forecast future requirements. These
types of CBP procedures are not connected to the overall production schedule in any way.

The system goes into action when the stock level falls below a predetermined reorder point or
when a prediction is necessary to be computed using actual consumption data. Both of these
triggers can also occur when the stock level falls below a predetermined safety threshold.
10. How exactly does one go about explaining the concept of scaling in MM?

When entering prices into the information database, scales may be utilized. Scales may also be
employed. If the price of the stuff that you're purchasing reduces per unit, then you will make
use of it. For example, the cost of the material ABC would be Rs. 10 for an order of 500
pieces; but, if you placed an order for more than 500 pieces, the cost would be reduced to Rs.
9. Scales can be retrieved in a Purchase Order from a variety of different master data sources,
such as an information record, a quota structure, and other similar resources.

11. How does subcontracting handle the disposal of scrap material?

In BOM, the categories of scrap that can be used are operating scrap, component scrap, by-
product scrap, and co-product scrap. The return of recycled materials and the retention of scrap
as a by-product are both considered to be regular operating procedures.

12. How should a tax estimation procedure in MM be set up in the most effective
manner?

It is possible for the tax code to assign a different tax to each line item that is included in a
purchase order. In the past, the tax procedure known as TAXINJ, which was based on
formulas, was used. In recent years, the condition-based tax approach known as TAXINN has
emerged as the standard practice.

The numerous condition categories and the regulations that go along with them are outlined in
the manual for the tax policy. The account key that is connected with the condition type is used
to determine which General Ledger account the tax amount is posted to (OB40). For the
management of these account keys, the T-code OBCN is utilized. (The portion of Financial
Accounting titled "Global Settings" contains all of the information pertaining to taxes that are
charged on sales and purchases.) Each nation has its own specific tax system, and each nation
also has its own unique tax practices.

The codes for each nation are related to their respective tax systems. As a result, the
computation is carried out in accordance with the condition types contained within the tax
procedure that is in line with the tax law.

13. What exactly is intended to be done with a profit center?

Businesses are able to determine the effectiveness of certain departments or divisions inside
the company with the assistance of a method called "profit center accounting." A profit center
is the component of accounting that helps you keep track of your earnings. It is an essential
part of the discipline. A connection has been made between the material master and the profit
center on the plant level.
14. What exactly do the terms "Cost Centers" mean?

Management and planning are supported through the usage of accounting by the cost center.
It's the tiniest manageable piece of a control zone, and it corresponds to a specific spot in the
real world. One could designate any section as their "cost center" in order to better monitor
their expenditures.

15. What is a business zone?

A functional division that may be found within the realm of financial accounting is that of the
business sector. If there is a particular reporting segment in existence, value changes that are
reported in Financial Accounting can be attributed to that segment.

It is automatically derived from its relationships to other organizational parts whenever that is
possible. Whenever possible. Take, for example: When managing the business area for a
plant/division combination, the t-code OMJ7 is the method of choice.

16. Why do we need "SPLIT VALUATION"?

It is often required that numerous stock valuations of the same material be carried out within
the same valuation zone. This can be the case because of a difference in price, quality, prestige,
or some other factor. In these kinds of circumstances, we utilize split valuation.

In this arrangement, the materials are kept track of and maintained at a number of subsidiary
stocks that are on a smaller scale. This level of a fractional share is utilized in all transactions
where the worth of the company is an important consideration. When it comes to accounting,
one of our first considerations for any given material is whether or not it requires a split
valuation.

17. How many different ways are there to check if an invoice is correct?

Invoices that are based on purchase orders. Even if one of the products on a purchase order
was delivered in a number of separate instalments, Invoice Verification will nevertheless make
it possible to make a unified payment for the entire order's worth of goods and services.

A single entry is used to record the aggregate total of all deliveries. invoices for the goods that
were received. When invoice verification is based on the receipt of goods, each individual
goods receipt is billed in its own separate transaction. receipts that do not contain a reference
to a purchase order anywhere on the page. In the event that a purchase order number is not
provided, the transaction may be entered into the general ledger, the account for the material,
or the account for the asset.

The system has the capability of storing any and all invoices, including those that are pertinent
to Purchase Orders and General Receipts as well. Neither during the parking process nor later
is there any provision for the validation or substitution of documents.
18. What does it mean when someone refers to a "Price Control Indicator"?

The "Price Control Indicator" is a record that is maintained from an accounting point of view
and that is referred to when determining the appropriate price to place on a certain material.
There are two possible outcomes here: the first one is the Standard Price (S), and the second
one is the Moving Average Price (V).

If the switch is set to the "S" position, the material master standard price will be used to
determine how much stock to add or subtract from the inventory. Any inconsistencies in
transactions that can be attributed to price disparities are documented in the account that is
named after the price difference.

If the price control indication is set to V, you will be charged the GR price for any goods that
are received. The material master's weighted moving average price will be updated using a
method known as a weighted average, which will be revised. When products are moved or
invoices are received at prices that depart from the moving average, any price disparities that
exist are credited to the stock account. This happens when the stock account is credited with
any price discrepancies that arise.

19. What is this fascinating concept that people refer to as "NetWeaver"?

NetWeaver is not a stand-alone product but rather an offering that is made by SAP. It serves as
an integrated platform for technological development. Even the most recent version of the
foundation has a memorable moniker: the Netweaver. This technology serves as the basis for
all of the mySAP applications that are currently available.

All of the products that are part of the MySAP suite are compatible with just a single
installation of SAP WEBAs, which is the SAP Web Application Server that comes standard
with NetWeaver. Because of NetWeaver, SAP data can now be accessed quickly and
conveniently using a variety of mobile devices and the standard HTTP protocol. This
eliminates the need to spend the time and effort necessary to install and become familiar with
SAP's client-side software.

Conclusion

This article has covered the most common SAP MM interview questions. Moreover, we
provided you with some tips that might serve as a guide as you prepare for the interview. Keep
in mind that the SAP MM interview is a crucial step in the hiring process as you prepare for it.
The success or failure of your job search hinges on how well-prepared you are for the
interview. Therefore, it is crucial to initiate preparations as soon as possible.

It is recommended that you start by familiarizing yourself with the company and its offerings.
Inquire about the company's history and the products it currently offers. Doing so will provide
you with a deeper understanding of the business and its offerings.
 The next step is to run through mock interviews with the folks who will be conducting your
actual interviews. Prepare for the interview more effectively by reading this. The final step is
to practice responses to questions from a mock interviewer. You can use this information to
better prepare for the job interview.

Additional Resources

 https://www.interviewbit.com/blog/sap-architecture/
 https://www.interviewbit.com/technical-interview-questions/

20. What is a quote in SAP MM?

The supplier is obligated to adhere to the terms of the quote that they offer in response to an
RFQ for a certain period of time. To provide additional clarity, a quotation is an offer that is
made by a supplier to a purchasing organization for the supply of goods or the performance of
services under particular conditions.

21. What are the various kinds of invoice verification that are available?

Invoices that are based on purchase orders. Even if one of the products on a purchase order
was delivered in a number of separate instalments, Invoice Verification will nevertheless make
it possible to make a unified payment for the entire order's worth of goods and services.

A single entry is used to record the aggregate total of all deliveries. invoices for the goods that
were received. When invoice verification is based on the receipt of goods, each individual
goods receipt is billed in its own separate transaction. receipts that do not contain a reference
to a purchase order anywhere on the page. In the event that a purchase order number is not
provided, the transaction may be entered into the general ledger, the account for the material,
or the account for the asset. The system has the capability of storing any and all invoices,
including those that are pertinent to Purchase Orders and General Receipts as well. Neither
during the parking process nor later is there any provision for the validation or substitution of
documents.

22. What sets Consignment Stocks apart from other stock markets, and how do these
differences come about?

The Vendor will continue to hold full legal ownership rights to the products until the
organization removes them from the consignment stores at which point, they will be returned
to the Vendor. Invoices might be due at set intervals (like monthly), and stock might be
transferred to the company once a certain amount of time has passed (also configurable). Due
to the fact that Consignment Stock and your company's stock have the same material number,
the latter is counted as available stock in the former. Perhaps the most notable distinction of
consignment stock is that it is not subject to a monetary valuation.

The price that the vendor was asking for the material at the time of withdrawal is used to
determine its worth. Before placing an order, it is important to give serious consideration to the
 question of whether or not the items will be delivered in a single shipment despite coming
from multiple vendors. In the event that this is the case, we are able to handle each one
individually and do so at the rates that are charged by each of their different providers.

23. In the "Accounting View" of the material master, what kinds of specifics are stored
there for reference?

The only level of analysis that the accounting perspective covers is the plant level. This data
contains essential information such as the appraisal class and pricing control, among other
things. The valuation category is used to determine which account in the general ledger (GL)
should be credited with the transaction when it is time to post the entry. Additionally, it is
utilized for altering the parameters of the OBYC. The material's availability is controlled by a
price control indicator, which maintains it at either the standard price(s) or the moving average
price, depending on which option is chosen (V).

24. What do we mean when we refer to things in terms of batches?

Batches are smaller units that can be used to represent a material's inventory after it has been
divided up. It is shorthand for an entity that cannot be divided and must be defined by itself. In
manufacturing parlance, a "batch" refers to the quantity of a particular substance that is created
during the course of a single production run. There are three different levels of exclusivity that
can be added to a batch number, and they are as follows:

 There can be only one batch number associated with a client at any given time. At the level of the
material and plant combination, it is possible to assign the same batch number to multiple different
material specifications at the same time.
 All production facilities that make use of a certain material will adhere to the same standards with
regard to the allocated batch of that material. The batch number for each type of material can be
reassigned to correspond with a different group of prerequisites.

25. How does the OBYC valuation grouping code function?

Valuation in SAP can be specified either at the plant level or at the company code, and the
value area is segmented using a coding system. This plant-level value area is often chosen
because individual plant valuations are subject to variation. The use of valuation grouping
codes makes automatic account determination settings more convenient. It is possible for us to
generate a common account determination across multiple valuation areas if we assign the
same valuation grouping code to each of those valuation areas. It's possible that we'll keep a
record in OMWD of the valuation group code for more than one valuation domain.

26. Does the fact that something is slated for elimination indicate that it can never be used
again in any capacity?

The answer is Yes; you are free to continue to make use of the content up until the point that it
is permanently deleted from the system. A straightforward notification will show up each time
the content is used. You can immediately stop the material from being utilized for any purpose
by assigning it a material status, which is available in either the Basic View 1 for global
blocking or the MRP 1 view for plant-level blocking.

27. Is it possible to flag content for deletion?

The Archive and Delete programme does not allow you to simply delete items from the
database without first marking them for deletion. A deletion flag can be set at the client, plant,
or archive level. These are the three different levels where it can be done. When you designate
content for deletion at one level, it is likewise marked for deletion at any lower levels that have
the same name as the higher level at which it was marked for deletion. Use the MM06
transaction in order to indicate that a material is to be removed from use.

28. Do you permit the release of line items on orders that contain multiple line items?

On the other hand, a purchase order might be released "With Classification," which indicates
that the whole order is being released. Despite the fact that there is only one way to release
PRs, there is the potential for two. Both are classified, as was just mentioned, and unclassified,
which means that the PR can only be released in bits and pieces.

29. What does the term "batches" refer to in SAP MM?

Batches are smaller units that can be used to represent a material's inventory after it has been
divided up. It is shorthand for an entity that cannot be divided and must be defined by itself. In
manufacturing parlance, a "batch" refers to the quantity of a particular substance that is created
during the course of a single production run. There are three different levels of exclusivity that
can be added to a batch number, and they are as follows:

There can be only one batch number associated with a client at any given time. At the level of
the material and plant combination, it is possible to assign the same batch number to multiple
different material specifications at the same time.

All production facilities that make use of a certain material will adhere to the same standards
with regard to the allocated batch of that material. The batch number for each type of material
can be reassigned to correspond with a different group of prerequisites.

30. What kind of differences occur between contracts and time sheets?

A legally binding agreement between two parties to exchange goods or services over the
course of a predetermined amount of time is referred to as a contract. The agreements do not
include any hard and fast dates for the delivery of the goods. It is possible to classify contracts
as falling into one of these two categories: Agreements that are based on monetary worth or
quantities that have been agreed upon

It is possible to include scheduling lines in scheduling agreements. These lines contain

information on the quantity that is to be provided on a specific day. It is necessary to get the
plant entered into SA before materials may be transferred to the plant. In most cases, they are
used with materials whose requirements can be anticipated in advance.

31. What is a subcontracting cycle in SAP MM?

The transfer of raw or input materials to a third party in exchange for delivery of the finished
product is what is meant by the term "subcontracting." On a purchase order, products that are
going to be carried out by a third party are placed in the "L" category. The seller is given a
shipment of type 541 when the raw ingredients are delivered to them. When the GR of type
101 is responsible for taking care of material consumption, movement type 543 is
automatically triggered.

Frequently Asked Questions

1. What's next for SAP MM?

SAP MM has a very bright future. India will keep using SAP technology for at least the next
30 years, and it is still growing. There are many modules that do different things, such as mm,
SD, etc. There are a lot of people who want these.

2. Do you need to code for SAP MM?

Since you don't have to know how to code to use SAP MM, it's easier to become an SAP MM
consultant. To learn SAP MM the right way, you must, however, use the resources that SAP
Academy gives you.

3. What kind of software does SAP MM use?

The SAP ERP software from SAP AG helps with the process of buying materials and keeping
track of stock. Material Management includes all parts of the supply chain, from planning
based on consumption to planning, evaluating vendors, and checking bills.

4. How do I prepare for the SAP MM interview?

A very important part of the SAP hiring process is the SAP MM interview. It gives candidates
a chance to show what they know about and how well they understand the SAP software.
Before the interview, candidates should learn as much as they can about the software and make
sure they are well-prepared.

1. The first thing to do is learn how to use the software. This can be done by reading any available
documentation or watching any available videos.
2. The second step is to figure out how the software fits into your business. You can do this by
reading any available documentation or by talking to other employees who are using the
software.
3. Preparing for the interview is the third step. You can do this by taking notes during the
interview or by practising answering the questions you will be asked.
 4. The fourth step is to be ready when the interview day comes. You can do this by getting enough
sleep, eating well, and giving yourself enough time to prepare for the interview.

5. What is the salary of SAP MM Consultant?

In India, an SAP MM Consultant can expect to earn a yearly salary anywhere from INR 2.7
Lakhs to INR 9.5 Lakhs, with the median compensation resting at INR 5.1 Lakhs. The salary
range for this position is rather wide. A compensation of $7,600 per year is normal for SAP
MM Consultants to be earned.

6. What are the job opportunities for SAP MM?

 SAP MM is a type of software that helps business processes run smoothly. This software helps to
automate business tasks like taking orders, sending bills, and keeping track of customers.
 There are many job opportunities for SAP MM because it can be used in many different ways. An SAP
MM administrator, for example, might be in charge of managing the software, while a customer service
representative might be in charge of answering questions from customers.
 There are also jobs for people who want to work in sales and marketing or in technical support.

7. What is the SAP MM role?

Material management, control of the procurement process, administration of master data

(including material and vendor master), management of inventories, management of material
requirements planning, verification of invoices, and a variety of other capabilities are all
provided by SAP MM. Each of these specialized MM modules has its own individual set of
steps that need to be taken before it can be used.

MM FULL CYCLE

PR >Release the PR>RFQ>Quotation>Quotation Comparison>PO>Release the

PO>GR>Invoice Verification

MM Process flow:

Process Flow

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning
and control. (This can cover both MRP proper and the demand-based approach to inventory
control. The regular checking of stock levels of materials defined by master records, use of the
order-point method, and forecasting on the basis of past usage are important aspects of the
latter.) You can enter purchase requisitions yourself, or they can be generated automatically by
the materials planning and control system.
2. Source Determination

The Purchasing component helps you identify potential sources of supply based on past orders
and existing longer-term purchase agreements. This speeds the process of creating requests for
quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you
create a purchase order. As with purchase requisitions, you can generate Pos yourself or have
the system generate them automatically. Vendor scheduling agreements and contracts (in the
SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically
prints reminders or expediters at the predefined intervals. It also provides you with an up-to-
date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po
number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of
ordered goods.

7. Invoice Verification

The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods receipt
data. This speeds the process of auditing and clearing invoices for payment.

Pur info record is nothing but a master data like thing which will be maintained for different
materials to determine the prices etc.It Specifies the number that uniquely identifies a record.

For Example: an info record is based on Plant Vendor and Material

Based on these three the Material Prices will be calculated

for different combinations different values are taken into consideration.

During pricing it brings these values automatically based on this info record.
Use ME11 T.code to create this record.

Common Tables used by SAP MM

Below are few important Common Tables used in Materials Management Modules?

EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

MBEW Material Valuation

MKPF Header- Material Document

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

RKPF Document Header- Reservation

T023 Mat. groups

T024 Purchasing Groups

T156 Movement Type

T157H Help Texts for Movement Types

MOFF Lists what views have not been created

A501 Plant/Material

EBAN Purchase Requisition

EBKN Purchase Requisition Account Assignment

EKAB Release Documentation

EKBE History per Purchasing Document

EKET Scheduling Agreement Schedule Lines

EKKN Account Assignment in Purchasing Document

EKKO Purchasing Document Header

EKPO Purchasing Document Item

IKPF Header- Physical Inventory Document

ISEG Physical Inventory Document Items

LFA1 Vendor Master (General section)

LFB1 Vendor Master (Company Code)

NRIV Number range intervals

RESB Reservation/dependent requirements

T161T Texts for Purchasing Document Types

Tcodes:

InfoRecord - ME11

Source List - ME01

RFQ to Vendor - ME41

Sheduling Agreement - ME31L

Contract - ME31K

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)