SAP MM Interview Questions

 

Q1. What is the difference between a Purchase Requisition and a Purchase Order?

Ans: A PR is an internal document that sends  notification to purchase department when some material is service is required. PR can be generated by department that needs any material or service. know more at SAP MM online training

A PO is a document sent to vendor by purchaser which is an official request of mentioned material or services. POs are generally binding on purchaser, though it depends on terms and conditions mentioned in PO.

Q2. What MRP procedures are available in MM-CBP (Consumption Based Planning)?

Ans: Various material planning methods are used in MRP (Material Requirements Planning). Reorder point procedure (VM) Forecast-based planning (VV) Time-Phased materials planning (PD) These are specified in material creation (MM01) under the MRP 1 tab.

Q3. Can you change a Purchase Requisition after it has been created?

Ans: Yes. Use Transaction ME52N. Check to see if the PR has already had a PO issued against it. If so, you must inform the Purchasing Group. Check if the PR has been approved. If so, you may only make changes to a limited extent and may be subject of approval. Check if the PR was created by MRP. In this case, you don’t have much control over the modification process. All changes to items are logged and stored. Information stored includes when the information was changed, who changed it, what the changes were, etc. know more at SAP MM  training

Q4. How do we create Consignment Stocks?

Ans: Everything is the same as a normal PR or PO, except: Enter the item category “K” for the consignment item. This ensures that the Goods Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price.

Q5. What is Vendor Evaluation and how do you maintain it? 

Ans: Vendor Evaluation helps you select the Source of Supply by a score assigned to a particular vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use Transaction ME61 and enter the Purchasing Organization and Vendor Number.

Q6. What are the components of the Master Data that details a company’s procurement; used by, Vendor Evaluation for example?

Ans: The key components of Master Data are: Info Record (ME11), Source List (ME01), Quota Arrangement (MEQ1), Vendor (MK01), Vendor Evaluation (ME61), and Condition Type (MEKA).

Q7. How do we get a proper list of vendors to send an RFQ?

Ans: Either use the Information Record to see who has sold a particular material to the organization in the past, or go through the Source List.

Q8. How do you create a Source List? 

Ans: Use Transaction ME01. Enter the Material Number and the Plant Data. Enter source list records, validity period, period of time material is procurable, Vendor Number, responsible Purchasing Organization (or number of the Agreement or Contract), PPL (if the material can be procured from another plant), Fixed Source (?), MRP control. Also, a check should be done to see whether any source list records overlap. know more at SAP MM online course

Q9. What are different Info Records types?

Ans: Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.

Q10. Under what conditions are “planned orders” created? What may planned orders be converted to and how is that conversion accomplished?

Ans: Planned orders are always created when the system creates an internal procurement proposal. In the case of vendor procurement, the MRP Controller may create a planned order or directly create a PR. The next step for a planned order is to be converted to a PR so it goes to purchasing and is to eventually become a PO. A planned order can be converted to a PR using transaction code MD14.

Q11. What is a consignment Stock?

Ans: The stock supplied by the vendor is in the purchasing company’s premises but the company has no liability for the same. The liability for the company will only arise one the goods are issued from the consignment stock for use. However, in this case, even before the use, purchasing company can check in system how much stock is lying in inventory.

Q12. What is Sub-Contracting cycle in MM?

Ans: In Sub-contracting, we send raw material or input material to sub-contractor and then receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input material is sent to vendor for processing with movement type 541. When GR is done using movement type 101, movement type 543 takes place automatically and takes care of consumed material.

Q13. What is meant by Scales in MM?

Ans: When we maintain price in Info Records, we can make use of scales. It is used when price of a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are maintained in various master data like info record, quota arrangement etc. from where scales can be pulled in a Purchase Order.

Q14. How to Flag a material for deletion?

Ans: A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a material for deletion, it is flagged for deletion at all corresponding lower levels. Transaction MM06 is used to flag a material for deletion.

Q15. Can a material be used after flagging it for deletion?

Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It will just trigger a warning message whenever the material is used. If you want a material to be blocked for any use with immediate effect, you should use a material status which is there in Basic View 1 for general level or in MRP 1 view for plant level blocking.

Q16. What is the function of OBYC?

Ans: OBYC is t-code used for configuring Automatic Account Posting.

Postings are made to G/L accounts automatically in the case of Inventory Management and Invoice Verification relevant to Financial and Cost Accounting. know more at SAP MM online course
Q17. What is valuation grouping code related to OBYC?
Ans: Valuation grouping code is used to group the valuation area, In SAP, we can have valuation level at Company code level or at plant level.
General practice is to use the valuation area at plant level, because valuation may differ from one plant to another. The valuation grouping code makes it easier to set automatic account determination. If we need to define common account determination for several valuation areas, we can assign same valuation grouping code to all those valuation areas. We can maintain the valuation group code in OMWD for various valuation areas.
Q18. What types of special stocks are available?
Ans: pecial stock types available in SAP are Consignment, Subcontracting, pipeline, project, sales order stock, Returnable transport packaging, stock transfer, and the third party.
Q19. What is the difference between Contracts and Scheduling Agreements?
Ans: A contract is a pre-determined long term agreement to supply material or service for a certain period of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of two types: Value Contract or Quantity contract know more at SAP MM online course
In Scheduling agreements, we can enter scheduling lines which gives details of quantity that should be delivered on specific date. Plant must be entered in SA so that materials can be delivered at plant. These are generally used for materials whose requirements are predictable.
Q20. How can we create new transaction codes in SAP?
Ans: New transaction codes can be created using t-code SE93.