Top 25 SAP MM Interview Questions and Answers for 2024
1.Explain what is SAP MM?
SAP MM (Material Management) is a function that manages material and product management in SAP. The MM module contains master data, configuration and transactions to complete the payment process.
2.Explain the importance of the batch record?
A batch represents the quantity of a particular product processed or produced simultaneously within the same limits. The information produced in this product has the same benefits and features. At the same time, batch data provides information about a particular batch of products, helping to understand whether the product has passed GMP (Good Quality Process).
3.List out important field in purchasing view?
The critical fields in purchasing view are
- Base unit of measure
- Order unit
- Purchasing group
- Material group
- Valid from
- Tax indicator for material
- Manufacturer part number
- Manufacturer, etc.
4.Mention what are the major purchasing tables? List the transaction codes for them?
- Purchase requisition > EKBN
- Purchase requisition account assignment > EBKN
- Release documentation > EKAB
- History of purchase document
To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path
- SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XK01- Create.
5.What is the purpose of the Quota Arrangement in SAP MM?
- The Quota Arrangement in SAP MM allows organizations to distribute procurement quantities among different sources of supply based on predefined proportions. This ensures a fair allocation of procurement responsibilities among approved vendors, promoting supplier diversity and risk mitigation.
6.Mention what are the data contained in the information record?
Data files include products, selling prices, data used by a particular vendor, etc. Contains information about metrics such as. It also includes information such as exclusions for information deficiencies, seller evaluation information, delivery times and product availability.
7.Mention what is the transaction code to delete a batch?
The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.
8.Explain how you can change the standard price in the master material?
The standard price for the material data cannot be updated or changed directly. However, to change the standard price you can perform the following steps
- Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-ZKDAT) for the materials
- Select Logistics > Material Management > Valuation > Valuation Price Determination > Future Price
9.For creating a purchasing info record what are the pre-requisites?
The pre-requisites for creating a purchase info record are
- Material Number
- MPN ( Manufacturer Part Number )
- Vendor Number
- Organizational level code
10.Explain the terms Planned delivery and GR processing time?
Delivery scheduling refers to the number of business days required to receive documents, while GR operation refers to the number of business days required to review and retain documents after receipt.
11.Explain how consignment stocks are created?
Inventory is created on a purchase order or requirement. One thing you need to consider when creating a post is that you need to fall into the K category for the post. Therefore, the exported product will be sent to the store and an invoice will not be created.
12.Explain how is the vendor return processed without a purchase order reference?
First you have to observe the return column and then select — Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the document is a return purchase order, and then the document is saved.
You can also use transaction code M21N for this purpose
13.Explain what are the accounts created in SAP MM?
Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things
- Account assignment type
- Account that will be charged when you post the invoice or goods receipt
- Account assignment data that you should provide
14. Explain what is CBP? What is the difference between CBP and MRP?
CBP is the historical cost of goods sold; It is used to predict future needs. Calculate the product’s net demand based on historical supply.
The difference between CBP and MRP is that when you use MRP to plan materials, you must estimate the materials needed based on sales and business planning (process work). In CBP you need to estimate data requirements based on historical data.
15. What is the purpose of the Automatic Account Determination in SAP MM?
Automatic Account Determination in SAP MM is the process through which the system automatically assigns the appropriate General Ledger (G/L) accounts for various transactions. This ensures accurate and consistent accounting for material movements, procurement, and other relevant processes.
16. What are the key components of SAP MM?
- SAP MM is comprised of several key components, including Master Data, Purchasing, Inventory Management, Invoice Verification, and Material Requirement Planning (MRP). These components work together to streamline the end-to-end material management processes within an organization.
17.Explain the purpose of the Material Master in SAP MM.
- The Material Master serves as a centralized repository of information for all materials used or produced by a company. It contains essential data such as material type, unit of measure, storage locations, and other details, enabling efficient management and tracking of materials.
18.What is a Purchase Order (PO)?
A Purchase Order is a formal document issued by a buyer to a vendor, specifying the type and quantity of materials or services required, along with agreed-upon terms, conditions, and prices. It serves as a legally binding contract between the buyer and the supplier.
19.Differentiate between a Purchase Requisition and a Purchase Order.
A Purchase Requisition is an internal document generated within an organization to request the procurement of goods or services. In contrast, a Purchase Order is the external document sent to a vendor to initiate the actual purchase, detailing the specifics of the transaction.
20.What is a Goods Receipt (GR)?
Goods Receipt is a crucial step in the procurement process where the receiving department acknowledges the physical receipt of goods or services. It involves updating the system to reflect the actual inventory levels and triggers the verification and payment processes.
21.Explain the concept of a source list in SAP MM.
A source list in SAP MM is a list of approved vendors or sources from which materials can be procured. It helps organizations maintain control over their procurement processes by specifying preferred suppliers, ensuring consistency, and facilitating efficient vendor management.
22.What is the purpose of the Info Record in SAP MM?
The Info Record (Information Record) in SAP MM contains vital information about a specific material and its procurement from a particular vendor. It includes details like pricing conditions, delivery times, and other relevant terms, aiding in making informed purchasing decisions.
23.What is the ABC analysis in SAP MM?
The ABC analysis is a classification method used in SAP MM to categorize materials based on their importance. Classifications include A for high-value items, B for medium-value items, and C for low-value items. This helps organizations prioritize their focus and resources on critical materials.
24.Explain the concept of a reservation in SAP MM.
A reservation in SAP MM is a system request to set aside a specific quantity of stock for a particular purpose or order. It ensures that the reserved stock remains available for the intended use, preventing inadvertent consumption or allocation to other orders.
25.What is the purpose of the condition type in SAP MM pricing?
Condition types in SAP MM pricing are used to define specific conditions or charges associated with a purchasing document. These conditions may include discounts, freight costs, taxes, or other factors that influence the overall procurement cost.
Find our upcoming batches of SAP MM course training
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Conclusion :
The 25 most common SAP MM questions and answers will help you prepare well and ace the SAP interview. Research these carefully to make a positive impression on your future employer. If you want to add a star to your resume before your next sales pitch, you should enroll in the SAP MM course by Sapalogy Training today!
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