Interview Questions of SAP S/4 Hana sourcing & procurement

  • By Prahlad Pawar
  • April 22, 2023
  • SAP
Interview Questions of SAP S/4 Hana sourcing & procurement

Interview Questions of SAP S/4 Hana Sourcing & Procurement 

Q1) What is the meaning of S/4 HANA?

S – stands for Simple and 4 stands for 4th Generation  of SAP software and HANA is a database which is developed by SAP SE company 


Q2) What is the key difference between SAP ECC and SAP S/4 HANA?

Interview Questions of SAP S/4 Hana sourcing & procurement

Q3) What is the difference between sourcing and procurement in SAP? 

Sourcing and procurement are two different, yet interconnected processes in SAP that are used to oversee the accession of goods and services.

Sourcing deals with the process of identifying and selecting vendors that can meet the organization’s demands and requirements. It comprises activities such as market research, vendor selection, and contract negotiation. The aim of sourcing is to identify the best possible vendors and assure the best possible prices and terms.

Procurement, alternatively, is the process of obtaining goods and services from vendors. It consists of activities such as purchase requisition, purchase order arrangement, invoice processing, and payment. The purpose of the procurement is to ensure that the goods and services required by the organization are obtained in a timely and cost-effective manner.


Q4) What are the main attributes and functionalities of SAP Sourcing and Procurement?

Some of the main attributes and functionalities of SAP sourcing and procurement include

  1. Purchase requisition management: Allow the creation and management of purchase requisitions, enabling organizations to efficiently govern the procurement process.
  2. Contract management: Helps the creation, execution, and management of procurement contracts, issuing a centralized depository for all procurement-related contracts.
  3. Vendor management: Provide a comprehensive vendor management system, allowing organizations to manage vendor information, track vendor performance, and monitor vendor compliance.
  4. Invoice processing: Self-operating the invoice processing workflow, decreasing manual efforts and boosting accuracy.
  5. Source-to-pay process automation: Self-acting the entire source-to-pay process, consisting of purchasing, invoicing, and payment, to increase efficiency and decrease manual efforts.
  6. Reporting and analytics: Provide advanced reporting and analytics capacity, allowing organizations to gain insights into procurement performance and make data-driven conclusions.

Q5) Which procurement process is best suitable for the procurement of low-value materials?

A blanket purchase order is best suited for the procurement of low-value materials 


Q6) What is the use of the item category and list down standard item categories available in SAP? 

Item category is used for identifying the type of  procurement process 

Standard item categories available in SAP are as follows

Standard, K- consignment, L- Subcontracting, B- Limit, M- Material unknown, S- Third party, T- Text, U- stock transfer, and D- Service 


Q7) Which item category is used in subcontracting procurement? 

Item category L is used for subcontracting  procurement


Q8) What are the different types of purchasing organizations? 

Different types of purchasing organizations are as follows 

  1. Plant-specific purchasing organization 
  2. Cross-plant purchasing organization 
  3. Cross-company code or corporate group-wide purchasing organization
  4. Reference purchasing organization
  5. Standard purchasing organization

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Q9) What is the use of a source list?

The source list is used for 

  1. Maintaining a fixed source of supply (i.e. vendor )
  2. Limiting the picking of sources of supply (i.e. vendor) during the source determination process
  3. Impeding source of supply (i.e. vendor) 


Q10) What is a client? What are the different types of clients in SAP? 

A system environment is mentioned as a client and there are three different types of client in SAP namely development client where development work takes place, Quality or testing client where actual testing is carried out, and production client where actual day-to-day business transaction is carried out by the customer. 


Q11) What are transport requests?

Transport requests are used to transfer configuration settings from one client to another client and are generated automatically when you create any changes to configuration tables or programs. 


Q12) What is the path to creating a plant in the SAP system? 

If you want to  create a plant then follow the navigation path SPRO – SAP IMG – enterprise structure – definition – logistics-general – Define, Copy, Delete, Check Plant


Q13) What is the use of a standard purchasing organization?

The standard purchasing organization is used by the system in the event of source determination for pipeline procurement, consignment procurement, and stock transfer scenarios.


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Q14) What is master data? Can you list master data specific to SAP sourcing and procurement? 

 Master data is basically a collection of frequently used data records that will not change often; it looks static in nature. The master data specific to SAP sourcing and procurement are 

  1. a) Business partner master data (consisting of vendor master and customer master)
  2. b) Material master data c) Purchasing info records d) Quota arrangement 
  3. e) Source list f) Service master data 


Q15) What is the function of the vendor account group in the business partner? 

It’s used to classify suppliers and suppliers similar in nature grouped together (such as one-time suppliers, domestic suppliers, overseas suppliers etc.) 


Q16) What are the standard BP roles to create accounting data and purchasing data of suppliers? 

BP roles 

FLVN00 – to create accounting data for supplier 

FLVN01 – to create purchasing data for supplier 


Q17) What are the standard partner roles of vendor master? 

Following are the standard  partner roles of vendor master 

VN – Vendor,  DP – Delivering plant, PI – Invoicing party, FS – Freight supplier  


Q18 ) What are the main characteristics of material master data? 

The main characteristics of material master data are the material number, industry sector, and material type

Material number- 18 or 40 characters (can be alphanumeric), internal or external number range is possible 

Industry sector – One character and alphanumeric is possible, control screen set up and screen sequence 

Material type – Four characters and alphanumeric is possible, and the internal or external number range is possible 


Q19) Define the material type and explain the controlling functions of material types. 

Grouping of similar character material is called material type. The controlling functions of material types are as follows 

  1. Screen sequence and screen setup 
  2. Field selection (Display, hide, compulsory and optional )  
  3. Procurement type ( Internal procurement or external procurement ) 
  4. Number range and number assignment ( can select internal or external number range) 
  5. Automatic account determination 
  6. Quantity and value updating in plants 
  7. Price control ( Moving average price or standard price) 


Q20) Enlist the standard material types available in SAP sourcing and procurement 

ROH – Raw material, FERT- Finished goods, HALB- Semi Finished goods 

NLAG- Nonstock material, UNBW- Non valuated material, HAWA- Trading goods 

VERP- Packing material 


Q21) What are different procure-to-pay (P2P) documents? 

In procure-to pay (P2P) process broadly there are two types of documents i.e internal and external which are as follows 

  1. a) Purchase requisition b) Request for quotation/ quotation c) Purchase order 
  2. d) Goods receipt e) Invoice receipt 


Q22) What is the use of order acknowledgment?

An order acknowledgment is the evidence sent by a vendor for a specific PO that shows the vendor agrees that the terms and conditions of the PO (i.e., ordered item, quantity, price, delivery schedule, etc) 


Q23) What is the transaction code to create a batch record? 

Transaction code MSC1N is used to create a batch record 


Q24) How will you see a list of vendors in SAP? 

By using the MKVZ transaction code 


Q25)  How will you see a list of materials in SAP? 

By using the MM60 transaction code

Q26) When will you post a good receipt then which documents are created in the system? 

Material and accounting documents are created in the system 


Q27) When will you post a credit memo? 

When some of the materials are found to be defective and that it should be returned to the vendor then we want to receive money from the vendor then we will post the credit memo 


Q28) What is the transaction code to post invoice receipts? 

Transaction code MIRO is used to post invoice receipt 


Q29) What is the use of collective numbers in RFQ?

If you want to do quotation comparison and selection of proper vendor then a collective number is used to fetch all quotation 


Q30) What is consignment stock? 

Consignment stock consists of goods that are sent to and stored at the customers’ location but which are possessed by the sending company. 

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Q31) What is the transaction code to post goods receipt? 

Transaction code MIGO is used to post goods receipt 


Q32) What is the release strategy? and state its type

The release strategy represents the approval process for internal documents like purchase requisitions or external documents like purchase orders, RFQ, Contracts, and scheduling agreements. There are two types of release strategy 

With classification – Item level release is possible and used only for PR 

Without classification – Header level release is possible and used for PR,PO,RFQ, contract, and scheduling agreement 


Q33) How many levels of release strategy is possible in SAP sourcing & procurement? 

SAP allows only 8 levels of release codes.


Q34) What is the use of release code in the release strategy? 

It is a two-character key that defines an individual or department that must give approval.


Q35) What is the physical inventory process? states the steps involved in it 

The process of verifying actual stock with system stock is called a physical inventory process. The steps involved in the physical inventory process are as follows

  1. Create physical inventory document ( use transaction code MI01)
  2. Physical inventory count ( use transaction code MI04) 
  3. Post the differences in the system  (use transaction  code MI07) 


Q36) What is subcontract stock? 

The stock supplied to the vendor for further processing is called as subcontract stock 

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Q37) How is the stock posted into GR blocked stock? 

In MIGO you can use transaction goods receipt against PO and use movement type 103 


Q38) How can you upload stock in a warehouse without any referenced document? 

In MIGO you can use transaction goods receipt against others and use movement type 561 


Q39) What is the main difference between stock transfer and STO? 

Stock transfer can be carried out in between storage locations and plants but STO can be carried out between plants. A purchase order is not involved in stock transfer whereas a Purchase order is involved in STO 


Q40) What is the transaction code to view and manage transport requests? 

 Transaction code SE10 is used to view and manage transport requests


Q41) What is the pricing procedure in SAP sourcing and procurement?

The pricing procedure is a combination of various types of charges like gross price, discount, freight, surcharges, etc. you can use the pricing procedure to decide these all conditions into one procedure, where you can find the subtotal for the net amount. 


Q42) What is the use of access sequence in the pricing procedure? 

Access sequence finds out condition record for condition type from condition table. 


Q43) What is the transaction code to maintain the condition type ? 

Transaction code M/06 is used to maintain the condition type 


44) What is the path to maintaining a calculation schema? 

The path to maintaining a calculation schema is SPRO-IMG-MM-purchasing-conditions-define price determination process-define calculation schema

Q45) What is the key difference between MRP and CBP? 

MRP is based on current and future requirements of material whereas CBP is based on historical data that is past consumption data of material. MRP is mostly relevant for inhouse production whereas CBP is mostly used for external procurement  


Q46) What is the path to define MRP types? 

The path to defining MRP type is SPRO – materials management – consumption-based planning – master data – check MRP types


Q47) When will you use the NEUPL processing key in the planning run? 

When all materials entered in the planning file will be planned by the system then you will use the NEUPL processing key 


Q48) What is the transaction code to view the stock/requirements list?   

Transaction code MD04 is used to view the stock/requirements list 


Q49) What is the transaction code to view the MRP list? 

Transaction code MD05 is used to view the MRP list 


Q50) What is the transaction code to run MRP for a single-item multi-level scheme? 

Transaction code MD02 is used to run MRP for single item multi-level scheme

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