SAP MM Interview Questions

  • By
  • March 3, 2022
  • SAP

SAP MM Interview Questions and Answers –

Q1) Can you explain basic tables involved in material master?

Some important basic tables involved in material master are –

  • MARA: General material data
  • MAKT: Material descriptions
  • MARD: Storage location data for material
  • MVER: Material consumption
  • MARC: Plant data for material
  • MVKE: Sales data for material
  • MAST: Material to BOM link
  • MBEW: Material valuation
  • MARM: unit of measurement

Q2) What is the difference between release strategy for a Purchase order (PO) and Purchase requisition (PR)?

The basic difference is that Purchase order can be released only at header level whereas purchase requisition can be released at item level as well as header lever.

Q3) What is the use of document types in SAP?

The document types are used to differentiate various business transactions that is posted. It is also used to determine the account types to be posted and consecutive transactions to complete the process.

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Q4) What is the difference between a standard purchasing organization and reference purchasing organization?

Purchasing department is mapped as a Purchasing organization in the SAP system. The standard purchasing organization is responsible for automatic purchase order creation as well as special procurement processes like consignment, subcontracting and pipeline. Whereas the reference purchasing organization is responsible for making globally agreed contracts or release orders and each plant specific purchasing organization is assigned to reference purchasing organization.

Q5) What is consignment stock? & explain various features of it

The stock which is stored in companies premises but ownership belongs to the vendor only whenever company withdraws the material from consignment stock then it is responsible for payment of withdrawal material. Consignment stock has following features

i) We cannot enter price in purchase order.

ii) Goods receipt are non-valuated.

iii) Goods receipts stocks will be posted to vendor consignment stock. 

iv) In this process we cannot use MIRO transaction code for invoice verification instead of this we use MRKO for consignment settlement

v) This stock belongs to vendor so if we want some material then we have to withdraw it from vendor consignment and pay accordingly

Q6) Can you explain the use of source list?

Source list is a master data in SAP MM and it is used to find out the source of supply for a certain material of a specific plant for a specific interval of time. It can also be used for blocking the vendor or fixing the vendor for a certain period of time.

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Q7) What is consumable material & how is this material procured in SAP?

The material which is not stored in a warehouse is called as consumable material or non-stock material. Pen, pencil, notebook, papers these are some examples of consumable material. Consumable material can be procured in following ways.

Q8) Can you explain procure to pay cycle

In industry various department raise their requirement of material and gives it to purchasing department then purchasing department sees vendor for that material if vendor is available then they can give purchase order to vendor if vendor is not available for certain material then they will send request for quotation to different vendor then after certain interval of time vendors may send quotation to us then purchasing department analyze different quotation and will select proper vendor by considering different parameters like prize, delivery date, terms & conditions etc.

Q9) How will you define internal & external procurement?

Internal procurement: When the procurements of goods is carried out within an organization like from one storage location to other storage location or from one plant to another plant of same organization is called as internal procurement

External Procurement: When the procurements of goods are carried out with an external vendor is called as external procurement

Q10) What are different types of stock?

There are three types of stock and these are valuated, non-valuated and special stock.

The valuated stock is further divided into three ways that is unrestricted stock, blocked stock & quality inspection stock

The special stock is divided into stock transport order, subcontracting, consignment, third party processing etc.

Q11) What are main attributes of material master and explain the controlling function of material type?

There are three main attributes of a material master and these are material number, Industry sector and material type. Some important control function of material types is

i)  Screen set up (that is allowed views, field selection and screen sequence).

ii) Procurement type that is internal or external.

iii) Number assignment and number ranges that is internal or external.

iv)  Price control that is moving average price or standard price.

v)  Automatic account determination which is required while doing goods receipt.

vi)  Quantity and value updating that means the stock is updated in warehouse along with its total value.

Q12) What are different types of info records?

Different types of info records are –

i) Standard – it is used for standard material procurement

ii) Pipeline – it is used for pipeline procurement

iii) Consignment – it is used for consignment procurement

iv)  Subcontracting – it is used for subcontracting procurement

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Q13) How will you define transfer posting? What are different types of transfer posting?

It is a general term used for stock transfer and it is used to move material from one storage location to another or from one plant to another plant of the same company code. There are two types of transfer posting.

One step transfer posting – these are carried out among two storage locations or two plants.

Two step transfer posting – these are carried out among two storage locations or two plants.

Author:-

Prahlad Pawar

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