SAP MM Interview Question and Answer

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Latest SAP MM Interview Questions and Answers 2013
============================================================ Question 1: What MRP procedures are available in MM-CBP (Consumption Based Planning ! ": #arious material planning methods are used in MRP (Material Re$uirements Planning % Reorder point procedure (#M &orecast-based planning (## 'ime-Phased materials planning (P( 'hese are speci)ied in material creation (MM*1 under the MRP 1 tab% Question +: ,nder -hat conditions are .planned orders. created! What ma/ planned orders be converted to and ho- is that conversion accomplished! ": Planned orders are al-a/s created -hen the s/stem creates an internal procurement proposal% 0n the case o) vendor procurement1 the MRP Controller ma/ create a planned order or directl/ create a PR% 'he ne2t step )or a planned order is to be converted to a PR so it goes to purchasing and is to eventuall/ become a P3% " planned order can be converted to a PR using transaction code M(14% Question 5: What are the organi6ational levels o) the 7nterprise 8tructure in R95! ": 'he top level o) the organi6ational plan is the Client1 )ollo-ed b/ Compan/ Code1 -hich represents a unit -ith its o-n accounting1 balance1 P:;1 and possibl/ identit/ (subsidiar/ % 'he ne2t level do-n is Plant1 an operational unit -ithin a compan/ (<Q1 "ssembl/ Plant1 Call Center1 etc% % 'he Purchasing 3rgani6ation is the legall/ responsibl/ group )or e2ternal transactions% 'his group is )urther subdivided into Purchasing =roups% Question 4: What are the di))erent -a/s to organi6e purchasing organi6ations! ": " Purchasing 3rgani6ation ma/ be responsible )or multiple plants and this is re)erred to as .(istributed Purchasing.% 3n the other hand1 .Centrali6ed Purchasing. )eatures one Purchasing 3rgani6ation per Plant% " Purchasing 3rgani6ation doesn>t necessaril/ need to be assigned to a Compan/ Code% 'his -ould enable procurement )or ever/ compan/ code as long as bu/ers are acting )or an individual Plant1 and that Plant is assigned to the Purchasing 3rgani6ation% <ence1 a plant ma/ be assigned to more than one Purchasing 3rgani6ation% Question ?: What are .8pecial 8toc@s.! ": 8pecial 8toc@s are stoc@s that are accounted )or but are not o-ned b/ the client1 or are not

stored at a regular )acilit/% Consignment1 sales order1 and proAect stoc@ are e2amples% Question B: What are some o) the options available to trans)er materials )rom one plant to another! ": "lthough it is possible to trans)er materials )rom one plant to another -ithout a 8toc@ 'ransport 3rder1 man/ advantages are lost including entering a vendor number1 planning a goods receipt in the receiving plant1 monitoring process )rom P3 histor/1 and the abilit/ to create 8'3 directl/ )rom a MRP PR% Question C: What are some o) the common 8toc@ 'ransport 3rder Movement '/pes! ": 3ne step trans)ers o) materials can be posted using M' 5*1% 3ther various transport scenarios di))er in the M's b/ the =oods 0ssues and =ood Receipts% Common =oods 0ssues ma/ use M's 5*51 5?11 B411 or B45 in the 8'3% " 8'3s =ood Receipt o)ten uses M' 1*1% Question D: What is the di))erence bet-een a Purchase 3rder and a Purchase Re$uisition! ": " Purchase Re$uisition is a document t/pe that gives noti)ication o) a need )or materials or services% " Purchase 3rder is a document t/pe that is a )ormal re$uest )or materials or services )rom an outside vendor or plant% Procurement t/pes ma/ be de)ined at the line item and can be standard1 subcontracting1 consignment1 stoc@ trans)er1 or an e2ternal service% Question E: What is an .indirectl/ created. Purchase Re$uisition! ": "n indirectl/ created Purchase Re$uisition has been initiated b/ CBP1 the P8 ProAect 8/stem1 PM Maintenance1 and 8ervice Management1 or PP Production Planning and Control% 'he .directl/ created. Purchase Re$uisition1 on the other hand1 is created b/ a person manuall/ in the re$uesting department speci)/ing -hat materials9services1 units1 and a deliver/ date% Question 1*: What is an R&Q and ho- is it di))erent )rom the Quotation &orm! ": " R&Q is a purchasing document and an invitation to a vender(s )or $uotation regarding needed materials or services% 0) multiple an R&Q is sent to multiple vendors1 the s/stem can automaticall/ determine the best $uote and send reAection letters in response to all others% 'he R&Q and the Quotation &orm are one in the same in the s/stem as vendor>s $uotes are entered

directl/ in the R&Q% Question 11: What are the transactions that -ill result in a change o) stoc@! ": " =oods Receipt is a posting ac@no-ledging the arrival o) materials )rom a vendor or production1 -hich results in an increase in -arehouse stoc@1 a =oods 0ssue -hich results in a reduction in stoc@1 or a 8toc@ 'rans)er moving materials )rom one location to another% Question 1+: When -ould it be prudent to post goods movements via the 8hipping

"pplication! ": 0) pic@ing1 pac@ing1 and transportation operations need to be planned in detail% "lso1 in shipping1 /ou can manage movements li@e returns )rom customers1 vendors1 and returns to stoc@% Movement '/pes in shipping start -ith a B% Question 15: What is a Reservation! ": " Reservation is a document used to ma@e sure that the -arehouse @eeps a certain amount o) a material or materials read/ )or trans)er at a later date% 0t contains in)ormation on -hat1 $uantit/1 -hen1 -here )rom and to% Reservations help e))ective procurement b/ utili6ing the MRP s/stem to avoid out o)9lac@ o) stoc@ situations% Question 14: Can /ou manuall/ generate a Purchase Re$uisition re)erencing a Purchase 3rder or a 8cheduling "greement! ": " Purchase Re$uisition cannot be created -ith re)erence to either o) these1 as the/ are documents controlled b/ the purchasing organi6ations% Re$uirements can be automaticall/ generated -ith MRP that re)erence a 8cheduling "greement i) the source list is maintained )or item-vendor combination% Question 1?: <o- is =R90R account related to 0nventor/! F ": 0) /ou are involved -ith inventor/1 then /ou need the =R90R account (0nventor/ "ccount -hen the 0R is posted% 0) /ou are not involved about inventor/1 then the s/stem does not need the =R90R account -hen the 0R is postedG the s/stem needs a =9; instead o) the =R90R account% Question 1B: <o- do planned and unplanned consumption a))ect Movement '/pes!

": 0n a customi6ed Movement '/pe1 /ou have de)ined -hich consumption value gets posted in the movement% Man/ -ill al-a/s be planned or unplanned1 but )or some there is a dependenc/ on i) the movement re)erences a reservation% 'his -ould be planned consumption% Question 1C: What are (epartmental #ie-s! ": "ll )unctional areas o) the s/stem use the same material master data% 'he material master data is de)ined in individual screens (departmental vie-s that can be added as needed% 'hus a material can be created -ith onl/ basic data and other departments can add other in)ormation later as it becomes available% Question 1D: 0s Material (ata valid )or all organi6ational levels! ": Control o) master data depends largel/ on ho- each compan/ sets up its 3rgani6ational levels - centrali6ed or decentrali6ed% 8ome material data is valid )or all organi6ational levels -hile other data is valid onl/ at certain levels% (0%e%: client1 plant1 sales org%1 etc% % Question 1E: Wh/ -ould /ou -ant to create ph/sical inventor/ sheets to per)orm an

inventor/ c/cle-count on a material or materials! ": &or a c/cle counting procedure1 ph/sical inventor/ documents need to be created% 'hese are used to record inventor/ levels o) the material being c/cle counted% ,se transaction M0CH% Clic@ on the 72ecute button% 3n screen .Batch 0nput: Create Ph/sical 0nventor/ (ocuments )or C/cle Counting.1 per)orm the )ollo-ing1 Clic@ on the =enerate 8ession button and Clic@ on the Process 8ession button% 'his procedure details ho- to create the ph/sical inventor/ documents )or c/cle counting in a batch1 rather than one at a time1 based on certain criteria% 'his -ould print ph/sical inventor/ documents )or all material9batches that meet those re$uirements% Question +*: What is the di))erence bet-een a Blan@et Purchase 3rder and the &rame-or@ 3rder! ": 0n general1 the Blan@et P3s are used )or consumable materials such as o))ice paper -ith a short te2t1 -ith item categor/ B% 'here need not be a corresponding master record1 )or the simplicit/ o) the procurement% 'he &31 &rame-or@ 3rder1 document t/pe is used% <ere1 the P3 validit/ period as -ell as the limits are to be mentioned% 'he =R1 or 8ervice 7ntr/ )or the P3 are not necessar/ in the case o) Blan@et P3s% 3ne need not mention the account assignment categor/ during creation o) the P3% 0t can be ,1 or un@no-n and be changed at the time o) 0R%

Question +1: What is Release Procedure! ": Release Procedure is approving certain documents li@e PRs or P3s b/ criteria de)ined in the con)iguration% 0t is sensible to de)ine separate release procedures )or di))erent groups o) materials )or -hich di))erent departments are responsible1 and to de)ine separate procedures )or investment goods and consumption goods% Question ++: 0) /ou have a multi-lineitem P31 can /ou release the P3 item b/ item! ": Ho1 a P3 is released at the header level meaning a total release or .With Classi)ication.% PRs1 on the other hand1 have t-o release procedures possible% .With Classi)ication. as described above1 and .Without Classi)ication. -here it is onl/ possible to release the PR item b/ item% Question +5: What is a Material '/pe! ": " Material '/pe describes the characteristics o) a material that are important in regards to "ccounting and 0nventor/ Management% " material is assigned a t/pe -hen /ou create the material master record% .Ra- Materials.1 .&inished Products.1 and .8emi-&inished Products. are e2amples% 0n the standard MM module1 the Material '/pe o) R3< denotes an e2ternall/ procured material1 and &7R' indicates that the relevant material is produced in-house% Question +4: What is a price comparison! ": Per)orm a price comparison using M74E and one ma/ compare $uotations )rom di))erent vendors%

Question +?: What is a 8ource ;ist! ": 'he 8ource ;ist identi)ies pre)erred sources o) suppl/ )or certain materials% 0) it>s been maintained1 it -ill 0( both the source o) suppl/ and the time period% 'he 8ource ;ist )acilitates gaining a )i2ed source o) suppl/1 bloc@ed source o) suppl/1 and9or helps us to select the pro))ered source during the source determination process% Question +B: What are the various .steps. in the MM C/cle )rom material creation through invoice! ": 'he )ollo-ing creates a rough picture o) the MM C/cle% Create material1 create vendor1 assign material to vendor1 procure ra- material through PR1 locate vendor )or certain material1

processing =R1 goods issue1 and invoice veri)ication% Question +C: =ive some e2amples o) the in)ormation relating to a material>s storage9-arehousing! ": 8ome e2amples are ,nit o) 0ssue1 8torage Conditions1 Pac@aging (imensions1 =ross Weight1 #olume1 and <a6ardous Materials Humber% "lso1 there are various 8torage 8trategies in)ormation and options% Question +D: What are the various )eatures o) Consignment 8toc@s! ": Consignment 8toc@s remain the legal propert/ o) the #endor until the organi6ation -ithdra-s the material )rom the consignment stores% 'he invoice can be due at set periods o) time1 )or e2ample monthl/1 and it is also a con)iguration possibilit/