INTERVIEW QUESTIONS

1. What is the difference between a Purchase Requisition and a Purchase Order? 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. 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. 2. What are different Info Records types? Different Info Record types are tandard, !onsignment, ub"!ontracting and Pipeline. 3. What is a consignment toc!? #he stoc$ supplied by the vendor is in the purchasing company%s premises but the company has no liability for the same. #he liability for the company will only arise one the goods are issued from the consignment stoc$ for use. &owever, in this case, even before the use, purchasing company can chec$ in system how much stoc$ is lying in inventory. ". What is ub#$ontracting cyc%e in &&? In ub"contracting, we send raw material or input material to sub"contractor and then receive the finished goods. A sub" contracting PO is created with item category '(%. Input material is sent to vendor for processing with movement type )*+. ,hen -R is done using movement type +.+, movement type )*/ ta$es place automatically and ta$es care of consumed material. '. What is meant by ca%es in &&? ,hen we maintain price in Info Records, we can ma$e use of scales. It is used when price of a material is dependent on quantity purchased. 0or eg. 0or ).. pieces of material A1!, price is Rs. +., however, if the order quantity is more than ).., price is Rs. 2. cales are maintained in various master data li$e info record, quota arrangement etc. from where scales can be pulled in a Purchase Order. (. )ow to *%ag a materia% for de%etion? 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. ,hatever level you flag a material for deletion, it is flagged for deletion at all corresponding lower levels. #ransaction 33.4 is used to flag a material for deletion. +. $an a materia% be used after f%agging it for de%etion? 5es, even after flagging a material for deletion, it can be used till it is actually deleted. It will 6ust trigger a warning message whenever the material is used. If you want a material to be bloc$ed for any use with immediate effect, you should use a material status which is there in 1asic 7iew + for general level or in 3RP + view for plant level bloc$ing. 8. What is the function of O,-$? O15! is t"code used for configuring Automatic Account Posting. Postings are made to -9( accounts automatically in the case of Inventory 3anagement and Invoice 7erification relevant to 0inancial and !ost Accounting. .. What is /a%uation grouping code re%ated to O,-$? 7aluation grouping code is used to group the valuation area, In AP, we can have valuation level at !ompany code level or at plant level. -eneral practice is to use the valuation area at plant level, because valuation may differ from one plant to another. #he valuation grouping code ma$es 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. ,e can maintain the valuation group code in O3,D for various valuation areas. 10. What types of specia% stoc!s are a/ai%ab%e? 7arious special stoc$ types available in AP are !onsignment, ubcontracting, pipeline, pro6ect, sales order stoc$, Returnable transport pac$aging, stoc$ transfer, and the third party. 11. What is the difference between $ontracts and chedu%ing 1greements?

A contract is a pre"determined long term agreement to supply material or service for a certain period of time. pecific delivery dates are not mentioned in the contracts. !ontracts can be of two types: 7alue !ontract or ;uantity contract In cheduling agreements, we can enter scheduling lines which gives details of quantity that should be delivered on specific date. Plant must be entered in A so that materials can be delivered at plant. #hese are generally used for materials whose requirements are predictable. 12. )ow can we create new transaction codes in 1P? <ew transaction codes can be created using t"code =2/. 13. What are re%ease procedures with and without c%assification? Release trategy with !lassification: PR can be released at header level as well as item level. It can be used for both internal9e>ternal documents. !an be set on any field available in structure !=1A< Release trategy without !lassification: PR can be released only at item level. It can be used only for internal documents such as PR. #his strategy can be used only on * parameters which are Account assignment category, Plant, 3aterial -roup and value of PR.

1". What is meant by batches? A batch is a subset of the total stoc$ of a material. It represents a homogeneous unit which has unique specification. <ormally, a batch is assigned to the quantity of material produced during a given production run. A batch number uniqueness can be assigned at any of the following / levels: At client level: #he same batch number can be assigned only once within the entire client. At material and plant combination level: ame batch number can be assigned to material with different specification in each plant. At material number level: A batch assigned to a material has the same specification for all plants where material is e>tended. 1atch number can be reassigned with a different specification for each material. 1'. )ow to hand%e free items in PO? ,hile creating PO, we can tic$ the item as free item in item overview section of PO. #he price will be ?ero for free mar$ed item. 1(. What information is maintained in 1ccounting 2iew of materia% master? Accounting view is a plant specific view. 1esides other information, it contains important information such as valuation class and price control. 7aluation class helps in determining the relevant -( account used for account posting. It is also used while configuring O15! settings. Price control indicator determines if material is maintained at tandard price@ A or 3oving average price @7A. 1+. What is the use of &ateria% types? 33aterial #ypes% is used to group various materials based on some common properties. It helps in maintain material master data for a particular material. Bsing material types, we can control which all views are required for a material type, which fields are required or optional, the material number range etc. 14. What is the use of 3Partner *unctions5 for a /endor? Partner 0unction is used to define responsibilities and duties of other business partners. ome partner functions are AC@Alternate payeeA, !R@!arrierA, OA@Ordering addressA, - @-oods supplierA, PI@Invoice presented byA etc. 1..

What is the use of 3&ateria%

tatus5?

3aterial tatus helps in determining the usability of a material. It is a D"digit code which can be maintained as plant specific material status, cross"plant material status, and distribution material status. 20. What is the 3Price $ontro% Indicator5?

'Price !ontrol Indicator% is maintained in accounting view and is used to determine how a material will be valuated. It can be tandard Price@ A or 3oving Average Price@7A. If the indicator is set to , all inventory postings are posted at standard price maintained in material master. If there are variances in any transaction due to different price, the variance is posted in price difference account. If price control indicator is set at 7, goods received will be done at -R price. #he moving average price will be ad6usted in material master using weighted average formula. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stoc$ account. 21. What are /arious types of toc! transfer? #he physical movement of stoc$ between different physical locations is called as ' toc$ transfer%. toc$ transfer can be either a single step process or a two"step process. 7arious toc$ transfers are: Inter !ompany @!ompany to !ompanyA Inter Plant9Intra !ompany @Plant to PlantA Intra Plant @ torage location to torage locationA 22. What are /arious toc! 6ypes? In AP, commonly used stoc$ types are: Bnrestricted toc$ @ toc$ that is available for useA Restricted toc$ ;uality Inspection toc$ @<ot the unrestricted stoc$ but can be considered for 3RPA 1loc$ed toc$ @ toc$ re6ected by quality or productionA -R 1loc$ed toc$ @!onditionally accepted stoc$. <ot the unrestricted stoc$A 23. What are /arious procedures for counting Physica% In/entory? Physical Inventory procedures in AP 33 are as follows: Periodic Inventory @All stoc$s are counted on a pre"determined dateA !ontinuous Inventory @stoc$s are counted continuously during the entire fiscal yearA !ycle !ounting @!ounting is done at fi>ed intervalsA Inventory ampling @Randomly selected material stoc$s are physically counted on the balance sheet $ey date. If variances are small enough, it is presumed that the boo$ inventory balances for the other stoc$s are correct.A