1.

What are the various types of master data in MM

module?
MM Module contains the following manufacturing master
data,
Material master
Vendor Master
Purchase info record
Source List (not a mandatory)
2. What is purchasing group?
Purchasing group identifies the buyer responsible to procure
material.
One purchasing group can be maintained in many material
master records. I.e. A buyer can be responsible for procuring
many materials.
3. What is purchase value key?
Purchase value key contains the following information
Reminder to sent
Tolerance limits
TAV Project Shipping instruction
Purchase value key is maintained at material master.
4. Where do we mention the lead-time required for
procurement of a material?
Lead time required can be maintained in the
Material master
Purchasing info record
In the MRP2 view of material master planned delivery time
indicates the procurement lead time
In the Purchasing view of material master GR processing
time indicates the time required to place the material since
the time it is received into the factory premises.
Lead time in purchasing info record is specific to the
combination of Material and vendor.
5. What is source list?
Source list contains the list of supplier for a given material. It
contains the validity period for each vendor to supply and
also has got the indicator for preferred vendor.
6. Is the source list mandatory?
In the material master purchasing view, if the source list
check box is ticked, then it become mandatory to maintain
source list before making PO.
7. Can source list be created without purchase info
record?
No. Purchase info record is mandatory to create source list.
8. What is purchase order text in the material master?
Material specific purchasing information can be maintained in
the purchase text. It will be copied into the PO for that
material.
9. Can the purchase text be maintained in any language?
Yes. It can be maintained in multiple languages.
10. What is to be done if vendor is to be assigned in the
purchase request automatically?
Maintain source list. In the source list maintain MRP indicator
as 1.
11. What is purchase info record?
Purchase info record is maintained for the combination of
vendor, material and purchase organization.
Purchase info record contains details of
Contact details Ordering units
Indicator for regular vendor Planned delivery
time
Standard ordering quantity Delivery
tolerance
Inco terms Net price
Pricing conditions value Vendor specific
text
12. What are the different types of info records?
Standard info record for RM
Subcontracting info record
Pipeline material info record
Consignment stock info record
13. How can we generate purchase info record?
Manually
Update through purchase order
14. What is the difference between standard and
subcontracting info record?
Subcontracting info record contains the production version to
pick up the desired BOM.
15. What is pipeline material?
Material which are always available to consume without any
restrictions are known as pipeline material. E.g. distilled
water. Pipeline materials stocks are not displayed.
16. What is consignment stock?
Consignment stock is vendor stock kept in the factory
premises for consumption. Payments are made according to
the consumption.
At any given point of time, stock can be displayed for
consignment material stock.
17. How the consumption is accounted for pipeline
material and consignment stock?
During goods issue for these materials, vendor code is
specified. Price is picked up from the info record.
18. What is purchase organization?
It represents the team or place or facility which is responsible
for procurement from identifying the vendor to supply and
payments to the vendor.
19. In the enterprise structure where is purchase
organization assigned?
Purchase organization can be assigned to Plant and to
company code.
 If the vendor is going to be the central vendor for many
plants under a company code, then it can be assigned to a
company code.
20. What is regular vendor?
If at client level materials are to be procured from a vendor,
then that vendor can be identified as a regular vendor.
21. What if PO is made on another vendor when there is a
regular vendor?
System issues a message according to the message control,
it can be preceded.
22. How many data areas are there in the vendor master?
Three data areas are there for vendor master. They are
General data
Purchasing data
Accounting data
23. What is an account group?
Account group control field layout for maintenance of master
data.
24. In which master data account group is used?
Vendor Master.
25. What does an account group determine?
Account group defines the number range for a master record.
Uses a field status group to control the field layout for the
maintenance of master records
Determines one time accounts for accounts payable and
accounts receivable Is defined for every company code
26. What is client level data and plant level data?
Data which are common across the client is client level data,
and data which are specific to a plan is plant level data.
E.g. Classification view is common across the client. There
cannot be different class of same class type in different
plants.
27. Is the Basic data view of material master client
specific or plant specific?
Basic data 1 and Basic data 2 views of material master are
client specific.
28. Specify the SAP standard material types?
ROH – Raw material
HALB – Semi finished material
FERT – Finished gods
29. What views are necessary in vendor master to create
PO?
General view
Purchasing view
30. What is onetime vendor?
You can create special master records for vendors from
whom you only procure a material once or very rarely.
These are called one-time vendor master records and, in
contrast to other master records, you can use a vendor
master record for several vendors.
 No vendor-specific data is stored for one-time vendors.
You can control this using the relevant field selection for
account groups for one-time vendors.
When creating a purchasing document or accounting
document with a one-time vendor, the system automatically
goes to an additional data screen. This is where the specific
data can be entered, such as the vendor's name, address, or
bank details.
31. What is quota arrangement?
It is used to distribute the requirement to the different
vendors according to the defined ratio automatically by the
system

32. What settings are to be done for quota arrangement?

In the material master purchasing view, quota arrangement
key has to be maintained.
Quota arrangement master data defining the percentage of
distribution has to be maintained.
Source list must be maintained.
33. At which level the source list requirement can be
maintained?
Plant level and at material master level
34. Specify the priority in source determination process?
Quota arrangement
Source List
Info record
35. What are all the ways to assign a source to a purchase
requisition?
Maintain source list and indicate preferred vendor
By fixed vendor
36. What is the purpose of assigning source to a
requisition?
It is required for automatic PO creation function.
37. What are the prerequisite for automatic PO?
Indicator in material master must be set
Indicator in vendor master must be set
Unique source of supply must be assigned in the PR
38. Can the delivery schedule be created automatically?
Yes. During MRP run it can be automatically created.
Precondition:-
Scheduling agreement must exist for a material.
MRP indicator 3 - create delivery schedule must be
maintained during MRP run.
39. Which rounding profile will have an effect on %
additions and subtractions?
Following three rounding profiles will have an effect.
Static rounding profile
Quantity addition and subtraction
Dynamic rounding profile
 40. Which MRP procedures are sued in consumption
based planning?
Forecast based planning
Reorder point planning
Time phased material planning
41. What field in MRP view is responsible to group the
requirement according to specific periods?
Lot size key field in MRP1 view is used to group the
requirements.
E.g. EX is used to trigger PR for each requirement
MB is used to trigger PR for the whole month
requirements.
42. What item category is used for subcontract purchase
order?
Item category L is used for subcontracting PO.
43. How the excess or under consumption is accounted in
the subcontract purchasing?
Subsequent adjustments are made to account excess or
under consumption of components.
44. Can multiple account assignment be done at PO level?
Yes.
45. What is Release procedure?
It is the process of releasing a purchasing document for
further processing based on certain predefined requirements.
46. Which are all the purchasing documents on which
release procedure can be applied?
Purchase Request
Purchase Order
Contracts
Scheduling agreement
47. What are the levels of release in Purchase request?
Item level release
Header level release
48. What are the different types of Release procedure?
There are two ways of using release procedure.
Without classification
Without classification
Only one of the above two can be used at any given
time.

49. Can the different classification for release procedure

be used for different plants?
No. Only one classification can be used for one release
procedure at client level.

50. What is the use of MIGO transaction code?

MIGO transaction can be used to perform many GR, GI and
transfer posting related transactions.
 It contains header level, item level and item details screen.
51. What is account assigned PO?
Items can be procured against any specific cost centre. Item
category ‘K’ is to be maintained and the relevant cost centre
reference must be maintained in the PO.
f you choose the account assignment object K (cost center)
in the purchase requisition when you procure consumable
materials, you have to enter the G/L account number of the
consumption account and the cost center for which the
material is to be procured on the account assignment data
screen.
In Customizing, you can define that the system automatically
proposes the number of the G/L account that is to be debited.
On making GR to those items, it will not be posted to the
stock; it will be consumed against that cost centre.

52. What must you take into account or determine in the

case of multiple account assignment?
Consumable materials debit different account assignment
objects depending on the account assignment category
specified.
The account assignment category determines which
category of account assignment is to be debited and which
account assignment data you have to prepare.
53. What happens when setting the “Free of charge”
indicator in the PO at item level?
IR requirement is cancelled on the item over view.
54. Purchase orders can be outputted (printed or
transmitted) in different languages. Where does the system
obtain the information determining the language in which
a PO is to be printed?
You specify the language to be generally used for
communication purposes for each vendor in the vendor
master record the language from the PO header is used
55. How is the outputting (printing/transmission) of
purchase orders controlled?
As a rule, the system attempts to determine a message
record for each message type in the message schema by
means of an access sequence.
56. What is the use of collective number in RFQ?
It is used to compare prices from different vendors.
57. Can RFQ be created for an one time vendor?
No.
58. What is calculation schema?
It is the pricing procedure in MM module. It is used to
determine the price in Purchase order.
59. Explain how the right calculation schema is determined
to a specific vendor?
Schema group for vendor and schema group for purchase
 organization are created.
Calculation schema is attached to the schema group for
vendor and purchase organization.
Schema group is maintained in the vendor master data.
60. Can access sequence be attached to calculation
schema?
No. It is assigned only to condition type.
61. It is required to send message when receiving GR for
PO to the person who raised PO?
Maintain the condition record for message related condition
type MCLH, MC.
Tick the check box in the PO to send message to the person
who raised the PO.
62. Explain the basic structure of purchasing documents?
The purchasing documents consist of Header and Number of
items. The control indicator allows you to specify that a
certain document type is used for stock transfer processing.
63. Which control parameters are located at the item level
of purchasing documents?
Procurement type, Delivery schedules, Item conditions, PO
history, receiving Plant
64. What does the account assignment category U
(unknown) stand for? When can you use this account
assignment category?
Account assignment category U (unknown): If you do not
know the account assignment object for which the material is
being procured when the requirement coverage request is
created, you can use account assignment category U in the
purchase requisition. You do not have to enter any further
account assignment details.
65. How can you assign different delivery dates to a
purchase order item?
Specific dates or quantities for individual deliveries are not
set out in the outline agreement. This information is provided
separately in release orders or rolling delivery schedules
(comprising a number of individual schedule lines),
depending on the type of agreement.

66. Explain the procurement process using outline

purchase agreements.
In the R/3 System, an “outline agreement” is a longer-term
purchase arrangement with a vendor concerning the supply
of materials or the performance of services according to
predetermined conditions. These are valid for a certain
period of time and cover a predefined total purchase quantity
or value.
67. What are the basic differences between a contract and
a scheduling agreement?
Specific dates or quantities for individual deliveries are not
 set out in the outline agreement. This information is provided
separately in release orders or rolling delivery schedules
(comprising a number of individual schedule lines),
depending on the type of agreement. An outline agreement
can be a contract or a scheduling agreement.
68. With which functionality can you compare quotations
submitted by different vendors?
You can compare quotation data by using the quotation price
comparison list. The quotation price comparison list shows
the most reasonable vendor for each item individually and for
all items.
69. At which level purchase order history kept?
Item level
70. What is MRP?
Materials Requirement Planning ensures the right quantity of
required material at right time.
MRP first calculate gross requirements, Considering stock
and receipt elements, calculates the net requirements.
71. Will MRP consider the capacity?
In MRP, capacity is assumed as indefinite.
System can only calculate the capacity requirement.
72. What is consumption Based Planning?
Items are planned based on their consumption.
Once its stock reaches its reorder point, procurement
proposal will be triggered during MRP run.
73. What are the different planning strategies in SAP?
Important Planning strategies are
Make To Stock and Make To Order.
Make To Stock strategies are 10,11, 40
Make To Order strategies are 20
74. What is the difference between strategy 10 and 11?
Strategy 10 Net Requirement Planning
Reduction of PIR will be during Sales order delivery
according to the consumption mode maintained in the
MRP 3 view of material master.
Stock will be considered while planning Strategy 11
Gross Requirement Planning
Reduction of PIR will be during posting GR for
production order according to the consumption mode
maintained in the MRP 3 view of material master.
Stock will not be considered during planning.
75. What is the use of Strategy 40?
It will consider both PIR requirement and Sales order
requirement.
76. Where will you suggest these strategies?
If the products are made irrespective of market fluctuations
and it is always a demanding product, Make To stock
strategy of 10 or 11 may be used. If it is difficult to forecast
and the demands are always fluctuating, then strategy 40
may be used.
77. What is MRP list?
 MRP will generate the exception message according to the
situation for each material.
This will be generated at the time of MRP run and it is
available in the system till the next MRP run. It can be viewed
through MD05 transaction.
78. What is stock requirement list and what is the
difference between stock requirement list and MRP list?
Stock requirement list MD04 will show the present situation
of any given material.
It is a dynamic one, where as MD05, MRP list, which will
show the result after the MRP run.
79. What are exception messages?
When MRP run is over, according to the stock and
requirement situation for each material, system will propose
action through the message, which is known as exception
message.
There are eight major groups. Message of group 8 is the
termination message, which needs to be attended
immediately.
80. Specify few examples for exception message?
10 Reschedule IN 20 –cancel
process
30-Plan process according to schedule 25 – excess
stock
96- stock below safety stock 50 – No
BOM exist
81. What is MRP group?
MRP group contains important settings of Planning strategy,
Consumption mode Procurement proposal document type
etc.,
All parameters are grouped together under one MRP group
and that can be assigned to materials.
82. What is Planned Order?
Planned order is the proposal to produce a product or to
purchase any items. It is created by MRP run. It can be
created manually also.
83. What is user exit?
User exit is provided by SAP in order to impart any extra
checking or control during the
Execution of SAP program.
84. Do you recommend more user exit, why?
User exit will increase the system load, should be minimal
and should be used where it is essential.
85. There is a requirement to transfer the requirements
from one plant to another plant where the production
process is carried out, how it is done?
Through special procurement key maintained in the material
master in MRP 2 view.
86. What is withdrawn from alternate plant?
During goods issue, there may be a situation where in
 materials are issued from one plant through pipeline or as a
continuous supply.
Component can be directly withdrawn and issued to
production order through special procurement key.
Material will not be put into the stock of receiving plant.
87. What is stock transfer?
Getting material from another plant, In this case, material will
be put in the stock at the receiving plant.
88. What is planning horizon?
Planning horizon is the period to which entire requirements
will be planned by the system.
E.g.90 days meaning, future requirement of up to 90 days
will be planned.
89. MM is integrated with which modules?
MM is closely integrated with
FI – Finance
PP – Materials Management
QM – Quality Management
SD – Sales and Distribution Module
90. What is MRP type?
MRP type defines the way of planning.
PD refers to MRP type of planning,
VB refers to lot size planning,
ND refers to No planning
91. What is the significance of lot size?
Lot size is to determine how the requirements are to be
grouped, whether monthly, weekly or biweekly.
MB is to group the requirement monthly.
EX is lot for lot, i.e. no grouping.
92. An item is stored in base unit of measure of Liter, but
when issuing to production, it should be issued in terms of
Drums. Can it be mapped in SAP?
Yes. In the storage view, maintain the issuing unit of
measure.
The relation between drum and Liter unit must be maintained
in the material master additional data.
93. A material is used in five plants. Only in one plant it
has to be blocked. Can it be done, how?
Yes, it can be done.
In MRP view, plant specific material status can be used to
block material in particular plant.
94. What is production version?
Production version is the combination of BOM and Routing.
95. What is the usage of production version in subcontract
purchasing?
Production version is maintained in the subcontract purchase
info record to pickup the specific BOM for subcontract
processing.
96. How do you find Table in sap?
Normal way is
 Click cursor on the field where it is required to find the
table
Click F1 key in the key board, Click Technical info
97. What is planning time fence?
Planning time fence is the time during which existing
procurement proposals are not disturbed.
Any new proposals or requirement falling within the planning
time fence, either system will create that proposal only after
the planning time fence or it will ignore that proposal.
Above point is depending on the MRP type. MRP type P1 to
P4 is used to this purpose.
98. What is quality info record?
Quality info record is defined for the combination of
Material,
Vendor,
Plant.
It governs the vendor supply at plant level.
99. There is already a PO with a vendor, who has
completed supply of 30% the PO quantity. It is required to
stop the supply from that vendor. Is it possible?
Yes, It is possible through blocking reason to be maintained
in the quality info record.
Further GR from a vendor can be blocked.
100. Where Vendor quality certificates are used?
While receiving the GR, certificate from vendor can be
monitored through quality certificate.
Lot can be skipped using QMINFO system.
101. Specify few frequently used movement types?
101 – Goods Receipt
261 – goods issue to production
201 – goods issue to cost centre
311 – transfer of material from sloc to sloc
601 – PGI to delivery
102. What is the effect of “Delivery completed” indicator in
the goods receipt document?
The PO item is considered to be closed, even if the total
quantity is not delivered. However it is possible to make
further GR.
103. What movement type is used for initial stock entry?
561
104. It is required to restrict the minimum remaining shelf
life period when making GR. What setting is to be done?
In the material master storage 1 view, maintain the minimum
remaining shelf life data along with period indicator and total
shelf life.
105. Specify the warehouse structure?
Storage location attached to the warehouse.
Warehouse has got storage type, storage section and picking
area attached to it.
106. What is quant?
 It indicates the stock of particular product in a storage bin.
107. What is put away strategy?
It is the type of stock placement sequence to be adopted by
the system while searching bin for a material.
108. Can Transfer orders be confirmed automatically?
Yes
What is interim storage area?
109. What are the preconditions for the missing part
check?
It is active in the plant
A check rule is defined for the transaction
A checking group is defined for the availability check in the
MRP data of a material master.
110. Will there be any accounting entries for storage loc
transfer posting within a plant?
No
111. What stock transfer / Transfer posting movements are
relevant for valuation?
Stock transfer from consignment stores of vendor XY to
unrestricted-use stock in storage location.
Stock transfer of a material from storage location ABCD from
plant 9100 to plant 9200. The plants belong to the same
company, however the valuation areas are different
(valuation level is plant).
112. In the GR based PO, purchase order price unit differs
from the purchase order unit. What is the significance of this?
System establishes the relation between this two by unit
conversion in the PO. At the time of goods receipt, both the
quantity in the purchase order unit and the quantity in the
purchase order price unit have to be entered, however, the
quantity in purchase order price unit is calculated by the system.
You have to change it, when the calculated quantity differs from
reality.
113. When performing Goods issue, what is the indication
of the message “W: on <current date> only 0.000 pieces are
available”?
Material exists in the specified storage location on the
current day, however, it is unavailable, because of other
reservations
114. At what level Physical inventory is carried out?
Material/plant/storage location/stock type level
115. What is the way to make a delivery free of charge in
R/3’s Materials Management?
There are following two ways to handle this.
Enter a purchase order item, set its invoice indicator to blank
and its purchase order price to zero, and then post the goods
receipt.
Do not enter a purchase order, but post the delivery free of
charge using a specific movement type in Inventory
 Management.
116. How can the storage location be created automatically
by the system?
Automatic storage location must be permitted for the plant
In customization, automatic storage location must be
activated for required Movement types
117. What settings or controls are build with movement
type?

The movement type influences the update of material stock

account and consumption account.
The movement type used controls field selection for the
goods movement transaction.
If you use special stock indicators you can create different
stock and value updates of a material for one and the same
movement type.
118. What is valuation class?
The valuation class is maintained in the material master
record at valuation area level. With that, different account
determination is possible for the materials of one material
type.
The valuation classes will be tied to one or more material
types via an account category reference.
119. What is the different price types used in material
master?
Standard price – denoted by S
Moving Average price - denoted by V
120. For externally procured item, which pricing type is
used?
Moving Average price
121. How can we obtain information on purchase orders
issued to a vendor that have not yet been invoiced?
Make use of a list that displays all the purchase orders
issued to a certain vendor. Limit the POs shown on the list to
those that have not yet been invoiced by means of the
selection parameters.
122. What does the purchasing document controls?
Number assignment
Permitted item categories
The eligibility of scaled prices in scheduling agreements
Which header texts, appendix texts, and item texts are
printed

123. What must you take into account if you want to post
an invoice before the goods receipt? What are the
consequences of using this procedure?

The system cannot refer to the quantity to be settled and the

corresponding amount. You must enter this information
manually every time.
The system identifies a quantity variance and blocks the
invoice for payment (provided that the appropriate tolerance
limits are exceeded).