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Sap MM Interview Ques&ans
Sap MM Interview Ques&ans
Sap MM Interview Ques&ans
5 months ago
sap mm interview questions and answers for freshers beginners and experienced pdf free
download.these are most frequently asked sap mm interview questions.
Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.
The stock supplied by the vendor is in the purchasing company’s premises but the company
has no liability for the same. The liability for the company will only arise one the goods are
issued from the consignment stock for use. However, in this case, even before the use,
purchasing company can check in system how much stock is lying in inventory.
In Sub-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 ‘L’. Input material is
sent to vendor for processing with movement type 541. When GR is done using movement
type 101, movement type 543 takes place automatically and takes care of consumed material.
When we maintain price in Info Records, we can make use of scales. It is used when price of
a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price
is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are
maintained in various master data like info record, quota arrangement etc. from where scales
can be pulled in a Purchase Order.
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. Whatever level
you flag a material for deletion, it is flagged for deletion at all corresponding lower levels.
Transaction MM06 is used to flag a material for deletion.
Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It will
just trigger a warning message whenever the material is used. If you want a material to be
blocked for any use with immediate effect, you should use a material status which is there in
Basic View 1 for general level or in MRP 1 view for plant level blocking.
Valuation grouping code is used to group the valuation area, In SAP, we can have valuation
level at Company code level or at plant level.
General practice is to use the valuation area at plant level, because valuation may differ from
one plant to another. The valuation grouping code makes 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. We can
maintain the valuation group code in OMWD for various valuation areas.
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Various special stock types available in SAP are Consignment, Subcontracting, pipeline,
project, sales order stock, Returnable transport packaging, stock transfer, and the third party.
A contract is a pre-determined long term agreement to supply material or service for a certain
period of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of
two types: Value Contract or Quantity contract
In Scheduling agreements, we can enter scheduling lines which gives details of quantity that
should be delivered on specific date. Plant must be entered in SA so that materials can be
delivered at plant. These are generally used for materials whose requirements are predictable.
A batch is a subset of the total stock of a material. It represents a homogeneous unit which
has unique specification. Normally, 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 3 levels:
At client level: The same batch number can be assigned only once within the entire client.
At material and plant combination level: Same 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 extended. Batch number can be reassigned with a different
specification for each material.
While creating PO, we can tick the item as free item in item overview section of PO. The
price will be zero for free marked item.
Accounting view is a plant specific view. Besides other information, it contains important
information such as valuation class and price control. Valuation class helps in determining
the relevant GL account used for account posting. It is also used while configuring OBYC
settings. Price control indicator determines if material is maintained at Standard price(S) or
Moving average price (V).
‘Material Types’ is used to group various materials based on some common properties. It
helps in maintain material master data for a particular material. Using 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.
Partner Function is used to define responsibilities and duties of other business partners. Some
partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods
supplier), PI(Invoice presented by) etc.
‘Price Control Indicator’ is maintained in accounting view and is used to determine how a
material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If the
indicator is set to S, 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 V, goods received will be done at GR price. The moving
average price will be adjusted 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 stock account.
The physical movement of stock between different physical locations is called as ‘Stock
transfer’. Stock transfer can be either a single step process or a two-step process. Various
Stock transfers are:
LIFO(Last In First Out): Materials received last are consumed first. You can assume example
of elevator where people who enter last exit first!
FIFO(First In Firs Out): Materials received first are consumed first.
Lowest Value Method: Stocks are valued at their original price or the current market price
whichever is lower.
Once OBYC settings are properly done, system finds the correct G/L account using the
following data:
Chart of Accounts: Chart of Accounts is determined based on plant or company code used in
transaction
Valuation Grouping Code: It is determined based on the valuation area. Valuation Grouping
Code is maintained in t-code OMWD.
Transaction Key: eg. BSX, GBB etc. Transaction keys are determined automatically from the
transaction (invoice verification) or the movement type (inventory management).
Account grouping /Account Modifier (only for offsetting entries, consignment liabilities, and
price differences)
Valuation class of material or (in case of split valuation) the valuation type: The valuation
class allows you to define automatic account determination that is dependent on the material.
This can be achieved by assigning different valuation classes to the materials in material
master (Accounting view) and by assigning different G/L accounts to the posting transaction
for every valuation class
Since each movement type is assigned to a ‘value string’ which in turn is identified with a
transaction key, the goods movement determines the correct transaction key. Transaction
Keys’ are pre-defined in the system to enable transaction postings in Inventory Management
and Accounting (Invoice Verification). Examples of pre-defined transaction keys are:
BSX, WRX, and PRD are relevant for a GR with reference to a purchase order for a material
with standard price control. The transaction key UMB is used when the standard price has
changed and the movement is posted to a previous period. GBB is used to identify the GL
account to post to as the offsetting entry to the stock account (when not referencing a
purchase order) such as miscellaneous goods receipts, goods issues for sales orders with no
account assignment, and scrapping etc.
28. What is a Business Area?
Cost Center accounting is used for controlling purposes. It is an organizational unit within a
controlling area which represents a defined location of cost incurrence. For example, any
department can be a cost center for recording all expenses incurred for that department.
Profit Center Accounting evaluates the profit or loss of individual, independent areas within
an organization. Profit center is an organizational unit in controlling to recognize your profit.
Profit center is attached to material master at plant level.
Tax can be calculated for each line item of a PO separately based on the tax code. Earlier
TAXINJ, which is a formula based tax procedure, was used. Now, TAXINN, which is a
condition based tax procedure, is generally used. Tax procedure contains the condition type
and necessary specification for each condition type. Account keys are assigned to condition
types and these account keys determine the G/L to which the tax amount is to be
posted(OB40). These account keys are maintained using t-code OBCN. (All these
transactions are under Financial Accounting Global Settings >> Tax on Sales/Purchases >>
Basic Settings). Tax codes are assigned to country codes and country are linked with tax
procedure. Thus, based on tax code, corresponding tax procedure is determined and then
calculation is done based on condition types in that tax procedure.
Scrap can be maintained in BOM as operational scrap, component scrap, By-Product or Co-
Product. Common practice is to maintain scrap as by-product and receive it back along with
processed material.
When you create BOM using CS01, we can maintain main components with + ve quantities
and By Products / Scraps with – ve quantities.
When you make Goods Receipt for Subcontracting Purchase Order with 101 movement type,
components are automatically consumed with movement type 543 By Products / Scrap are
updated as stock provided to vendor movement type 545. Now we can receive this scrap/ By
product back in company’s inventory using movement type 542 (reversal of 541) with t-code
MB1B.
34. What are the commonly used movement types in Sub-Contracting process?
541 – Issues of goods from warehouse to subcontractoru2019s stock
542 – Reversals of goods issues from warehouse to subcontractoru2019s stock
543 – Consumption from subcontracting stock (Automatic updating during GR)
544- Co-products receiving
545- Goods receipt of by-products from subcontracting (Stock provided to vendor)
101 – Finished good/ Sub-Contracted good received after processing
If there is a price difference and customization is done for accounting for price difference in
subcontracting, PRD transaction key comes in picture.
36. What are the possible values of procurement type in Material Master?
Procurement type is maintained in MRP1 view of material master. This is a plant specific
view as MRP is done at plant level. Various procurement types in material master are as
follows:
MRP Area is an organizational unit for which material requirement planning can be carried
out independently. MRP Areas are of three types:
Plant MRP Area
MRP Areas for Storage Locations
MRP Areas for Subcontractors
After defining MRP areas, MRP area is assigned to material in material master.
The system creates MRP lists during the planning run. The MRP list always displays the
future stock/requirements situation at the time of the last planning run. The MRP list is stored
in the system until it is either deleted manually or replaced by a new list from a subsequent
planning run.
41. What is the difference between standard purchasing organization and reference
purchasing organization?
Document types are used to distinguish the business transactions to be posted. It also helps in
determining the account types to be posted and subsequent transactions to complete the
process. Document types are defined at client level.
43. Can we receive the goods before the scheduled delivery date in scheduling
agreement?
No, we cannot receive the goods before scheduled delivery date. GR can be posted on or after
the scheduled dates. Though, SAP has provided some OSS notes to resolve this. (708973,
741385)
A material ledger retains all transactions that relate to the purchase and use of materials for
producing goods. Material ledger data is valuation and control data for a material in a plant
for a specific posting period. Material ledger contains data for material movements that are
relevant to the valuation of the material.
Return Delivery is used if we want to return goods to a vendor for any reason such as bad
quality, or bad packaging etc. In normal cases, return delivery is done by movement type 122.
For creating return delivery, reason for return is a mandatory field.
48. How to deactivate a vendor so that it cannot be used for further transactions?
An article can be carried in different units of measure. An European article number (EAN) is
created as a unique indicator for each of these units of measure. The most important use of
EANs within a company is to identify articles at the point of sale (POS) using the barcode.
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