TIPS FOR CRACKING THE INTERVIEW SAP MM REAL TIME INTERVIEW QUESTIONS BY KS 400 INTERVIEW QUESTIONS & ANSWERS Transaction Codes , Tables , Implementation Project Scanned with CamScannerSAP MM SNe Introduction : Thanks For Buying This SAP MM INTERVIEW QUESTIONS Book. This book is designed to suit the needs of students / professionals who intend to prepare for interview calls on SAP MM . Often for the purpose of preparing you to struggle to look for important topics & browse through some voluble concepts, which you feel might be asked ‘a an interview. Such a frantic search consumes a lot of time & energy, as it requires goes through huge volume of SAP MM Technology. So in order to solve this dilemma we come up with SAP MM INTERVIEW QUESTIONS book, which will equipped to deal with such problems. All the best . Scanned with CamScannerVIEW QUE 1. What is SAP MM ? Answer : SAP MM is known as SAP Material Management system. SAP MM role in business process is as follows: A business process in SAP is termed as “Module”. SAP Materials Management (MM) is a part of Logistics area and helps to manage the procurement activity of an organization from procurement. It supports all aspects of material management (planning, control etc). It is the backbone of the Logistics area which incorporates modules like Sales and Distribution, Production Planning, Plant Maintenance, Project Systems, Warehouse Management which are extremely obsessed on Materials Management module. Features of SAP MM The features of SAP MM system are as follows: SAP MM is one of the modules of SAP that deals with material management and inventory management. Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. SAP MM speeds up the procurement and material management activities making the business run smoother with complete time and cost efficiency. It deals with managing the materials (products and or services) resources of an organization with the aim of accelerating productivity, reducing costs and increase improvement and at a similar time be versatile to accommodate changes in day to day life. It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc. Scanned with CamScannerREDDOT 2. How can you define an MM module 2 What its importance in sap 1/3 ? Answer: MM stands for Materials Management and is a part of the Logistics functional area of SAP R/3. It is an important SAP R/3 module because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch management, and materials storage, Since materials are the most precious resource of an organization, extreme care needs to be taken in all the processes related to materials management. Efficient materials management is the essence of the MM module of SAP R/3. 3. How is the MM module integrated with other modules of SAP? Answer : The MM module deals with materials procurement on the basis of the production required; therefore, it is linked with the PP module. * The SD module is proportionally related to the MM module, because it uses information about the quantity of material sent for production. + The WM module is related to the MM module, because the MM module maintains information about materials storage and materials transfers iaside an organization. + The FI module is also related to the MM module, because every operation performed in the MM module directly impacts the financial processes of the organization. 4, What are the main components of the MM module? How are these components used in SAP? Answer : The MM module deals with materials procurement on the basis of the production required; therefore, it is linked with the PP module. + The SD module is proportionally related to the MM module, because it uses information about the quantity of material sent for production. + The WM module is related to the MM module, because the MM module maintains information about materials storage and materials transfers inside an Scanned with CamScannerorganization. * The FI module is also related to the MM module, because every operation performed in the MM module directly impacts the financial processes of the organization. 5. What is the organizational structure in the MM module? Answer : The organizational structure in the MM module is a hierarchy in which various organizational units are arranged according to their tasks and functions. The different organizational units that constitute the organizational structure of the company are as follows: * Client—A self-contained unit in the SAP system with separate master records and its own set of tables. + Company code— The smallest organizational unit. You can create an independent set of accounts for this unit for the purpose of external reporting, + Plant— An organizational unit where materials are produced or goods and services are provided. You can divide an enterprise into various plants according to production, procurement, maintenance, and materials planning. + Storage location— An organizational unit where the goods produced in the plant are stored. + Warehouse number—An alphanumeric key that represents a warehousing system, which is made up of different organizational and technical storage areas. + Storage type—An area such as a goods receipt area, goods issue area, or picking area. Also the physical or logical division of a complex warehouse. + Purchasing organization—An organizational unit that procures materials and services and negotiates with vendors to purchase materials or goods. + Purchasing group— An alphanumeric key for a buyer or a group of buyers who are involved in purchasing activities. The purchasing group is responsible for materials procurement and dealing with vendors. 6. What are the levels of organizational units of Enterprise Structure in R/3? Scanned with CamScannerVIEW QUE The client is the highest level unit of the organizational units in Enterprise Structure in SAP R/3. The client is followed by the company code, which represents a unit with its own accounting, balance, and profit and loss (P&L). The next level of organizational units in Enterprise Structure is the plant, which represents an operational unit of a company. 7. Define Client. What is its importance in SAP? Answer : A client can be defined as a person, company, or organization that purchases goods from another person, company, or organization. In terms of SAP, a client is defined as a unit that has its own master records and a set of tables. The client is important in SAP because it stores and maintains data about the organization where SAP is implemented. 8. How to create a client in MM module? Answer : You can create a client in the MM module either by using the transaction code SCC4 or by performing the following steps: Select SAP Menu > Tools > Administration > Administration > Client Administration. + Double click SCC4—Client Maintenance. The display view Clients: Overview sereen appears. + Select Display > Change. The information dialog box appears. + Click Continue. The change view Clients: Overview screen appears, where you can create a new client. 9. Define company. How is it different from a client? What are the data in MM that are maintained at the company code level? Answer : + Accompany is an organizational unit for which individual financial statements are drawn per the relevant commercial laws. A company consists of one or more Scanned with CamScannercompany codes. Within a company, all company codes must use the same transactions in addition to the same fiscal year breakdown; however, company code currencies can vary. + Accompany is different from a client because a client can itself be a company, or an organization that has multiple companies. For example, the owner of the entire SAP system is a client. The system will have only one opcrational client, but the client may further have a group of companies. The following data are held at the company code level: Material number ° 0 Classification data ° Multilingual description © Units of measure o Technical data 10. Howto create a company code in SAP? Answer In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps: © Open the SAP Customizing Implementation guide. 0 Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears. © Double-click Edit Company Code Data, The change view Company Code: Overview screen appears where you can create a company code. 11. How can you assign a company code to a company in SAP? Scanned with CamScannerVIEW QUE In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps: © Open the SAP Customizing Implementation guide. © Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears. © Double-click Edit Company Code Data. The change view Company Code: Overview screen appears, where you can create a company code. 12. How many charts of accounts can be assigned in a company? Answer : Yes, One chart of accounts can be assigned to several Company Codes. However, the reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a single Company Code. 13. How many company codes can be assigned in one chart of accounts? Answer : You can assign many company codes to a chart of accounts. 14. How many company codes can be assigned to a company? Answer : You can assign only one company code to a plant. 15. What isa plant in MM? Answer : A plant is an organizational unit where materials are produced or goods and services are provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A plant is allocated to one company code, and a company can have many plants. In the organizational unit, a plant can be at one of the following locations: Scanned with CamScannerIM INTERVIEW QUESTION Corporate headquarters Central delivery warehouse Manufacturing facility Regional sales office 16. How is a plant defined in MM? Answer : You can define a plant in the MM by performing the following steps: Select JMG > Enterprise Structure > Definition > Logistic-General > define, Copy, Delete, Check Plant. Click Execute. The Choose Activity dialog box appears. Select Define Plant to create a plant. The change view Plants: Overview sereen appears. Click New Entries. The New Entries: Details of Added Entries screen appears. Specify the plant code in the plant field. Click the address icon to display the Edit Address field. Specify the required values in the fields, such as Title, Name, and Search Term 1/2. Click OK. The New Entries: Details of Added Entries screen appears again. Click the Save icon to save the newly defined plant. What are the prerequisites for creating a plant? Answer : There are three prerequisites that are required in order to create a plant. They are as follows: Company calendar —Comprised of work days, public holidays, and company holidays. Every SAP system is provided with a company calendar that can be modified per the schedule of the company. Scanned with CamScannerTERVIEW QUESTION: Country key —Helps in defining a plant. Region key —Refers to a state or province that is associated with the country, It is required along with the country key. 18. How many company codes can be assigned to a plant? Answer : You can assign only one company code to a plant. 19. Can a company code be assigned to many plants? Answer : You can assign many plants to one company code, 20. What is the menu path to assign a plant to a company code? Answer : You can assign a company code to a plant by navigating the following menu path: SAP Menu > Tools > Customizing > IMG > Execute Project > Display IMG (SAP reference IMG) > Enterprise Structure > Assignment > Logistics-General > Assign Company Code to Plant. 21. Define Storage location in SAP. Answer: A storage location is defined by performing the following steps: 0 Select Tools > Customizing > SAP Reference IMG > Edit Project. © Select Enterprise Structure > Definition > Materials Management > Maintain Storage. © Click the clock icon . The Determine Work Area: Entry dialog box appears. © Specify the value (POOL) for the plant in the dialog box. © Click the check mark icon , The change view Storage Locations: Overview screen appears. o Click New Entries. The New Entries: Details of Added Entries screen appears. © Specify the value of the storage location and description fields. Scanned with CamScannerREDACTED 0 Click the Save icon to save the storage location. © Click the Exit icon to create the storage location, 22. How will you define a storage location? Answer : A storage location is defined by performing the following steps: Select Tools > Customizing > SAP Reference IMG > Edit Project. Select Enterprise Structure > Definition > Materials Management > Maintain Storage. Click the clock icon . The Determine Work Area: Entry dialog box appears. Specify the value (POOL) for the plant in the dialog box. Click the check mark icon . The change view Storage Locations: Overview screen appears. Click New Entries. The New Entries: Details of Added Entries screen appears. Specify the value of the storage location and description fields. Click the Save icon to save the storage location. Click the Exit icon to create the storage location. 23. How isa storage location assigned to a plant? Answer : You can assign a storage location to a plant either by using the transaction code Scanned with CamScannerVIEW QUE OX09 or by performing the following steps: © Open the SAP Customizing Implementation guide. © Select Enterprise Structure > Definition > Materials Management > Maintain Storage Location. The view cluster Maintenance: Initial Screen window appears with the Determine Work Area: Enivy dialog box opened. In the Determine Work Area: Entry dialog box, enter a plant number and click Continue. The change viewStorage Locations: Overview screen appears where you can assign a storage location to the plant. 24. Can storage locations be created automatically? How can they be created automatically? Answei Storage locations can be created automatically when an inward goods movement for a material is performed. In order to create storage location automatically, open the SAP Implementation guide and click Materials Management > Inventory Management and Physical Inventory > Goods Receipt > Create Storage Location Automatically. 25. What are the essential components in SAP MM? Answer : + Determine requirements * Source determination * Vendor Selection + Order Processing + Order follow up + Goods receipts and Inventory management + Invoice Verification 26, Mention what are the types of special stock available? Answer : The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with customer, etc. 27. List out important field in purchasing view? Scanned with CamScannerIM INTERVIEW QUESTION Answer ; The critical fields in purchasing view are + Base unit of measure * Order unit + Purchasing group * Material group + Valid from + Tax indicator for material + Manufacturer part number + Manufacturer, ete. 28. Explain the importance of the batch record? Answer : A batch tells about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While, the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process). 29, Explain how you can link a document to a vendor master record? Answer : To link the document with the vendor master record by using the XKO1 transaction code or by using the following menu path + SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XKO1- Create. 30. Mention what are the major purchasing tables? List the transaction codes for them? Answer : + Purchase EKBNarequisition EBKNis Purchase requisition account assignment EKABi: Release documentation EKBEA+ History of purchase documents 31. Mention what are the data contained in the information record? Scanned with CamScannerTERVIEW QUESTION: Answer : The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods. 32, Mention what is the transaction code to delete a batch? Answer : The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively. 33. Mention what is the transaction code used to extend the material view? Answer : To extend the material view transaction, code MMS0 is used. 34, Explain how you can change the standard price in the master material? Answer : The standard price for the material data cannot be updated or changed directly. However, to change the standard price you can perform the following steps + Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW- ZKDAT) for the materials * Select Logistics > Material Management > Valuation > Valuation Price Determination > Future Price 35. What is ‘MRP*? Answer : ‘MRP (Material Requirements Planning)’ is nothing but the determination of which materials are required, when and in what quantities, based on current information and forecasts. 36. Explain the Basic ‘Organizational Structure’ in MM. Answer : The major Organizational Elements of MM include: + Purchasing Organization + Plant + Storage Location The Purchasing Organization is typically attached to one Company Code. Buta single Company Code can have one or more purchasing organizations. One or more Plants are attached to a purchasing organization, One or more Storage Locations are attached to a plant, One or more plants are assigned to a Company Code, but one plant is attached to Scanned with CamScannerWE only one Company Code. Depending on how the purchasing organization has been structured, you may come across three types of structures as detailed below: + Cross-Plant Purchasing Organization - The purchasing organization caters to more than one plant of the same Company Code. * Plant-Specific Purchasing Organization - Each Plant has it is own purchasing organization, * Cross-Company Code Purchasing Organization - A single purchasing organization is responsible for the procurement activities of more than one Company Code. The plants attached to this purchasing organization are also cross-Company Code. In this case, the purchasing organization is not attached to any of the Company Codes; instead, the various plants are attached to the purchasing organization. This kind of purchasing organization is known as a central purchasing organization. This kind of organizational structure is essential in the case of centralized procurement in an enterprise. 37, Define ‘Plant’ in SAP. Answer : ‘Plant’ in SAP can denote a manufacturing location, distribution center, or a warehouse. With unique numbers identifying each of the plants, though these are all not all necessarily financial entities, they can still be linked to a Business Area. The Plant is the place where you normally valuate the inventory in SAP. The system, however, checks for the inventory either at the Plant or Plan/Storage Location during an Order entry. 38. Explain the ‘Storage Location’ in SAP. Answer : A sub-division of a plant, the ‘Storage Location,’ defines a location for materials that can be a warehouse, bin, or a storage area of raw materials/WIP/finished product. You will manage the physical inventory, material movement, picking, cycle counting, etc., at the storage-location level. In Warehouse Management, the storage location is further subdivided. 39, Explain the ‘Purchasing Organization’ in SAP. Answer : This refers to the organizational structure in SAP that is responsible for procurement of materials. The ‘Purchasing Organization’ is the top-most organizational clement in MM, and this can take any one of three forms such as (1) Cross-plant purchasing organizations (catering to more than one plant but within the same Company Code), (2) Plant-specific purchasing organizations (with a 1:1 relationship with the plant), and (3) Cross-company code purchasing organizations (catering to more than one Company Code). Entrusted with the activity of negotiating the price, delivery Scanned with CamScannerIM INTERVIEW QUESTION conditions, etc., of materials from vendors, the Purchasing Organization can further be subdivided into purchasing groups. 40. Explain the ‘Purchasing Group’ Concept in MM. Answer : The ‘Purchasing Group’ carries out the actual activities of purchasing, and is assigned to a material in the material master. The activities of several purchasing organizations can be done by one purchasing group. 41, Explain the ‘Valuation Area’ Concept in MM. Answer : The valuation of a material is done at the ‘Valuation Area,’ which can either be at the Company Code level or the Plant level. The level at which the valuation needs to happen is defined in the customizing. Note that once it is defined, you will not be able to change it later! When the valuation is at the Company Code level, then the valuation of a material is uniform across the plants attached to that Company Code. On the other hand, if the valuation is at the plant level, then the value of the material is plantspecific and will vary from one plant to another. Ifyou are using PP (Production Planning)/MRP in your company, then the valuation has to be at the plant level. 42, What is a ‘Factory Calendar’? Answer : A ‘Factory Calendar’ is a calendar that is country-specific with a list of public holidays (maintained via the Holiday Calendar) and working days, which are Client- independent. The factory calendar helps in controlling goods issues/receipts. Each plant is assigned a factory calendar, and the calendar must be activated (through ‘CTS functionality’) before using it. 43. Explain How SD and MM are Connected in SAP. Answer : The goods/services from a plant can be sold by one or more sales organizations. It is also possible that single sales organizations sells goods/services for several plants. When the sales organizations sells for more than one plant belonging to one or more Company Codes, then this is called inter-company sales, and will require you to make some special configurations in the system. A sales organization, attached to a Company Code, is further divided into distribution channels and divisions in SD. A division typically represents a product line, and is assigned to a material in the material master. 44, Outline the Functions Supported by ‘Material Master.” Answer : The ‘Material Master’ is the central master record catering to various business functions in Logistics. The data stored in this master support a variety of business functions and operations such as: Scanned with CamScannerWHE + Production Planning + MRP + Procurement + Invoice Verification + Inventory Management + Product Costing + Sales and Distribution + Quality Management The data is stored, within a material master, at different organizational levels. The general data is valid for all the Company Codes at the Client level. The purchasing information is valid at the plant level. The sales information is valid at the sales organization/distribution channel. Lastly, when Warchouse Management is activated, the data is maintained at the warehouse number/storage type level. 45. Explain Why a ‘Material Master’ is Divided into ‘Views.’ Answer : Since the information in a material master needs to be maintained by a number of users across several modules, SAP has structured the master into a number of Views for facilitating easier access and updating of data. The views include: * Basic Data * Classification * Sales * Purchasing * Purchase Order text + Accounting + Foreign Trade + Work Scheduling + Forecasting + Storage * Costing * Plant/Storage Location stock + MRP 46. What Information is Available in the ‘Accounting View’ of a ‘Material Master’? Answei ‘he most important information maintained in the ‘Accounting View’ of a Scanned with CamScannerISAP MM INTERVIEW QUESTION: material master is the valuation class, which needs to be assigned to individual materials. The valuation class, in turn, helps in determining the relevant GL accounts for posting valuation-relevant transactions such as GR, Gl, etc. You will maintain the price control indicator in the accounting view, which enables determining how the stock of a material is to be valued (at Standard price (S) or Moving average price (V)). 47. Why do You Need ‘Material Types’ in MM? Answer : One way to group materials is by ‘Material Type’ (the other being by Industry Sector’). This grouping helps determine what information or data is to be made available at the material master level for a particular material. The material type (for example, FERT, HAWA, HALB, ROH, and so on) is used to control: * Which Views can be maintained on the master record + Which Fields are mandatory, optional, or for ‘display only’ in the material master * What kind of Procurement is allowed for that material (internal or external or both) * How to Number (Internal/External) and what Number Range is allowed + Whether Quantity and/or Value updating should be done in a particular Valuation Area * Which GL Accounts will be posted to (via the Valuation Class) during goods movement + The default Item Category Group (S&D) * The default Price Control Indicator (S or V) and + Whether the default Price Control Indicator is changeable during material master maintenance 48. Explain the ‘Price Control Indicator.’ Answer : The ‘Price Control Indicator’ is used by SAP to determine how a material will be valuated, by default, The indicator can be set to: + Standard Price ($) or + Moving Average Price (V) When you set the indicator to ‘S,’ the system carries out all the inventory postings at the standard price. The variances due to a different price of a material in goods movement or invoice receipts if any, are all posted to price difference accounts. As a result, the standard price remains the same, unless it is changed intentionally by manual Scanned with CamScannerAP MM INTERVIEW QUE processing. This will be necessary only when the difference between the standard and moving average prices becomes very large. (While updating the price difference accounts, however, the system also updates the moving average price with these variances, so that you get a chance to adjust the standard price should the difference between the standard and moving average prices becomes very substantial.) On the other hand, when you set the indicator to ‘V" then all the goods receipts (GR) will be at the GR value, The system will then adjust the price in the material master by the GR price. However, if there is a difference between the moving average price of the material and the goods movement/invoice receipt, then the price difference is moved to the stock account, and the price of the material in the material master is adjusted accordingly. 49. Explain ‘Prices Maintenance’ for Materials Transferred from ‘Legacy’ to SAP. Answer : Before you transfer the initial inventory from a legacy system to SAP, you need to create the relevant master data for the materials. Ifyou are planning to maintain a standard price for the materials, then you will create the material masters with ‘S’ as the price control indictor in SAP. With this control, when you enter the material inventory, the system vatuates this stock with the standard price defined. In this case, you enter a new price and the system posts the price difference (between the standard price and the new price you extered) to a price difference account. Similarly, if you are planning to maintain a moving average price for materials, then you will create the material masters with *V’ as the Price Control Indictor in SAP. With this control, when you enter the material inventory, the system valuates this stock with the moving average price defined. In this case, you enter a new price and the system adjusts the moving average price accordingly. If you enter only the quantity, and not any new price, the system continues to valuate the stock at the original moving average price, and the price of the material does not change. 50. What is the ‘Material Status’? Answer : The ‘Material Status’ is a 2-digit code enabling you to control the usability of material for various MM and PP applications. This status key also controls warehouse management, transfers order instructions, quality inspection instructions, decides how the system behaves when a product cost estimate is created, and so on. The material status can be maintained as (1) Plant-specific material status, (2) Cross- plant material status, and (3) Distribution material status. Scanned with CamScannerIM INTERVIEW QUESTION 51, What is the ‘EAN’? Answer : The ‘EAN (International Article Number),’ equivalent to the UPC (Universal Product Code) of the United States, is an international standard number for identifying a material, which SAP allows you to assign (done in the ‘Eng,/Design or Units of Measure’ screen) to the materials. The EAN is normally assigned to the manufacturer of a material. Made up of a prefix (to identify the country or company frorn where the material originates), article number, and a check digit (ensures correctness of an EAN number so that no incorrect entries are scanned or entered into the system). 52, What are Some of the ‘Partner Functions’ of a ‘Vendor’? Answer : Through the definition of ‘Partner Functions’ in the Vendor Master, SAP helps to designate vendors for different roles. The partner role is designated by a 2-digit code. VN Vendor PI. Invoice Presented by OA Ordering Address GS_ Goods Supplier AZ Payment Recipient A partner schema (also known as a partner procedure) is assigned to a vendor account group. The procedure specifies which partner roles are ‘allowed’/'mandatory’/*can be changed’ for a vendor master with that account group. You may assign three different partner schemas to an account group, one for each level of purchasing data, i.e., one at the purchase organization level, one at the VSR level, and one at the plant level. This enables maintaining different partners at different organizational levels. 53. What is a ‘Batch’ in the Context of ‘Batch Management’? Answer : Representing a quantity of material with a homogenous set of properties/characteristics produced during a particular cycle of manufacturing, a ‘Batch? isa subset of inventory quantity, which cannot be reproduced again with the same properties. A batch is linked to the classification system, and you can use it only when the classification system has been set up properly for batch management. A batch is unique fora single material, and is unique at the Client level as well. That is, you will be able to use a batch number only once in the Client regardless of the plant and material. The batch will be known only in the plant where it was created. The batch numbers can either be manually assigned or system generated. Scanned with CamScannerIM INTERVIEW QUESTION 54, What are the Possible Values for ‘Procurement Types’? Answer : The possible values for ‘Procurement Types’ are: + No procurement * External procurement * In-house production * Both procurement types 55. What are the ‘prerequisites’ for an “MRP Run’? Answer : The following are the ‘prerequisites’ for an MRP Run: * MRP activated * Valid MRP data for the material * Valid MRP type * Valid material status 56. What is an ‘MRP Area’? ‘Answer : An ‘MRP Area’ is not an organizational structure, but a unit for which you can carry out Consumption-based MRP. The MRP area is used to carry out MRP for the components provided to a sub-contractor. There are three types of MRP areas that you will come across: + MRPArea for Storage Locations * MRPArea for Subcontracting Vendor Stock * MRPArea for the Plant 57. What is an ‘MRP List’? Answer : An ‘MRP List’ displays the results of the last ‘planning run.’ Using a ‘collective display’ format, you will be able to display planning details for a number of materials for a given set of ‘selection parameters.” 58. Explain the ‘Re-Order Point’ Procedure. Answer ; The ‘Re-Order Point’ is the level of inventory that triggers material procurement. Once the inventory falls below this level, you need to create the order proposal either manually or automatically by the system. In the case of the manual re-order point procedure, you will define the reorder point and the safety stock in the material master. On the other hand, in the automatic re-order point procedure, the system will calculate the re-order point and the safety stock based on the next period’s consumption pattern. Scanned with CamScannerIM INTERVIEW QUESTION 59. Explain the ‘Inventory Management’ Submodule. Answer : The ‘Inventory Management’ submodule deals with the GR/GI of materials from/into the inventory. It also manages the transfer of materials from one storage location to another. As an important element of MM, this module is integrated with SD, PP, QM, and PM modules. 60. What is ‘Goods Movement’? Answer ; ‘Goods Movement’ represents an event causing a change in the stock, with the change being value or status, stock type, or quantity. It also represents the physical movement of stock from one location to another. Goods movement is classified into: + Receipt of goods/services + Issue of materials * Stock transfers 61. What Happens During a ‘Goods Issue’? Answer : The ‘Goods Issue (GI)’ results in a reduction in the stock quantity/value. The Gl can be Planned (via sales order, production order, return delivery, delivery for intemal, use etc.) or Unplanned (drawing a stock for a sample, scrapping, etc.). The GI results in: in * Creation of a Material/Accounting document + Update of Reservation for the issue (if any) + Update of GL accounts + Update of ‘points of consumption’ if applicable (cost center, project, etc.) * Update of Stock quantity 62. Explain ‘Stock Transfers.’ Answer : The physical movement of stock between locations is called a ‘Stock Transfer,’ which can be within a plant or between plants. Stock transfers can be carried out cither in a single step or in two steps. The stock transfer may be from: + Company to Company * Plant to Plant * Storage Location to Storage Location If there is a logical change in the stock type/status, then this kind of ‘transfer’ is called a “transfer posting.” The transfer posting may be from: * Product to Product * Quality Inspection to Unrestricted Use Scanned with CamScannerIM INTERVIEW QUESTION + Consignment Store to Storage Location 63. What is a ‘Stock Type’? Answer : Used in the determination of available stock of a material, the ‘Stock Type’ is the sub-division of inventory at a storage location based on the use of that inventory. In SAP, there are many kinds of stock types: * Unrestricted (use) stock (the physical stock that is always available at a plant/storage location) Restricted (use) stock * Quality inspection stock (not counted for unrestricted use and may be made available for MRP) * Stock-in transfer * Blocked stock (not to be counted as unrestricted stock and is not available for MRP) Besides all of the above, which are all known as valuated stocks, you will also come across one more type called ‘GR blocked stock,’ which is a non-valuated stock. The GR-blocked stock denotes all the stock accepted ‘conditionally’ from the vendors. This stock is not considered available for ‘unrestricted use.’ You will use the Movement Type 103 for the GR-blocked stock and Movement Type. 101 is used for a normal GR. 64. Material number has to be 30 Digit. So how to get this is SAP? The present 18 Digit is NOT at all sufficient for the business? Answer : It has to be Alpha Numeric or sometimes only numbers. It must be external numbering system only & not the SAP generated internal number range because material nuenber or name is given by Vendors. Ex: ABC1234, 89900-0098-8987, Y778-009, 77777766665444433322211-A, etc Solution: not possible according to sap standards but still with the help of Abap people we can do it, the answer on top is correct, but also think about usability. You have 30 digits that mean over a trillion variable materials... do you have a trillion materials? 65. what is the difference between new developed Zreports and Ztransctions codes Explain Steps of Scheduling Agreements JIT Gust in time) in Detail? Scanned with CamScannerTERVIEW QUESTION: a) — Create Material with JIT attributes in Material Master b) Create Info record c) Create Source list d) — Create Scheduling Agreements using ME31N. e) Update Info record and Source List with Scheduling agreement number to enable MRP scheduler to pick the Source and automatically generate schedule lines for the material and identified vendor 66. Is there any special indicator to identify subcontract item in the material master? Answer : Material Master -> MRP2 View -> Enter Procurement Type "F" External Procurement Enter Special Procurement Key "30" Subcontracting After MPR run, for any shortfall, system will generate the PR with item category as "L” 67. The Communication Structure in release Strategies. What is that link the release strategy takes? Answer : Communication Structure "CEBAN" to Create Purchase Requisition. Communication Structure "CEKKO" to Create Purchase Order. Communication Structure "CESSR" to Create Service Entry Sheet. Release procedure is of 2 types. 1. with classification 2. without classification Only purchase requisitions can be released without classification. (Item level). Other purchasing documents can only be released at header level. 68. How many levels of approval can be allowed in Release Strategies - Answer : 8 - Maximum of 99 levels can be set in standard SAP 69. The PO table name @ header, Item, Delivery Schedule — Answer : PO Header table: EKKO. PO Item level Table: EKPO Delivery Schedule: EKET 70. How to codify items in Material Master end-to-end implementation stored in data base, codify all items material master in data Scanned with CamScannerAP MM INTERVIEW QUE base of master data. 71. What are difference payment terms in company code level and purchase organisation level-—- Payment term from purchase org will be selected when you raise a invoice with reference to PO, and payment term from company code will be sclected when you raise Fl invoice (Without PO reference). 72. Ina Hospital a material which is medisin they procured it and issue to CC and all stock is consumed. now stock is "0" Payment made to vendor company. but after 8 months all a batch testing govt. org. issues a circular that the batch which you have purchased is not effective. then Vendor company provided new material free of cost again. in this synerio how to inward that new stock. ? Answer : You prepare the fresh PO with "free issue" tick in me2In so system will not ask the rate for the same. GRN can make against the same but accounting document will not be generated. Solution: The followings are different procedures: 1. You can process through PO using the FREE Check box. 2. Receive the material through MIGO using Goods Receipt/ Others using 501 movements type (Without Purchase Order). 73, How we receive by products, scrap material from subcontract vendor what movements types we use while doing this — Answer : mataining this material in BOM as’a negative & receive this from sub contractor thro.545 movement. Solution: 2 By product, scrap materials can be received from Subcontractor by maintaining this product as -ve component. When GR receipt is done supplied components will get consumed through movement type 543.-VE component will appear as "Material Provided to Vendor" Mov type will appear 545.Now do the 542 for respective -ve component to get the same in Unrestricted use 74, F1-MM integration is as below at a very basic level to answer your question: In Material Master, you assign valuation class under Accounting view DeterminationUnder each transaction key you assign GL accounts for each of the Valuation Class. When transactions are posted for a particular material, system determines the GL account from Transaction and Valuation Clas 75. What is meant by a client in the SAP R/3 System? Answer : Commercial and organizational unit with in R/3, with its own data, master Scanned with CamScannerIM INTERVIEW QUESTION records and set of tables. Clict forms a Corporate group 76. For Implementation , the Automatic Account Determination with T.Code are as follow: Answer : |.OX14: Active Valuation Area 2.0MSK: Valuation Class with Account category reference, 3,.0MWM: Active Valuation Grouping Code, 4,.OMWN: Active Movement type with G/L account, 5.OMWD: Assign Valuation Grouping Code to Valuation Area, 6.OBYC / OMWB: Active Chart of account, Valuation Grouping Code,Account Grouping Code, Vasuation Class and G/L accounts & then sexing for excise for company code & plant . For Roll out , the above steps hold good for Automatic Account Determinztion but depends how your business functionality extended to new breach from corporate office Re: MM FI Integration Part and Steps - For Implementation. 77. User exit: when I want create PURCHASE ORDER my vendor is same for my purchase organisation and purchase group. Tables names and description User exits (Function module exits) are exits developed by SAP. The exit is implementerd as a call to a functionmodule. The code for the function module is writeen by the developer. You are not writing the code directly in the function module, but in the include that is implemented in the function module. 78. SAP allows you to add your own functionality to SAP's standard business applications without having to modify the original applications. This can be done in four ways : Customizing Enhancement Modification Custom Development 79. i have requirement like this, i have to automatically fill storage location in PO items before saving. i. ¢ if user enter or leave it blank in storage location input field in PO items, i have to save the PO based on some conditions automatically. i.e i will get storage locations based on some condition and i will update this storage location before saving POor creating PO. i have tried changing content in PO enhancement Scanned with CamScannerIM INTERVIEW QUESTION MMO06E005, EXIT_SAPMMO6E_012 80. What are the various functions /features in Purchasing? Answer: The purchasing view consists of RFQ / Quotation, Purchase Requisition (PR), Purchase Order (PO), Master Data that has several fields like info record, source list, conditions, vendors etc. and finally Outline Agreements. 81. What are the essential components in SAP MM? Answer : Determine requirements Source determination Vendor Selection Order Processing Order follow up Goods receipts and Inventory management Invoice Verification 82. What is a GR blocked stock and when is it used? Answer : The GR blocked stock is an option used in the goods receipt process when you are not sure about the quality of the goods received. In such a case, the stock is maintained as. GR blocked either from a material viewpoint or exclusively for a purchase order item. 83. Mention what are the types of specia? stock available? Answer : The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with customer, etc. 84, What are the different kinds of special stocks available? Scanned with CamScannerWHE Answer : Special stocks available are consignment stocks (from vendor), subcontracting stocks (to sun-contractor), project stocks, pipeline materials, sales order stocks, stock transfer and third party. 85. List out important field in purchasing view? Answer : The critical fields in purchasing view are Base unit of measure Order unit Purchasing group Material group Valid from Tax indicator for material Manufacturer part number Manufacturer, etc. 86. What is a release strategy? What are release groups and codes? Answer : The procurement process in SAP needs to be controlled by introducing authorizations at important stages. This is taken care by the release strategy, which has different codes for assigned users. For example, if the value of a PO is more than a certain pre-defined limit, then it has to be approved by the SCM manager with a certain release code. Every company will have different approval mechanisms and the release strategy can be defined by the users. Release groups are a set of release codes that are used for authorizing a purchasing document or approving a release strategy. Release code is a 2-character ID that allows a person to approve or clear a PR ora PO and they are controlled by a step-by-step authorization system. For example, Code 10 is assigned to the person who creates the PO, Code 20 is the release code assigned to the Purchase manager for approval. Subsequently, the Department Head will use Code 30 to approve the release strategy, followed by the Operations Director, who will use Code 40 for final approval. Scanned with CamScannerWHE Answer : Special stocks available are consignment stocks (from vendor), subcontracting stocks (to sun-contractor), project stocks, pipeline materials, sales order stocks, stock transfer and third party. 85. List out important field in purchasing view? Answer : The critical fields in purchasing view are Base unit of measure Order unit Purchasing group Material group Valid from Tax indicator for material Manufacturer part number Manufacturer, etc. 86. What is a release strategy? What are release groups and codes? Answer : The procurement process in SAP needs to be controlled by introducing authorizations at important stages. This is taken care by the release strategy, which has different codes for assigned users. For example, if the value of a PO is more than a certain pre-defined limit, then it has to be approved by the SCM manager with a certain release code. Every company will have different approval mechanisms and the release strategy can be defined by the users. Release groups are a set of release codes that are used for authorizing a purchasing document or approving a release strategy. Release code is a 2-character ID that allows a person to approve or clear a PR ora PO and they are controlled by a step-by-step authorization system. For example, Code 10 is assigned to the person who creates the PO, Code 20 is the release code assigned to the Purchase manager for approval. Subsequently, the Department Head will use Code 30 to approve the release strategy, followed by the Operations Director, who will use Code 40 for final approval. Scanned with CamScannerIM INTERVIEW QUESTION 87. Mention what are the data contained im the informatiow record? Answer : The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods. 88. How do you create a pricing procedure? Answer: The steps involved in creating a pricing procedure are: 1. Create condition tables 2. Create access sequence according to the various condition tables 3. Create condition types 4. Assign access sequence to condition type 5. Create the pricing procedure 6. List down all the condition types in order so as to suit the business and pricing requirements. 89. Explain what is CBP? What is the difference between CBP and MRP? Answer: CBP is the past consumption values of stock; it is used to forecast future requirements. On the basis of past consumption values, the net requirement of goods is calculated. The difference between CBP and MRP is that when you plan materials using MRP, you have to predict the materials requirement based on sales and operations planning (SOP). While in CBP you have to predict the material requirement based on historical demand for materials. 90. How is shelf-life managed in SAP? Explain the full-cycle. Answer : In SAP, there are basically two types of shelf-life: 1. Total Shelf Life — In case the total shelf life is maintained, then it’s mandatory to enter the minimum shelf life also. During the process of Goods Receipt (GR), the user will have to enter the manufactured date of the item so that the expiry date is automatically calculated by the system. 2. Minimum Shelf Life — The date of minimum durability of the item are specified by using date markings like ‘use-by’ or ‘best-before’, During the process of Goods Receipt (GR), the user will have to enter the date of GR so that the system can check if the material is usable according to the requirements in material master. If the minimum remaining shelf life condition is not satisfied, then the system will not accept the goods receipt Scanned with CamScannerREDO 91.Mention what is the transaction code to delete a batch? Answer : The transaction code MSC2N is used to delete a batch, By flagging the batch master record, you can delete a batch record alternatively. 92. How does the consignment cycle operate? Answer: The various steps in consignment cycle are: 1, Create consignment info record with proper tax code 2. Create Purchase order with item category K 3. Create output condition record for KONS (output type) 4. Authorize Goods Receipt (GR) 5. Payment is settled through MRKO transaction even if invoice verification is not done 93. Explain what are the accounts created in SAP MM? ‘Answer: Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things Account assignment type Account that will be charged when you post the invoice or goods receipt Account assignment data that you should provide 94, What are batches and how are they searched? Answer: A batch is a collection of similar items from your stock that have the same characteristics. For example, all food items produced on a particular day belong to one batch. Batches are searched using the standard facility (match code, key F4) based on the batch names or other properties that distinguish them from others. 95. Mention what is the transaction code used to extend the material view? Answer : To extend the material view transaction, code MMS is used. Scanned with CamScannerREDO 96. What are the kinds of info records available? Answer : Standard, consignment, subcontracting and pipeline 97. Explain how consignment stocks are created? Answer : In the normal purchase order or requisition, consignment stocks are created, While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated. 98. What is MRP? And how is Lot Size used? Answer : MRP is short for Materials Requirements Planning and it is a production planning technique that’s used to manage the manufacturing process. It is basically used to determine your Material Planning procedure by specifying the various conditions like Reorder Point, Seasonal Requirement, Replenishment, Vendor Managed, Forecast Based and Master Production Scheduling (MPS). Lot size specifies the nature of material requirement in terms of Weekly, Monthly, Quantity and Maximum Replenishment. 99. What is the difference between a Purchase Requisition and a Purchase Order? Answer : APR isan intemal 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. ‘APO 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. 100. What are different Info Records types? Answer : Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline. Scanned with CamScanner101. What is a consignment Stock? Answer : 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. 102, What is Sub-Contracting cycle in MM? 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. 103. What is meant by Scales in MM? Answer When we maintain price in Info Records, we can make use of'scales. It is used when price ofa 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. 104. How to Flag a material for deletion? Answer : A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be sct 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 MMO6 is used to flag a material for deletion. 105, Can a material be used after flagging it for deletion? Answer : Yes, even after flagging a material for deletion, it can be used till itis actually deleted. It will just trigger a warning message whenever the rnaterial is used. If you want a rmaterial to be blocked for any use with immediate effect, you should use a material status which Scanned with CamScannerVIEW QUE is there in Basic View 1 for general level or in MRP | view for plant level blocking. 106. What is the function of OBYC? Answer : OBYC is t-code used for configuring Automatic Account Posting. Postings are made to G/L accounts automatically in the case of Inventory Management and Invoice Verification relevant to Financial and Cost Accounting. 107, What is valuation grouping code related to OBYC? Answer : 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 arcas. We can maintain the valuation group code in OMWD for various valuation areas. 108. What types of special stocks are available? Answer : Various special stock types available in SAP are Consignment, Subcontracting, pipeline, project, sales order stock, Retumable transport packaging, stock transfer, and the third party. 109, What is the difference between Contracts and Scheduling Agreements? Answer :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. 110. How can we create new transaction codes in SAP? Answer : New transaction codes can be created using t-code SE93. Scanned with CamScannerREDO 111. What are release procedures with and without classification? Answer :Release Strategy with Classification: PR can be released at header level as well as item level. It can be used for both internal/external documents. Can be set on any field available in structure CEBAN Release Strategy without Classification: PR can be released only at item level. Itcan be used only for internal documents such as PR. This strategy can be used only on 4 parameters which are Account assignment category, Plant, Material Group and value of PR. 112, What is meant by batches? Answer : 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. 113. How to handle free items in PO? Answer: 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. 114, What information is maintained in Accounting View of material master? Answer : 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 Scanned with CamScannerVIEW QUE 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). 115. What is the use of Material types? “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. 116. What is the use of ‘Partner Functions’ for a vendor? Answer: Partner Function is used to define responsibilities and duties of other business partners. Some partner functions are AZ(Altemnate payee), CR(Carrier), OA (Ordering address), GS(Goods supplier), PI(Invoice presented by) ete. 117. What is the use of ‘Material Status’? Answer : Material Status helps in determining the usability of a material. It is a 2-digit code which can be maintained as plant specific material status, cross-plant material status, and distribution material status. 118. What is the ‘Price Control Indicator’? Answer : ‘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. 119, What are various types of Stock transfer? Answer : ‘The physical movement of stock between different physical locations is called as ‘Stock Scanned with CamScannerVIEW QUE transfer’, Stock transfer can be cither a single step process or a two-step process. Various Stock transfers are: Inter Company (Company to Company) Inter Plant/Intra Company (Plant to Plant) Intra Plant (Storage location to Storage location) 120. What are various Stock Types? Answer: In SAP, commonly used stock types are: Unrestricted Stock (Stock that is available for use) Restricted Stock Quality Inspection Stock (Not the unrestricted stock but can be considered for MRP) Blocked Stock (Stock rejected by quality or production) GR Blocked Stock (Conditionally accepted stock. Not the unrestricted stock) 121, What are various procedures for counting Physical Inventory? Answer: Physical Inventory procedures in SAP MM are as follows: Periodic Inventory (All stocks are counted on a pre-determined date) Continuous Inventory (stocks are counted continuously during the entire fiscal year) Cycle Counting (Counting is done at fixed intervals) Inventory Sampling (Randomly selected material stocks are physically counted on the balance sheet key date. If variances are small enough, it is presumed that the book inventory balances for the other stocks are correct.) 122, What is the use of ‘Split Valuation’? Answer : Within a valuation area, sometimes, we need to valuate various stocks of a material separately. It can be because of different origin, quality, status, etc. We use split valuation in such cases. In this case, material is managed at several partial stocks which are sub-stocks of main material stock, Any transaction, relevant for valuation, is carried at this partial stock level. In accounting view, we define if we need split valuation for any material. Scanned with CamScannerISAP MM INTERVIEW QUESTION: 123, What are the various stock valuation methods? Answer : Stock revaluation can be done by following three methods: 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. 124, What are the industry-specific solutions available in mySAP? Answer : The mySAP ERP application provides business solutions for almost every industry, including automotive, chemical, and media. Various industry-specific solutions available in mySAP inckade the following: mySAP Automotive mySAP Acrospace and Defense mySAP Consumer Products mySAP Banking mySAP Chemicals mySAP High Tech mySAP Engineering and Construction mySAP Heatthcare mySAP Higher Education and Research mySAP Insurance mySAP Media mySAP Oil and Gas mySAP Mill Products mySAP Mining mySAP Public Sector mySAP Pharmaceuticals mySAP Service Providers mySAP Retail mySAP Telecommunications mySAP Utilities 125. What is SAP R/3? Answer : Scanned with CamScannerSAP R/3 is an ERP software that was officially launched in 1992. It is a replacement for the SAP R/2 mainframe computing-based ERP software and is based on client-server computing. With the advent of client-server computing, SAP AG in Germany (founder of the SAP ERP software) launched SAP R/3 to provide client-server- based real-time business solutions. The lette business data processing, while the number computing. "in SAP R/3 represents the real-time represents the three tiers in client-server The three tiers in client-server computing are: presentation (client), application (business logic), and database (stores the actual business data). SAP RV3 integrates various business areas, such as sales, purchase, and procurement, by using different functional modules, such as Materials Management (MM), Sales and Distribution (SD), Financial (FI), Controlling (CO), and Human Resource (HR). Different versions of SAP R/3 include 3.1i, 4.0b, 4.5b, 4.6b, 4.6c,ECC 5.0,ECC 6.0; the latest version is ECC 6.0. 126, How different versions of SAP evolved? Answer : Since its inception, SAP has continued to support changing business processes and to adapt itself to the needs of organizations. In order to support the most current business strategies, SAP has evolved over time and progressed through the following versions: SAP R/I—This was the first version of SAP and was developed for financial accounting systems. This version is no longer available. SAP R/2—This was the second version of SAP. It replaced the R/I version in the 1970s and was a mainftame-based business application. SAP R/2 supported multiple currencies and languages to help internationalize business management. This version is also no longer available. SAP R/3— This version replaced SAP R/2, adding support for client-server- based distributed systems. This new version of SAP is multi-platformed, meaning it can be installed and used on multiple platforms, such as Windows or UNIX. 127. Why are industry-specific solutions used in SAP R/3? Answer :Industry-specific solutions are used in the SAP R/3 ERP application in order to Scanned with CamScannerautomate various business processes for almost every industry, including automotive, oil and gas, and chemical. By automating business processes, the SAP R/3 application helps organizations meet the following challenges: © Emerging markets— Earning revenue in emerging markets © Competition—Maintaining successful business operations in a world of fierce competition © Increasing demands— Handling increasing and varying customer demands © Labor issues— Solving the problems that arise for business operations requiring efficient skilled labor 0 Workforce shortages—Solving the problem of a shortage of skilled personnel The importance of industry-specific solutions comes from a very basic foundation of thought: every type of business is unique and therefore needs to be catered to accordingly. The same philosophy may not be applicable for automotive businesses and integrated steel plants, because both require entirely different approaches to business planning. The automotive industry is based on the assembling of equipment and parts— discrete manufacturing, whereas the integrated steel plant is a continuous manufacturing unit. Therefore, each business's functionalities are different in areas such as production and inventory management. 128, What benefits are en organization? iged after implementing SAP in any Answer : After the installation of SAP R/3 in an organization, the following changes will occur: Improvement in project management and project execution capabilities Integration of suppliers and subcontractors Optimization of sales-order capabilities Comprehensive business support specific to a particular industry type + Minimal cost of ownership Scanned with CamScannerVIEW QUE Uniformity of business processes Ability to make safe strategic choices 129, What are the different Modules in SAP R/3? Answer: To integrate various business processes, SAP R/3 comes with various modules, such as MM, SD, and CO. These modules are further grouped into various business-functional areas, The functional areas and the SAP R/3 modules in those functional areas are as follows: Financial applications—Deals with an organization's financial matters, such as preparing and analyzing financial documents and reporting the document output to the appropriate authorities for further processing. To manage all these concerns, the following SAP R/3 modules are grouped in this functional area: o Fl—Financial Accounting © CO—Controlling o EC—Enterprise Controlling o IM—Investment Management o TR—Treasury ‘Human resources—Deals with documents related to an organization's human resources department. The SAP R/3 modules grouped in this area help an organization to manage processes such as salary creation and distribution, employees’ payroll across the organization, and transferring data to other relevant departments, such as finance. This area consists of the following modules: © Personnel Management o Time Management Scanned with CamScannerIM INTERVIEW QUESTION o Payroll © Training and Event Management © Organizational Management Logistics applications —This is the largest area covered by SAP R/3. This arca helps manage broad-level business processes such as sales and distribution of products, materials management, production planning, and quality management. This area consists of the following modules: © = MM—Materials Management © SD—Sales and Distribution 0 PP—Production Planning o PM—Plant Maintenance 0 LO—Logistics 0 QM—Quality Management 0 PS—Project System 0 +WM—Warehouse Management 130, What are the core functionalities of the SAP system? Answer :The core functionalities of the SAP system are Sales and Distribution (SD), Materials Management (MM), Financial Accounting (Fl), and Production Planning (PP). In the first phase, companies implement the SAP software with these core functionalities. Later, in the second and third phases, they may also introduce other functionalities, such as Controlling (CO), Warehouse Management (WM), and Human Resource (HR). However, the types of modules and the phasing of implementation depends solely on the type of industry in which the client works, as well as the organization's readiness and the urgency with which the integrated enterprise system, such as SAP, must be adopted. Scanned with CamScannerREDDOT 131. What is Master data in MM module? Answer: The master data in the MM module acts as reference data, defining various business entities and playing a key role in the core operation of the business. 132. How is master data important in MM module? Answer : The master data in the MM module contains all of the basic information needed to manage material. The data is stored and sorted on the basis of different criteria, such as the descriptive nature of the material (size, dimension, and weight) and the control functions of the material (material type and industry sector). Apart from data maintained by the user, the master data also stores data that is automatically updated by the system. (such as stock levels), 133. What are the various types of master data in MM module? Answer : The different types of master data in the MM module are as follows: Material master Vendor master Purchasing information record Source list Quota arrangement 134. What is a Material Master file? Answer: A material master file stores and maintains all of the information related to managing a material. The material master is sorted on the basis of different criteria. 135. Why are material master records used in SAP? Answer : Material master records are used in the SAP R/3 system to manage material-specific data. The material information stored in material master records is used by all logistics areas in the SAP R/3 system. The material master records integrate all material-specific data into a single database object that climinates the problem of data redundancy. Scanned with CamScannerBecause material master records store data in a single database object, the same data can be shared by all departments, such as purchasing, inventory management, materials planning, and invoice verification. 136. How is the information of material master records updated? Answer: You can manually update the information in the material master records, however, there are some exceptions for which the information can be updated by the SAP R/3 system only, for example, administrative data. 137, What are the types of industry sectors defined in Material Master data? Answer : The different types of industry sectors defined in the material master data are as follows: © Aerospace and defense 0 Beverage © Chemical industry © Food and related products © Mechanical engineering o Pharmaceuticals o Plant engineering/construction o Retail 0 Retailing © Service providers 138, What data in material master is maintained at the client level? Answer: The general data, i, client level. ., the data applicable to the company as a whole, is stored at the 139. What are the data in material master that are maintained at the company code level? Answer : Scanned with CamScannerVIEW QUE The data that is specific to a particular company and the plant and storage areas assigned to that company is maintained at the company code level. 140. What are the plant-specific data in material? The MRP data and forecast data are the plant-specific data in the material master. 141, What is the lot size attribute of a material? Answer : The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or static (fixed) lot size. How is material information structured in material master records? Material information is structured in material master records on the basis of different criteria, such as the material's master detail (including its name, size, dimension, and weight), which shows its descriptive nature, and the material's detail related to control functions (such as material type, price control, and industry sector). Material master records also store information about the data that can be automatically updated by the system. For example, the stock level can be automatically updated by the system on the basis of the material data update. 143. Whatis a batch? Answer : A batch is a group of materials combined into one quantity for various reasons. Very often, materials with the same characteristics and values are grouped into a batch. For example, in the chemical industry, a specified number of containers of a specific product may be considered a batch if they were produced at the same time and have the same physical and chemical characteristics. 144, Why is batch record important? Answer : A batch represents a quantity of a particular material processed at the same time with the same parameters. These materials, produced as one batch, have the same characteristics and values, which may vary from the materials of another batch produced on the same day. A batch record is important because batch records indicate that the batch conforms to the current Good Manufacturing Procedures (GMP). The batch record also contains specific information about the product tested, analytical methods, and test Scanned with CamScannerREDO results. 145. How to create a batch? Answer : You can create a batch record manually by using the transaction code MSCIN. The navigation path for creating a batch is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Create. 146. What are the important fields in a batch master record? The important fields in a batch master record are as follows: 0 Production date— Refers to the date when the batch was produced. ©. Self-life expiration date— Refers to the date when the life of the batch will expire. 0 Available from— Refers to the date from which the batch will be available to other departments. o Batch status— Allows the batch to be classified as having restricted or unrestricted use. 0 Next inspection— Refers to the next quality inspection date of the batch. 0 Vendor batch— Refers to the batch number assigned by the vendor. © Class— Allows the user to sort the batch for use in specific classes. © Characteristics —Helps in assigning a class to the batch. 0 Release status —Specifies the status of the batch. 0 Linked document —Helps the user to link the documents related to the batch. © Document type —Allows the user who is purchasing the batch to specify a document. 0 Document Helps the user to select the relevant document. © Document part —Allows the user to enter the part of the document that is related to the batch. o Version —Specifies the document version of the batch, Scanned with CamScannerIM INTERVIEW QUESTION 147, How can batch records be changed? Answer : You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Change. It is important to note that these changes to the batch record will also be available for review. 148. How to delete a batch? You can delete a batch by using the MSC2N transaction code. You can alternately delete a batch record by flagging the batch master record. For this, you nced to first select the batch in the Change mode. 149. What is Batch Information Cockpit?. The Batch Information Cockpit (BIC) is the main switching point, having a wide range of options for scrutiny and corgrol of batches. It stores at a single location all the information related to the analysis ofa particular batch. 150. What are the levels at which a batch number can be configured? A batch number can be configured at several different levels: client level, plant level, and material level. You can select a batch number at any of the following levels: Client level— When you configure a batch at the client level, you need to assign the batch number only once throughout the whole client. Only one batch number exists for each material assigned at this level. Plant level In SAP, the plant level is the default level for the batch number. At plant level, a batch number is unique for a plant and material. This means that you can have a batch of the same number at a different plant within the same company. Material level —At this level, material numbers are assigned to the products. The material number helps to differentiate between two products in case their batch numbers are the same. The materials are identified by the combination of the material number and batch number. 151. How are batch numbers assigned? Scanned with CamScannerIM INTERVIEW QUESTION The batch number is predefined in SAP. You can change the batch numbers either by using the OMAD transaction code or by using the navigation path IMG > Logistics- General > Batch Management > Batch Number Assignment > Maintain Internal Batch Number Assignment Range. Follow cither of the two configuration steps to change the batch number: You can assign a batch number internally using the internal number range, either by using the OMCZ transaction code or by following the navigation path Display IMG > Logistics-General > Batch Management > Batch Number Assignment > Activate Internal Batch Number Assignment > Activate Batch Number Assignment. You can also configure the system to allow automatic numbering of a batch by following the navigation path Display IMG > Logistics-General > Batch Management > Batch Number Assignment > Activate Internal Batch Number Assignment > Internal Batch Number Assignment for Assigned Goods Receipt. 152. What is a serial number? Aserial number is assigned to an item to identify it and to store information about it. A serial number is mostly used to refer to equipment such as motors, drills, or vacuums. In MM, an item of material contains a serial number as well as a material number. This combination helps to uniquely identify an item of material. 153. What are the types of special stocks available? Answer Special Stocks available - Sale Order Stock / project Stock / Subcontractor Stock. 154, What are the types of info records? Answer : Type of info records are Standard, Pipeline, Consignment and Subcontracting. 155. Tell me about the subcontracting cycle. Answer : Subcontracting Cycle - You define procurement type for the material procured from subcontracting as "F 3 External procurement from subcontractor - BOM is defined for the material. Then you place PO with item category L on the S/C & you transfer the material to S/C in transaction MBIB mvmt type 541 & prepare S/C official receipt of payment for Scanned with CamScanner