Top 25 SAP MM Interview Questions & Answers

1
Top 25 SAP MM Interview Questions Answers
2

• 1. What do you know about SAP MM?
• SAP MM is the functional module of SAP. It looks
  after the management of the material and obtains
  handling. To complete the procurement to pay
  process this module consists mainly of master
  data, a configuration of system and transactions.
• 2. What are the benefits or uses of material
  management?
• Material valuation
• Multi-location inventory
• Bin management
• The lot and serial traceability
• Product life cycle management
• Inventory replenishment
• Scheduling and resourcing
• 3. What are the features of material management?
• Purchasing
• Production and material control
• Non-production stores
• Transportation
• Material handling
• Receiving

3

• 4. List out the essential components of material
  management.
• Determine requirements
• Source determination
• Vendor Selection
• Order Processing
• Order follow up
• Goods receipts and Inventory management
• Invoice Verification
• 5. What is material requirement planning (MRP)?
• It is a module in SAP enterprise resource
  planning. It is a type of planning tool to help
  production and procurement planners to create
  feasible and realistic plans which help to
  quickly initiate procurement and production
  process.

4

• 6. What is consumption-based planning (CBP)?
• CBP is based on past consumption values which
  make use of the forecast or other statistical
  procedures to determine future requirements.
  Consumption-based planning (CBP) always triggers
  when the stock level plunge below the predefined
  reorder point or forecast requirements calculated
  using past consumption values.
• 7. What is the difference between MRP and CBP?
• In material requirement planning, the prediction
  of material requirement is based on sales and
  operations planning while in, consumption-based
  planning the prediction of material requirement
  is made, based on historical demand for
  materials.
• 8. What is the Master production schedule (MSP)?
• It is a plan for individual commodities to be
  produced in each period such as staffing,
  production, etc. It is mostly linked with
  manufacturing in which the plan denotes when and
  how much of each product will be demanded.

5
YOU CAN ALSO SPLIT YOUR CONTENT

• 9. What is the planned order in material
  management?
• In Material Management, planned order is sent to
  an industry and is a material requirement
  planning request for the procurement of a
  particular material at a determined time. It
  certainly specifies when the internal material
  movement needs to be made and the amount of
  material that is demanded.
• 10. What is production order and purchase order?
• A production order defines which components and
  sequence of operations are to be used and how the
  order costs are to be resolved. It also
  determines which material is to be prepared, at
  which location, and at what time and how much
  quantity is required.
• Formal requests or guidance from a purchasing
  firm to a vendor or factory to supply a certain
  quantity of goods (or) services at a certain
  point of time is called purchase order.
• 11. What is the process order?
• Process Orders (PP-PI-POR) are the central
  component used for the accurate planning and
  execution of process manufacturing. A process
  order constitutes the production of batches
  (materials) in a production run or the rendering
  of services.

6
(No Transcript)
7

• 15. How do you release and create purchase
  requisition in SAP material management?
• Purchase requisition creation can be done in
  T-code ME51N and is a straightforward process
• Execute ME51N transaction.
• Purchase requisition document type NB
  standard.
• Source determination ON or OFF.
• Header note.
• Material material number.
• Quantity and UoM.
• Storage location in which the material is
  stored.
• Vendor It is automatically determined by using
  source determination the field number
• Tracking number As covered in previous topics,
  the desired value can be entered manually
• Valuation price This should be copied from
  material master data if it is maintained there if
  not it has to be entered manually (if this field
  is not set as optional).
• We can save transaction data, after entering the
  desired information in the fields.

8

• 16. What is meant by special stock in material
  management?
• Special Stocks are stocks that belong to a
  company code. These are not placed in any storage
  location no physical inventory is performed.
• 17. Mention the different types of stocks?
• A. Valuated Stock
• Unrestricted Stock
• Quality Inspection Stock
• Blocked Stock
• B. Non-Valuated Stock
• C. Special Stock
• Subcontracting
• Consignment
• Stock Transport Order
• Third-Party Processing
• Returnable Transport Packaging
• Pipeline Handling

9

• 18. What is meant by master data?
• Basically, Master Data is created centrally and
  is valid for almost all the applications. It
  remains constant over time but it is required to
  update it on a regular basis. For example, the
  Vendor is like a type of master data and he is
  used for creating purchase orders.
• 19. What is master data management?
• A comprehensive method of enabling an enterprise
  to link all of its critical data to a common
  point of reference is called Master data
  Management. MDM also improves data quality, while
  streamlining data sharing across personnel and
  departments. In addition, it also can facilitate
  computing in multiple system architectures,
  platforms, and applications.
• 20. What is inventory management?
• Inventory management is based on several key
  processes like Definition of movement types,
  reservations, goods issue, and goods receipt.
  Inventory management is used to manage a good
  inventory.

10

• 21. What are quotations in SAP material
  management?
• Quotations in SAP MM are certain requests for
  vendors which give us information about their
  terms and conditions, best prices, schedules of
  deliveries and other information.
• 22. What is invoice processing?
• The process in which a companys account payable
  is used to manage supplier invoices is called
  Invoice Processing. It begins when you accept an
  invoice and ends when payment has been made and
  reported in the general ledger.
• 23. How is the quota rating checked?
• The formula for checking the quota rating is an
  addition of the base quantity of the quota and
  the allocated quantity quota and divides it by
  the overall quota.

11

• 24. Mention the last stage in the cycle of
  procurement?
• The last stage of the procurement cycle is the
  verification of the invoice. This also updates
  the documents which are related to the accounts
  and finances. There is a difference between the
  real invoice and the blocked one the real invoice
  can be handled by verification of the invoice.
• 25. What are the different types of ERPs?
• Different types of ERPs are as follows SAP,
  Microsoft Dynamics, PeopleSoft, Oracles, Siebel,
  BAAN. These are some of the different types of
  Enterprise Resource Planning.

12
Reach us
Call _at_ USA --17325938450, 1904-304-2519
IND - 919989527180, 916302830890
Mail info_at_iqtrainings.com Website
https//www.iqonlinetraining.com/
13
IQ ONLINE TRAINING