The document provides an overview of organizational structures in SAP's Materials Management (MM) module. Key points include: - The MM module deals with materials procurement and is integrated with other modules like Production Planning and Financials. - Organizational units in the MM structure include clients, company codes, plants, storage locations, and purchasing organizations. - A client is the highest level unit that stores master data, while a company code represents an accounting unit within a client. - Multiple company codes can be assigned to a single chart of accounts, but each plant can only be assigned one company code.

1. SAPMM InterviewQuestions&AnswersforFresher’s
1. IntroductiontoSAPMM
1. What isSAP?How is itusedinindustries?
SAPis the mostpopularenterprise resource planning(ERP) software applicationusedto
provide enterprise businesssolutions.Itwasfirstintroducedin1972 inMannheim, Germany.SAP
standsfor Systems,Applications,andProductsin DataProcessing.
SAPprovidescompletebusinesssolutionsbyintegratingvariousbusinesstaskssuchas
sales,purchase,andproduction.SAPtakesinformationfromone businessprocessandincorporates
it intoanotherbusinessprocess,therebyspeedingupall businessprocesses.Forexample,
informationaboutthe rawmaterial instockisusedby the productiondepartmenttodetermine how
to prepare products.
SAPiswidelyusedinvariousindustriesbecause asitupdatesandprocesses
importantdata veryquickly,itcanautomate businessprocessesandprovide real-time solutionsfor
businesses.
2. Brieflydescribe the historyof the SAPsoftware.
The SAPsoftware wasdevelopedbyacompanyof the same name.SAP(the
company) wasfoundedin1972 by five formerIBMemployees:DietmarHopp,Hans-WernerHector,
Hasso Plattner,KlausTschira,andClausWellenreuther.
SAPreleaseditsmainframe product,calledSAPR/2,in1979. The client/server
versionof the SAPsoftware,calledSAPR/3,wasreleasedin1992. Today,SAPis the largestvendor
of standardbusiness-applicationsoftware.
SAPconstantlydeliversscalablesolutionstoitscustomers,allowingthemto
respondtodynamicmarketconditionsandhelpingthemtomaintainanadvantage overtheir
competitors.Some of the majorSAPapplicationspresentlyavailable are definedinquestion4and
include SAPR/3,mySAPERP,mySAPCustomerRelationshipManagement(CRM),mySAPSupplier
RelationshipManagement(SRM),mySAPSupplyChainManagement(SCM),andmySAPProduct
Lifecycle Management(PLM),toname afew.
3. What ismySAPERP? What are the otherbusinesscomponents?

2. mySAPERPis the next-generationERPapplicationfromSAPAGinGermany,and was
firstlaunchedin2003. The mySAPERPapplicationhasall the featuresof previouslyreleasedSAPERP
software,suchas SAPR/3 and SAPStrategicEnterprise Management(SEM),alongwithitsown
extensions.The mySAPERPapplicationprovidese-commerce solutionsbyusingWebtechnology.
The mySAPERP applicationhasthe followingadvantages:
o Mobile infrastructure,whichimprovesworkforce mobility
o Transparencythrougha businessintelligence framework
o Deliveryof people-centricservices
o Fasteraccess to information,whichfacilitatesquickdecisionmaking
o Seamlessintegrationof processesthroughoutthe business
• mySAPERP includesthe followingproducts:
o mySAPEnterprise Resource Planning(ERP)
o mySAPSupplyChainManagement(SCM)
o mySAPSupplierRelationshipManagement(SRM)
o mySAPCustomerRelationshipManagement(CRM)
o mySAP ProductLife Cycle Management(PLM)
• mySAPR/3 can be classifiedintothe followingbusinesscomponents:
o Financial applications
o Human resource applications
o Logistics
o Salesanddistributionapplications
4. What are the industry-specificsolutionsavailableinmySAP?
The mySAPERP applicationprovidesbusinesssolutionsforalmosteveryindustry,including
automotive,chemical,andmedia.Variousindustry-specificsolutionsavailable inmySAPincludethe
following:
• mySAPAutomotive
• mySAPAerospace andDefense

3. • mySAPConsumerProducts
• mySAPBanking
• mySAPChemicals
• mySAPHighTech
• mySAPEngineeringandConstruction
• mySAPHealthcare
• mySAP HigherEducationandResearch
• mySAPInsurance
• mySAPMedia
• mySAPOil andGas
• mySAPMill Products
• mySAPMining
• mySAPPublicSector
• mySAPPharmaceuticals
• mySAPService Providers
• mySAPRetail
• mySAPTelecommunications
• mySAPUtilities
5. What isSAPR/3?
• SAPR/3 isan ERP software thatwas officiallylaunchedin1992. It is a replacementforthe SAP
R/2 mainframe computing-basedERPsoftware andisbasedonclient-servercomputing.Withthe
adventof client-servercomputing,SAPAGinGermany(founderof the SAPERPsoftware) launched
SAPR/3 toprovide client-server-basedreal-timebusinesssolutions.The letter"R"inSAPR/3
representsthe real-timebusinessdataprocessing,while the number"3"representsthe three tiers
inclient-servercomputing.
• The three tiersinclient-servercomputingare:presentation(client),application(business
logic),anddatabase (storesthe actual businessdata).
• SAPR/3 integratesvariousbusinessareas,suchassales,purchase,andprocurement,byusing
differentfunctionalmodules,suchasMaterialsManagement(MM),SalesandDistribution(SD),
Financial (FI),Controlling(CO),andHumanResource (HR).
• Differentversionsof SAPR/3include 3.1i,4.0b, 4.5b, 4.6b, and4.6c; the latestversionis4.70.
6. Howdifferentversionsof SAPevolved?

4. Since itsinception,SAPhascontinuedtosupportchangingbusinessprocessesandtoadaptitself to
the needsof organizations.Inordertosupportthe most currentbusinessstrategies,SAPhas
evolvedovertime andprogressedthroughthe followingversions:
• SAPR/1—Thiswas the firstversionof SAPandwas developedforfinancial accounting
systems.Thisversionisnolongeravailable.
• SAPR/2—Thiswas the secondversionof SAP.Itreplacedthe R/1versioninthe 1970s andwas
a mainframe-basedbusinessapplication.SAPR/2supportedmultiple currenciesand languagesto
helpinternationalizebusinessmanagement.Thisversionisalsonolongeravailable.
• SAPR/3— This versionreplacedSAPR/2,addingsupportforclient-server-baseddistributed
systems.Thisnewversionof SAPismulti-platformed,meaningitcanbe installedandusedon
multiple platforms,suchasWindowsorUNIX.
7. Whyare industry-specificsolutionsusedinSAPR/3?
• Industry-specificsolutionsare usedinthe SAPR/3 ERP applicationinordertoautomate
variousbusinessprocessesforalmosteveryindustry,includingautomotive,oil andgas,and
chemical.Byautomatingbusinessprocesses,the SAPR/3applicationhelpsorganizationsmeetthe
followingchallenges:
o E mergingmarkets— Earningrevenue inemergingmarkets
o Competition—Maintainingsuccessful businessoperationsinaworldof fierce competition
o Increasingdemands— Handlingincreasingandvaryingcustomerdemands
o Labor issues— Solvingthe problemsthatarise forbusinessoperationsrequiringefficientskilled
labor
o Workforce shortages—Solvingthe problemof ashortage of skilledpersonnel
• The importance of industry-specificsolutionscomesfromaverybasicfoundationof thought:
everytype of businessisuniqueandtherefore needstobe cateredto accordingly.The same
philosophymaynotbe applicable forautomotive businessesandintegratedsteelplants,because
bothrequire entirelydifferentapproachestobusinessplanning.The automotiveindustryisbasedon
the assemblingof equipmentandparts–discrete manufacturing,whereasthe integratedsteelplant
isa continuousmanufacturingunit.Therefore,eachbusiness'sfunctionalitiesare differentinareas
such as productionandinventorymanagement.
8. What benefitsare envisagedafterimplementingSAPinanyorganization?
Afterthe installationof SAPR/3in an organization,the followingchangeswill occur:
• Improvementinprojectmanagementandprojectexecutioncapabilities
• Integrationof suppliers andsubcontractors

5. • Optimizationof sales-ordercapabilities
• Comprehensive businesssupportspecifictoa particularindustrytype
• Minimal cost of ownership
• Uniformityof businessprocesses
• Abilitytomake safe strategicchoices
9. What are the differentModulesinSAPR/3?
To integrate variousbusinessprocesses,SAPR/3comeswithvariousmodules,suchasMM, SD,and
CO. These modulesare furthergroupedintovariousbusiness-functionalareas.The functional areas
and the SAPR/3 modulesinthose functional areasare asfollows:
• Financial applications—Dealswithanorganization'sfinancial matters,suchaspreparingand
analyzingfinancialdocumentsandreportingthe documentoutputtothe appropriate authoritiesfor
furtherprocessing.Tomanage all these concerns,the followingSAPR/3modulesare groupedinthis
functional area:
o FI—Financial Accounting
o CO—Controlling
o EC—Enterprise Controlling
o IM—InvestmentManagement
o TR—Treasury
• Human resources—Dealswithdocumentsrelatedtoanorganization'shumanresources
department.The SAPR/3modulesgroupedinthisareahelpanorganizationtomanage processes
such as salarycreationanddistribution,employees'payrollacrossthe organization,andtransferring
data to otherrelevantdepartments,suchasfinance.Thisareaconsistsof the followingmodules:
o Personnel Management
o Time Management
o Payroll
o TrainingandEventManagement

6. o Organizational Management
• Logisticsapplications—Thisisthe largestareacoveredbySAPR/3.This area helpsmanage
broad-level businessprocessessuchassalesanddistributionof products,materialsmanagement,
productionplanning,andqualitymanagement.Thisareaconsistsof the followingmodules:
o MM—MaterialsManagement
o SD—SalesandDistribution
o PP—ProductionPlanning
o PM—PlantMaintenance
o LO—Logistics
o QM—QualityManagement
o PS—ProjectSystem
o WM—Warehouse Management
10. What are the core functionalitiesof the SAPsystem?
The core functionalitiesof the SAPsystemare SalesandDistribution(SD),MaterialsManagement
(MM), Financial Accounting(FI),andProductionPlanning(PP).Inthe firstphase,companies
implementthe SAPsoftware withthese core functionalities.Later,inthe secondandthirdphases,
theymay alsointroduce otherfunctionalities,suchasControlling(CO),WarehouseManagement
(WM),and Human Resource (HR).However,the types of modulesandthe phasingof
implementationdependssolelyonthe type of industryinwhichthe clientworks,aswell asthe
organization'sreadinessandthe urgencywithwhichthe integratedenterprisesystem,suchasSAP,
mustbe adopted.
11. How can youdefine anMM module?Whatisitsimportance inSAPR/3?
MM standsfor MaterialsManagementandisa part of the Logisticsfunctional areaof SAPR/3. It is
an importantSAPR/3 module because ithelpsmanage broad-level businessactivities,suchas
procurement,valuationandassignment,batchmanagement,andmaterialsstorage.Sincematerials
are the mostpreciousresource of an organization,extreme care needstobe takeninall the
processesrelatedtomaterialsmanagement.Efficientmaterialsmanagementisthe essenceof the
MM module of SAPR/3.
12. How isthe MM module integratedwithothermodulesof SAP?
• The MM module dealswithmaterialsprocurementonthe basisof the productionrequired;
therefore,itislinkedwiththe PPmodule.

7. • The SD module isproportionallyrelatedtothe MMmodule,because itusesinformationabout
the quantityof material sentforproduction.
• The WM module isrelatedtothe MM module,becausethe MMmodule maintains
informationabout materialsstorage andmaterialstransfersinsideanorganization.
• The FImodule isalsorelatedtothe MM module,becauseeveryoperationperformedinthe
MM module directlyimpactsthe financial processesof the organization.
13. What are the maincomponentsof the MM module?How are these componentsusedinSAP?
• The MM module dealswithmaterialsprocurementonthe basisof the productionrequired;
therefore,itislinkedwiththe PPmodule.
• The SD module isproportionallyrelatedtothe MMmodule,because itusesinformationabout
the quantityof material sentforproduction.
• The WM module isrelatedtothe MM module,because the MMmodule maintains
informationaboutmaterialsstorage andmaterialstransfersinsideanorganization.
• The FImodule isalsorelatedtothe MM module,becauseeveryoperationperformedinthe
MM module directlyimpactsthe financial processesof the organization.
2. Organizational Structure
1. What isthe organizational structure inthe MMmodule?
The organizational structure inthe MM module isahierarchyinwhichvariousorganizational units
are arrangedaccordingto theirtasksand functions.The differentorganizational unitsthatconstitute
the organizational structure of the companyare as follows:
• Client— A self-containedunitinthe SAPsystemwithseparate masterrecordsanditsownset
of tables.
• Companycode— The smallestorganizational unit.Youcancreate an independentsetof
accounts forthisunitfor the purpose of external reporting.

8. • Plant— Anorganizational unitwherematerialsare producedorgoodsand servicesare
provided.Youcandivide anenterprise intovariousplantsaccordingtoproduction,procurement,
maintenance,andmaterialsplanning.
• Storage location— Anorganizational unitwhere the goodsproducedinthe plantare stored.
• Warehouse number— Analphanumerickeythatrepresentsawarehousingsystem,whichis
made up of differentorganizational andtechnical storage areas.
• Storage type— Anarea suchas a goodsreceiptarea,goodsissue area,or pickingarea.Also
the physical or logical divisionof acomplex warehouse.
• Purchasingorganization—Anorganizational unitthatprocuresmaterialsandservicesand
negotiateswithvendorstopurchase materialsorgoods.
• Purchasinggroup— Analphanumerickeyforabuyeror a group of buyerswhoare involvedin
purchasingactivities.The purchasinggroupisresponsibleformaterialsprocurementanddealing
withvendors.
2. What are the levelsof organizationalunitsof EnterpriseStructure inR/3?
The clientisthe highestlevel unitof the organizational unitsinEnterpriseStructure inSAPR/3.The
clientisfollowedbythe companycode,whichrepresentsaunitwithitsownaccounting,balance,
and profitandloss(P&L).The nextlevel of organizational unitsinEnterprise Structure isthe plant,
whichrepresentsanoperationalunitof acompany.
3. Define Client.Whatisitsimportance inSAP?
• A clientcanbe definedasaperson,company,ororganizationthatpurchasesgoodsfrom
anotherperson,company,ororganization.Intermsof SAP,a clientisdefinedasa unitthat has its
ownmasterrecords anda setof tables.The clientisimportantinSAPbecause itstoresand
maintainsdataaboutthe organizationwhere SAPisimplemented.
4. Howto create a clientinMM module?
You can create a clientinthe MM module eitherbyusingthe transactioncode SCC4 or by
performingthe followingsteps:
• SelectSAPMenu> Tools> Administration>Administration>ClientAdministration.

9. • Double clickSCC4–ClientMaintenance.The displayview Clients:Overview screenappears.
• SelectDisplay>Change.The informationdialogbox appears.
• ClickContinue.The change viewClients:Overview screenappears,where youcancreate a
newclient.
5. Define company.Howisitdifferentfromaclient?Whatare the data in MM that are
maintainedatthe companycode level?
• A companyisan organizational unitforwhichindividualfinancial statementsare drawnper
the relevantcommercial laws.A companyconsistsof one ormore companycodes.Withina
company,all companycodesmustuse the same transactionsinadditiontothe same fiscal year
breakdown;however,companycode currenciescanvary.
• A companyis differentfromaclientbecause aclientcanitself be a company,or an
organizationthathasmultiple companies.Forexample,the ownerof the entire SAPsystemisa
client.The systemwill have onlyone operational client,butthe clientmayfurtherhave agroupof
companies.The followingdataare heldat the companycode level:
o Material number
o Classificationdata
o Multilingual description
o Unitsof measure
o Technical data
6. Howto create a companycode in SAP?
• In SAP,a companycode is createdusingthe transactionOX02. The companycode fieldis
represented byafour-characteralphanumericstring.Youcancreate a companycode in SAPby
performingthe followingsteps:
o Openthe SAPCustomizingImplementationguide.
o SelectEnterprise Structure >Definition>Financial Accounting>Edit,Copy,Delete,Check
CompanyCode.The Choose Activitydialogbox appears.

10. o Double-clickEditCompanyCode Data.The change view CompanyCode:Overview screen
appearswhere youcan create a companycode.
7. Howcan youassigna companycode to a companyinSAP?
• In SAP,a companycode is createdusingthe transactionOX02. The companycode fieldis
representedbyafour-characteralphanumericstring.Youcancreate a companycode in SAPby
performingthe followingsteps:
o Openthe SAPCustomizing Implementationguide.
o SelectEnterprise Structure >Definition>Financial Accounting>Edit,Copy,Delete,Check
CompanyCode.The Choose Activitydialogbox appears.
o Double-clickEditCompanyCode Data.The change view CompanyCode:Overview screen
appears,where youcan create a companycode.
8. How manycharts of accountscan be assignedinacompany?
Yes.One chart of accounts can be assignedtoseveral CompanyCodes.However,the reverse isnot
possible;i.e.,youwillnotbe able assignmore thanone chart of accountsto a single CompanyCode.
9. Howmany companycodescan be assignedinone chartof accounts?
You can assignmanycompanycodesto a chart of accounts.
10 How manycompanycodescan be assignedtoa company?
You can assignonlyone companycode to a plant.
11. What isa plantinMM?
A plantisan organizational unitwhere materialsare producedorgoodsandservicesare provided.In
SAP,a plantis representedbyaunique four-digitalphanumericnumber.A plantisallocatedtoone
companycode,and a companycan have many plants.Inthe organizational unit,aplantcan be at
one of the followinglocations:
• Corporate headquarters
• Central deliverywarehouse
• Manufacturingfacility
• Regional salesoffice

11. 12. How isa plantdefinedinMM?
You can define aplantinthe MM byperformingthe followingsteps:
• SelectIMG > Enterprise Structure >Definition>Logistic–General >define,Copy,Delete,Check
Plant.
• ClickExecute.The Choose Activitydialogbox appears.
• SelectDefine Planttocreate aplant.The change view Plants:Overview screenappears.
• ClickNewEntries.The NewEntries:Detailsof AddedEntriesscreenappears.
• Specifythe plantcode inthe plantfield.
• Clickthe addressiconto displaythe EditAddressfield.
• Specifythe requiredvaluesinthe fields,suchasTitle,Name,andSearchTerm 1/2.
• ClickOK.The NewEntries:Detailsof AddedEntriesscreenappearsagain.
• Clickthe Save icon tosave the newlydefinedplant.
13. What are the prerequisitesforcreatingaplant?
There are three prerequisitesthatare requiredinordertocreate a plant.Theyare as follows:
• Companycalendar—Comprisedof workdays,publicholidays,andcompanyholidays.Every
SAPsystemisprovidedwithacompanycalendarthatcan be modifiedperthe schedule of the
company.
• Countrykey —Helpsindefiningaplant.
• Regionkey —Referstoastate or province thatisassociatedwiththe country.Itis required
alongwiththe countrykey.
14. How manycompanycodescan be assignedtoa plant?
You can assignonlyone companycode to a plant.
15. Can a companycode be assignedtomanyplants?
You can assignmanyplantsto one companycode.
16. What isthe menupathto assigna plantto a company code?

12. You can assigna companycode to a plantby navigatingthe followingmenupath:SAPMenu> Tools
> Customizing>IMG > Execute Project>DisplayIMG (SAPreference IMG) > Enterprise Structure >
Assignment>Logistics-General >AssignCompanyCode toPlant.
17. Define Storage locationinSAP.
• A storage locationisdefinedbyperformingthe followingsteps:
o SelectTools> Customizing>SAPReference IMG> Edit Project.
o SelectEnterprise Structure >Definition>MaterialsManagement>MaintainStorage.
o Clickthe clock icon . The Determine WorkArea:Entrydialogbox appears.
o Specify the value (P001) forthe plantin the dialogbox.
o Clickthe checkmark icon . The change view Storage Locations:Overview screenappears.
o ClickNewEntries.The NewEntries:Detailsof AddedEntriesscreenappears.
o Specifythe value of the storage locationanddescriptionfields.
o Clickthe Save iconto save the storage location.
o Clickthe Exiticonto create the storage location.
18. How will youdefineastorage location?
A storage locationisdefinedbyperformingthe followingsteps:
• SelectTools> Customizing>SAPReference IMG> Edit Project.
• SelectEnterprise Structure >Definition>MaterialsManagement> MaintainStorage.
• Clickthe clock icon. The Determine WorkArea:Entrydialogbox appears.
• Specifythe value (P001) forthe plantinthe dialogbox.
• Clickthe check markicon.The change view Storage Locations:Overview screenappears.

13. • ClickNewEntries.The NewEntries:Detailsof AddedEntriesscreen appears.
• Specifythe value of the storage locationanddescriptionfields.
• Clickthe Save icon tosave the storage location.
• Clickthe Exiticon to create the storage location.
19. How isa storage locationassignedto aplant?
• You can assigna storage locationtoa planteitherbyusingthe transactioncode OX09 or by
performingthe followingsteps:
o Openthe SAPCustomizingImplementationguide.
o SelectEnterprise Structure >Definition>Materials Management>MaintainStorage Location.
The viewclusterMaintenance:Initial Screenwindow appearswiththe Determine WorkArea:Entry
dialogbox opened.
• In the Determine WorkArea:Entrydialogbox,enteraplantnumberand clickContinue.The
change viewStorage Locations:Overview screenappearswhere youcanassignastorage locationto
the plant.
20. Can storage locationsbe createdautomatically?How cantheybe createdautomatically?
Storage locationscanbe createdautomaticallywhenaninwardgoodsmovementforamaterial is
performed.Inordertocreate storage locationautomatically,openthe SAPImplementationguide
and clickMaterialsManagement> InventoryManagementandPhysical Inventory>Goods Receipt>
Create Storage Location Automatically.
3. Master Data inSAPMM
1. What isMaster data in MM module?
The master data inthe MM module actsas reference data,definingvariousbusinessentitiesand
playingakeyrole in the core operationof the business.

14. 2. How ismasterdata importantinMM module?
The master data inthe MM module containsall of the basicinformationneededtomanage material.
The data is storedand sortedonthe basisof differentcriteria,suchasthe descriptive nature of the
material (size,dimension,andweight)andthe control functionsof the material (material type and
industrysector).Apartfromdata maintainedbythe user,the masterdataalsostoresdata that is
automaticallyupdatedbythe system(suchasstocklevels).
3. What are the varioustypesof masterdata inMM module?
The differenttypesof masterdatainthe MM module are asfollows:
• Material master
• Vendormaster
• Purchasinginformationrecord
• Source list
• Quota arrangement
4. What is a Material Master file?
A material masterfile storesandmaintainsall of the informationrelatedtomanagingamaterial.
The material masterissortedon the basisof differentcriteria.
5. Why are material masterrecordsusedinSAP?
Material masterrecordsare usedinthe SAPR/3 systemtomanage material-specificdata.The
material informationstoredinmaterial masterrecordsisusedbyall logisticsareasinthe SAPR/3
system.The material masterrecordsintegrate all material-specificdataintoasingle database object
that eliminatesthe problemof dataredundancy.Because materialmasterrecordsstore dataina
single database object,the same datacanbe sharedbyall departments,suchaspurchasing,
inventorymanagement,materialsplanning,andinvoice verification.
6. How is the informationof material masterrecordsupdated?
You can manuallyupdate the informationinthe material masterrecords,however,there are some
exceptionsforwhichthe informationcanbe updatedbythe SAPR/3 systemonly,forexample,
administrativedata.
7. What are the typesof industrysectorsdefinedinMaterial Masterdata?

15. • The differenttypesof industrysectorsdefinedinthe materialmasterdataare as follows:
o Aerospace anddefense
o Beverage
o Chemical industry
o Foodand relatedproducts
o Mechanical engineering
o Pharmaceuticals
o Plantengineering/construction
o Retail
o Retailing
o Service providers
8. What data in material masterismaintainedatthe clientlevel?
The general data,i.e.,the dataapplicable tothe companyas a whole,isstoredatthe clientlevel.
9. What are the data in material masterthatare maintainedatthe companycode level?
The data that is specifictoa particularcompanyand the plantand storage areasassignedtothat
companyismaintainedatthe companycode level.
10. What are the plant-specificdatainmaterial?
The MRP data and forecastdataare the plant-specificdatainthe material master.
11. What isthe lotsize attribute of a material?
• The lotsize attribute representsthe reorderquantityforamaterial.A material canhave a
periodic,optimum,orstatic(fixed)lotsize.
12. How ismaterial informationstructuredinmaterial masterrecords?
Material informationisstructuredinmaterial masterrecordsonthe basisof differentcriteria,such
as the material'smasterdetail (includingitsname,size,dimension,andweight),whichshowsits
descriptive nature,andthe material'sdetail relatedtocontrol functions(suchasmaterial type,price
control,and industrysector).Material masterrecordsalsostore informationaboutthe datathat can

16. be automaticallyupdatedbythe system.Forexample,the stocklevel canbe automaticallyupdated
by the systemonthe basisof the material dataupdate.
13. What isa batch?
A batch isa group of materialscombinedintoone quantityforvariousreasons.Veryoften,materials
withthe same characteristicsandvaluesare groupedintoa batch. Forexample,inthe chemical
industry,aspecifiednumberof containersof aspecificproductmaybe consideredabatchif they
were producedatthe same time andhave the same physical andchemical characteristics.
14. Why isbatch recordimportant?
• A batch representsaquantityof a particularmaterial processedatthe same time withthe
same parameters.These materials,producedasone batch,have the same characteristicsand
values,whichmayvaryfromthe materialsof anotherbatchproducedonthe same day.
• A batch recordis importantbecause batchrecordsindicate thatthe batch conformstothe
currentGood ManufacturingProcedures(GMP).The batchrecord alsocontainsspecificinformation
aboutthe producttested,analytical methods,andtestresults.
15. How to create a batch?
You can create a batch recordmanuallybyusingthe transactioncode MSC1N. The navigationpath
for creatinga batch is:SAPMenu > Logistics> MaterialsManagement> Material Master > Batch >
Create.
16. What are the importantfieldsinabatchmasterrecord?
• The importantfieldsinabatch masterrecord are as follows:
o Productiondate— Referstothe date whenthe batchwas produced.
o Self-lifeexpirationdate— Referstothe date whenthe life of the batchwill expire.
o Available from—Referstothe date fromwhichthe batch will be available tootherdepartments.
o Batch status— Allowsthe batchtobe classifiedashavingrestrictedorunrestricteduse.
o Nextinspection— Referstothe nextqualityinspectiondate of the batch.
o Vendorbatch— Referstothe batch numberassignedbythe vendor.
o Class— Allowsthe usertosortthe batch for use inspecificclasses.
o Characteristics—Helpsinassigningaclassto the batch.
o Release status —Specifiesthe statusof the batch.

17. o Linkeddocument —Helpsthe usertolinkthe documentsrelatedtothe batch.
o Documenttype —Allowsthe userwhoispurchasingthe batchto specifyadocument.
o Document—Helpsthe usertoselectthe relevantdocument.
o Documentpart —Allowsthe usertoenterthe part of the documentthatisrelatedtothe batch.
o Version —Specifiesthe documentversionof the batch.
17. How can batch recordsbe changed?
• You can change a batch recordby usingthe transactioncode MSC2N. The navigationpathof
changingthe batch recordis: SAPMenu > Logistics> MaterialsManagement> Material Master >
Batch > Change.
• It is importanttonote that these changestothe batch record will alsobe availableforreview.
18. How to delete abatch?
You can delete abatch byusingthe MSC2N transactioncode.Youcan alternatelydelete abatch
record byflaggingthe batchmasterrecord. For this,youneedtofirstselectthe batchin the Change
mode.
19. What isBatch InformationCockpit?
The Batch InformationCockpit(BIC) isthe mainswitchingpoint,havingawide range of optionsfor
scrutinyandcontrol of batches.It storesat a single locationall the informationrelatedtothe
analysisof a particularbatch.
20. What are the levelsatwhichabatch numbercan be configured?
A batch numbercan be configuredatseveral differentlevels:clientlevel,plantlevel,andmaterial
level.Youcanselecta batch numberatany of the followinglevels:
• Clientlevel— Whenyouconfigure abatchat the clientlevel,youneedtoassignthe batch
numberonlyonce throughoutthe whole client.Onlyone batchnumberexistsforeachmaterial
assignedatthislevel.
• Plantlevel —InSAP,the plantlevel isthe defaultlevel forthe batchnumber.Atplantlevel,a
batch numberisunique fora plantand material.Thismeansthatyoucan have a batch of the same
numberat a differentplantwithinthe same company.
• Material level —Atthislevel,material numbersare assignedtothe products.The material
numberhelpstodifferentiate betweentwoproductsincase theirbatchnumbersare the same.The
materialsare identified bythe combinationof the material numberandbatchnumber.
21. How are batch numbersassigned?

18. The batch numberispredefinedinSAP.Youcan change the batch numberseitherbyusingthe
OMAD transactioncode or by usingthe navigationpathIMG > Logistics-General >Batch
Management> Batch NumberAssignment>MaintainInternal BatchNumberAssignmentRange.
Followeitherof the twoconfigurationstepstochange the batchnumber:
• You can assigna batch numberinternallyusingthe internal numberrange,eitherbyusingthe
OMCZ transactioncode or byfollowingthe navigationpathDisplayIMG> Logistics-General >Batch
Management> Batch NumberAssignment>Activate Internal BatchNumberAssignment>Activate
Batch NumberAssignment.
• You can also configure the systemtoallow automaticnumberingof abatch byfollowingthe
navigationpathDisplayIMG> Logistics-General >Batch Management> Batch NumberAssignment>
Activate Internal BatchNumberAssignment>Internal BatchNumberAssignmentforAssigned
GoodsReceipt.
22. What isa serial number?
A serial numberisassignedtoanitemtoidentifyitandto store informationaboutit.A serial
numberismostlyusedtoreferto equipmentsuchasmotors,drills,orvacuums.In MM, an itemof
material containsaserial numberaswell asa material number.Thiscombinationhelpstouniquely
identifyanitemof material.
23. What isa classtype?Howwill youconfigure aclasstype?
• A classtype is the SAPsystem'stop-level unit,whichisusedtocontrol the SAPsystem's
classes.Itperformsthe followingtasks:
o Definesthe classobjects
o Checksif classobjectscan be usedin otherclassesornot
o Definesthe classmaintenance screen
• You can configure a classtype byusingthe followingmenupath:SAPCustomizing
ImplementationGuide >CrossApplicationComponent>ClassificationSystem>Classes>Maintain
ObjectTypesandMaterial Types.
24. A material doesnothave a masterrecord.How can we procure that?
There may be instanceswhenamaterial doesnothave a masterrecord.You can performdifferent
functionsindifferentsituationstoprocure the masterrecord.For example:
• You can create a material masterrecordif there isno material masterrecordfora particular
material.
• You can extendthe material masterrecordif the material masterrecordexistsforaparticular
material butthe userdepartmentdoesnothave the masterdata.

19. • You can also extendthe material masterrecordif the material masterrecordexistsfora
particularmaterial andthe userdepartmenthasthe masterdata but ithas beenenteredina
differentorganizational level.
25. State the importance of classificationdata.
Classification dataallowsyoutosearchfor materialsonthe basisof the characteristicvaluesentered
intothe classes.Thisfeature isveryuseful whenthe customerwantstosearchfor a particular
vendorandparticularbatches.
26. What is an ABCindicator?
An ABCindicatorisan indicatorassignedbythe ABCanalysisprocedure.AnABCindicatorprovides
detailsof the consumptionvalueof the material involvedinthe ABCanalysis.The ABCanalysisis
performedbymultiplyingthe currentprice of the materialsbytheirquantity.The different
consumptionvaluesare givenasfollows:
• A materials—Importantparts,highusage/consumptionvalue
• B materials—Lessimportantparts,mediumusage/consumptionvalue
• C materials—Relativelyunimportantparts,low usage/consumptionvalue
27. What are the mainmasterfilesusedinMM?
The followingare the mainmasterfilesusedinMM:
• Material masterfile
• Inventorymasterfile
• Vendormasterfile
28. Give some exampleof masterdatainmaterial management(MM).
Material master,material mastergeneral data(MARA),tax Classificationmaterial(MLAN),info
records,source list,andvendormasterare examplesof masterdatainMM.
29. Howis the vendorcreated?
You can create a vendorbyusingthe transactioncode XK01 and performingthe followingsteps:

20. • Addthe vendorname,companycode,purchasingorganization,accountgroup,andvendor
address.
• Addthe country,bankkey,bankaccount, andthe name of the account holder.
• Save the data.
• Thiscreatesa vendorrecordinthe system.
30. What isvendormasterdata?
Vendormasterdatacontainsdetailsof eachvendorthatsuppliesmaterialsorservicestoan
enterprise.The vendormasterdataisstoredinindividual vendormasterrecordsconsistingof data,
such as the vendor'sname,the vendor'saddress,the currencyusedforthe transaction,payment
terms,and the contact person'sname (onthe salesstaff).
31. What are the differentsectionsinvendormasterdata?
• Followingare the three sectionsinvendormasterdata:
o General data— Providesgeneral informationaboutthe vendorthatcan be enteredintothe
systemforcreatingvendorrecords.General datacan provide the name,address,telephone,andfax
of the vendorthroughspecifiedsearchterms.Additional informationcanalsobe addedto the
vendormasterrecordby the accountingand purchasingdepartmentsusingthe transactioncode
XK01.
o Accountingdata—Referstofinancial informationenteredatthe companycode level.The
financial informationincludestax information,bankdetails,reconciliationaccount,paymentterms,
paymentmethods,anddunninginformation.Youcanenterthisfinancial datausingthe transaction
code FK01.
o Purchasingdata—Referstodata enteredwhile creatingavendoratthe purchasing
organizationlevel.Differentpurchasingorganizationshave differentpurchasingdata.The
purchasingdata includespartnerfunctions,purchasingdefaultfields,andinvoiceverification
indicators.Youcan enterthisdata usingthe transactioncode MK01.
32. What are the differentfieldsinvendormasterdata?
• The differentfieldsinvendormasterdataare as follows:
o The name andaddressof the vendor
o The currency inwhichthe transactionwill be done
o The terms andconditionsof payment
o The namesof importantcontactpersons
o The accountinginformation,suchasthe reconciliationaccountinthe general ledger
33. How dowe create a vendornumberrange?
• Whenyoucreate a numberrange,itis importanttorememberthatvendornumbers,such
as material numbers,canbe assignedexternallyorinternally.Youcancreate vendornumberranges

21. by selectingthe followingnavigationpath:IMG > Financial Accounting>VendorAccounts> Master
Data > PreparationsforCreatingVendorMasterData> Create NumberRangesforVendorAccounts.
• For configuringthe vendornumberrange,youshouldenteraunique numberforthe range,
whichisa twocharacter field,andthenspecifythe limitforthe numberrange.The currentnumber
fieldisusedtodefine the currentnumber.The Ext.fieldSpecifieswhetherthe numberrange is
definedexternallybythe user.
• 34. What isdunningprocedure?How canit be configured?
• Sometimes,youmayneedtosendapaymentreminderora dunningnotice toa personor
an organizationtoremindthemof theiroutstandingdebts.The processbywhichthe system
controlsdunningiscalleddunningprocedure.Dunningprocedurecanbe configuredbyusingthe
FBMP transactioncode or the followingnavigationpath:IMG> Financial Accounting>Accounts
ReceivableandAccountsPayable >BusinessTransactions>Dunning> DunningProcedure >Defining
DunningProcedures.
35. How do we assignmaterial tovendors?
• Selectthe followingnavigationpathtolinkvendorstomaterials:SAPMenu> Logistics>
Material Management> Purchasing> Master Data > InfoRecord> Create.Alternatively,the ME11
transactioncode isusedfor thispurpose.
36. What isthe transactioncode to accessthe MaterialsManagementConfigurationmenu?
• The OLMS transactioncode isusedto access the MaterialsManagementconfiguration
menu.
37. What are the varioustransactioncodestoaccess the MM configuration?
• The followingare the varioustransactioncodestoaccessthe MM configuration:
TransactionCode Description
OLMD AccessesMaterial Management-ConsumptionBasedPlanning(MM-CBP)
OLMB AccessesMaterial Management-InventoryManagement(MM-IM)
OLME AccessesMaterial Management-Purchase(MM-PUR)
OLML AccessesMaterial Management-Warehouse Management
OLMS Accessesthe material masterdata
OLMW Enablesvaluationandaccountassignment
38. Write the namesof some importantMMtables
• The followingtable liststhe important MMtable names:
Table Name Purpose
EINA Usedfor general dataof the (purchasing) informationrecord
MARC Usedin plantdata for materials

22. EINE Usedfor purchasingorganization
MAST Usedfor billsof material (BOM) link
MKPF Usedfor headermaterial document
MAKT Usedfor material description
MARD Usedin storage locationdatafor material
MARA Usedfor general materialsdata
MBEW Usedfor material valuation
39. What are purchasinginformationrecords?
• Purchasinginformationrecords,alsoknownasinfo records,containinformationrelatedto
the material andthe vendorwhois supplyingthe material.Theyalsocontaindetailsaboutthe
material,suchas the currentprice.
40. What are the categoriesof purchasinginformationrecords?
• The categoriesof purchasinginformationrecordsare asfollows:
o Standard—Containsinformationforthe standardpurchase order.Inthistype of purchasing
inforecord,youcan create inforecordsformaterialsandservicesthatdonot have masterrecords.
o Subcontracting—Containsorderinginformationforsubcontractorders.
o Pipeline—Containsinformationoncommoditiesthatare sentthrougha pipeline,suchasoil
or water.
o Consignment—Containsinformationonmaterialsthatare in the vendor'spossessionand
are keptbythe vendoratsome otherpremisesathisowncost.
41. What are the prerequisitesforcreatingapurchasinginforecord?
• The prerequisitesforcreatingapurchasinginforecordare as follows:
o Material number—Before creatingapurchasinginforecord,the material numberof the
material masterrecordshouldbe known.
o Manufacturerpart number(MPN) material number —Before orderingamaterial thathasan
MPN, youmustknowits MPN material number.
o Vendornumber—Youshouldalsoknow the numberon the vendormasterrecord.
o Organizational level—If the purchasinginforecordisfora particularpurchasing
organizationorplant,thenthe code specifictothat purchasingorganizationorplantisrequired.
42. How can we create a purchasing informationrecord?
• You can create a purchasinginformationrecordeithermanuallyorautomaticallybysetting
the InfoUpdate indicatorwhenmaintainingaquotation,apurchase order,oran agreement.
43. Can a purchasinginforecordbe createdwithout amaterial number?

23. • Yes,you can create a purchasinginforecordwithouta material number.If the material does
not have a material number,youwill needthe followinginformationtocreate the purchasinginfo
record:
o Material short text
o Orderunit
o Material group
o Short termkey
44. How can we create an informationrecordbasedonthe material master?
• First,youneedto create the inforecordby selectingSAPMenu>Master Data > InfoRecord
> Create.Enterdetailssuchasvendornumber,material number,purchase organization,orplant
number.Thenenterthe numberof the informationrecord(incase of external assignments).Next,
enterthe general datafor vendors,orderedquantity,originof data,supplyinginformation,and
customstariff number.Thenenterthe planneddeliverytime,purchasinggroups,andstandard
purchasingquantity.Checkthe control dataand take the defaultvalue of tolerance dataandthe
purchasinggroupfromthe material masterrecord.Finally,enterthe netprice andthen selectGoTo
> Textstodisplaythe textoverview.If the POtextisalreadydefined,itappearsinthe material
masterrecord; otherwise,itneedstobe entered.Afterall these entrieshave beenmade,the record
issaved.
45. What isthe documentmanagementsystem(DMS) inSAP?
• The DMS in SAPhelpsyoustore external documents,suchaspicturesof the goods or
material.Byusingthe DMS, you can setthe maximumsize of the picture thatcan be uploadedina
document.The DMS helpstolinkthese external documentswiththe appropriate SAPobjects.
4. ProcurementandPurchasinginsapmm
1. What are the special stocksusedinMM?
• Special stocksare stocksthat are managedseparatelyregardlessof whethertheybelongto
your company.The company managesa material byusinga data record,whichcontainsall the
requiredinformation.The differenttypesof special stocksare asfollows:
o Salesorderstock
o Returnable packagingwithcustomer
o Consignmentstockatcustomer
o Vendorconsignmentstock
o Returnable transportpackaging
o Subcontracting

24. o Pipeline
2. What are the differencesbetweencompany-ownedspecial stocksandexternally-ownedspecial
stocks?
• The differencesbetweencompany-ownedspecial stocksandexternally-ownedspecial
stocksare listedinthe followingtable:
Company-OwnedSpecial StocksExternally-OwnedSpecial Stocks
Stocksthat belongtothe company butare storedwiththe wholesalerorthe customerare called
company-ownedspecial stocks.Stocksthat belongtothe wholesalerorthe customerbutare stored
at the companyare calledexternally-ownedspecial stocks.
Company-ownedspecial stocksare managedatthe productionlevel. Externally-ownedspecial
stocksare managedat the place where theyare stored.
3. Why is negative stockneededinanorganization?
Organizationsneednegativestockwhenamaterial isshippedtoacustomerand productionisnot
confirmedorthere isnot enoughstockto satisfythe requirement.The systemstillallowsthe issuing
of the material,andinventoryshowsanegative quantityof stockuntil the productionof the
material isconfirmed.
4. What are special procurementtypes?
In a normal purchasingsystem,the customerpurchasesthe goodsfromthe wholesaler/retailerand
the possessionof the goodstransfersfromthe wholesaler/retailertothe customer.Thismightnot
be the case withspecial procurementtypes,wherethe transferof goodsmaynotnecessarilybe
fromthe wholesaler/retailertothe customerdirectly. Forexample,youmightorderagoodfor a
friendof yours,who,inturn,purchasesthe goodfrom the wholesaler/retailerandthentransfersthe
goodto you.The friendisthe thirdparty involvedinthisprocess.Therefore,the possessionof the
goodindirectlytransferstothe customer.Thistype of procurementiscalledthe special
procurementtype.The special procurementtype definesthe externalprocurementorin-house
productionof the material.The followinglistshowsthe special procurementtypes availableinthe
SAPsystem:
• Consignment
• Subcontracting
• Stock transferusingthe stocktransportorder (STO)
• Productioninanotherplant
• Third-partyprocessing

25. • Returnable transportpackaging
• Pipelinehandling
5. Define consignmentstock.Whatare the mainfeaturesof consignmentstock?
Consignment,inageneral sense,isthe actof holdingthe ownershipof materialsbutstoringthe
materialsatsome otherpremisesuntil the materials are soldorshiftedsomewhere else.The stored
materialsare knownasconsignmentstockinthe SAPsystem.Therefore,stockthatisstoredat the
customer'spremisesbutisthe supplier'spropertyuntil the stockistransferredtothe customer's
stock listiscalledthe consignmentstock.The mainfeaturesof the consignmentstockare as follows:
• You can combine the consignmentstockwithyouravailable stockatany pointintime.
• You can evaluate the consignmentstockinanycurrency.
• The price of the consignmentstockfluctuates.Thismeansthatyoucandetermine the price of
the consignmentaccordingtothe marketconditions.
• You can price the consignmentstockinanyunit.
• You can use differentfeatures of purchasing,suchasdiscounts,inthe consignmentstock.
• The consignmentstockisevaluatedata price quotedbydifferentvendors.
6. How is the pricingof consignmentstocksdone?Whatinformationdoesconsignmentinfo
record contain?
• Priorto orderinga material froma vendoror postingagoodsreceiptto the consignment
stock,you needtoobtainthe consignmentprice.If the consignmentmaterialisorderedfromseveral
vendors,the systemmaintainsthe consignmentstockof eachvendorseparately.The reasonthe
systemmaintainsthe consignmentstockseparatelyisthatthe price of the consignmentstockmay
vary fromone vendorto another.
• The consignmentinformation(info) recordcontainsthe consignmentprice requiredforthe
purpose of material valuationandaccounting.
7. Howare the consignmentstockscreated?
Consignmentstocksare createdinthe normal purchase order(PO) orrequisition,butthe mainthing
to consideristhatyou mustenterthe K categoryfor the consignmentitem.Asaresult,the goods
issuedare postedtoconsignmentstoresandthe invoice receiptisnotgenerated.
8. Define the consignmentcycle?
• Consignmentcycle issimilartothe purchase cycle,exceptthatwhenyoucreate goods
receiptsof the consignmentstocks,onlyquantity(QTY) isupdatedandnoaccountingdocumentsare

26. created.Once the goodsare utilized,consignmentissettled.The valueof the consumedorissued
consignmentstocksistakenfromthe active purchase inforecord.
9. Howis consignmentmaterialprocured?
Consignmentmaterial isprocuredthroughpurchase requisitions,POs,andoutlineagreements.
10. How can we see the consignmentstocksinSAP?
You can see the consignmentstocksinSAPbyusingthe followingfunctions:
• Displayconsignmentinforecord
• Displaythe stockoverview
• Displayconsignmentstocks
11. How can we take consignmentstocksintoourownstock?
You can take consignmentstocksfromthe vendorintoyourownstock byperformingthe following
steps:
• SelectGoodsMovement> TransferPostingtodisplaythe initialscreen.
• Enter the plantname and the locationwhere youwantto store the materials.
• SelectMovementType >TransferPosting> Consignment>ConsignmenttoOwn.
• SelectContinue todisplaythe collective entryscreen.
• Enter the name of the vendor,the materials,andthe quantityof materials.
• Enter the receivingstorage locationif youwanttostore the materialsinanotherstorage
location.
• Postthe document.Thismakesthe vendorliable tochange the storage locationof the
materials.
12. Can we do the physical inventorycheckof consignmentstocks?
Yes,you can do the physical inventorycheckof consignmentstocks.Todo the physical inventory
check,performthe followingoperations:
• Create a physical inventorydocument
• Enter the physical inventorycount
• Postthe inventorydifferences
13. How can you doinvoicingincase of consignmentstocks?

27. You can invoice inthe case of consignmentstocksbyperformingeitherof the following:
• Invoice withPO
• Invoice withoutPO
14. What do youmeanby subcontracting?
Subcontractingcan be definedasthe processingof materialsbyanexternal supplier.
15. How issubcontractingusedincase of MM?
Subcontractingisthe processbywhichthe vendorreceivesthe materialstoproduce the end
product.Subcontractinginvolvesthe followingprocedures:
• You orderthe endproductby usingthe subcontractorder.The componentsthatthe vendor
needstomanufacture the endproductare mentionedinthe PO.
• Duringthe inventorymanagementprocess,the components are postedtothe stockof
material providedtothe vendor.Later,the componentsare suppliedtothe vendor.
• The vendorthenprocessesthe service anddeliversthe materialsordered.The consumptionof
the componentsisposted.
• If,afterpostingthe goodsreceipt,the vendornotifiesyouthatthe quantityof the
componentsactuallyconsumedisdifferentthanplannedinthe PO,youmustmake an adjustment.
• The vendorthenchargesforthe service,forwhichthe invoice isposted inInvoice verification.
16. What informationdoesthe subcontractinginforecordscontain?
A subcontractinginforecordconsistsof orderinginformationrelatedtosubcontractorders.For
example,if youenteredintoacontract withanoutside source forthe assemblyof a component,the
subcontractinginforecordwouldcontainthe price specifiedbythe vendorforthe assemblywork.
17. Howdo we create subcontractingPO?
• Performthe followingstepstocreate asubcontractingPO:
o Enter the material toorderand the categoryof the itemforsubcontracting(L) in the orderitem.
o Pressthe Enter keytodisplaythe screenforcomponentprocessing.

28. o In the componentprocessingscreen,enterthe componentsrequiredbythe vendorto
manufacture the orderedmaterial (endproduct).Whenenteringthe components,youneedtotake
care of the followingpoints:
o You do notneedto enterthe date requiredforthe components.The systemproposesthisdate
whenyoupressthe Enter key.Itis calculatedasfollows:
§ Deliverydate of the item(planneddeliverytime)
o If youdo notwishthe quantityof the componentstobe altered,evenif the orderquantityof the
endproductis changed,thensetthe indicatedfieldtofixedquantity.
o If youwantto allocate a particularbatch of the componentto the vendorforthe manufacture of
the orderedmaterial,enterthe desiredbatch.
o To determine whetherornot the componentsare available onthe date required,select
ComponentList> ComponentAvailability.
o Whenyou entera bill of material asthe material inthe subcontractorder,the componentsare
automaticallycreated.
o You can alsodetermine the componentsinthe bill of material atalaterdate (forexample,if the
bill of material issubsequentlychanged)byselectingItem>Go to > Components>New BOM
Explosion.The existingentryof the componentsisremovedandagaindeterminedinthe bill of
material.
o Save the PO.
• Whenyou printthe PO,the componentsare printedperorderitem.
18. How can we viewthe stocksprovidedtovendor?
The stocks of material providedtoavendorcan be viewedbyusingthe SCStockMonitoringfor
Vendorreport.The reportcan be accessedby selectingPurchaseOrder>Reporting> SC Stocksper
Vendorfromthe menu.Withthisreport,the currentstatus of the stocks,plannedissues,and
plannedreceiptscanbe viewed.
19. How are components(materials) providedtovendor?
The components,orrather the quantities of the componentsrequiredtomanufacture the end
product,are providedinthe stockof material tobe providedtothe vendor.The stockof material
providedtothe vendoristhe total valuatedstockthat isavailable forMRP.The total valuatedstock
ismanagedat the plantlevel,atthe site of the vendor.Thisstockcan be eitheranunrestricted-use
or quality-inspectionstock.The unrestricted-use stockreferstothe valuatedstockof a material that
isownedbythe companyanddoesnot have any restrictionsonitsusage.The quality-inspection
stock isintendedtobe usedonlyforqualityinspection.The componentscanbe providedtoa
vendorinthe followingways:
• Postingthe componentsfromthe unrestricted-use stock

29. • Receivingthe componentsfromanothervendor
20. Howare componentsconsumedincase of subcontracting?
In subcontracting,the endproductisorderedbyusinga subcontractorder.The materialsor
componentsrequiredbythe vendortomanufacture the endproductare mentionedinthe PO.The
componentsare postedtothe stock of the material providedtothe vendorduringinventory
management.Whenthe componentsare suppliedtothe vendor,the vendormanufacturesthe end
productand deliversit.Atthispoint,the goodsreceiptispostedwithareference tothe subcontract
order.The goods receiptalsocontainsthe postingof the consumptionof the componentsfromthe
stock of material providedtothe vendor.If the componentsconsumedbythe vendorare more or
lessthanthat specifiedinthe PO,anadjustmentneedstobe postedtocorrect the consumptionof
components.
5. InventoryManagementinSAPMM
1. Give an overviewof InventorymanagementinSAPsystem?
Inventorymanagementinthe SAPsystemhelps recordandtrackstocks of materials.Italsoinvolves
the planninganddocumentationof all goodsmovements..
2. What tasks are coveredunderInventoryManagement?
Inventorymanagementisanimportantpart of materialsmanagement(MM).Optimal inventory
managementnotonlyensuresanuninterruptedsupplyof the material atthe requiredtime,butalso
preventswastingitems.MMcoversthe followingtasks:
• Material stock management
• Planning,entry,anddocumentationof goodstransfers fromandtothe inventory
• Physical stockingof items
3. What is Physical Inventory?
• Physical inventoryisaprocessin whichall the transactionsrelatedtothe movementof goods
are stoppedandthe companyphysicallycountsinventory.Itisrequiredinfinancial accountingrules
or for placinganaccurate value onthe inventoryfortax purposes.
4. What are the initial configurationstepsforphysical inventory?
The stepsfor purchase acquisitionare asfollows:
• Definingthe defaultvaluesforthe physical inventorydocument

30. • Reportingbatchinputs
• Recordingtolerancesforphysical inventorydifferences
• Inventorysamplingaswell asconfigurationof cycle counting
5. What is the differencebetweenmanagingstockbyquantityandmanagingstockbyvalue?
• Transactionsthat make changesinthe stock resultinstockupdatesthat are recordedinreal
time.Atany pointintime one can viewthe stockoverview,whichrepresentsthe currentsituationat
that time.Thatis the essence of stockmanagementbyquantity,andcanappliedtothe following
stock types:
o Locatedin the warehouse
o Orderedbutnot yetreceived
o Locatedin the warehouse andreservedforaparticularpurpose
o Reservedforqualityinspection
• The managingstockby value optionreviewsthe stockmaterialsqualitativelyratherthan
quantitatively.The valuatioNof stockisdone eitheratthe plantlevel orat the locationlevel.
Updatesthat can be done whenmanagingstockbyvalue are as follows:
o The quantityand value forthe goodsmovement
o The accounts that are assignedforcostaccounting
o The G/L accountsfor financial accounts,withautomaticassignmentof accounts
• The valuationareaisthe organizational levelatwhichthe stockvalue ismaintained.Itcanbe
eitheratplantlevel orstorage level.
6. What are the special stocksinSAP?
Special stocksare definedasstocksthatmust be managedseparatelybyacompany.Theycan be
eithercompanyownedorexternal stocks.Theycanbe categorizedasfollows:
• Consignment
• Subcontracting
• Stock transferusingstocktransportorder
• Third-partyprocessing
• Returnable transport packaging
• Pipelinehandling
• Sales-orderstock

31. • Projectstock
7. With whichmodulesinSAPisthe inventorymanagementintegrated?
Inventorymanagementisanimportantpart of the SAPMM module.The businessactivitiesof an
organizationrevolvearoundthe inventoryof materials,whichservesasthe inputforthe
manufacturingprocessorthe inventoryof preparedgoodsfordeliveryorsale.The material is
purchasedfromthe appropriate vendorsonthe basisof requestsfromthe materialsrequirement
planning(MRP) module.The delivereditemsare recordedasthe goodsreceiptininventory
management.The materialsare thenstored,eitherfordeliverytothe customeror for
manufacturingprocesses.Inventorymanagementisintegratedwithothermodules,suchasfinancial
accounting(FI),salesanddistribution(SD),productionplanning(PP),projectsystem(PS),andquality
management(QM).
8. How is the inventorymanagementintegratedwithMM?
• Inventorymanagementis directlylinkedwiththe MMmodule because anymovementof
goodsto and frominventoryhappensunderthe MMmodule.MRP,purchasing,andinvoice
verificationare some of the MMcomponentsthatare alsolinkedwithinventorymanagement.After
material isordereditispostedasa goodsreceiptwithreference tothe purchase order.The actual
data of the quantitiesare checkedinthe vendor'sinvoice.
9. What are the initial configurationstepsforinventorymanagement?
The stepsfor inventorymanagement are asfollows:
• Definingplantparameters
• Definingsystemmessage attributes
• Definingnumberassignment
• Defininggoodsissue,transferposting,screenlayout
• Maintainingcopyrulesforreference documents
• Settingupdynamicavailabilitychecks
• Confirmingthe negativeitems
10. What isGoods movement?Whattype of documentsiscreatedaftergoodsmovement?
Goodsmovementreferstothe movementof stock.Thismovementof stockcouldbe eitherinbound
fromthe vendor,outboundtoacustomer,betweendifferentplants,orevenbetweendifferent
stockswithina plant.Aftergoodsmovement,the SAPsystemcreatestwotypesof documents:
material documentsandaccountingdocuments.
11. What are the goodsmovementsthattake place inMM?
The goods movementscanbe definedasthe physical orlogical movementsof materialsthatleadto
a change instock levelsorresultsinmaterial consumption.The goodsmovementsare partof the
MM policy.The goodsmovementsinSAPare as follows:

32. o Goods receipt— Representsthe physicalmovementof goodsormaterialsintothe company.It
increasesthe stockquantity.The goodsreceiptcanbe of the followingtypes:
§ Goodsreceiptwithreference toapurchase order
§ Goodsreceiptwithreference toaProductionorder
§ Goodsreceiptwithoutreference
o Goods issue— Representsthe physical movementof goodsormaterial ouTof the company.It
reducesthe stockquantity.The goodsissue canbe of the followingtypes:
§ Goodsconsumptioninthe company
§ Goodsdeliverytocustomers
o Stock transfer— Representsthe movementof materialsfromone locationtoanotherlocation.
The locationscan be eitherwithinthe same plantordifferentplants.
o Transferposting— Representsthe stocktransferthatcaneitherbe physical orlogical.Inlogical
stock transfers,goodsare transferredonlyinrecords,while the actual stocktransferdoesnoToccur.
Some examplesof physical stocktransferare:
§ Stock transferbetweentwostorage locationsinaplant
§ Stock transferbetweentwoplants
§ Transferof materialstocustomerconsignmentstock
• Some examplesof logical stocktransferare:
o Release of materialsfromstockinqualityinspection
o Transferof materialsfromvendorconsignmentstocktoownstock
o Batch splitting
o Transferpostingmaterial-to-material
12. What isGoods Receipt&Goods Issue?
• Goods receiptisthe processthatenablesthe receiptof material fromavendororfrom the in-
house productionprocess.There are othertypesof goodsreceiptsinSAPthatinclude initial stock
creation.The goodsreceiptprocessalsoincreasesstockdue toone of the followingprocesses:
o Receiptof productionorder
o Receiptof purchase order
o Initial inventoryentry
o Others

33. • Goods issue isa processinwhichthe stockin the warehouse isreduceddue toanyof the
followingreasons:
o Shipmenttoa customer
o Stock withdrawal foraproductionorder
o Returnof materials
o Material requiredforsampling
o Scrappingof materials
13. Why isgoodsreceiptimportanttoa company?
Goodsreceiptindicatesareceiptorinwardmovementof stockof materialsorgoods.Whenan
external vendorprovidesstocktothe company,the goodsreceiptisgeneratedasa purchase order,
and whenthe material isproducedin-house,the goodsreceiptisgeneratedasaproductionorder.A
goodsreceiptisimportanttoa companybecause usingagoodsreceiptmovesmaterial intostock,
updatesthe stocklevels,andtherebyindirectlyenablesthe productionprocess.
14. How isa goodsreceiptperformed?
• The stepstoperforma goodsreceiptare as follows:
o Enter the headerdata.
o Selectthe movementtype andthe purchase ordernumber.
• The documentispostedinthe database.
15. How doyou postthe goods if the PO numberisnotknown?
If the purchase ordernumberisnot known,youmustentersearchcriteriaforthe purchase orderin
the initial screen.Asaresult,the listof purchase ordersisdisplayed.The desiredpurchase order
itemscan thenbe copied.
16. How isthe vendorreturnedprocessedwithoutapurchase orderreference?
• You firstneedtoobserve the ReturncolumnandthenselectItemDetail >MIGO_GR > Goods
ReceiptforPurchase Order.If the intentionistodeductthe stock,thenmovementtype 161 isused;
otherwise,162is usedtoundo the changes.Lastly,youmustensure thatthe documentisa return
purchase order.The documentisthensaved.
• Alternatively,youcanuse the M21N transactioncode forthispurpose.
17. What happenswhenagoodsreceiptisposted?
While postingagoodsreceipt,the following eventsoccur:
• The material documentiscreated.

34. • The accountingdocumentiscreated.
• Three printedversionsof goodsreceiptnotesare modified.
• The stocklevel changes.
18. What isthe resultof goodsmovement?
The followingeventsare initiatedwhengoodsmovementstake place:
• First,a materialsdocumentisgenerated,whichisproof of the goodsmovements.
• Accountingdocumentsare generatedif the movementof goodsrequiresachange inthe
financial accounts.
• The stocksof the materialsquantitiesare updated.
• The stockvaluesinthe material masterare updated.
• Financial andmaterial documentsare updated.
SAPMM InterviewQuestionsandAnswers
Questions
1. What isthe difference betweenthe stocktransferbetweentwoplantsbelongingtosame
companycode and those belongingtodifferentcompanycode?
2. What are the importantfieldsinpurchasingview?
3. What are the stepsinautomaticaccount assignmentconfiguration?
4. How doyou create movementtypes?Whatare the stepsinvolved?Whenwill you
recommendanewmovementtype?
5. What ismeantby access sequence?Whenitisused?
6. How doesthe POpick upthe pricingschema?
7. What are the stepsinvolvedin creatingapricingprocedure?
8. What are the typesof special stocksavailable?
9. What are the typesof inforecords?
10. What ismeantby consignmentstock?
11. What are the stepsinvolvedinconsignmentcycle?
12. Tell me aboutthe subcontractingcycle.
13. How isscrap accountedinsubcontracting?
14. How are the byproductstakencare of insubcontracting?
15. Tell me aboutthe variousmovementtypesandusage.
16. What ismeantby scales?Canscalesbe usedinstandardpurchase order?
17. What isthe difference betweenacontract anda schedulingagreement?

35. 18. How doesthe systemcalculate taxes?
19. How doesthe systemcalculate nondeductibletaxes?
20. What ismeantby batches?How can the batchesbe searched?
21. How isa shelf-lifeitemmanagedin SAP?Whatisthe full cycle?
22. What are the settingsrequiredforquotaarrangement?
23. What ismeantby MRP Type andlot sizing?
24. Can itbe configuredinsucha waythat the external requisitionscanalsobe takeninto
account while MRPrunsin consumption-basedplanningif VBisselectedasMRPtype?
25. What isa reference purchase organization?Whencanitbe used?
26. Explainthe conceptof splitvaluationandwhencanitbe used?Whatare the settings
required?
27. What are valuationarea,valuationcategoryandvaluationclass?
28. What ismeantby a creditmemo?
29. How are free itemsmanagedina PO?
30. What ismeantby a release strategy?
31. What are release groupsandrelease codes?
32. What are the differencesbetweenrelease procedure withclassificationandrelease
procedure withoutclassification?Whenare theyused?
33. Is itpossible tohave a release procedurewithoutclassificationforaPO?
34. Is itpossible tohave scalesina quotation?
35. What isGR blockedstock?Whenit can be used?
36. What isthe movementtype forreturntovendor?How to reverse it?
37. How are the variationsinsubcontractingtakencare of inSAP?
38. What are the toolsavailable fordatamigrationinSAP?
39. What isthe difference betweenLSMWand CATT?
40. How to give specificationsfordevelopments?
41. How doyou planfor a vendorratingsystemandmove about?
42. What isRTP?
43. What isthe movementtype usedinreceiptof RTP?
44. How isan itemwithserial no.managed?
45. How doyou make variants?
46. What are the typesof tablesinSAP?

36. 47. How to inventoryexcise dutyinSAP?
48. What are the documentsgeneratedinthe MIGO101 movementtype?Whatare the
accounts hit?
49. What isthe difference betweenlotandbatch?
50. What are the businessbenefitsachievedbymaintainingSource listandinforecord?
51. How source determinationworks?
Answers
1. A stocktransferfromplant to plantgenerallytakesplace withinacompanycode.It can,
however,alsotake place betweentwocompanycodes, if the plantsare assignedtodifferent
valuationareas,whichbelongtodifferentcompanycodes.
Unlike astock transferfromstorage locationto storage location,astock transferfromplantto plant
affectsbothaccountingandMaterialsPlanning,asfollows:
o Accounting:Accountingisaffectedif bothplantsare assignedtodifferentvaluationareas.
Thismeansthat a stock transferleadsnotonlyto a quantityupdate butalsoto a value update (stock
value,G/Laccounts).Thus,parallel tothe material documentforstocktransfer,anaccounting
documentiscreated.
o MaterialsPlanning:Materialsplanningare affectedbecauseachange of plant stockis taken
intoaccount by MaterialsPlanning
2.
o RFQ/Quotation
o Purchase requisition
o Purchase order
o Master data (Inforecord,Source list,Conditions,Vendorsetc.)
o Outline agreements
3. Material type isassignedtoA/c Cat Ref.;A/cCat. Ref is assignedtoVal.Class;Val.class
assignedtoG/L A/c.
Configuration:
OMWM : Activate Val.groupingCode
OMSK : Create A/c cat. ref and Val.Class;thenA/ccat ref assignedtomaterial type.
OMWD : Val.area(plant) assignedtoVal.grp.code (0001)
OBYC : AssignVal.modifier(0001),NewVal.ClassandG/L A/c
Nowcreate newmaterial andassignnew val.classinAccounting1 data screen.Thencreate PO,GR.
4. Transactioncode is OMJJ
You can copy newmovementtype whichisnear-byoldone.

37. Whenwe go to newmovementtype,if there isnopossibilitytodone transactionwithold
movementtype.
Steps:1) entrycontrol data 2) short text3) allowedtransactions4)helptext5)update control data
6)account grouping7)reasonsformovement
5. Conditiontype hasanaccess sequence assignedtoitwhichdetermineswhichtablesto
access fordata and inwhat sequence. Thishasasequence of table basedonthe mostspecificto
mostgeneric.
It can be usedforany newconditiontype creation.
6. The pricingprocedure assignedtoa vendorhasa calculationschemaattachedtoit. This
schemadefinesthe variousconditions pre-requisite,calculation&sequence inthe PO.Generally,
onlyone type of pricingprocedure isfollowedforall the vendors.
7. To create a pricingprocedure,the stepswillbe
o Create Conditiontables
o Create accesssequence byplacingthe different conditiontablesfrommostspecifictothe
mostgeneral.
o Create the conditiontypes
o Assignthe Accesssequence tothe conditiontype
o Create the pricingprocedure
o Place the all conditiontypesinasequential orderasperthe businessrequirement and
pricingneeds.
8.
o Consignmentstock - vendor
o Componentsprovidedtovendor
o Projectstock
o Consignmentstockcustomer
o Pipeline material
o Orderson hand
9.
o Standard
o Pipeline
o Consignment
o Subcontracting

38. 10. Consignmentstockisthe material whichislyinginthe premisesbutisnotownedbythe
company.It has novalue assignedtoituntil itistakenintoown stock.Once it isusedinproduction
or to be sold,it istakenintoownstock.
11. Consignmentcycle issimilartoa standardpurchase cycle.The differenceitthatno
accountingdocumentiscreatedat the time of goodsreceiptsonlyqtyisupdated.Itissettledonce
the same is utilized.
12. Whenthe material issentfor subcontractingi.e.some valueaddition,itisconvertedintoa
differentmaterial.ItneedsaBOMto define the componentsof the finisheditembeingreceived.
13. Whenthe material issentfor subcontractingi.e.some valueaddition,itisconvertedintoa
differentmaterial.ItneedsaBOMto define the componentsof the finisheditembeingreceived.The
scrap or the processlosscan be adjustedwhiledoingaqualityinspectionof the material received
aftersubcontracting.
14. productscan be takencare of by definingtheminthe BOM.
15.
o 101 GR in unrest.Use
o 103 GR in Blockedstock
o 105 Release fromBlocktoUnrest.Use stock.
o 122 Returnto vendorfromunrest.Use stock.
o 124 Returnto vendorfromblockedstock
o 301 Plantto Planttransfer.
o 309 Material to Material transfer
o 311 Transferfromstg locto stg loc
o 261 Issue forconsumption
o 411 Takingconsignmentstockintoownstock
o 551 Withdrawal forscrapping
16. By usingscaleswe can fix the price of a material accordingly,forexample,we canfix the
material price.
Basedon the quantity like
For quantity1 to 100 price isRs1000
For quantity101 to 200 price is 900
Like that,you can fix price.
17. A schedulingagreementcanbe made for Consignment,Subcontracting&stock transfer.A
contract, alsoknownas a blanketPO,can be made for standarditemsandcan be restrictedtoa
Value orQty.

39. 18. Basedon the calculationschemaof thatcondition& basedonaccess sequence assignedto
it.
19. Conditiontype inthe standardsystem:Non-deductible inputtax =NAVS
Dependingonthe tax code in the POitemand the tax calculationschema,the systemcalculatesthe
non-deductibletax portionandinsertsitinthe conditiontype withthe categoryN.
The conditiontype hasthe calculationrule "absolute amount".
Normally,the accesssequence thatregulatestax code determinationisassignedtothe condition
type.
20. Batch is a subdivisionof yourstockof a material havingthe same characteristics
ex:medicines,foodproducts
We can searchbatchesusingthe standard searchfacility(matchcode,key F4) basedonthe naming
conventionof the batchesor,if youuse batchclassification,basedonthe characteristicsof the
batches.
21. There are actuallytwotypesof shelf life
1. Total shelf life
2. Minimumremainingshelf life
Total Shelf life- If total shelf life ismaintainedthenthe minimumshelf life will alsotobe entered
mandatory.
While takingGR forsuch item,itactuallyasksthe userto enterthe manufactureddate sothat the
systemautomaticallycalculatesthe expirydate.
Minimumshelf life- While takingthe GR,itasks the userto enterthe date of GR date sothat it
checkswhetherthe daysenteredinmaterial masterhasbeensatisfied.If the conditionisnot
satisfiedthenitwillnotallowtotake receiptforthatitem.
22. To setup a quotaarrangementforthe procurementof a material,proceedasfollows:
Master data -> Quota arrangement->Maintain,enterthe material andplantnumber,
PressENTER
It displaythe overviewscreenforthe quotaarrangementperiods,Enteravalidityperiodforquota
arrangement,Enterdate until whichthe quotaarrangementisvalid.The startdate iscalculatedby
the system.
PressENTER
Selectthe quotaarrangementandchoose,Goto -> Itemoverview todisplaythe itemoverview
screenof the quota arrangement.Entera quotaarrangementitemforeachsource of supplyyou
wantto include inthe quotaarrangement.
You mustenterthe followingdata.
o Procurementtype

40. o Special procurementtype,Enterkinthe S column,forexample,if aconsignment
arrangementforthe material existswiththe vendor.
o Vendornumber
o Procurementplant,(supplyingplant)
o Quota column,enterthe quotaassignedtoeachitem
PressENTER
The percentage distributionof the quotasiscalculatedanddisplayedautomaticallybythe system.
Save the quota arrangement.The systemassignsanumbertothe quota arrangementitem
automatically.
23. It isprocedure thatyou setin the systemonhow the Material is planned
o ReorderPoint
o Seasonal requirement
o Replenishment
o VendorManaged
o ForecastBased
o Master productionScheduling
Lot size:
You can define yourrequirements(tobe producedorProcured) intermsof Weekly,Monthly,Qty
based,MaximumReplenishment.
24. Yes youcan do it basedonthe MRP2 tab for material masteryouneedtogive youMRP type
as VB andin Mrp2 setautomaticreorderpointtab.Now run MD02 and MD04.
25. It isreference forall the otherexistingPurchase Orgnizations.Itisnotassignedtoeitherto
plantor comp code.The contracts, termsand conditionscanbe utilizedbyotherPurchase
Organizations.
26. Whenthe same material to be valuateddifferentlythenwe cangofor splitvaluation.Often
we use splitvaluationinchemical industriesrelatedtochemicals.
For example,color,ph,quality.
We needtodefine valuationcategoriesandvaluationtypes.
0. For valuationcategory:origin,valuationtypesare local procurementandforeign
procurement
1. For valuationcategory:procurementtypes,valuationtypesare in-houseprocurementand
external procurement.
2. For valuationcategory:quality,valuationtypesare poorquality,mediumquality,high
quality.

41. like thiswe candefine valuationcategoriesandvaluationtypes.
CUSTOMIZATION SETTINGS
MM-> VALUATION ANDACCOUNTASSIGNMENT-> SPLIT VALUATION.
3. Define valuationcategoriesandvaluationtypes.
4. Assignvaluationtypestovaluationcategory.
5. Assignplantsinwhichvaluationiseffecting.
Once customizationsettingsare done.
6. Create material masterandfill accountcat reference inaccountingview.
7. Againforsame material type give valuationtypeswhichutakenandgive the movingavg
price.
NEXT STEP
8. Create ME21N Purchase order
9. MIGO
Once takento MIGO checkMMBE -Stockoverview andMB02- Accountingviews.
27. ValuationareaisgenerallycompanyorplantValuationcategory -splitvaluationisapplicable
or not.
Valuationclass- whetherthe materialsfall intowhichcategoryforsimplificationsuchasraw
materials,semi finishedgoodslike that.
28. Creditmemoisas similarasmoneybackto your account.
For Ex.If youdidexcesspayments(the differencebetweenPOprice andAccountTransferprice) to
the vendorthanthe actual paymentor undersome circumstancesvendorisreturningsome amount
to youraccount, for thisyouneedtomaintainone accounttype,that account type iscalledcredit
memo.Thismaybe justto identifywhyandfromwhere the moneyhasbeenpostedinyour
account.
If this isnot maintained,atthe valuationlevel conflictsinpaymentdifferencesmayarise.
29. Whenyoucreate purchase orderforvendorat that time show inline itemdatainwhichone
checkbox available forfree delivery.Sowhenyouwanttocreate purchase orderwithfree quantity
clickon that checkbox.
30. Release strategymeans,value of the purchase orderismore thancertainlimit,thatcan be
releasedbyMMmanager.That movementtype isME29N.
31. Release code isatwo character ID allowingapersontorelease arequisitionoranexternal
purchasingdocument.Release groupisagroup of release codeswhichcanrelease apurchasing
documentfora release strategy.
32. Release procedureswithclassificationcanbe usedforbothinternal andexternal purchasing
documents,whereasreleaseprocedureswithoutclassificationcanbe usedonlyforinternal
documents.

42. 33. No,release procedure withoutclassificationnotpossibleforexternaldocumentslikePO.
Withclassificationwill allowrelease atheaderandItem.
Withoutclassificationwillallow release item -wiseonly.
For a PO youwill wanta release headerwiseandnotitemwise.Hence youneedtouse with
classification.
For PR youcan use anyone of themi.e.,withorwithoutclassification.
34. Possible incase of time dependentconditions.
35. Whenwe have some issuesinthe receivedstockandwe donot wantthe quantityto be
consideredinthe inventorythenwe canmaintainthe stockas GR Blockedstock.
It isonlyrecordedinthe purchase orderhistory.Thisstock isNOT valuated.
You can displaygoodsreceiptblockedstockfromtwoviewpoints:
0. Goodsreceiptblockedstockfora material (atplantlevel)
1. Goodsreceiptblockedstockfora purchase orderitem
36. MovementType 161 isusedfor returnto vendor.Just selectreturnbuttoninthe PO.
37. Subsequentadjustmentcanbe ProcessesthroughT-Code - MIGO
38. LSMW - LegacySystemMigrationWorkbench(Usedtouploadthe data fromNonSAP to SAP
System)
CATT - ComputerAidedTestTool (UsedtoCreate testcasesas well asuploaddata)
39. LSMW isuesdto migrationof data fromnon-sapsystemtothe sap systemorsap systemto
sap system,here the dataismigratedfromthe one systemto anothersystem.sothisisa migration
tool
WhereasCATT isa computeraidedtestingtool,usedtotestthe abapobject
40. In SAPfor anykindof development,functionconsultantneedtogive the functional
specificationstatingthe purpose of the developlementaswell aslogicforthe selection,related
fieldsandtables.He alsoneedstoprepare one ortwotest casesto testoutputthe
report/development.
41. Basedon Price,Quality,DeliveryandService.Youcangive pointstothiscategoriesandyou
can maintainTCode:ME61
42. Returnable transportpackaging(RTP) isamulti-trippackagingmedium(forexample,pallets
or containers) inwhichgoodscanbe transportedmore thanonce betweenvendorsandcustomers.
Returnable transportpackagingfromavendorthat isstoredat a locationonyourpremisesis
managedas special stockandclearlyassignedasbelongingtothe vendor.Itisthe propertyof the
vendorandis therefore notincludedinthe customer'svaluatedstock.
43. The movementtype usedinthe receiptof RTPis(501 M)

43. 44. Serial Number:If youwanttodistinguisheachItem (generallyunitof measure will be EA,PC..
etc) in the inventory,thenserial numberwill be used.Separate serial numberprofile needtobe
createdand placedat workschedulingview orplantdatastorage view of material master.
Advantage:we cantrackthe movementsof eachserial numberof material.
Configurationsettings
You have to configure the serial numberprofile&assignitto Material master.Inthe configuration
profile of serial number,youhave tocheckthe check box for serial numberrequired forprocessing
& set the Goodsmovementtransactionwhere youwanttoautomaticallycreate the serial numberor
create the serial numberforthe material usingTcode IQ01.
DuringSerial NumberprofileinSerializingProcedure youhave tomaintainthe followingsettings:
MMSL - Maintaingoodsreceiptandissue doc.03 02
SDLS - Maintaindelivery03 02
SDRE - Maintainreturnsdelivery0302
In Serializationprofile,there isacheckbox for(Existingrequired) uncheckthatcheckbox & thentest
your transaction.Youwill geta button"Create new inserial number"inselectionscreenduring
goodsreceipts...Create new serial numberformaterial there &thenmake goodsreceipt.
AssignSerial Numbertoexistingstocks
IQ02 - Edit- Special Serial NumberFunctions
0. Change to - FromStock
1. Stock Type - '01'
2. Plant- 'XXXX'
3. Storage Location'XXXX'
4. Save
Edit- Special Serial NumberFunctions
5. Change back - To Stock
45. Go to any reports
Selectsave variant(Ctrl+F10)
Create the layoutas youwant then save the variantinyour name.
46. There are only3 typesof table inSAP.
0. TransparentTable
1. ClusterTable
2. Pool Table
47. At the time of Goods Receipt(TCode MIGO) capture Excise dutyinExcise tab.Thisispart 1
capture.TCode J1IEX, Part 2, PostExcise duty

44. 48. The Documentsthat are generatedare:Material Document&AccountingDocument.
Accountsthat are hitare:
o RawMAterial/Stock/OperationsAcct(Dependsonthe Type of Business) - Debit
o GR/IR ClearingAcct-Credit
49. InspectionLot:In the QualityManagement(QM) component,youprocessqualityinspections
on the basisof inspectionlots.If you wantto inspecta specificquantityof amaterial ora piece of
equipment,aninspectionlotmustbe createdinthe system.The documentationdescribeshow
inspectionlotsare createdautomaticallyormanuallyandhow youuse the inspectionlotstoprocess
differenttypesof inspections.Once aninspectionlothasbeencreated,youcaninspectthe goods,
record the inspectionresultsordefects,andcompletethe inspectionwithausage decision.
Batch:Certainmaterials'featurescannotalwaysbe guaranteedtobe exactlyalikeinproduction.For
example,youcannotguarantee thatacertaincolor will alwayshave the same shade.Minor
differencesbetweenproductionlotscannotbe avoided.Youneedtobe able touniquelyidentifythe
individualproductionlotsof the same material andmanage themseparatelyininventory.
Materialsthat require suchprecise identification,forexamplepharmaceutical products,are
identifiedandmanagedinstocknotonlyaccordingto material number,butalsoaccordingtobatch
number.
Withbatch handling,youcanmanage not onlyproductionlotsfromin-house production,butalso
productionlotsfromvendorsasseparate entities.
50. Sourcelist:Itisacombinationof one material withmore thanone vendororplants(in
internal)andsourcelististhe higherprioritythaninforecord.youcanstratifythe vendorfora
material withsourcelist.
Eg:youhave 4 inforecordsfor a same material withdifferentvendors.If youare notmaintained
sourcelist,checkwhilecreatingPR.Itwill displayall vendors.If youhave sourcelistthere youhave
selectedavendorasfixed.Youwill onlygetone vendor,please check.
Inforecord:Isa combinationof one material withone vendor
51. Source determination:if youactivate thisindicator,yougive vendorduringPRcreation
.otherwise youcangive the vendoratthe time of PO. youcan save the PRwithoutvendor.source
determinationisusedtoidentifythe source of supply.
52. FantasticopportunityforSAPMM students,aswell asforjuniorSAPconsultants,alistof
BestInterviewQuestionsonSAPMM (Material Management) are available here tocreakinterview.
Here you will findcommoninterview questionsforspecial procurement,purchase department,
material masters,vendormanagement,service procurement,inventorymanagement,
material release manager,accountdetermination,automaticaccountdeterminationandmany
more.These questionsare providedbySAPexpertswhohave enormousskillsoversapintegration
and handon experience inliveproject.
SAPMM InterviewQuestionsonfollowingtopics:

45. General/Organizational Elements/MasterData
Purchasing/Optimization/Customzing
InventoryManagement(incl.SpecialProcurement) /Physical Inventory
Customizingincl.Message Determination
MaterialsPlanning
AccountDetermination/Valuation
Invoice Verification(incl.Customizing)
BestInterviewQuestionsonSAPMM (Material Management) : General/Organizational
Elements/MasterData
1. What is meantby a clientinthe SAPR/3 System?
2. What is the mySAP.comMarketplace andthe Workplace?
3. Name the essentialorganizationalelementsinMaterialsManagementandexplainhow theyare
used.
4. Explainthe conceptof viewsinthe material masterrecord.
5. What do you have to take intoaccount withregardto the functionor transactiontobe chosenif
youwant to create a view(thatis,data for a particularuserdepartment) inthe material masterfor
differentorganizational units(forexample,fordifferentplants)?
6. What importance doesthe purchasingorganizationhave forthe material master?
7. How do youcontrol the use of selectedvaluationclassespermaterialtype?
8. With whichmasterdata isthe account group used?
9. What doesan account group determine?
10. At whatlevel isgeneral dataforvendors(suchasthe address) managed?Whatuserdepartment
isresponsible?
11. What ismeantby a one-time vendor(sundriesaccount)?
12. What viewshave tobe maintainedinthe vendormastertobe able to create purchase orders?
13. What determineswhetheramaterial canbe postedto stock?
InterviewQuestionsonSAPMM (Material Management) :Purchasing/Optimization/Customzing

46. 1. Explainthe basicstructure of purchasingdocuments!Whatisthe special feature of purchase
requisitions?
2. Which control parametersare locatedat the itemlevel of purchasingdocuments?
3. What doesthe accountassignmentcategoryU (unknown) standfor?Whencanyouuse this
account assignmentcategory?
4. How can you assigndifferentdeliverydatestoapurchase order item?
5. Why may thisbe advisable?
6. What must youtake intoaccountor determineinthe case of multiple accountassignment?
7. Explainthe procurementprocessusingoutline purchaseagreements.Whatare the basic
differencesbetweenacontract anda schedulingagreement?
8. What is the purpose of the collective numberforRFQs?
9. With whichfunctionalitycanyoucompare quotationssubmittedbydifferentvendors?
10. At whichorganizational levelsisinforecorddatakept?
11. What determineswhetheryoucanchange the "GR", "GR non-valuated",and"IR"indicatorsin
the purchase order?
12. At whichlevel isthe purchase orderhistorykept?
13. In whichof the followingcasescanyou define scalesforthe conditiontype?
Purchase order
Contract
Inforecord
Vendor
Quotation
Schedulingagreement
14. Whichmasterdata must youmaintainfora quota arrangement?
15. At whichlevelscan youdefine asource listrequirement?
16. Specifythe prioritiesinthe source determinationprocess!
17. In whichwayscan a source be assignedtoa purchase requisition?
18. What isthe mainpurpose of the "Assignrequisitions"function?
53. 19. What are the preconditionsforautomaticallygenerateddeliveryschedulelines?
54. 20. How doyou determine thatthe "source assignment"flagissetonthe initial screenwhen
a purchase requisitioniscreated?

47. 55. 21. Explainthe advantagesof externalservicesprocurement(itemcategory"D") in
comparisonwithprocuringservicesbymeansof astandardpurchase order withaccountassignment
(textormaterial type DIEN)!
56. 22. How doyou make itpossible toacceptexternal servicesthatare notcoveredbya
purchase orderor exceedthe scope of servicescoveredbyapurchase order?
57. 23. What doesthe release strategydetermine?
58. 24. At whichlevel are purchase requisitionsreleased?Whatdoesthisdependon?
59.
60.
InterviewQuestionsonSAPMM (Material Management) :InventoryManagement(incl.Special
Procurement) /Physical Inventory
1. What is the differencebetweenblockedstockandGR blockedstock?
2. Accordingto the bill of material,aproductionorderrequires10 piecesof amaterial. Butonly8
piecesare requestedforthe issue date andthe remaining2piecesare no longerneeded,because
theyare alreadyavailablefrompreviousorders.Whatare the implicationsof this?Whatneedstobe
done?
3. In whichcasesare reservationsappropriateforgoodsreceipts?
4. What optionsdoyou have to carry out goodsmovementsbetweendifferentplantswithinyour
group?
5. You have postedthe wrongquantityat GR. How do yourectifythis?
6. Can you use differentmovementtypesinone material document?
7. How are goodsmovementsdocumentedinMM?
8. How are goodsissuesthatare postedbysalesanddistribution(SD) documented?
9. What are the effectsof a goodsreceipt?
10. Whenisthe “deliverycompleted”indicatorautomaticallysetatGR?
11. For whichlevelsdoyoudefine thatnegativestocksare allowed?
12. Brieflyexplainthe processof consignment!
61.
62.
InterviewQuestionsonSAPMM (Material Management) :Customizingincl.Message Determination

48. 1. What doesthe itemcategorydetermine?
2. Can you define furtheritemcategories?
3. What doesthe documenttype determine withregardtopurchasingdocuments?
4. Which parameterisusedto differentiate betweenthe output(asmessages) of anewlycreatedor
changedpurchase orderand a reminderorurgingletter(expediter) relatingtothe PO?
5. How can you ensure thatthe choice of the printertobe usedforprintingoutpurchasing
documentsdependsonthe purchasinggroup?
63.
64. InterviewQuestionsonSAPMM (Material Management) :MaterialsPlanning
65.
66. 1. On what informationare the variousconsumption-basedplanningproceduresbased?
Name the consumption-basedplanningprocedures.
67. 2. Name the 3 planningruntypes
68. 3. What informationisrecordedinthe planningfile?
69. 4. What determineswhetheramaterial isto be includedinthe total planningrun?
70. 5. Which timesdoesthe systemtake intoaccountwhenschedulingforexternal
procurementandwhere are theyentered?
71. 6. How many receiptelementsare createdandwhichquantitiesare procuredif a
requirementof 160 piecesexists,10piecesare available andthe followingconditionsexist:
72. a) lot-for-lotorderquantity:
73. b) fixedlotsize 100:
74. c) lot-for-lotorderquantitywithroundingvalue 100:
75. d) lot-for-lotorderquantitywithminimumlotsize 50:
76. e) lot-for-lotorderquantitywithminimumlotsize 200:
77. f) lot-for-lotorderquantitywithmaximumlotsize 100:
78. g) replenishmentuptomaximumstocklevel500:
79.
80. SAP MM InterviewQuestionson:AccountDetermination/Valuation
81.
82. 1. On whichlevelscanyouvaluate materials?
83. 2. What is the functionof the periodclosingprogram?
84. 3. You want to carry out a postingfora goodsmovementthatwascarriedout3 monthsago,
but hasnot yetbeenposted.Whichpostingdate doyouuse?

49. 85. 4. What is the purpose of the account groupingcode?
86. 5. Can you assignmore thanone valuationclassto a single material masterrecord?
87. 6. What is a valuationclass?How isit used?
88. 7. What is the purpose of the (general) accountgroupingcode?
89. 8. Under whichcircumstancesisa postingmade toa difference accountwhenagoods
receiptfora purchase orderis postedtostock?
90. 9. Are accountingdocumentsusually createdforthe followingpostings?
91. Transferpostingfrommaterial tomaterial
92. Material type ROH, GR for POpostedto stock
93. Material type UNBW, GR for PO to stock
94. Transferpostingfromplantto plantinone step
95. Transferpostingfromplantto plantintwo steps:removal fromstock
96. Transferpostingfromplantto plantintwo steps:putaway
97. GR forPO withaccountassignment,GRnot valuated
98. GR forPO withaccountassignment,GRvaluated
99. GI of a raw material (ROH)
100. GI of an non-valuatedmaterial (UNBW)
101.
102. BestSAPMM Interview Questionson:Invoice Verification(incl.Customizing)
103.
104. 1. In whichcaseswouldthe stockor consumptionaccountbe creditedwiththe cash
discountamount?
105. 2. When does a price variance notleadto an invoice beingblocked?
106. 3. If, inan invoice,anitemfor$ 100 isblocked,and2 furtheritemsfora total of $ 200 are
not blocked,howmuchisthe vendorpaidinthe nextpaymentrun(withouttax)?
107. 4. Why is the message issuedbythe systemaboutapaymentblocknotan error message?
108. 5. What is a stochasticblock?
109. 6. An invoice isenteredbefore the goodsreceiptispostedandisblockeddue toquantity
variance.The goodsreceiptisthenenteredforthe quantityinvoiced,invalidatingthe blocking
reason.Howdoesthe systemreact?
110. 7. Which optionsdoyouhave for releasinganinvoice manually?
111. 8. Can invoicesbe blockedmanually?
112. 9. How do youentera creditmemothat resultsinthe quantityinvoicedbeingchanged?

50. 113. 10. Whichsystem-siderequirementsmustbe fulfilledbefore youcanuse evaluatedreceipt
settlement(ERS)?
114. 11. Whendo price and quantityvariancesoccurduringthe ERS run?
115. InterviewQuestionsonSAPMM
116. 1. What are the typesof special stocksavailable?
Subcontracting,consignement,pipeline,project,salesorder,RTP,stocktransfer,thirdparty.
117. 2. What are the typesof inforecords?
Standard,consignment,subcontracting&pipeline.
118. 3. What is meantby consignmentstock?
The stock suppliedbythe vendorisinthe companiespremiseswiththe companyhavingnoliability
for the same. The liabilityforthe companywill onlybe affectedwhenthe goodsare issuedfromthe
consignmentstockforuse.
119. 4. What are the stepsinvolvedinconsignmentcycle?
Create consignmentinforecordwithpropertax code,create PowithitemcategoryK,maintain
outputconditionrecordforKONS,processGR, noinvoice verificationdone,butsettlementisdone
throughMRKO transaction.
120. 5. Tell me about the subcontractingcycle.
The Po is createdwithitemcategoryL ,the goodsistransferredtosubcontractorby 541 movemet.
for thismovementnote noaccountingdocstake place. WhenGR is done automatically,543
movemnttakesplace whichtake care of the consumptionof componentsfromstock.
121. 6. How are the byproductstakencare of in subcontracting?
You can add these by productsinthe BOMfor the headermatl.
122. 7. What is meantby scales?
Can scalesbe usedinstandardpurchase order? You can fix a price inthe inforecordfora sayqty
from1-100 price RS150 & if the orderqty is101- 500- the pricesis140 . Scalescannotbe used
directlyinPObut can be pulledintothe POfromvariousmasterdata like inforecord, quota
arrangement.
123. 8. What is the differencebetweenacontract and a schedulingagreement?
Withregard to Outline Agreement:
1. You can create the centrallycontract(cross-plant) whereyoucanmaintaindifferentpricing
conditionsforeachandeveryplant
2. You have to create the Release Orderwithreference toOutline Agreement.
3. No detaileddeliveryschedule canbe made inthe Release Order.
4. No Release documentationiscreated.
5. Onlytime-dependentconditionscanbe created.

51. 6. Some ItemCategory'M' and 'W' can be used.
Withregard to SchedulingAgreement:
1. The PlantLocationmustbe enteredinthe SchedulingAgreement.
2. We do not have to create anyother purchasingdocumentexceptfordeliveryschedulelinevia
TransactionME38 or MRP running(withthe appropriate settingof Source List).
3. DeliverySchedule line itemsare createdsubjecttoyourspecific requirement.
4. Can create bothSchedulingAgreementwithandwithoutRelease Documentation(subjecttothe
DocumentType LP or LPA) withthe selectionof eitherFRCor JITdeliveryschedule.
5. Eithertime-dependentortime-independentconditionscan be createdsubjecttothe customizing
inthe DocumentType of the SchedulingAgreement.
6. ItemCategory'M' and'W' can not be used.
124. 9. How doesthe systemcalculate taxes?
125. 10. How doesthe systemcalculate nondeductibletaxes?
126. 11. What ismeantby batches?How can the batchesbe searched?
A batch isa subdivisionof yourstockof a material havingthe same characteristics.
For instance:
- foodproductionusesbatchestoindicate the dayof production.
- paintproductionusesbatchesbasedonproductiondate andthe usedingredients.Itisveryhardto
reproduce the same colorinexactlythe same wayat twodifferentmoments.
- ore may be dividedinbatchesbasedontheirmineral content.
127. You can search batchesusingthe standardsearchfacility(matchcode,keyF4) basedon the
namingconventionof the batchesor,if youuse batch classification,basedonthe characteristicsof
the batches.
128. 12. How isa shelf-lifeitemmanagedinSAP?Whatisthe full cycle?
129. 13. What are the settingsrequiredforquotaarrangement?
To setup a quotaarrangementforthe procurementof a material,proceedasfollows:
Master data -> Quota arrangement->Maintain,enterthe material andplantnumber, pressENTER
to displaythe overviewscreenforthe quotaarrangementperiods,Enteravalidityperiodforquota
arrangement,Enterdate until whichthe quotaarrangementisvalid.The startdate iscalculatedby
the system.PressENTER.
Selectthe quotaarrangementandchoose Goto-> Itemoverviewtodisplaythe itemoverview
screenof the quota arrangement. Entera quotaarrangementitemforeachsource of supplyyou
wantto include inthe quotaarrangement.
You mustenterthe followingdata.
- Procurementtype

52. - Special procurementtype,Enterkinthe S column,for example,if aconsignmentarrangementfor
the material existswiththe vendor.
- Vendornumber
- Procurementplant(supplyingplant):
- Quotacolumn,enterthe quotaassignedtoeachitem.
PressENTER .
The percentage distributionof the quotasiscalculatedanddisplayedautomaticallybythe system.
Save the quota arrangement. The systemassignsanumbertothe quota arrangementitem
automatically
130. 14. What ismeantby MRP Type andlot sizing?
131. 15. Can itbe configuredinsucha waythat the external requisitionscan alsobe takeninto
account while MRPrunsin consumption-basedplanningif VBisselectedasMRPtype?
132. 16. How are free itemsmanagedina PO?yu needtotick the temas free inthe PO. The price
will be zeroforsuch PO's.
133. 17. What are the differencesbetweenreleaseprocedure withclassificationandrelease
procedure withoutclassification?Whenare theyused?
Release procedure withclassificationmeansthe Purchase requsitioncanbe releasedbothatitem
level & at the headerlevel.Releaseprocedurewithoutclassificationcanalsobe usedfor PR which
isused foritemlevel release only.all otherexternal documentscannotbe relesed with
classification.The twoproceduresare mutuallyexclusive (thatistosay,you mustdecide infavorof
one of themonly - you cannotuse both).
134. 18. Is itpossible tohave a release procedurewithoutclassificationforaPO?
No
135. 19. What isthe maximumnumberof levelsavailable inSAP?
Didnot get thisquestion…plsclarify.
136. 20. Is itpossible tohave scalesina quotation?
No
137. 21. What isGR blockedstock?Whenitcan be used?
Wheneveryouare notsure about the qualityof the productreceived, youcanput inGR blocked
stock.
138. 22. How are the variationsinsubcontractingtakencare of inSAP?
139. 23. How to give specificationsfordevelopments?
We normallyprepare abusinessrequirementdocumentinwhichwe specifywhatisrequired. what
field&tableshave tobe referredforthe requireddevelopment.
140. 24. How to create PR or POby MRP?

53. The PR is created accordingto the safetystock mentionedforthe material orcan be triggeredfrom
a requirement.Forcreatinga PO,you needtohave the schedulingagreementinplace .Afterthe
MRP is run the schedule linesare generatedwhichare nothingbutthe PO.
141. SAPMM InterviewQuestionsandAnswers
142. What ismeantby scales?
143. We can fix a price inthe inforecord forrange of qty from1-100 price Rs.100 & if the order
qty is101- 500- the pricesis Rs.90.Alsoscalescannotbe useddirectlyinPObutcan be pulledinto
the PO fromvariousmasterdata like inforecord,quotaarrangementetc.
144.
What isthe procedure to delete materialspermanentlyfromMaterial Master?
The processfor deletingthe materialspermanentlyfrommaterialmasterisbyusingtransaction
code MM70 andthe navigationisMaterial Master>Other>Reorganization>Material>Choose.Then
buildvariantwithselectionrange of material masterrecordstobe selectedfordeletionand
maintainrunparametersandthenexecute.
145.
146. UsingTransactionCode MM71 navigate asfollowsMaterial Master>Other>Reorganization
and thenbuildthe secondvariant,maintainrunparametersandexecute.Itisalsoimportantto
remove the recordsmanuallyforminforecords,PO,PRreservationetcforsuccessful deletionof the
material.
What MRP proceduresare available inMM-CBP(ConsumptionBasedPlanning)?
Variousmaterial planningmethodsare usedinMRP (Material RequirementsPlanning).
1. Reorderpointprocedure (VM)
2. Forecast-basedplanning(VV) 3.Time-Phasedmaterialsplanning(PD)
These are specifiedinmaterialcreation(MM01) underthe MRP 1 tab.
Explainthe functionOBYC?
147. The FunctionOBYC standsfor Configure AutomaticPostings.Whenthe systemsettingsare
enteredforthe InventoryManagementandInvoice Verificationtransactionsthe automaticposting

54. to G/L accounts. Postingsare made toG/L accountsautomaticallyinthe case of Invoice Verification
and InventoryManagementwherethe transactionsare relevanttoFinancial andCostAccounting.
148.
149. What isthe procedure tomake the periodindicatorinthe MRP2 view as “P”?
150. To make the periodindicatorinthe MRP2 view as“P” the transactionvariantSHD0 and then
SE93 is used.
151. What isthe procedure tomake the Source List automaticallyappearinMaterial Masteras
defaultif maintainedatplantlevel usingOME5?
152. The maintainedsource listrequirementinOME5 wasnot maintainedthe source listforthe
material,Pocan’tbe released.Soitisrequiredtomaintainsource listforall materialsinthe plant
where the indicatorissetif maintainsource listatplantlevel ismaintainedoritcan make use of info
record todo so automatically.
List some inforecordstypes?
The listsof InfoRecordsTypesare Standard,Consignment,SubcontractingandPipeline.
Explainwhatisconsignmentstock?
The Consignmentstockisa stock that is suppliedbythe vendorisinthe companiespremiseswith
the companyhavingno liabilityforthe same.The liabilityforthe companywill onlybe affected
whenthe goodsare issuedfromthe consignmentstockforuse.
Is itpossible tohave scales ina quotation?
No,it isnot possible tohave scalesinaquotation
What isthe subcontractingcycle?

55. The SubcontractingCycle isthat whenPoiscreatedwithitemcategoryL, the goodsis transferredto
subcontractorby 541 movements.Forthismovementnote noaccountingdocumentstake place.
WhenGR isdone automatically,543movements’takesplace whichtake care of the consumptionof
componentsfromstock.
Explainthe procedure tocreate PR or POby MRP?
The procedure to create PR isaccordingto the safetystockmentionedforthe material orcan be
triggeredfroma requirement.ForcreatingaPO,you needtohave the schedulingagreementin
place .Afterthe MRP isrun the schedule linesare generatedwhichisnothingbutthe PO.
153.
154. What typesof special stocksare available?
Special Stocksthatare available are Subcontracting,consignments,pipeline,project,salesorder,
RTP, stocktransfer,andthe thirdparty.
Is itpossible tohave scalesina quotation?
No,it isnot possible tohave scalesinaquotation
Explainthe stepsthatare involvedinconsignmentcycle?
The stepsthat are involvedinconsignmentcycle isbycreatingconsignmentinforecordwithproper
tax code,maintainoutputconditionrecordforKONS,noinvoice verificationdone,create Powith
itemcategoryK,processGR, but settlementisdone throughMRKOtransaction.
155.
156. Explainthe difference betweenacontractand a schedulingagreement?
157. The Contract agreementorthe Outline Agreementisthat create the centrallycontract
(cross-plant) where itcanmaintaindifferentpricingconditionsforeachandeveryplant.Itcreates
the Release Orderwithreference toOutlineAgreement.Nodetaileddeliveryschedule canbe made
inthe Release Order.NoRelease documentationiscreated.Onlytime-dependentconditionscanbe
created,Some ItemCategory'M' and 'W' can be used.
158.

56. 159. Whereasthe SchedulingAgreementisthe PlantLocationwhatmustbe enteredinthe
SchedulingAgreement.Itsnoneedto create anyother purchasingdocumentexceptfordelivery
schedule lineviaTransactionME38 or MRP running(withthe appropriate settingof Source List).
DeliverySchedulelineitemsare createdsubjecttoyourspecificrequirement.Itcan create both
SchedulingAgreementwithorwithoutrelease of Documentation(subjecttothe DocumentType LP
or LPA) withthe selectionof eitherFRCor JIT deliveryschedule.Eithertime-dependentortime-
independentconditionscanbe createdsubjecttothe customizingin the DocumentType of the
SchedulingAgreement.ItemCategory'M' and 'W' can notbe used.
160.
161. What isthe difference betweenreleaseprocedure withclassificationandwithout
classificationandwhenare theyused?
162. The release procedure with classificationdealswiththe purchase requisitionitcanbe
releasedbothatitemlevel andatthe headerlevel.Comingtorelease procedure without
classificationcanalsobe usedforpurchase requisitionwhichisusedforitemlevel release only.All
otherexternal documentscannotbe releasedwithclassificationThese twoproceduresare mutually
exclusivetosay,ithas to be decidedinfavorof one of themonly.
163.
164. In whatway doesthe Subcontractingwascaredby the byproducts?
The Byproductstake care of subcontractinginBOMfor the header.
165. What isthe procedure togive specificationsfordevelopments?
The procedure to give specificationsare normallypreparedforthe businessrequirementdocument
inwhichwe specifywhatisrequired,whatfieldandtableshave tobe referredforthe required
development.
Here a listof SAPMM Interviewquestionsforfreshersandexperienced.ReferbelowSAPMM
interview questions(SAPMaterial Management) one byone andgetpreparedwell forjob.we
ensure 100% successfor yourinterviewsafterreferringbelowinterview questions.
SAPMM InterviewQuestions –Material Management
1. Tell me aboutSAPMaterial Management?andits importance inSAPR/3?
2. How SAPMM module isintegratedwithotherSAPmodules?

57. 3. What isa Client?
4. How to create a ClientinSAPMaterial Managementmodule?
5. What isSAP?
6. What isIDES?
7. Difference betweenSAPR/1,R/2,R/3?
8. What are the differentmodulesinSAPR/3system?
9. What ismySAPERP?
10. What are the ImportantComponentsof SAPMMmodule andhow theyare usedinSAP?
11. Tell me aboutOrganisational Structure of SAPMM?
12. Define Companyandhowtocreate company?
13. Define CompanyCode andhowcompanycode iscreated?
14. How doyou assign“companycode”to company?
15. Define Plant?
16. What are the importantPrerequisitesforcreatingaplantinSAP?
17. How doyou assignplantto companycode?
18. WhichOrganizationunitisenteredwhencreatingPurchasingview of anymaterial
19. What isStorage Location?howto maintainstorage locations?
20. How Storage Locationsare createdautomatically?
21. What isValuation Areas?
22. What isPurchase Organisation?How itisconfigured?
23. What isChart of AccountsinSAP?
24. How manycharts of accountscan be assignedtoa single companycode?
25. What are the differenttypesof masterrecordsdatain SAPMM module?
26. What isa Material Master?
27. What are the Data is maintainedinMaterial masteratclientlevelandcompanycode level?
28. How to delete materialspermanentlyfrommaterial master?
29. How to extendmaterialstoanew plant?
30. What isa Batch? Howto create a Batch Record?
31. What isa classtype and howto configure inSAPsystem?
32. How VendorMasterRecordsare created?
33. What are the Special Stocksavailable inSAP?

58. 34. What isa Consignmentstock?
35. ExplainDifferencesbetweenExternallyownedandcompanyownedspecial stocks?
36. ExplainProcurementcycle inorganisation?
37. ExplainhowPurchase Order(PO),Purchase Requisition(PR),MRP are created?
38. Define consignmentcycle?
39. What isSubcontracting?HowsubcontractingPOis created?
40. What isMaterial Type?How to create Material Type?
41. How to Create material movementtype inSAP?
42. ExplainPurchase Requisition(PR),Purchase Order(PO)
43. Define Tolerance Keys?
44. ExplainPricingProcedure?
45. Define Scheme groupandScheme determination?
Material ManagementInterviewQuestions
1. What isthe difference betweenthe stocktransferbetweentwoplantsbelongingtosame
companycode and those belongingtodifferentcompanycode?
2. What are the importantfieldsinpurchasing view?
3. What are the stepsinautomaticaccount assignmentconfiguration?
4. How doyou create movementtypes?Whatare the stepsinvolved?Whenwill you
recommendanewmovementtype?
5. What ismeantby access sequence?Whenitisused?
6. How doesthe POpick upthe pricingschema?
7. What are the stepsinvolvedincreatingapricingprocedure?
8. What are the typesof special stocksavailable?
9. What are the typesof inforecords?
10. What ismeantby consignmentstock?
11. What are the stepsinvolved inconsignmentcycle?
12. Tell me aboutthe subcontractingcycle.
13. How isscrap accountedinsubcontracting?
14. How are the byproductstakencare of insubcontracting?
15. Tell me aboutthe variousmovementtypesandusage.
16. What ismeantby scales?Canscalesbe usedinstandardpurchase order?
17. What isthe difference betweenacontract anda schedulingagreement?

59. 18. How doesthe systemcalculate taxes?
19. How doesthe systemcalculate nondeductibletaxes?
20. What ismeantby batches?How can the batchesbe searched?
21. How isa shelf-lifeitemmanagedinSAP?Whatisthe full cycle?
22. What are the settingsrequiredforquotaarrangement?
23. What ismeantby MRP Type andlot sizing?
24. Can itbe configuredinsucha waythat the external requisitionscanalsobe takeninto
account while MRPrunsin consumption-basedplanningif VBisselectedasMRPtype?
25. What isa reference purchase organization?Whencanitbe used