If you're in search of SAPMM Interview Questions to crack your interview rounds then you are at the right place. Here are the frequently asked SAP MM interview question & answers. SAP is the world's leading enterprise management suite. SAP MM or SAP Material Mangement is a vital tool of the SAP ERP module. A robust module SAP MM encompasses different aspects of material management including functions like goods receivables, invoicing and billing, material usage and consumption among others.

1. Top 25 SAP MM
Interview
Questions &
Answers

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

3. 4. List out the essential components of material management.
◦ Determine requirements
◦ Source determination
◦ Vendor Selection
◦ Order Processing
◦ Order follow up
◦ Goods receipts and Inventory management
◦ Invoice Verification
5. What is material requirement planning (MRP)?
It is a module in SAP enterprise resource planning. It is a type of planning
tool to help production and procurement planners to create feasible and
realistic plans which help to quickly initiate procurement and production
process.
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4. 6. What is consumption-based planning (CBP)?
CBP is based on past consumption values which make
use of the forecast or other statistical procedures to
determine future requirements. Consumption-based
planning (CBP) always triggers when the stock level
plunge below the predefined reorder point or forecast
requirements calculated using past consumption values.
7. What is the difference between MRP and CBP?
In material requirement planning, the prediction of
material requirement is based on sales and operations
planning while in, consumption-based planning the
prediction of material requirement is made, based on
historical demand for materials.
8. What is the Master production schedule (MSP)?
It is a plan for individual commodities to be produced
in each period such as staffing, production, etc. It is
mostly linked with manufacturing in which the plan
denotes when and how much of each product will be
demanded.
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9. What is the planned order in material management?
In Material Management, planned order is sent to an industry and is a material
requirement planning request for the procurement of a particular material at a
determined time. It certainly specifies when the internal material movement needs
to be made and the amount of material that is demanded.
10. What is production order and purchase order?
A production order defines which components and sequence of operations are to
be used and how the order costs are to be resolved. It also determines which
material is to be prepared, at which location, and at what time and how much
quantity is required.
Formal requests or guidance from a purchasing firm to a vendor or factory to
supply a certain quantity of goods (or) services at a certain point of time is called
purchase order.
11. What is the process order?
Process Orders (PP-PI-POR) are the central component used for the accurate
planning and execution of process manufacturing. A process order constitutes the
production of batches (materials) in a production run or the rendering of services.
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12. What is meant by transaction code in material
management?
A transaction code (or t–code) consists of letters, numbers, or
both, and is entered in the command field at the top of any SAP
GUI screen. Every function in SAP ERP has an SAP transaction
code that is associated with it. By using t-codes you can directly
access any function in SAP.
13. What are contracts in material management?
A contract is a long-term agreement with a vendor to supply a
material or provide a service for a certain period of time. These
are specified consequently in release orders issued against the
contract when the customer requires them.
14. Define purchase requisition.
A Primary document that is used as a part of the accounting
method to launch a merchandise or supply purchase is called
Purchase Requisition. By processing a purchase order, suitable
controls can identify the business requirements for the products,
as well as monitor the legitimacy of purchase.

7. 15. How do you release and create purchase requisition in SAP material
management?
Purchase requisition creation can be done in T-code ME51N and is a straightforward
process:
Execute ME51N transaction.
Purchase requisition document type: NB – standard.
Source determination: ON or OFF.
Header note.
Material: material number.
Quantity and UoM.
Storage location: in which the material is stored.
Vendor: It is automatically determined by using source determination – the field number
Tracking number: As covered in previous topics, the desired value can be entered
manually
Valuation price: This should be copied from material master data if it is maintained
there if not it has to be entered manually (if this field is not set as optional).
We can save transaction data, after entering the desired information in the fields.
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8. 16. What is meant by special stock in material management?
Special Stocks are stocks that belong to a company code. These are not placed in any
storage location & no physical inventory is performed.
17. Mention the different types of stocks?
A. Valuated Stock
Unrestricted Stock
Quality Inspection Stock
Blocked Stock
B. Non-Valuated Stock
C. Special Stock
Subcontracting
Consignment
Stock Transport Order
Third-Party Processing
Returnable Transport Packaging
Pipeline Handling
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9. 18. What is meant by master data?
Basically, Master Data is created centrally and is valid for almost all the
applications. It remains constant over time but it is required to update it on a
regular basis. For example, the Vendor is like a type of master data and he is
used for creating purchase orders.
19. What is master data management?
A comprehensive method of enabling an enterprise to link all of its critical
data to a common point of reference is called Master data Management.
MDM also improves data quality, while streamlining data sharing across
personnel and departments. In addition, it also can facilitate computing in
multiple system architectures, platforms, and applications.
20. What is inventory management?
Inventory management is based on several key processes like Definition of
movement types, reservations, goods issue, and goods receipt. Inventory
management is used to manage a good inventory.
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10. 21. What are quotations in SAP material management?
Quotations in SAP MM are certain requests for vendors which
give us information about their terms and conditions, best prices,
schedules of deliveries and other information.
22. What is invoice processing?
The process in which a company’s account payable is used to
manage supplier invoices is called Invoice Processing. It begins
when you accept an invoice and ends when payment has been
made and reported in the general ledger.
23. How is the quota rating checked?
The formula for checking the quota rating is an addition of the
base quantity of the quota and the allocated quantity quota and
divides it by the overall quota.
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11. 24. Mention the last stage in the cycle of procurement?
The last stage of the procurement cycle is the verification of the invoice. This also
updates the documents which are related to the accounts and finances. There is a
difference between the real invoice and the blocked one the real invoice can be
handled by verification of the invoice.
25. What are the different types of ERPs?
Different types of ERPs are as follows: SAP, Microsoft Dynamics, PeopleSoft,
Oracles, Siebel, BAAN. These are some of the different types of Enterprise
Resource Planning.
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