Hello friends, today we are providing here some latest most frequently asked Question & Answer in your SAP MM Module Job Interviews. All these below provided stuffs are totally based on latest interview pattern. Guys you need to prepare all these question Answer sets before going for Job Interview based on SAP Material Management Module.
Latest 50 Job Interview Question & Answer based on SAP MM Module
1. What is Reconciliation Account?
Ans. Reconciliation account in SAP is a general ledger account assigned to the business partner master record to record all transactions in the sub ledger.
2. What is valuation class?
Ans. Group of material having same account determination is called valuation class.
3. What is Difference between Material Type & Material Group in SAP MM?
Ans. The material type is a key controlling feature of the material master while the material group is a classification of materials having similar attributes
4. What is Phantom Material?
Ans. Phantom items are typically used in multilevel ‘Bill of Materials’ (BOM), where a single row of a phantom item serves the purpose of an entire sub-tree. These items do not exist in the inventory
5. What is material master?
Ans. The material master contains information on all the materials that a company procures or produces, stores, and sells.
6. What is MRP?
Ans. Material Requirements Planning (MRP), a module in SAP ERP, is a planning tool to help production and procurement planners create feasible and realistic plans so they can quickly initiate the procurement or production processes.
7. What Is ERS?
Ans. When you use Evaluated Receipt Settlement (ERS), you agree with the vendor that the latter will not submit an invoice in respect of a purchase order transaction.
8. What is Split Valuation?
Ans. If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a valuation type (for example, country of origin).
9. What is special procurement key in sap?
Ans. Special procurement key is use to define the special type of procurement (procurement type more exactly) apart from the standard in-house or external procurement types.
{50+} Latest Most Frequently Asked Job Interview Question & Answer on SAP MM Module10. What is special procurement key 40 in sap?
Ans. With special procurement key 40 you have to define two plants viz Planning plant and Issuing Plant. You have to create the material in one plant.
11. Difference between stock transfer order and stock transport order?
Ans. Stock tranfer order from LT01 is from WM point.
Stock Transport Order is from One Company to Another company, Plant to Plant , S loc to S loc.
12. What is planned order?
Ans. A planned order is sent to a plant and is an MRP request for the procurement of a particular material at a determined time. It specifies when the inward material movement should be made and the quantity of material that is expected.
13. What is subcontracting process in SAP?
Ans. SAP Subcontracting involves sending components to a vendor where an assembly is manufactured.
14. What is movement type in SAP?
Ans. Movement type describes the type of stock posting in inventory. It represents whether the posting in stock is against goods receipt or goods issue.
15. What is account determination in SAP MM?
Ans. SAP MM - ACCOUNT DETERMINATION. In SAP MM, procurement process involves cost of goods and services that needs to be paid to vendor by an organization
16. What is cost center in SAP?
Ans. Cost Center in SAP is a component in which the costs occur inside an organization. It is an organizational unit within a controlling area which represents locations where costs occur.
Profit Centre>> Profit Center in SAP is an organizational unit of SAP Controlling for internal controlling. It helps organizations to manage costs and revenues.
17. What are special stock?
Ans. Special Stock means - some special purpose stock=
e.g. 'O' means stock provided to subcontracting Vendor
'E' means item kept in sales order stock (for specific sales order)
'Q' means item kept in project stock (for specific project)
18. What is account category reference?
Ans. In Simple terminology, It’s an artificial key that allows flexibility between Valuation Class & Material Type in determining the exact G/L Account automatically.
19.What is the planned delivery and GR processing time?
Ans. The meaning of planned delivery is the number of business days in which the person is expected to receive the materials and goods. The GR processing time is the number of business days in which the person has to inspect and place the material in the storage, after obtaining the goods and materials.
20. Explain what is the reservation?
Ans. Reservation is the blocking of the stock beforehand so that its availability is ensured later in time. It ensures that the stock is made available and can be used as per requirement.
21. What is partner determination in sap mm vendor?
Ans. Partner Determination process is used for designing the vendor master where your vendor act as goods supplier, Ordering Address, Invoice Payee(during business transaction ,how your vendor act).
22. What is Industry sector in sap mm?
Ans. SAP Industry sector in an important controlling function in SAP SAP R/3 system. It controls sequences of screens and the selection of fields in SAP MM.
23. What is organization level in sap material master?
Ans. In MM, organization level consists of plant, storage location, valuation type, sales org. & distr. Channel.
24. What are the important views in Material master creation?
Ans. The important views are basic data 1 & 2, sales org data 1 & data 2, sales general/plant data, Foreign Trade Export, Purchasing, MRP 1, MRP 2, General plant data/ storage 1, General plant data/ storage 2, Quality Management, accounting 1 & 2, costing 1 & 2, WM Management.
25. What is division?
Ans. A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.
26. What is purchasing value key?
Ans. Defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing.
27. What is quota arrangement?
Ans. Quota arrangement divides the total requirement of material among certain sources of supply, i.e. vendors, and then assigns a quota to each source.
28. What is movement type in sap?
Ans. Movement type- A physical or logical movement of materials leading to a change in stock levels or resulting in the consumption of the material.
29. What is Price control indicator in material master creation?
Ans. Indicates the price control used to valuate the stock of a material. You have the following options:
• Standard price
• Moving average price
30. What is pricing procedures in sap mm?
Ans. 1. Condition Table -- It’s a table where system saves the all fields with the combination for individual condition record. Suppose if I use Plant as condition table, then the condition record will be created for plant only.
2. Access Sequence--- The main concept of Access sequence is, it searches condition record for condition type from condition table.
3. Condition Type-- In simple term, condition type is used for different type of charges. Like gross price, discount, freight, rebate etc etc.
4. Calculation Schema-- Here we maintain sequence for the pricing calculation, like gross price, discount, rebate, surcharges etc. Here we maintain the calculation for all condition types and group together all required condition types for our pricing procedure.
5. Schema Group---- It’s assigned to our vendor and Purchase Organization, It helps the vendor and purchase organization to choose pricing procedure.
6. Schema Determination--- Here we maintain the pricing procedure for purchasing document. We maintain calculation schema combination of per each vendor – schema group and each purchase organization – schema group.
7. Condition Record--- Condition record contains the record which is maintained against condition table with regards to condition type.
31. What is Hazardous Material Number?
Ans. Number that identifies the material as a hazardous material or as dangerous goods and assigns hazardous material data or dangerous goods data to it.
32. What is automatic account assignment?
Ans. Automatic account assignment determines the correct gl a/cs that need to post from the transaction types used and with other relevant factors.
33. What is account assignment category in PR & PO?
Ans. Specifies whether accounting for an item is to be effected via an auxiliary account (such as a cost center).
34. What is Item Category in PR & PO?
Ans. Defining how the procurement of a material or service item is controlled.
The following list contains the item categories defined in the standard SAP R/3 System:
•Standard
•Consignment
•Subcontracting
•Third-party
•Stock transfer
•Service
•Material unknown
•Material group
•Text
35. What is Document type in PR & PO ?
Ans. In SAP, purchase requisitions & Purchase Orders are maintained as documents and you can group purchase requisitions / purchase orders into any number of document types in SAP. The document type enables the controlling functions and reporting purpose. It also differentiate the various types of purchase requisitions.
36. What are important header level fields of Purchase order in sap?
Ans. Delivery/ Invoice- where pay term terms to be maintained.
Conditions- for maintain pricing procedures.
Org. Data- where purchase org., pur grp & company code to be maintained.
Payment processing- where advance vendor down payment to be maintained.
37. What are important Item level fields of Purchase order in sap?
Ans. Material data- where batch record to be maintained.
Quantities / weights
Invoice- where tax code & vendor downpayment to be maintained.
Conditions- where pricing conditions to be maintained.
38. How to short close Purchase Requisition in SAP?
Ans. To close PR we need to open Quantities/ dates tab in item level and ticked closed checkbox.
39. How to short close PO Purchase Order in SAP?
Ans. To close PO you need to open delivey tab in item level and ticked on deliv. compl. checkbox.
40. What is shipping instructions in PO?
Ans. Specifies the packaging and shipping instructions issued to the vendor.
41. How to define tolerance limit in PO?
Ans. In Delivery Tab
42. How to define Tolerance limit in Material master?
Ans. In purchasing value key under Purchasing tab.
43. What is JIT Schd. Indicator in SAP?
Ans. In purchasing tab of material master, Determines whether it is possible to generate JIT delivery schedules in addition to forecast schedules for a material specified in a purchase scheduling agreement.
44. What are the important material type in sap?
Ans. LEIH- Returnable packaging
PIPE- STD.Pipeline Material (PIPE
DIEN- Service
ERSA- Spare parts
NLAG- Non stock material
UNBW- Non Valuated Material
HAWA- Trading Goods
45. What is the field reference in material master?
Ans. When material master records are maintained, the field reference determines for each field selection group if the field selection group is set to Hide, Display, Required entry, or Optional entry.
46. What is field selection group in SAP?
Ans. Group of several fields to which the same field option applies. The field options are as follows:
•Hide
•Display
•Required entry
•Optional entry
47. What is account Category Reference in SAP MM?
Ans. Group of valuation classes that the system uses to check whether the valuation class you have entered is allowed when you maintain accounting data in a material master record.
48. What is the accounting entries of Purchase order for account assignment category K (Cost Centre)?
Ans. In MIGO- Consumption account KBS Debit (+)
GR/IR Clearing account WRX Credit (-)
WRX Debited (+) & KBS Credited (-) in MIRO Process.
49. What is picking area?
Ans. Groups together storage bins from the standpoint of picking strategies; that is, the storage bins are arranged in a strategically advantageous manner for the task of picking.
50. What is schema group in sap? why we use it?
Ans. We can create schema groups for purchase organization or vendor. Schema groups are then assigned to purchase organizations in customizing and to vendors in vendor master record. They are used to map the pricing determination process based on the vendor or purchase organization.
51. What is Partner Determination in sap?
Ans. In SAP, Partner Determination Procedure has been used across modules. The main advantage of having Partner Determination Procedure is to update the documents with appropriate responsible persons (Internal / External) which will give better control in execution phase.
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