100+ SAP MM Consultant Interview Questions and Answers

FDS stands for Functional Design Specification, a document that outlines the functional requirements of a system.

• FDS is created by functional consultants to define the business requirements of a system

• It includes details on the system's functionality, data flow, and user interface

• FDS serves as a blueprint for developers to build the system according to the business requirements

• Example of FDS requirement: The system should allow users to create purchase orders and track their ...read more

P2P cycle is the process of procuring goods or services from a vendor and paying for them.

• The cycle starts with creating a purchase requisition

• The purchase requisition is then converted into a purchase order

• Goods or services are received and inspected

• Invoice is received and matched with the purchase order and goods receipt

• Payment is made to the vendor

• The cycle ends with closing the purchase order

Vendor account group determines the fields that are mandatory for a vendor master record.

• Vendor account group is used to group vendors based on certain criteria such as payment terms, delivery time, etc.

• It determines the fields that are mandatory for a vendor master record.

• It also determines the number range for vendor account codes.

• For example, a vendor account group can be created for domestic vendors and another for international vendors.

• Each vendor account group can have ...read more

I am currently working on SAP ECC 6.0 and SAP S/4HANA systems.

• Working on implementation and support projects for SAP MM module

• Configuring and customizing SAP MM functionalities

• Creating and maintaining master data for materials, vendors, and purchasing info records

• Performing testing and resolving issues during system upgrades and enhancements

To return deliveries to a vendor with reference to returns PO in SAP MM, follow these steps:

• Create a returns purchase order (PO) referencing the original purchase order

• Create a return delivery using transaction code VL10B

• Enter the returns PO number as a reference in the return delivery

• Post the return delivery to complete the process

In subcontracting process, movement types and transaction event keys are used to track the movement of materials between the subcontractor and the company.

• Movement type 541 is used to transfer raw materials to the subcontractor

• Movement type 542 is used to receive the finished goods from the subcontractor

• Transaction event key WE is used for goods issue to the subcontractor

• Transaction event key WA is used for goods receipt from the subcontractor

SAP MM is a module that deals with material management. Purchase order is a document used to procure goods or services. Subcontracting vendor is a vendor who provides goods or services to a company. Movement types are used in sub-contracting to track the movement of goods. Physical inventory is a process of counting and verifying the inventory on hand.

• SAP MM deals with material management

• Purchase order is a document used to procure goods or services

• Subcontracting vendor is a ...read more

There are three methods of PR creation in SAP MM.

• Manual creation through ME51N transaction

• Automatic creation through MRP run

• Creation through purchase requisition conversion

P2P cycle involves procurement of goods and services, pricing procedure determines the calculation of prices, release strategy is used for approval of purchase orders, STO inter and intra company configuration is used for stock transfer between different plants or companies.

• P2P cycle involves requisition, purchase order creation, goods receipt, and invoice verification

• Pricing procedure determines the calculation of prices based on various factors such as quantity, discounts, ...read more

Central Purchase Organisation is a centralized department responsible for procurement activities across multiple business units or locations.

• Central Purchase Organisation streamlines procurement processes

• It ensures consistency in purchasing decisions and leverages economies of scale

• It negotiates contracts and manages supplier relationships on behalf of multiple business units

• Examples include a central purchasing department in a multinational company or a government agency res...read more

A credit memo is a document issued by a seller to a buyer, indicating a reduction in the amount owed due to returns, discounts, or other reasons.

• A credit memo is used to correct errors in invoices or to provide refunds to customers.

• It is typically issued when goods are returned by the customer or when there is a pricing discrepancy.

• Credit memos can also be used to adjust the amount owed by a customer for future purchases.

• They are important for maintaining accurate financial r...read more

Scale in purchasing order can be measured by the quantity of items ordered and the total cost of the order.

• The quantity of items ordered can be used to measure scale in purchasing order.

• The total cost of the order can also be used to measure scale in purchasing order.

• Other factors such as the frequency of orders and the number of suppliers can also be considered.

• For example, if a company orders 1000 units of a product at a cost of $10 per unit, the scale of the purchasing ord...read more

The field in Material master data that triggers STO is the Plant field.

• The Plant field in Material master data determines the plant location from which the material will be sourced for the STO.

• When creating a Stock Transport Order (STO), the system uses the Plant field in the Material master data to determine the supplying plant.

• The Plant field is crucial for setting up the correct supply chain process for STOs.

ME21N is a transaction code in SAP MM used for creating a purchase order.

• ME21N is used to create a purchase order in SAP MM.

• It allows users to enter details such as vendor, material, quantity, and delivery date.

• Users can also specify pricing conditions, payment terms, and delivery instructions.

• ME21N provides options to add multiple line items and account assignments.

• Once the purchase order is created, it can be saved, printed, or sent for approval.

P2P cycle involves the entire procurement process from requisition to payment. STO process is the transfer of goods between two plants within a company.

• P2P cycle: Requisition -> Purchase Order -> Goods Receipt -> Invoice Verification -> Payment

• STO process: Create STO -> Delivery -> Goods Receipt -> Invoice Verification

• T-code for STO process: ME21N (Create STO), VL10B (Delivery), MIGO (Goods Receipt), MIRO (Invoice Verification)

Subcontracting process involves child products, BOM, and same material in relation to challans.

• Subcontracting involves sending raw materials to a subcontractor to produce finished goods

• Child products are the components or materials used in the production process

• Bill of Materials (BOM) lists all the components required to produce a finished product

• Challans are documents used to track the movement of goods between different parties

Table for PR PO storage location is EKPO, batch record is used for tracking materials, split valuation T code is OX09, p2p cycle involves procurement and payment processes, release strategy is used for approving PRs and POs, scrap products are managed through movement types, outbound delivery involves shipping goods to customers, consignment cycle involves managing stock at customer's location, common issues in SAP MM include data inconsistency and system errors.

• Table for PR ...read more

Movement type 161 in GRN is used for returning goods to vendor.

• Movement type 161 is used in Goods Receipt Note (GRN) to return goods to the vendor.

• It is typically used when there is a need to return defective or damaged goods to the vendor.

• The return process involves creating a return delivery and a subsequent return purchase order.

• The return delivery is created with movement type 161 to record the return of goods.

• The return purchase order is then created to initiate the retu...read more

The standard purchase organization is a purchasing entity within SAP MM that represents a legal entity or a group of plants.

• It is used to define purchasing parameters and strategies for a specific group of plants or company codes.

• It helps in streamlining procurement processes and ensuring compliance with purchasing policies.

• It can be assigned to multiple plants or company codes.

• It allows for centralized purchasing and negotiation of contracts with vendors.

• Example: A company m...read more

Yes, the customized field will be visible in field selection configuration.

• Customized fields can be added to the field selection configuration in SAP MM.

• The field selection configuration allows users to control which fields are visible and editable in various transactions.

• By adding the customized field to the field selection configuration, it can be made visible and editable as needed.

To solve IDoc related issues, follow these steps:

• Check the IDoc status in transaction WE02 or WE05

• Analyze the error message in transaction WE19

• Check the partner profile settings in transaction WE20

• Check the IDoc processing settings in transaction BD64

• Check the RFC destination settings in transaction SM59

• Check the user authorization in transaction SU01

• Check the IDoc segment definition in transaction WE31

The release strategy is a process in SAP MM that determines the approval process for purchasing documents.

• Release strategy is defined based on certain criteria such as document type, purchasing organization, and value.

• The release strategy is configured in the system using release groups, release codes, and release indicators.

• Once a purchasing document is created, it goes through a series of release steps based on the defined release strategy.

• Each release step can have multipl...read more

MM WM integration refers to the seamless flow of materials from procurement to storage and distribution.

• MM manages procurement, inventory management, and invoice verification

• WM manages storage and distribution of materials

• Integration ensures real-time visibility of inventory levels and movement

• Example: When a purchase order is created in MM, the material is automatically updated in WM for storage and distribution

• Example: When a material is received in WM, the inventory levels...read more

The enterprise sector refers to the segment of the economy that consists of businesses and organizations engaged in commercial activities.

• It includes both private and public enterprises.

• These enterprises produce goods and services for profit or to fulfill a social mission.

• Examples include manufacturing companies, financial institutions, government agencies, and non-profit organizations.

• The enterprise sector plays a crucial role in economic growth and development.

• It encompasse...read more

Joints are connections between bones that allow movement. There are different types of joints and their implementation varies.

• Types of joints include hinge, ball-and-socket, pivot, saddle, and gliding joints.

• Joints are implemented through the use of ligaments, tendons, and muscles.

• Examples of joints include the knee joint, shoulder joint, and hip joint.

• Joints can be affected by various conditions such as arthritis and injuries.

• Proper care and exercise can help maintain health...read more

To block release strategy from triggering, follow these steps:

• Create a new release indicator with a validity period

• Assign the release indicator to the relevant document type

• Ensure that the release strategy is configured to use the new release indicator

• During the validity period, the release strategy will not trigger

T-codes in SAP MM are essential for various functions like procurement, inventory management, and invoice verification.

• ME21N - Create Purchase Order: Used to create a new purchase order in the system.

• MIGO - Goods Movement: Allows users to post goods receipts, goods issues, and transfer postings.

• MIRO - Invoice Verification: Used for processing invoices against purchase orders.

• ME51N - Create Purchase Requisition: Enables users to create purchase requisitions for materials.