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

Purchase requisition and purchase order are the documents used to procure using Central purchase Organisation.

• Purchase requisition is used to request materials or services from a vendor

• Purchase order is a legal document that authorizes the purchase transaction

• Central purchase organization is responsible for procurement for multiple plants or company codes

• Purchase requisition and purchase order are created in SAP MM module

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

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

Master data of MM includes material, vendor, and customer data.

• Material master data includes information about the materials that a company procures, produces, or sells.

• Vendor master data includes information about the vendors that a company does business with.

• Customer master data includes information about the customers that a company sells products or services to.

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

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

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)

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.

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

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

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

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

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

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

P2P cycle is the process of procuring goods and services from a vendor, starting from purchase requisition to payment.

• P2P stands for Procure to Pay cycle

• It involves various steps such as purchase requisition, purchase order, goods receipt, invoice verification, and payment

• Stock transfer order is a type of purchase order used for transferring goods from one plant or storage location to another within the same company code

• Purchase order is a legal document issued by a buyer to ...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

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

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

The t-code to extend material in SAP MM is MM01.

• MM01 is used to create a new material master record.

• It allows you to extend the material to different organizational levels, such as plants or storage locations.

• You can enter all the relevant information for the material, such as description, unit of measure, pricing, and accounting data.

• Once the material is extended, it can be used in various SAP MM processes like purchasing, inventory management, and production planning.

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.

Batch processing is the execution of a series of jobs in a programmatic way.

• Batch processing is used to automate repetitive tasks.

• It allows for the processing of large volumes of data without manual intervention.

• Batch jobs can be scheduled to run at specific times or triggered by certain events.

• Examples include payroll processing, report generation, and data backups.

To take in 2 vendor invoices with different prices during invoice verification, use the 'Split Invoice' functionality.

• Navigate to the invoice verification transaction (MIRO).

• Enter the first vendor invoice details and save it.

• Click on the 'Split Invoice' button to split the invoice.

• Enter the details of the second vendor invoice with the different price.

• Save the second invoice.

• Both invoices will now be posted separately with their respective prices.

The accounting entry for the given scenario is a debit to the Inventory account and a credit to the Accounts Payable account.

• When goods are received (Posting), the Inventory account is debited to increase the inventory value.

• When an invoice is received, the Accounts Payable account is credited to record the liability.

• The quantity received (Posting) and the quantity invoiced are both relevant for the accounting entry.

• The specific accounts used may vary depending on the company...read more

OMS2 is used to define number ranges for material types in Material Master.

• OMS2 is a transaction code in SAP used to define number ranges for material types.

• It is used to assign number ranges to material types in Material Master.

• OMS2 is important as it ensures that material numbers are unique and consistent.

• It is also used to define the length of material numbers and the number of digits used for each material type.

• For example, a material type may have a 6-digit material numb...read more

SAP MM Consultant interview questions on pricing procedure, release procedure, contracts vs scheduling agreements, flexible workflows, ECC vs S/4 HANA, and types of master data.

• Pricing procedure in SAP MM determines how prices are calculated for materials and services

• Release Procedure in SAP MM is used to release purchasing documents like purchase orders or requisitions

• Contracts in SAP MM are long-term agreements with vendors for the supply of materials, while scheduling agre...read more

TCodes for document creation and challan printing of invoice in SAP MM

• For document creation: ME21N (Purchase Order), ME31K (Contract), ME41 (RFQ), ME51N (Purchase Requisition)

• For challan printing: J1INCHLN (Challan Printing), J1INJV (Excise Invoice), J1IEX (Incoming Excise Invoice)

There are multiple ways to create a purchase order in SAP MM.

• Purchase order can be created manually using transaction code ME21N.

• Purchase order can be created automatically through a requisition using transaction code ME59N.

• Purchase order can be created from a purchase requisition using transaction code ME21N.

• Purchase order can be created from a contract using transaction code ME31K.

• Purchase order can be created from a scheduling agreement using transaction code ME38.

Vendor account group is a classification of vendors based on specific criteria.

• Vendor account group is used to define the attributes and settings for a group of vendors.

• It helps in organizing and managing vendors based on common characteristics.

• Each vendor account group has its own number range and field selection settings.

• It determines the fields that are mandatory, optional, or suppressed for a vendor.

• Examples of vendor account groups include domestic vendors, foreign vendo...read more

Assigning two types of purchase org to plant allows for different procurement processes and strategies to be implemented for different materials or categories.

• Allows for segregation of procurement processes based on material type or category

• Enables different purchasing strategies to be implemented for different materials

• Facilitates better control and management of procurement activities for the plant

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.

STO process involves transferring goods from one plant to another within the same company code.

• Create a purchase order with item category 'Stock Transfer Order'

• Create a delivery document with reference to the purchase order

• Post goods issue from the supplying plant using t-code VL02N

• Create a goods receipt in the receiving plant using t-code MIGO

• Accounting entries include stock transfer between plants and inter-company billing

• T-code for STO process is ME21N for purchase order c...read more

Movement types in SAP MM are used to control the movement of goods in the system. One movement type for material to material transfer is 301.

• Movement types are used to classify different types of goods movements in SAP MM.

• Each movement type has a specific purpose and triggers different actions in the system.

• Movement type 301 is used for material to material transfer within the same plant.

• It is commonly used when transferring materials from one storage location to another with...read more

Inventory management is the process of overseeing and controlling the flow of goods from production to sale.

• It involves tracking inventory levels, ordering and replenishing stock, and managing stock movements.

• Effective inventory management ensures optimal stock levels, minimizes stockouts, and reduces carrying costs.

• It includes activities like demand forecasting, inventory valuation, stock audits, and implementing inventory control measures.

• Inventory management systems, such ...read more

Field selection in material master can be maintained in multiple ways.

• Field selection can be maintained using transaction code OMS9.

• Field selection can be maintained using material type configuration.

• Field selection can be maintained using screen layout configuration.

• Field selection can be maintained using user exit or BADI implementations.

Automatic account determination is a feature in SAP MM that assigns the appropriate general ledger accounts to various transactions and processes.

• Automatic account determination is based on predefined rules and settings in the system.

• It ensures that the correct general ledger accounts are used for different procurement and inventory management activities.

• The account determination process considers factors such as material type, valuation class, account category reference, and...read more

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

The Procure-to-Pay (P2P) cycle involves the entire process of purchasing goods or services, from requisition to payment.

• 1. Requisition: The process begins with a user creating a purchase requisition for the required goods or services.

• 2. Purchase Order (PO) Creation: Once the requisition is approved, a purchase order is created and sent to the vendor.

• 3. Goods Receipt: Upon receiving the goods or services, the receiving department confirms the receipt in the system.

• 4. Invoice V...read more

SAP ECC and SAP S4Hana material master differ in data structure, user interface, and functionality.

• SAP ECC material master has a traditional data structure with limited fields, while SAP S4Hana material master has a simplified data model with additional attributes.

• SAP ECC material master requires more manual data entry and maintenance, whereas SAP S4Hana material master offers automation and real-time updates.

• SAP ECC material master is accessed through transaction codes like ...read more

A plant can be defined in different ways based on its physical location, organizational structure, or production process.

• Physical location: A plant can be defined as a physical facility or site where production or distribution activities take place. For example, a manufacturing plant or a warehouse.

• Organizational structure: A plant can also be defined as a distinct organizational unit within a company. It can represent a specific department or division responsible for certain...read more

The number of times issues are solved in support project L1 to L4 varies depending on the complexity and frequency of issues.

• The number of times issues are solved can range from a few times to multiple times per day

• It is important to track the number of times issues are solved to identify trends and areas for improvement

• Examples of issues that may need to be solved multiple times include system errors, data discrepancies, and user training needs

STO with outbound delivery and billing document involves transferring goods between plants within the same company code.

• STO (Stock Transport Order) is used to transfer goods between plants within the same company code

• Outbound delivery is created to ship the goods from supplying plant to receiving plant

• Billing document is created to bill the receiving plant for the goods transferred

• Delivery type for STO with outbound delivery and billing document is typically NLCC (Stock Trans...read more