SAP MM Consultant

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10+ SAP MM Consultant Interview Questions and Answers for Freshers

Updated 8 Jun 2024

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Q1. What is P2P cycle, define pricing procedure, release strategy, STO inter and intra company configuration

Ans.

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

Q2. Business process of SAP MM 1. STO process describe in details with accounting entries and t code

Ans.

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

Q3. What is automatic account determination?

Ans.

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

Q4. STO with outbound delivery and billing document and its delivery type

Ans.

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

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Q5. Accounting entries for subcontracting and consignment procurement

Ans.

Accounting entries for subcontracting and consignment procurement

  • Subcontracting procurement involves sending raw materials to a subcontractor for processing

  • Accounting entry for subcontracting: Raw material consumption account debited, subcontracting charges account credited

  • Consignment procurement involves sending goods to a consignee who sells on behalf of the company

  • Accounting entry for consignment: Goods sent to consignee account debited, consignment sales account credited

Q6. PR release strategy for header and item level release

Ans.

PR release strategy allows for control over when purchase requisitions are released for further processing.

  • Release strategy can be defined at both header and item level in SAP MM

  • Header level release strategy is based on total value or specific fields in the PR

  • Item level release strategy is based on specific characteristics of the PR items

  • Release strategy can involve multiple release codes and release groups

  • Example: PR with total value over $10,000 requires approval from manag...read more

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Q7. 2. subcontracting process in detail with t codes

Ans.

Subcontracting process involves sending raw materials to a vendor for processing into finished goods.

  • Create a subcontracting purchase order (ME21N)

  • Issue raw materials to vendor (MIGO)

  • Vendor processes materials and returns finished goods (MIGO)

  • Receive finished goods into inventory (MIGO)

  • Settle subcontracting charges (MIRO)

Q8. What is purchase order condition record

Ans.

Purchase order condition record is a master data in SAP MM that defines conditions for pricing and discounts in purchase orders.

  • It is used to maintain pricing conditions for materials or services in purchase orders.

  • Conditions can include discounts, surcharges, taxes, etc.

  • Condition records can be created for specific vendors, materials, or purchasing organizations.

  • They are used to automatically determine prices and discounts in purchase orders.

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Q9. How to solve high priority tickets

Ans.

High priority tickets can be solved by following a structured approach and prioritizing based on impact and urgency.

  • Identify the root cause of the issue by analyzing the ticket details and consulting with relevant stakeholders.

  • Prioritize the ticket based on impact on business operations and urgency of resolution.

  • Assign the ticket to the appropriate team member with the necessary skills and expertise to address the issue.

  • Monitor the progress of the ticket resolution closely an...read more

Q10. Movement type for GR blocked stock

Ans.

Movement type 103 is used for GR blocked stock in SAP MM.

  • Movement type 103 is used to transfer materials from quality inspection stock to unrestricted stock.

  • GR blocked stock is a special stock category used for materials that have been received but are not yet available for use.

  • By using movement type 103, the materials are released from inspection and made available for use.

  • This movement type helps in maintaining accurate inventory levels and tracking the status of materials ...read more

Q11. Standard MM process from PTP cycle

Ans.

The standard MM process from PTP cycle involves several steps.

  • The process starts with the creation of a purchase requisition.

  • The purchase requisition is then approved and converted into a purchase order.

  • The purchase order is sent to the vendor and goods are received.

  • The goods are inspected and the invoice is verified.

  • The invoice is then posted and payment is made to the vendor.

Q12. What is sap material management

Ans.

SAP Material Management is a module that manages procurement and inventory functions of an organization.

  • It helps in managing the complete cycle of procurement and material management.

  • It includes functions like material planning, purchasing, inventory management, and invoice verification.

  • It integrates with other SAP modules like Sales and Distribution, Production Planning, and Finance.

  • It helps in optimizing the supply chain and reducing costs.

  • Example: A company can use SAP MM ...read more

Q13. Prerequisites for auto PO and ERS

Ans.

Auto PO and ERS require specific prerequisites for successful implementation.

  • Vendor master data must be maintained accurately

  • Material master data should be updated regularly

  • Purchase info records should be created for automatic PO generation

  • Configuration settings for automatic PO and ERS must be properly maintained

Q14. Purpose of account modifier in OBYC

Ans.

Account modifier in OBYC is used to differentiate between different types of transactions for a particular G/L account.

  • Account modifier helps in determining the correct G/L account to be used for a specific transaction

  • It allows for customization and flexibility in assigning G/L accounts based on specific criteria

  • For example, different account modifiers can be used for different types of material movements in SAP MM

Q15. Explain abou consignment process

Ans.

Consignment process is a business arrangement where a supplier provides goods to a customer, but retains ownership of the goods until they are used or sold.

  • Supplier retains ownership of goods until they are used or sold

  • Customer only pays for goods when they are used or sold

  • Goods are stored at customer's location but are not considered part of their inventory

  • Supplier can replenish stock as needed

  • Example: A car dealership may have cars on consignment from a manufacturer

Q16. Significance of HANA over ECC

Ans.

HANA offers real-time data processing, advanced analytics, and faster performance compared to ECC.

  • HANA allows for real-time data processing, enabling faster decision-making

  • HANA offers advanced analytics capabilities for better insights and predictions

  • HANA provides faster performance due to its in-memory computing technology

  • HANA supports complex data models and large data volumes more efficiently than ECC

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