100+ SAP MM Consultant Interview Questions and Answers

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

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

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

SAP is a software company that provides enterprise resource planning (ERP) solutions to businesses.

• SAP stands for Systems, Applications, and Products in Data Processing.

• It was founded in 1972 in Germany.

• SAP offers a wide range of software solutions for various industries such as finance, manufacturing, logistics, and more.

• SAP ERP is a popular solution for managing business processes such as procurement, inventory management, and sales.

• SAP also offers cloud-based solutions suc...read more

Yes, having knowledge of is-retail is an added advantage for SAP MM Consultant.

• Is-retail knowledge can help in understanding the specific requirements of retail businesses.

• It can aid in configuring and customizing SAP MM to meet the needs of retail clients.

• It can also help in integrating SAP MM with other retail-specific systems.

• Having is-retail knowledge can make the consultant more marketable and increase job opportunities.

Purchase info record is mandatory for maintaining vendor-specific purchasing data.

• Maintains vendor-specific purchasing data such as pricing, delivery terms, etc.

• Helps in ensuring consistency in purchasing decisions and tracking vendor performance.

• Enables efficient procurement processes by providing relevant information to buyers.

• Used for automatic determination of conditions during purchase order creation.

Consignment stock is inventory that is owned by a supplier but held by a customer until it is used or sold.

• Consignment stock is a form of inventory management where the supplier retains ownership of the goods until they are consumed or sold by the customer.

• The supplier places the stock at the customer's location, but the customer does not pay for the goods until they are used or sold.

• The customer only pays for the goods when they are actually used or sold, reducing the financ...read more

Consignment stock is inventory that is owned by the supplier but stored at the customer's location until it is used or sold.

• Consignment stock is owned by the supplier but stored at the customer's location.

• The supplier retains ownership until the stock is used or sold.

• The customer only pays for the stock when it is used or sold.

• Consignment stock can help reduce inventory costs for both the supplier and customer.

• Examples of consignment stock include vending machines and retail ...read more

Split valuation is used to differentiate between different types of materials. Pricing procedures determine the price of materials. Output determination is used to determine the output type for a particular transaction.

• Split valuation is used to differentiate between materials based on different characteristics such as quality, location, or size.

• Pricing procedures determine the price of materials based on various factors such as quantity, discounts, and taxes.

• Output determina...read more

SAP S/4HANA is the next-generation business suite from SAP, built on the advanced in-memory platform, while ECC is the traditional ERP system.

• SAP S/4HANA is built on the SAP HANA platform, providing real-time analytics and processing capabilities, while ECC is not.

• SAP S/4HANA offers a simplified data model and user interface, enabling faster decision-making and innovation, while ECC has a more complex data model and user interface.

• SAP S/4HANA supports advanced technologies li...read more

STO stands for Stock Transport Order. It is a process of transferring goods from one plant to another within the same company code.

• Create a Stock Transport Order (STO) in the supplying plant

• Create a Goods Receipt (GR) in the receiving plant to receive the goods

• The STO can be created with reference to a Purchase Order (PO) or a Material Document

• The GR can be created with reference to the STO or the PO

• The STO can be tracked using the document number and the movement type

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

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

P2P and O2C are two important cycles in SAP MM. P2P refers to Procure-to-Pay and O2C refers to Order-to-Cash.

• P2P cycle involves procurement of goods and services from external vendors

• O2C cycle involves sales of goods and services to customers

• P2P cycle includes steps like purchase requisition, purchase order, goods receipt, and invoice verification

• O2C cycle includes steps like sales order, delivery, billing, and payment receipt

• Both cycles are closely linked and impact each oth...read more

The header table for PO can be found in the SAP MM module.

• The header table for PO is usually named EKKO.

• It stores general information about the purchase order, such as the vendor, purchasing organization, and currency.

• Other related tables include EKPO for item details and EKET for delivery schedules.

• The header table can be accessed through transaction codes like ME23N or SE16N.

• Data in the header table can be used for reporting, analysis, and tracking of purchase orders.

Consignment process involves transferring goods to a customer's location but retaining ownership until they are used, while subcontracting process involves outsourcing part of the production process to a third-party vendor.

• Consignment process involves transferring goods to a customer's location but retaining ownership until they are used.

• Subcontracting process involves outsourcing part of the production process to a third-party vendor.

• In consignment process, the goods are sti...read more

OBYC settings are used to define the GL accounts for various transactions in SAP MM module.

• OBYC settings are used to map the transaction keys to GL accounts.

• These settings are maintained in transaction code OBYC.

• There are different OBYC settings for different types of transactions such as goods receipt, invoice receipt, etc.

• Each transaction key is mapped to a combination of valuation class and GL account.

• For example, transaction key GBB is used for goods movement and can be m...read more

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)

IDOC is a SAP intermediate document used for exchanging data between systems.

• IDOC stands for Intermediate Document

• It is used for exchanging data between SAP systems or between SAP and non-SAP systems

• IDOCs can be sent and received through SAP's Application Link Enabling (ALE) and Electronic Data Interchange (EDI) technologies

• To test IDOC, we can use transaction codes like WE19, WE02, WE05, etc.

• In WE19, we can create, change, and display IDOCs manually for testing purposes

Shipping conditions can be created in SAP MM using transaction code V/06.

• Go to transaction code V/06 in SAP MM.

• Enter the shipping condition key and description.

• Specify the calculation type and the calculation rule.

• Assign the shipping condition to the appropriate sales organization and distribution channel.

• Save the shipping condition.

• Examples of shipping conditions include '01' for standard shipping and '02' for express shipping.

A subcontracting purchase order is used to procure components from a vendor who will use them to manufacture a finished product.

• The vendor is responsible for manufacturing the finished product using the components provided by the buyer.

• The buyer retains ownership of the components until they are used in the manufacturing process.

• The vendor may charge a processing fee for the manufacturing service.

• The finished product is then delivered to the buyer.

• Example: A company orders ra...read more

Types of test include unit, integration, system, acceptance, regression, performance, and security testing.

• Unit testing: testing individual components of the software

• Integration testing: testing how different components work together

• System testing: testing the entire system as a whole

• Acceptance testing: testing to ensure the software meets the requirements of the stakeholders

• Regression testing: testing to ensure changes to the software do not break existing functionality

• Perfo...read more

Accounting entries for subcontracting involve recording raw material consumption, work in progress, and finished goods.

• Raw material consumption is debited to the subcontracting expense account

• Work in progress is credited to the subcontracting work in progress account

• Finished goods are debited to the finished goods inventory account

• Any price variances are recorded in a separate account

Cycle counting is a method of inventory management where a small subset of inventory is counted on a continuous basis.

• It involves counting a small portion of inventory regularly instead of doing a full physical inventory count all at once.

• Helps in identifying and correcting discrepancies in inventory records more frequently.

• Improves inventory accuracy and reduces the need for large-scale physical counts.

• Commonly used in industries with high-value or fast-moving inventory item...read more

Errors in material extend can include incorrect data entry, missing information, duplicate entries, and system errors.

• Incorrect data entry such as wrong material number or description

• Missing information like unit of measure or pricing details

• Duplicate entries for the same material

• System errors causing inconsistencies in material extend data

T-code for creating raw material in SAP MM module.

• T-code MM01 is used to create raw material in SAP MM.

• Enter material type, industry sector, material group, base unit of measure, etc.

• Maintain purchasing data, accounting data, and plant data for the raw material.

• Save the material master record after entering all relevant information.

Yes, I have worked on interfaces in my role as an SAP MM Consultant.

• I have experience in integrating SAP MM with other modules like SAP SD and SAP FI.

• I have worked on setting up and configuring IDocs for data exchange between SAP systems.

• I have also worked on integrating SAP MM with external systems using technologies like EDI and XML.

• I have experience in mapping and transforming data between different systems.

• I have worked on troubleshooting and resolving interface issues.

• I ...read more

VF02 is used for printing while MB1B is used for document number creation.

• VF02 is a transaction code used in SAP for printing sales documents such as invoices, delivery notes, and credit memos.

• MB1B is a transaction code used in SAP for creating material documents such as goods receipts, goods issues, and transfer postings.

• VF02 does not create any document numbers, it only prints the existing documents.

• MB1B creates a document number for each material document created.

• Both VF02...read more

PBXX and PB00 are condition types in SAP MM pricing procedure with different functionalities.

• PBXX is used for manual pricing conditions where the price is entered manually by the user.

• PB00 is used for automatic pricing conditions where the price is determined automatically based on predefined rules.

• PBXX is typically used for special pricing agreements or negotiated prices.

• PB00 is commonly used for standard pricing conditions.

• PBXX can be used to override the automatic price de...read more

Document types control the business transactions in SAP MM module.

• Document types determine the type of transaction being performed in SAP MM module.

• They control the fields that are displayed in the transaction screens.

• They also determine the number range for the document.

• Examples of document types include purchase orders, goods receipts, and invoices.

SAP is an enterprise resource planning software used to manage business operations. SAP has various functional modules for different business processes.

• SAP stands for Systems, Applications, and Products in Data Processing

• SAP is used by businesses to manage their operations such as finance, procurement, sales, and production

• SAP has various functional modules such as MM (Materials Management), SD (Sales and Distribution), FI (Finance), and PP (Production Planning)

• Each functiona...read more

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.

Pre-requisite in Sub-Contracting is the requirement for a subcontracting purchase order to be created before the actual subcontracting process can take place.

• A subcontracting purchase order must be created

• The subcontracting material and the vendor must be specified in the purchase order

• The components to be provided by the subcontractor must be defined in the purchase order

• The quantity and delivery date for the components must be specified

• The subcontracting process can only be...read more

Accounting entries in sub-contracting process involve raw material consumption, work-in-progress valuation, and finished goods valuation.

• Raw material consumption is recorded as a debit to the work-in-progress account and a credit to the raw material inventory account.

• Work-in-progress valuation includes direct labor, overhead costs, and any other manufacturing costs incurred during the sub-contracting process.

• Finished goods valuation is recorded as a debit to the finished good...read more

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

STO is a stock transfer between plants within the same company code, while transfer posting is a movement of goods within the same plant.

• STO involves a stock transfer between plants within the same company code.

• Transfer posting is a movement of goods within the same plant.

• STO is used for intercompany transactions, while transfer posting is used for intracompany transactions.

• STO requires a purchase order, while transfer posting does not.

• Example: STO - transferring stock from P...read more

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

Reading a Functional Specification involves understanding the requirements and functionalities outlined in the document.

• Start by reviewing the overall structure of the Functional Specification document.

• Identify the key sections such as scope, objectives, requirements, and functionalities.

• Understand the business processes and logic described in the document.

• Analyze the data flow, system interfaces, and integration points mentioned in the document.

• Pay attention to any specific ...read more

Inventory management in SAP MM involves processes like goods receipt, goods issue, physical inventory, and stock transfer.

• Goods receipt involves receiving materials into the warehouse

• Goods issue involves issuing materials from the warehouse

• Physical inventory involves counting and verifying the actual stock levels

• Stock transfer involves transferring materials between different storage locations or plants

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.

TCode MR11 is used for displaying differences in invoice and goods receipt quantities.

• TCode MR11 is used to display differences between the invoice quantity and goods receipt quantity.

• It helps in identifying discrepancies in the procurement process.

• Users can analyze and resolve any discrepancies found using TCode MR11.

• For example, if the quantity invoiced does not match the quantity received, TCode MR11 can be used to investigate the issue.

Tcodes like OX10, OX14, OX15 are used for plant creation in SAP MM for a specific company code.

• Use transaction code OX10 to create a plant

• Use transaction code OX14 to change a plant

• Use transaction code OX15 to display a plant

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

Successfully implemented SAP MM module for a global manufacturing company, resulting in streamlined procurement processes and cost savings.

• Led cross-functional team in mapping current procurement processes to SAP MM system

• Customized system to meet specific needs of the company, including integration with existing ERP systems

• Trained end users on new system functionalities and provided ongoing support post-implementation

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

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

Material type can be changed in SAP MM by using transaction code MM02.

• Go to transaction code MM02

• Enter the material number for which you want to change the material type

• Navigate to the 'Basic Data 1' tab

• Change the material type field as required

• Save the changes