50+ SAP MM Functional Consultant Interview Questions and Answers

G/L account for MM account determinations can be verified through configuration settings and testing.

• Verify the account determination configuration in transaction code OBYC.

• Check the account determination procedure and account assignment category settings.

• Test the account determination by creating a purchase order and checking the G/L account assignment.

• Review the accounting documents and postings to ensure the correct G/L accounts are being used.

Common assignment types in SAP MM system include purchase requisitions, purchase orders, goods receipts, and invoice verification.

• Purchase requisitions: Used to request the procurement of materials or services.

• Purchase orders: Generated to procure materials or services from vendors.

• Goods receipts: Documented when materials are received into the warehouse or stock.

• Invoice verification: Process of verifying and approving vendor invoices for payment.

To create tax calculations procedure in MM, define tax codes, assign tax codes to materials, and configure tax calculation settings.

• Define tax codes using transaction code FTXP

• Assign tax codes to materials using transaction code MM02

• Configure tax calculation settings using transaction code OVK1

• Specify tax jurisdiction codes using transaction code FTXP

• Define tax conditions using transaction code FV11

• Assign tax conditions to tax codes using transaction code FV11

• Set up tax deter...read more

To configure pricing procedure in SAP MM, follow these steps:

• Define access sequence

• Assign condition types to access sequence

• Define condition tables

• Assign condition tables to access sequence

• Define calculation schema

• Assign calculation schema to pricing procedure

• Define pricing procedure determination

• Assign pricing procedure to relevant document types

Document types in SAP system are used to categorize and control different types of documents.

• Document types are used to differentiate between various business transactions and processes.

• They help in organizing and managing documents in a structured manner.

• Document types determine the number range, field selection, and processing rules for each document.

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

Posting period is used to control the posting of financial transactions in SAP system.

• Posting period determines the time frame during which financial transactions can be posted in SAP system.

• It helps in ensuring that transactions are posted in the correct accounting period.

• Posting periods can be defined for different time intervals, such as months or quarters.

• Each posting period can have its own start and end dates.

• Transactions can only be posted in open posting periods.

• Closi...read more

Movement types can be created using transaction code OMJJ.

• Go to transaction code OMJJ

• Enter the new movement type details

• Assign the movement type to a movement type group

• Save the new movement type

MRP run in SAP system is a process that calculates material requirements based on demand and generates procurement proposals.

• MRP run is used to ensure that materials are available for production and delivery to customers.

• It considers various factors such as sales orders, production orders, forecasts, and stock levels to determine the quantity and timing of material requirements.

• MRP run generates procurement proposals such as purchase requisitions or planned orders to fulfill ...read more

Vendor & Customer Consignment process is a business arrangement where the vendor or customer stocks their goods in the company's warehouse.

• Vendor or customer stocks their goods in the company's warehouse

• Goods are still owned by the vendor or customer until they are sold

• The company acts as a middleman and sells the goods on behalf of the vendor or customer

• Payment is made to the vendor or customer only when the goods are sold

• The company charges a commission for the service prov...read more

Consignment and subcontracting are procurement processes. Shopping carts are created to initiate purchases. Purchasing group configuration is done to assign buyers. P2P cycle includes requisition, purchase order, goods receipt, and invoice verification. Classic and extended classic scenarios refer to different integration approaches.

• Consignment is a process where the supplier retains ownership of the goods until they are consumed by the buyer.

• Subcontracting is a process where...read more

Different info record types in SAP MM include standard, consignment, subcontracting, pipeline, and service.

• Standard info record is used for regular procurement of materials.

• Consignment info record is used when materials are stored at the customer's location but owned by the vendor.

• Subcontracting info record is used when a vendor performs a specific service or process on materials provided by the company.

• Pipeline info record is used for materials that are continuously supplied...read more

Different stock types in SAP system include unrestricted stock, quality inspection stock, blocked stock, and special stock.

• Unrestricted stock is available for use and can be used for any purpose.

• Quality inspection stock is used for items that are undergoing quality checks.

• Blocked stock is not available for use and requires special authorization to be used.

• Special stock includes consignment stock, project stock, and returnable packaging stock.

Quota arrangement in SAP system is used to define the distribution of goods or services over a specific period of time.

• Quota arrangement is used to allocate quantities to different sources or vendors based on predefined rules.

• It helps in maintaining a balance between multiple sources and ensures fair distribution.

• Quota arrangement can be set up for both procurement and sales processes.

• It can be based on various factors such as vendor performance, price, availability, etc.

• For ...read more

Yes, service procurement in SAP refers to the process of procuring services from external vendors or contractors.

• Service procurement involves creating service purchase orders to procure services.

• It includes defining service specifications, service quantities, and service prices.

• Service entry sheets are used to record the receipt of services and initiate the invoicing process.

• SAP provides functionalities for service procurement, such as service master data management, service ...read more

MRP stands for Material Requirements Planning, a system used to plan and manage inventory levels.

• MRP helps in determining the quantity and timing of materials needed for production.

• It considers factors like lead time, demand, and existing inventory levels.

• T-code for running MRP in SAP is MD01 or MD02.

• MRP helps in optimizing inventory levels and reducing stockouts.

SAP MM scenarios involve procurement, inventory management, and invoice verification.

• Procurement of materials from vendors

• Inventory management including stock transfer and physical inventory

• Invoice verification and payment processing

• Material requirement planning and forecasting

• Vendor evaluation and selection

• Integration with other SAP modules like FI, SD, and PP

Price determination process determines the price of goods or services, while account determination process determines the accounts to be debited or credited.

• Price determination process involves various factors such as pricing conditions, discounts, taxes, and surcharges.

• Account determination process involves assigning GL accounts to various transactions based on the transaction type and other factors.

• Price determination process is important for accurate pricing and profitabil...read more

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

• Subcontracting involves sending raw materials to a vendor for processing and receiving finished goods back.

• In 2-way subcontracting, the vendor sends back the finished goods along with any unused raw materials.

• The vendor may also provide additional services like packaging or labeling.

• The process involves creating subcontracting purchase orders and monitoring the progress of the s...read more

I have experience in configuring SAP MM, integrating with other modules, and working on SAP implementation projects.

• Configured organization structure in SAP MM to align with client's business requirements

• Assigned organization structure to various entities such as plants, storage locations, and purchasing organizations

• Integrated SAP MM with other modules like SAP SD for seamless order-to-cash process

• Worked on SAP implementation projects by conducting workshops, gathering requi...read more

SAP integration connects various SAP modules and external systems for seamless data flow and process efficiency.

• SAP integrates with various modules like SD (Sales and Distribution), PP (Production Planning), and FI (Financial Accounting) for cohesive operations.

• Example: MM (Materials Management) integrates with SD for order processing and inventory management.

• SAP can connect with third-party applications through APIs, allowing for real-time data exchange.

• Example: Integration ...read more

Inventory management is the process of efficiently managing the flow of goods in and out of a company's inventory.

• Inventory management involves tracking inventory levels, ordering new stock, and managing stock levels to avoid overstocking or stockouts.

• The cyclic process of inventory management includes receiving goods, storing them, picking and packing orders, and shipping them to customers.

• Inventory management also involves managing inventory costs, such as carrying costs an...read more

Migraction project in SAP is the process of migrating data from one system to another.

• It involves transferring data from legacy systems to SAP systems.

• It requires careful planning and execution to ensure data accuracy and completeness.

• Data mapping and cleansing are important steps in the migration process.

• Examples include migrating vendor and customer master data, material master data, and transactional data.

• Migraction projects can be complex and time-consuming, but are neces...read more

SAP MM module deals with procurement and inventory management.

• Procurement of materials and services

• Inventory management and control

• Material valuation and account determination

• Vendor evaluation and selection

• Purchasing information system

• Material requirement planning

• Goods receipt and invoice verification

• Batch management and serial number management

Subcontracting cycle involves sending raw materials to a vendor for processing and receiving finished goods back.

• Create a subcontracting purchase order with components and quantities

• Issue components to vendor using MIGO transaction

• Vendor processes components and returns finished goods using MIGO transaction

• Receive finished goods into inventory using MIGO transaction

• Invoice verification for subcontracting vendor

• Settlement of subcontracting vendor account

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship.

• A contract is a written or verbal agreement.

• It establishes the rights and obligations of the parties involved.

• Contracts can be for the sale of goods, provision of services, employment, etc.

• They typically include terms such as payment terms, delivery schedules, and dispute resolution mechanisms.

• Contracts can be enforceable by law and may include pe...read more

RTP stands for 'Returnable Transport Packaging'.

• RTP is a type of packaging that can be reused multiple times.

• It is designed to be durable and withstand multiple trips.

• RTP is commonly used in supply chain management to reduce waste and costs.

• Examples of RTP include plastic pallets, reusable containers, and metal racks.

• RTP can also help to reduce carbon emissions and improve sustainability.

I have 5 years of experience working with SAP software, specializing in MM module.

• Implemented SAP MM module for procurement processes

• Configured material master data and vendor master data

• Performed end-user training and support

• Worked on integration with other SAP modules like SD and PP