40+ 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.

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

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.

There are several stock transfer types in SAP MM, including stock transfer between plants, stock transfer between storage locations, and stock transfer between company codes.

• Stock transfer between plants: This involves transferring stock from one plant to another within the same company code.

• Stock transfer between storage locations: This involves transferring stock from one storage location to another within the same plant.

• Stock transfer between company codes: This involves t...read more

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.

Material type is used to classify and categorize different types of materials in SAP MM.

• Material type helps in determining the behavior and attributes of a material in the system.

• It is used to control the procurement process, valuation, and account determination for materials.

• Different material types have different settings and configurations, such as whether a material is a finished product, raw material, or spare part.

• Material types also determine the fields that are mandat...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

Integral components in SAP MM include material master data, purchasing, inventory management, and logistics invoice verification.

• Material master data: Contains information about all materials used in the organization, such as their description, price, and storage location.

• Purchasing: Involves the procurement of materials and services from external vendors, including creating purchase orders and managing supplier relationships.

• Inventory management: Tracks the movement and stor...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.

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.

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

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

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

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

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.

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

• Pricing procedure is a set of condition types and access sequences that determine the calculation of prices.

• It is used to determine the net price of a material or service based on various factors such as quantity, discounts, taxes, etc.

• Condition types define the different elements that contribute to the price calculation, such as base price, discounts, surcharges, taxes, etc.

• Access sequenc...read more

Split valuation is used in SAP MM to assign different values to different portions of a material or product.

• Split valuation allows for the differentiation of material valuation based on specific characteristics or attributes.

• It helps in tracking and managing different costs associated with different portions of a material.

• Examples of split valuation include assigning different values to different batches of a material based on production dates or assigning different values to...read more

Valuation class is used to determine the value of a material and split valuation is used to differentiate the stock of a material based on certain criteria.

• Valuation class is assigned to a material master record and determines the G/L accounts used for accounting transactions.

• Split valuation is used to differentiate the stock of a material based on certain criteria such as origin, quality, or location.

• Split valuation allows for different valuation methods to be used for diffe...read more

Rollout project is the process of implementing a system or process in multiple locations or business units.

• Rollout project involves implementing a system or process in multiple locations or business units

• It requires coordination and planning to ensure consistency across all locations

• Examples include implementing a new ERP system across multiple factories or retail stores

• Rollout projects can be complex and require a dedicated team to manage the process

STO stands for Stock Transport Order. It is used to transfer goods from one plant to another within the same company code.

• One step STO involves creating a purchase order directly from the receiving plant to the supplying plant.

• Two step STO involves creating a stock transport order and then a goods receipt at the receiving plant.

• STO helps in tracking the movement of goods between plants and ensures proper inventory management.

• STO can be used for both intra-company and inter-co...read more

The creation of service entry sheet, STO, and IDOV error in PO are common issues in SAP MM.

• Service entry sheet is used to record the receipt of services performed by a vendor.

• STO (Stock Transport Order) is used to transfer goods between different plants within a company.

• IDOV (Item Data Output Variant) error in PO refers to an issue with the output variant settings for a purchase order.

• These issues can occur due to incorrect configuration, data entry errors, or system glitches...read more

P2P process involves procurement of goods and services from vendors through purchase orders and payments.

• Purchase requisition is created by the requesting department

• Purchase order is created and sent to the vendor

• Goods receipt is created upon delivery of goods

• Invoice verification is done to ensure correct payment

• Tables involved: EKKO, EKPO, EKBE, MSEG, RBKP, BKPF

Integration between SAP MM and other modules for seamless data flow and process optimization.

• Integration with SAP SD for sales order processing and delivery

• Integration with SAP PP for material requirements planning and production scheduling

• Integration with SAP WM for warehouse management and inventory control

• Integration with SAP FI for financial accounting and cost management

STO setup involves configuring settings for both intra and intercompany stock transfers.

• Define shipping data for plants involved in STO

• Maintain pricing conditions for STO

• Configure delivery scheduling agreements for STO

• Set up automatic account determination for STO

• Ensure proper authorization and release strategies are in place for STO

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

• SAP is a leading enterprise resource planning (ERP) software company.

• It provides integrated business solutions for various industries.

• SAP software helps organizations streamline their processes and improve efficiency.

• It offers modules for different functional areas like finance, sales, procurement, etc.

• SAP MM (Material Management) is a module within SAP that focuses on procurement and inventory management.

GR/IR process is used to reconcile Goods Receipt (GR) and Invoice Receipt (IR) in SAP MM.

• GR/IR clearing account is used to record the difference between GR and IR

• GR is created when goods are received and IR is created when invoice is received

• GR/IR clearing account is cleared when the difference between GR and IR is resolved

• If GR is greater than IR, the difference is posted as a credit to GR/IR clearing account

• If IR is greater than GR, the difference is posted as a debit to GR...read more

P2P process stands for Procure to Pay process, which involves all steps from requisitioning goods/services to making payment.

• Requisitioning: Requesting goods/services needed

• Vendor selection: Choosing a vendor to fulfill the request

• Purchase order creation: Documenting the agreement with the vendor

• Goods receipt: Receiving the goods/services

• Invoice verification: Checking and approving vendor invoices

• Payment processing: Making payment to the vendor

MM stands for Materials Management, a module in SAP ERP system that deals with procurement and inventory management.

• MM is a module in SAP ERP system

• It deals with procurement and inventory management

• It includes functionalities such as purchasing, inventory management, and invoice verification

• MM integrates with other SAP modules such as FI, CO, and SD

• MM helps organizations to streamline their procurement and inventory processes

P2P cycle refers to the Procure-to-Pay cycle, which is the process of purchasing goods or services from suppliers.

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

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

• The purchase order is sent to the supplier.

• The supplier delivers the goods or services.

• The goods or services are received and inspected by the buyer.

• An invoice is received from the supplier.

• The invoice is matched with the purchase order...read more

P2P process involves the entire procurement cycle from requisition to payment.

• Requisition creation by end user

• Purchase order creation based on requisition

• Goods receipt and invoice verification

• Payment processing

• Vendor evaluation and performance monitoring

Pricing procedure determines how prices are calculated in SAP MM based on various factors.

• Pricing procedure is a set of condition types that determine the price of materials or services in SAP MM.

• It consists of different steps like determining the price, calculating taxes, discounts, etc.

• Each step in the pricing procedure is assigned a condition type which defines how the price is calculated.

• Example: Condition types like PR00 for gross price, MWST for tax, K007 for discount, ...read more

Pricing procedure in SAP MM determines the conditions for pricing materials and services in purchase orders and invoices.

• Pricing procedure is a set of condition types that are used to determine the prices of materials and services in procurement processes.

• It is configured in SAP MM using transaction code M/08.

• Pricing procedure is assigned to a purchasing document type in customizing settings.

• It consists of various steps like determining the gross price, calculating discounts,...read more

Release strategy in SAP MM determines the approval process for purchasing documents.

• Release strategy is defined based on document type, value, and other criteria.

• It involves setting up release codes, release groups, and release indicators.

• Example: A purchase order above $10,000 may require approval from a manager with release code 'A'.