SAP MM Interview Questions and Answers

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

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

• The supplier only invoices the customer for the goods that have been sold, not for the entire consignment stock.

• Consignment stock is often used in industries where the goods have a long shelf life, such as automotive or electronics.

• Types of co...read more

AAD stands for Automatic Account Determination. It is a feature in SAP MM that automatically determines the correct GL account for a transaction.

• AAD is a feature in SAP MM

• It automatically determines the correct GL account for a transaction

• It saves time and reduces errors in accounting

• AAD is based on a set of predefined rules and conditions

• Examples of AAD include determining the correct account for goods receipt, invoice receipt, and goods issue

STO stands for Stock Transport Order. It is a type of purchase order used for inter-plant transfers within a company.

• STO is used for transferring goods between two plants within the same company code

• It is used to track the movement of goods from one plant to another

• STO can be created with reference to a purchase order or a delivery document

• It is used in SAP MM module

SAP MM (Materials Management) is a module in SAP ERP that manages procurement and inventory functions.

• Manages procurement processes such as purchase requisitions, purchase orders, and goods receipts

• Handles inventory management including material storage, movement, and valuation

• Integrates with other SAP modules like SD (Sales and Distribution) and PP (Production Planning)