Top 150 ERP Interview Questions and Answers

Enterprise resource planning tools are software systems used by industries to manage and integrate important parts of their businesses.

• ERP tools help streamline processes such as accounting, human resources, supply chain management, and customer relationship management.

• They provide a centralized database that allows different departments to access and share information in real-time.

• Examples of popular ERP tools include SAP, Oracle, Microsoft Dynamics, and NetSuite.

The configuration path in SAP MM involves setting up various elements such as organizational structures, master data, and procurement processes.

• Access the configuration menu through transaction code SPRO

• Navigate to Materials Management -> Purchasing -> Purchase Order -> Define Document Types

• Define organizational structures like company codes, purchasing organizations, and plant

• Set up master data such as material master records, vendor master records, and info records

• Configure...read more

ERP stands for Enterprise Resource Planning. It is a software system that helps businesses manage and integrate important parts of their operations.

• ERP integrates various functions like finance, HR, supply chain, and customer service into one system

• It helps streamline processes, improve efficiency, and provide real-time insights for decision-making

• Popular ERP systems include SAP, Oracle, and Microsoft Dynamics

I have experience using SAP T-codes such as F-43, FB60, and MIRO.

• F-43 is used for entering a payment with reference

• FB60 is used for entering invoices

• MIRO is used for entering vendor invoices

MM-FI integration is the integration between Materials Management and Financial Accounting modules in SAP ERP system.

• MM-FI integration ensures that all financial transactions related to materials management are properly recorded in the financial accounting module.

• It involves the transfer of data from MM to FI, such as purchase orders, goods receipts, and invoice verification.

• The integration also allows for the automatic updating of inventory accounts and the general ledger.

• MM...read more

ERPs stand for Enterprise Resource Planning systems.

• ERPs are software systems that integrate and manage various business processes and functions.

• They provide a centralized database and a suite of applications to streamline operations.

• ERPs typically include modules for finance, human resources, supply chain management, and customer relationship management.

• Examples of popular ERPs include SAP, Oracle ERP Cloud, and Microsoft Dynamics 365.

• ERPs help organizations improve efficien...read more

SAP MM is a module in SAP ERP that deals with procurement and inventory management.

• SAP MM stands for Material Management

• It involves processes such as procurement, inventory management, and invoice verification

• It helps in managing materials, vendors, and procurement processes efficiently

• Example: Creating purchase orders, managing stock levels, and vendor evaluation

ERP stands for Enterprise Resource Planning.

• ERP is a software system that integrates various business processes and functions into a single system.

• It helps in streamlining operations, reducing costs, and improving efficiency.

• Examples of ERP software include SAP, Oracle, and Microsoft Dynamics.

• ERP modules can include finance, human resources, inventory management, and customer relationship management.

Yes, SAP T Codes are transaction codes used in SAP systems to execute specific functions or tasks.

• SAP T Codes are shortcuts to access specific transactions in SAP systems.

• They are alphanumeric codes that represent a specific task or function.

• For example, T Code 'MM01' is used to create a material master record in SAP MM module.

• Users can enter T Codes in the command field to quickly navigate to a specific transaction.

Yes, I am familiar with ERP systems.

• I have experience using SAP and Oracle ERP systems.

• I understand how ERP systems integrate different business functions.

• I am able to navigate and use ERP software to manage inventory, sales, and financial data.

ERP software is a business management tool that integrates all aspects of a company's operations into a single system.

• ERP stands for Enterprise Resource Planning

• It helps streamline business processes and improve efficiency

• Modules include finance, human resources, inventory management, and more

• Examples of ERP software include SAP, Oracle, and Microsoft Dynamics

Enterprise resource planning tool is a software system used by organizations to manage and integrate important parts of their businesses.

• ERP tools help streamline processes and improve efficiency in areas such as finance, HR, supply chain, and customer service.

• Examples of popular ERP tools include SAP, Oracle, Microsoft Dynamics, and NetSuite.

• These tools often include modules for different functions like accounting, inventory management, and CRM.

• ERP systems can be cloud-based...read more

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

The T Code used for preparation of invoice in SAP is VF01.

• VF01 is used for creating a billing document

• It allows you to enter billing data such as customer, material, quantity, and pricing

• You can also add taxes, discounts, and surcharges

• VF01 generates an invoice document that can be printed or sent electronically

SAP PM module is used for managing maintenance activities of an organization.

• PM stands for Plant Maintenance

• It helps in planning and scheduling maintenance tasks

• Tracks equipment and maintenance history

• Provides cost analysis and reporting

• Integrates with other SAP modules like MM and FI

• Example: A manufacturing company can use SAP PM to schedule maintenance of their production equipment

ERP stands for Enterprise Resource Planning. It is a software system that integrates various business processes and functions.

• ERP helps organizations streamline their operations and improve efficiency.

• It provides a centralized database for storing and managing data from different departments.

• ERP modules include finance, human resources, supply chain management, customer relationship management, etc.

• Users can access and utilize ERP through a user-friendly interface.

• Examples of...read more

SAP MM (Materials Management) is a module in SAP ERP that deals with procurement and inventory management.

• SAP MM helps in managing materials procurement, inventory, and warehouse management.

• It includes functionalities like material master data, purchasing, goods receipt, and invoice verification.

• SAP MM integrates with other modules like SAP SD (Sales and Distribution) and SAP PP (Production Planning).

Yes, I have ERP knowledge.

• I have experience working with SAP and Oracle ERP systems.

• I am familiar with inventory management, procurement, and supply chain processes in ERP.

• I have used ERP to track purchase orders, invoices, and vendor information.

• I have also trained new employees on how to use ERP systems.

SAP MM has components like Material Master, Purchasing, Inventory Management, and more.

• Material Master

• Purchasing

• Inventory Management

• Invoice Verification

• Vendor Evaluation

• Batch Management

• Classification

• Plant Maintenance

• Service Management

Yes, I am familiar with ERP software.

• I have experience working with ERP systems such as SAP, Oracle, and Microsoft Dynamics.

• I have implemented ERP solutions for various companies to streamline their business processes.

• I have customized ERP software to meet specific business requirements.

• I have trained users on how to effectively use ERP software to improve efficiency and productivity.

Release strategy in SAP MM involves defining rules for approving purchase requisitions and purchase orders.

• Release strategy is set up based on characteristics like document type, value, and vendor.

• Multiple release codes can be assigned to different levels of approval.

• Release strategy can be configured to require sequential or parallel approvals.

• Example: Requisition with value over $10,000 requires approval from manager and director.

Yes, I have knowledge of ERP systems.

• I have experience working with SAP ERP system.

• I am familiar with the basic functionalities of ERP systems such as inventory management, order processing, and financial management.

• I have also worked with Oracle ERP system in my previous job.

• I understand the importance of ERP systems in streamlining business processes and improving efficiency.

The module used for preparation of invoice in SAP is Sales and Distribution (SD) module.

• Sales and Distribution (SD) module is used for invoicing in SAP

• It allows creation of sales orders, delivery notes, and invoices

• SD module integrates with other modules like Finance and Controlling (FI/CO)

• It also allows customization of invoice templates and billing plans

ERP stands for Enterprise Resource Planning, a software system that integrates various business functions. SAP is a popular ERP software provider.

• ERP (Enterprise Resource Planning) is a software system that helps organizations manage and integrate their core business processes.

• SAP is a leading provider of ERP software, offering solutions for various industries such as finance, manufacturing, and human resources.

• ERP systems like SAP help streamline operations, improve efficien...read more

I would recommend implementing a table reservation system, optimizing kitchen processes, and providing training for staff.

• Implement a table reservation system to manage the rush hour efficiently.

• Optimize kitchen processes by streamlining order preparation and delivery.

• Provide training for staff to improve efficiency and customer service.

• Analyze data from the ERP system to identify peak hours and adjust staffing accordingly.

Configurations in SAP PP are settings that determine how the system behaves and operates in the production planning module.

• Configurations define the behavior of SAP PP based on business requirements

• Configurations include settings for master data, work centers, production orders, etc.

• Examples of configurations in SAP PP include defining order types, scheduling parameters, and material master settings

Enterprise Resource Planning (ERP) software integrates core business processes in real-time to improve efficiency and productivity.

• ERP software helps streamline and automate business processes such as accounting, human resources, inventory management, and customer relationship management.

• It provides a centralized database that allows different departments to access and share information in real-time.

• ERP systems can improve decision-making by providing accurate and up-to-date ...read more

The organizational structure in SAP MM is defined by the company's organizational units, such as plants, storage locations, purchasing organizations, and company codes.

• Organizational units include plants, storage locations, purchasing organizations, and company codes

• Plants represent physical locations where goods are produced or stored

• Storage locations represent specific areas within a plant where materials are stored

• Purchasing organizations are responsible for procurement ac...read more

SAP process is a set of activities and tasks involved in implementing and managing SAP software solutions.

• SAP process involves planning, designing, configuring, testing, and deploying SAP software.

• It includes activities like requirement gathering, system analysis, customization, and integration.

• SAP process also involves training end-users, data migration, and ongoing support and maintenance.

• Examples of SAP processes include implementing SAP ERP, SAP CRM, or SAP HANA solutions...read more

Yes, I am familiar with SAP and ERP systems.

• I have hands-on experience working with SAP and ERP systems.

• I am proficient in using SAP modules such as MM (Materials Management), SD (Sales and Distribution), and PP (Production Planning).

• I have successfully implemented ERP systems in previous roles, streamlining supply chain processes and improving efficiency.

• I am knowledgeable about integrating SAP and ERP systems with other supply chain technologies, such as warehouse managemen...read more

Execution steps in SAP PP involve creating a production order, releasing it, scheduling, confirming production, and completing the order.

• Create a production order in SAP PP

• Release the production order for execution

• Schedule production activities and resources

• Confirm production activities and update progress

• Complete the production order and close it

Yes, I have experience with SAP, an ERP software.

• I have worked with SAP for 3 years in my previous role as a Store Officer.

• I am proficient in using SAP modules such as Materials Management (MM) and Warehouse Management (WM).

• I have successfully managed inventory, procurement, and logistics processes using SAP.

• I have also trained and supervised a team of store assistants in utilizing SAP for efficient store operations.

• I am familiar with generating reports, analyzing data, and o...read more

I have extensive experience using ERP software in various management roles.

• Implemented and managed ERP systems to streamline business processes

• Utilized ERP software to track inventory, sales, and financial data

• Generated reports and analyzed data to make informed business decisions

• Trained and supported team members in using ERP software effectively

• Integrated ERP software with other systems for seamless data flow

• Implemented customizations and enhancements to meet specific busin...read more

I recently worked on implementing Oracle ERP Cloud for a manufacturing company.

• Configured financial modules such as General Ledger, Accounts Payable, and Accounts Receivable

• Integrated supply chain modules for inventory management and procurement

• Customized reports and dashboards for management visibility

• Provided training to end users on system functionalities

The T code for processing Credit note in SAP is FB75.

• The T code for processing Credit note in SAP is FB75.

• FB75 is used to create a credit memo in SAP.

• Credit notes are typically used to correct errors in invoices or to provide refunds to customers.

I am familiar with SAP ERP system.

• Proficient in using SAP ERP for Order to Cash processes

• Experience in navigating through SAP modules such as SD, MM, and FI

• Knowledge of creating and analyzing reports in SAP

SAP (Systems, Applications, and Products) and ERP (Enterprise Resource Planning) are software systems used by businesses to manage operations and resources.

• SAP is a software system that helps businesses manage various aspects such as finance, human resources, sales, and production.

• ERP is a type of software that integrates different departments and functions across a company into a single system.

• SAP is a popular ERP software used by many large organizations worldwide.

• ERP syste...read more

Yes, I have worked with SAP S/4 HANA MM module.

• Implemented SAP S/4 HANA MM module for procurement processes

• Managed material master data and vendor information in SAP S/4 HANA MM module

• Generated purchase orders and monitored procurement activities using SAP S/4 HANA MM module

The T. Code used in billing in SAP is VF01.

• VF01 is the T. Code used for creating a billing document in SAP.

• It is used to generate invoices for goods or services provided to customers.

• VF01 allows users to enter billing data such as customer details, pricing, and payment terms.

• It also provides options for reviewing and modifying billing documents before finalizing them.

• Other related T. Codes in billing include VF02 for changing billing documents and VF03 for displaying billing ...read more

I have experience using SAP ERP for managing collections.

• Utilized SAP ERP for tracking and managing customer accounts

• Generated reports on outstanding invoices and payment statuses

• Processed payments and reconciled accounts using SAP ERP

Contracts in SAP SD are legally binding agreements between a company and a customer for the sale of products or services.

• Contracts define the terms and conditions of the sale, including pricing, delivery dates, and payment terms.

• They can be created for individual customers or for specific customer groups.

• Contracts can be used to manage long-term relationships with customers and ensure consistent pricing and delivery terms.

• Examples include quantity contracts, value contracts, ...read more

ERP stands for Enterprise Resource Planning, a software system that helps organizations manage and integrate their important business processes.

• ERP systems help streamline and automate business operations, including finance, HR, manufacturing, supply chain, and more

• They provide a centralized database that allows different departments to access and share information in real-time

• Examples of popular ERP systems include SAP, Oracle, Microsoft Dynamics, and NetSuite

Major T-codes used in SAP MM are ME21N, ME51N, MIGO, MB51, MB52, ME59, ME58, ME22N, ME23N, ME29N

• ME21N - Create Purchase Order

• ME51N - Create Purchase Requisition

• MIGO - Goods Movement

• MB51 - Material Document List

• MB52 - List of Warehouse Stocks

• ME59 - Automatic Generation of POs

• ME58 - Ordering in the Background

• ME22N - Change Purchase Order

• ME23N - Display Purchase Order

• ME29N - Release Purchase Order

SAP o2c stands for Order to Cash in SAP system, which involves the entire process from receiving customer orders to receiving payment.

• SAP o2c is a module in SAP that covers the entire order processing cycle.

• It includes activities such as order entry, pricing, delivery, billing, and payment processing.

• The main goal of SAP o2c is to streamline and automate the order fulfillment process.

• It helps in improving customer satisfaction by ensuring timely delivery and accurate billing....read more

I am familiar with a variety of T-Codes in SAP, including but not limited to FI, CO, MM, and SD modules.

• I am familiar with T-Codes related to Financial Accounting (FI) such as F-02 (Enter G/L Account Posting) and F-30 (Post with Clearing)

• I am knowledgeable about Controlling (CO) T-Codes like KSB1 (Cost Centers) and KSB2 (Cost Elements)

• I have experience with Material Management (MM) T-Codes like MIGO (Goods Movement) and ME21N (Create Purchase Order)

• I am also familiar with Sal...read more

Currently using SAP ERP software for procurement processes.

• Using SAP ERP software for procurement activities

• Familiar with SAP modules such as MM (Materials Management) and SRM (Supplier Relationship Management)

• Experience in customizing SAP for specific procurement needs

Important T-codes in SAP for store management

• MB51 - Material Document List

• MMBE - Stock Overview

• MM03 - Display Material Master Data

• MMBE - Stock Overview

• ME21N - Create Purchase Order

ERP stands for Enterprise Resource Planning, a software system that integrates various business functions to streamline processes and improve efficiency.

• ERP systems help organizations manage and automate processes such as accounting, human resources, inventory management, and customer relationship management.

• They provide a centralized database that allows different departments to access and share information in real-time.

• Examples of popular ERP systems include SAP, Oracle, an...read more

The T Code used in SAP for asset addition is AS01.

• T Code AS01 is used for creating a new asset in SAP

• It is important to input all necessary information accurately while using T Code AS01

• AS01 allows for the addition of various types of assets such as tangible and intangible assets

To check material master data in SAP MM, use transaction code MM03 and enter the material number.

• Use transaction code MM03 in SAP to access material master data

• Enter the material number to view details such as description, price, stock levels, etc.

• Check for accuracy and completeness of data to ensure smooth operations

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.

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

Account receivable in SAP FICO involves managing customer invoices and payments.

• Involves creating customer invoices for goods or services provided

• Tracks payments received from customers

• Allows for reconciliation of accounts receivable with general ledger

• Provides reports on outstanding receivables and aging analysis

Vendor invoice process in SAP involves creating, processing, and paying invoices to vendors.

• Vendor creates invoice and sends it to the company

• Invoice is entered into SAP system

• Invoice is verified and approved by relevant departments

• Payment is made to vendor

• Invoice is recorded in accounting system

Automation in SAP PM refers to the use of technology to streamline and optimize maintenance processes.

• Automation in SAP PM can help reduce manual effort and improve efficiency.

• It involves the use of tools and software to automate tasks such as work order creation, scheduling, and reporting.

• For example, automated notifications can be set up to alert maintenance teams about upcoming preventive maintenance tasks.

• Automation can also enable real-time monitoring of equipment and as...read more

SAP T CODES are essential for logistics experience in SAP.

• SAP T CODES are transaction codes used in SAP to execute specific functions.

• In logistics, T CODES are used for tasks such as creating purchase orders, managing inventory, and tracking shipments.

• Examples of logistics T CODES include ME21N for creating purchase orders and VL10B for creating delivery notes.

• Having knowledge of logistics T CODES is crucial for efficient supply chain management in SAP.

Account payable in SAP FICO refers to the money a company owes to its suppliers or vendors for goods or services received.

• Account payable is a liability account in the general ledger that represents the amount a company owes to its suppliers.

• In SAP FICO, account payable transactions are recorded in the Accounts Payable module.

• Payments to vendors are processed through the Accounts Payable module in SAP FICO.

• Account payable aging reports can be generated in SAP FICO to track ou...read more

SAP EWM integrates with PP & QM for seamless production and quality management processes.

• SAP EWM integrates with Production Planning (PP) for efficient production scheduling and execution.

• Integration with Quality Management (QM) ensures that quality checks are performed during warehouse operations.

• Real-time data exchange between EWM, PP, and QM improves visibility and decision-making.

• Examples: EWM can trigger production orders in PP based on warehouse stock levels, and QM can...read more

Types of PO in SAP include standard PO, blanket PO, contract PO, and planned PO. SAP tcode for PO is ME21N.

• Standard PO is used for one-time purchases

• Blanket PO is used for recurring purchases over a period of time

• Contract PO is used for long-term agreements with suppliers

• Planned PO is used for materials that are not yet fully specified

• SAP tcode for creating a PO is ME21N

SAP PP (Production Planning) and SAP MM (Materials Management) are modules in the SAP ERP system that help manage production processes and materials procurement.

• SAP PP focuses on planning and controlling the manufacturing process

• SAP MM deals with procurement and inventory management

• Integration between SAP PP and SAP MM ensures smooth production processes

• SAP PP includes functionalities like Bill of Materials (BOM) and Work Centers

• SAP MM includes functionalities like Purchase O...read more

ME21N is the T code for creating a Purchase Order in SAP

• ME21N is used to create a new purchase order in SAP

• ME22N is used to change an existing purchase order

• ME23N is used to display a purchase order

I have worked with SAP modules such as MM, PM, and PS. I have used tools like Primavera P6 and Microsoft Project.

• Worked with SAP MM (Materials Management) module for procurement and inventory management

• Experience with SAP PM (Plant Maintenance) module for maintenance planning and scheduling

• Utilized SAP PS (Project System) module for project planning and tracking

• Used Primavera P6 and Microsoft Project for project scheduling and monitoring

I have experience working on SAP MM for total purchase from OEM and authorized vendors.

• I have worked on SAP MM for managing purchase orders, vendor selection, and invoice processing.

• I have experience in creating purchase requisitions and purchase orders for both OEM and authorized vendors.

• I have knowledge of maintaining vendor master data and negotiating prices with vendors.

• I have experience in tracking and managing inventory levels to ensure timely procurement of materials.

• I...read more

Output Management in SAP MM involves managing the printing and sending of documents related to materials management processes.

• Output Management in SAP MM includes configuring and customizing output types for various documents such as purchase orders, goods receipts, and invoices.

• It involves defining output determination procedures to determine the relevant output types and their conditions.

• Output Management also includes setting up communication methods like email, fax, or pr...read more

SAP MM follows a standard organizational structure with various levels and elements.

• SAP MM uses organizational units like client, company code, plant, storage location, and purchasing organization.

• These units are linked in a hierarchical structure to define the organizational relationships.

• For example, a company code can have multiple plants, and each plant can have multiple storage locations.

• The purchasing organization is responsible for procurement activities and is assigne...read more

SAP T-codes are transaction codes used in SAP systems to execute specific tasks or functions.

• T-codes are used to access different functions in SAP such as creating a purchase order (ME21N) or displaying a material (MM03).

• Each T-code corresponds to a specific task or transaction in SAP.

• Users can enter T-codes in the command field to quickly navigate to different functions within the system.

Pricing procedure in SAP MM is a configuration that determines the calculation of prices for materials and services.

• Pricing procedure is a set of condition types and access sequences

• It determines the sequence in which condition types are applied

• Condition types define the pricing elements such as discounts, surcharges, taxes, etc.

• Access sequences determine the source of condition records

• Pricing procedure can be customized to meet specific business requirements

Standard SAP SD processes include order to cash, pricing, delivery, billing, and credit management.

• Order to cash process involves receiving customer orders and delivering goods/services.

• Pricing process determines the prices for products/services based on various factors.

• Delivery process involves picking, packing, and shipping the products to customers.

• Billing process generates invoices for the delivered goods/services.

• Credit management process ensures timely payment from cust...read more

SAP standard functionality can be used as-is or customized to meet specific business needs.

• SAP standard functionality provides a solid foundation for business processes

• Customization can be done to tailor SAP to specific requirements

• Feasibility of customization depends on the complexity of the changes needed

• Examples of customization include adding new fields, creating custom reports, or modifying workflows

Integration between SAP SD and MM involves sharing of data and processes to ensure smooth order fulfillment and inventory management.

• SD and MM modules are closely integrated in SAP to streamline business processes.

• SD module handles sales and distribution processes, while MM module manages procurement and inventory management.

• Integration between SD and MM enables seamless flow of data such as material master data, pricing conditions, and stock availability.

• When a sales order i...read more

The SAP t-code for allocation of lorries is VT01N.

• Use transaction code VT01N in SAP to allocate lorries.

• Enter the necessary details such as shipment number, delivery date, and lorry details.

• Allocate the lorry to the shipment and save the allocation.

• You can also use transaction VL02N to allocate lorries in SAP.

• Ensure to check the availability of the lorry before allocation.

SAP SD determinations involve various settings and configurations for sales and distribution processes.

• Determinations in SAP SD include pricing, output, text, and partner determinations.

• Pricing determinations involve defining pricing procedures, condition types, and access sequences.

• Output determinations determine how and when output documents like invoices and delivery notes are generated.

• Text determinations allow for automatic insertion of text in sales documents based on p...read more

PTP process in SAP involves the end-to-end procurement process from requisition to payment.

• PTP stands for Procure-to-Pay.

• It includes activities like requisitioning, sourcing, purchasing, receiving, and payment.

• In SAP, PTP process starts with creating a purchase requisition.

• The requisition is then converted into a purchase order.

• Goods or services are received and verified against the purchase order.

• Invoices are matched with the purchase order and goods receipt.

• Payment is made ...read more