1) Explain what is SAP MM?
SAP MM (Material Management) is a functional module in SAP that deals with procurement handling and material management. The MM module contains master data, system configuration and transactions to complete the procure to pay process.
2) What are the essential components in SAP MM?
- Determine requirements
- Source determination
- Vendor Selection
- Order Processing
- Order follow up
- Goods receipts and Inventory management
- Invoice Verification
3) Mention what are the types of special stock available?
The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with customer, etc.
4) List out important field in purchasing view?
The critical fields in purchasing view are
- Base unit of measure
- Order unit
- Purchasing group
- Material group
- Valid from
- Tax indicator for material
- Manufacturer part number
- Manufacturer, etc.
5) Explain the importance of the batch record?
A batch tells about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While, the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process).
6) Explain how you can link a document to a vendor master record?
To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path
- SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XK01- Create.
7) Mention what are the major purchasing tables? List the transaction codes for them?
- Purchase requisition > EKBN
- Purchase requisition account assignment > EBKN
- Release documentation > EKAB
- History of purchase documents > EKBE
8) Mention what are the data contained in the information record?
The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.
9) Mention what is the transaction code to delete a batch?
The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.
10) Mention what is the transaction code used to extend the material view?
To extend the material view transaction, code MM50 is used.
11) Explain how you can change the standard price in the master material?
The standard price for the material data cannot be updated or changed directly. However, to change the standard price you can perform the following steps
- Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-ZKDAT) for the materials
- Select Logistics > Material Management > Valuation > Valuation Price Determination > Future Price
12) What is Source List and what is the transaction code for creating Source List?
To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.
13) For creating a purchasing info record what are the pre-requisites?
The pre-requisites for creating a purchase info record are
- Material Number
- MPN ( Manufacturer Part Number )
- Vendor Number
- Organizational level code
14) Explain the terms Planned delivery and GR processing time?
Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.
15) What is purchase requisition as related to SAP? Mention the document types that are used in purchase requisition?
Purchase requisition in SAP determines both stock and non-stock items to the purchasing department. It can be done either manually or automatically, the document types used in purchase requisition are
- RFO ( Request For Quotation )
- Outline Agreement
- PO ( Purchasing Order )
16) Explain how consignment stocks are created?
In the normal purchase order or requisition, consignment stocks are created. While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated.
17) Explain how is the vendor return processed without a purchase order reference?
First you have to observe the return column and then select -- Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the document is a return purchase order, and then the document is saved.
You can also use transaction code M21N for this purpose
18) Explain how you can create a vendor account group in SAP?
To create vendor account group in SAP
- Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout
19) Explain what are the accounts created in SAP MM?
Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things
- Account assignment type
- Account that will be charged when you post the invoice or goods receipt
- Account assignment data that you should provide
20) Explain what MRP (Material Requirement Planning) list is and what is the transaction code to access MRP list?
MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results information for the material. For an individual item, you can access the MRP list by using the transaction code MD05. You can also access the MRP list by navigation path
SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material
21) Explain what is CBP? What is the difference between CBP and MRP?
CBP is the past consumption values of stock; it is used to forecast future requirements. On the basis of past consumption values, the net requirement of goods is calculated.
The difference between CBP and MRP is that when you plan materials using MRP, you have to predict the materials requirement based on sales and operations planning (SOP). While in CBP you have to predict the material requirement based on historical demand for materials.