50 REAL TIME SAP MM Interview Questions and Answers

1. What is the difference between a Purchase Requisition and a Purchase Order?

A PR is an internal document that sends notification to purchase department when some material is
service is required. PR can be generated by department that needs any material or service.
A PO is a document sent to vendor by purchaser which is an official request of mentioned material or
services. POs are generally binding on purchaser, though it depends on terms and conditions
mentioned in PO.

2. What are different Info Records types?

Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.

3. What is a consignment Stock?

The stock supplied by the vendor is in the purchasing company’s premises but the company has no
liability for the same. The liability for the company will only arise one the goods are issued from the
consignment stock for use. However, in this case, even before the use, purchasing company can check
in system how much stock is lying in inventory.

4. What is Sub-Contracting cycle in MM?

In Sub-contracting, we send raw material or input material to sub-contractor and then receive the
finished goods. A sub-contracting PO is created with item category ‘L’. Input material is sent to
vendor for processing with movement type 541. When GR is done using movement type 101,
movement type 543 takes place automatically and takes care of consumed material.

5. What is meant by Scales in MM?

When we maintain price in Info Records, we can make use of scales. It is used when price of a
material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price is Rs. 10,
however, if the order quantity is more than 500, price is Rs. 9. Scales are maintained in various
master data like info record, quota arrangement etc. from where scales can be pulled in a Purchase
Order.

6. How to Flag a material for deletion?

A material must be flagged for deletion before deleting it using Archive and Delete program. A
deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a
material for deletion, it is flagged for deletion at all corresponding lower levels. Transaction MM06 is
used to flag a material for deletion.

7. Can a material be used after flagging it for deletion?

Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It will just
trigger a warning message whenever the material is used. If you want a material to be blocked for any
use with immediate effect, you should use a material status which is there in Basic View 1 for general
level or in MRP 1 view for plant level blocking.
8. What is the function of OBYC?
OBYC is t-code used for configuring Automatic Account Posting. Postings are made to G/L accounts
automatically in the case of Inventory Management and Invoice Verification relevant to Financial
and Cost Accounting.

9. What is valuation grouping code related to OBYC?

Valuation grouping code is used to group the valuation area, In SAP, we can have valuation level at
Company code level or at plant level.General practice is to use the valuation area at plant level,
because valuation may differ from one plant to another. The valuation grouping code makes it easier
to set automatic account determination. If we need to define common account determination for
several valuation areas, we can assign same valuation grouping code to all those valuation areas. We
can maintain the valuation group code in OMWD for various valuation areas.
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10. What types of special stocks are available?

Various special stock types available in SAP are Consignment, Subcontracting, pipeline, project,
sales order stock, Returnable transport packaging, stock transfer, and the third party.

11. What is the difference between Contracts and Scheduling Agreements?

A contract is a pre-determined long term agreement to supply material or service for a certain period
of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of two types:
Value Contract or Quantity contract
In Scheduling agreements, we can enter scheduling lines which gives details of quantity that should
be delivered on specific date. Plant must be entered in SA so that materials can be delivered at plant.
These are generally used for materials whose requirements are predictable.

12. How can we create new transaction codes in SAP?

New transaction codes can be created using t-code SE93.

13. What are release procedures with and without classification?

Release Strategy with Classification:
PR can be released at header level as well as item level.It can be used for both internal/external
documents.Can be set on any field available in structure CEBAN
Release Strategy without Classification:
PR can be released only at item level.It can be used only for internal documents such as PR.
This strategy can be used only on 4 parameters which are Account assignment category, Plant,
Material Group and value of PR.
14. What is meant by batches?
A batch is a subset of the total stock of a material. It represents a homogeneous unit which has unique
specification. Normally, a batch is assigned to the quantity of material produced during a given
production run. A batch number uniqueness can be assigned at any of the following 3 levels:
At client level: The same batch number can be assigned only once within the entire client.
At material and plant combination level: Same batch number can be assigned to material with
different specification in each plant.
At material number level: A batch assigned to a material has the same specification for all plants
where material is extended. Batch number can be reassigned with a different specification for each
material.

15. How to handle free items in PO?

While creating PO, we can tick the item as free item in item overview section of PO. The price will
be zero for free marked item.

16. What information is maintained in Accounting View of material master?

Accounting view is a plant specific view. Besides other information, it contains important
information such as valuation class and price control. Valuation class helps in determining the
relevant GL account used for account posting. It is also used while configuring OBYC settings. Price
control indicator determines if material is maintained at Standard price(S) or Moving average price
(V).

17. What is the use of Material types?

‘Material Types’ is used to group various materials based on some common properties. It helps in
maintain material master data for a particular material. Using material types, we can control which all
views are required for a material type, which fields are required or optional, the material number
range etc.

18. What is the use of ‘Partner Functions’ for a vendor?

Partner Function is used to define responsibilities and duties of other business partners. Some partner
functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier),
PI(Invoice presented by) etc.

19. What is the use of ‘Material Status’?

Material Status helps in determining the usability of a material. It is a 2-digit code which can be
maintained as plant specific material status, cross-plant material status, and distribution material
status.

20. What is the ‘Price Control Indicator’?

‘Price Control Indicator’ is maintained in accounting view and is used to determine how a material
will be valuated. It can be Standard Price(S) or Moving Average Price(V). If the indicator is set to S,
all inventory postings are posted at standard price maintained in material master. If there are
variances in any transaction due to different price, the variance is posted in price difference account.
If price control indicator is set at V, goods received will be done at GR price. The moving average
price will be adjusted in material master using weighted average formula. If goods movements or
invoice receipts are posted using a price that differs from the moving average price, the differences
are posted to the stock account.

21. What are various types of Stock transfer?

The physical movement of stock between different physical locations is called as ‘Stock transfer’.
Stock transfer can be either a single step process or a two-step process. Various Stock transfers are:
Inter Company (Company to Company)
Inter Plant/Intra Company (Plant to Plant)
Intra Plant (Storage location to Storage location)

22. What are various Stock Types?

In SAP, commonly used stock types are:
Unrestricted Stock (Stock that is available for use)
Restricted Stock
Quality Inspection Stock (Not the unrestricted stock but can be considered for MRP)
Blocked Stock (Stock rejected by quality or production)
GR Blocked Stock (Conditionally accepted stock. Not the unrestricted stock)

23. What are various procedures for counting Physical Inventory?

Physical Inventory procedures in SAP MM are as follows:
Periodic Inventory (All stocks are counted on a pre-determined date)
Continuous Inventory (stocks are counted continuously during the entire fiscal year)
Cycle Counting (Counting is done at fixed intervals)
Inventory Sampling (Randomly selected material stocks are physically counted on the balance sheet
key date. If variances are small enough, it is presumed that the book inventory balances for the other
stocks are correct.)

24. What is the use of ‘Split Valuation’?

Within a valuation area, sometimes, we need to valuate various stocks of a material separately. It can
be because of different origin, quality, status, etc. We use split valuation in such cases. In this case,
material is managed at several partial stocks which are sub-stocks of main material stock. Any
transaction, relevant for valuation, is carried at this partial stock level. In accounting view, we define
if we need split valuation for any material.

25. What are the various stock valuation methods?

Stock revaluation can be done by following three methods:
LIFO(Last In First Out): Materials received last are consumed first. You can assume example of
elevator where people who enter last exit first!
FIFO(First In Firs Out): Materials received first are consumed first. Lowest Value Method: Stocks are
valued at their original price or the current market price whichever is lower.
26. How do you set ‘Automatic Account Assignment’ in MM?
Once OBYC settings are properly done, system finds the correct G/L account using the following
data:
Chart of Accounts: Chart of Accounts is determined based on plant or company code used in
transaction
Valuation Grouping Code: It is determined based on the valuation area. Valuation Grouping Code is
maintained in t-code OMWD.
Transaction Key: eg. BSX, GBB etc. Transaction keys are determined automatically from the
transaction (invoice verification) or the movement type (inventory management).
Account grouping /Account Modifier (only for offsetting entries, consignment liabilities, and price
differences)
Valuation class of material or (in case of split valuation) the valuation type: The valuation class
allows you to define automatic account determination that is dependent on the material. This can be
achieved by assigning different valuation classes to the materials in material master (Accounting
view) and by assigning different G/L accounts to the posting transaction for every valuation class

27. What are ‘Transaction Keys’ while setting OBYC?

Since each movement type is assigned to a ‘value string’ which in turn is identified with a transaction
key, the goods movement determines the correct transaction key. Transaction Keys’ are pre-defined
in the system to enable transaction postings in Inventory Management and Accounting (Invoice
Verification). Examples of pre-defined transaction keys are:
BSX (Inventory Postings)
WRX (GR/IR Clearing Postings)
PRD (Cost/Price differences)
UMB (Revenue/Expenses from revaluation)
GBB (Offsetting entries in Stock postings)BSX, WRX, and PRD are relevant for a GR with reference
to a purchase order for a material with standard price control. The transaction key UMB is used when
the standard price has changed and the movement is posted to a previous period. GBB is used to
identify the GL account to post to as the offsetting entry to the stock account (when not referencing a
purchase order) such as miscellaneous goods receipts, goods issues for sales orders with no account
assignment, and scrapping etc.

28. What is a Business Area?

The business area is an organizational unit within financial accounting. It corresponds to a defined
business segment or area of responsibility, to which value movements recorded in Financial
Accounting can be assigned. It is usually derived automatically as it linked to other organizational
units. For eg. Business area for a combination of plant and division is maintained by t-code OMJ7.
29. What is a Cost Center?
Cost Center accounting is used for controlling purposes. It is an organizational unit within a
controlling area which represents a defined location of cost incurrence. For example, any department
can be a cost center for recording all expenses incurred for that department.

30. What is a Profit Center?

Profit Center Accounting evaluates the profit or loss of individual, independent areas within an
organization. Profit center is an organizational unit in controlling to recognize your profit. Profit
center is attached to material master at plant level.

31. How to create Tax calculation procedure in MM?

Tax can be calculated for each line item of a PO separately based on the tax code. Earlier TAXINJ,
which is a formula based tax procedure, was used. Now, TAXINN, which is a condition based tax
procedure, is generally used. Tax procedure contains the condition type and necessary specification
for each condition type. Account keys are assigned to condition types and these account keys
determine the G/L to which the tax amount is to be posted(OB40). These account keys are maintained
using t-code OBCN. (All these transactions are under Financial Accounting Global Settings >> Tax
on Sales/Purchases >> Basic Settings). Tax codes are assigned to country codes and country are
linked with tax procedure. Thus, based on tax code, corresponding tax procedure is determined and
then calculation is done based on condition types in that tax procedure.

32. How is scrap material taken care of in sub-contracting?

Scrap can be maintained in BOM as operational scrap, component scrap, By-Product or Co-Product.
Common practice is to maintain scrap as by-product and receive it back along with processed
material.

33. How are the by-products taken care of in sub-contracting?

When you create BOM using CS01, we can maintain main components with + ve quantities and By
Products / Scraps with – ve quantities.
When you make Goods Receipt for Subcontracting Purchase Order with 101 movement type,
components are automatically consumed with movement type 543 By Products / Scrap are updated as
stock provided to vendor movement type 545. Now we can receive this scrap/ By product back in
company’s inventory using movement type 542 (reversal of 541) with t-code MB1B.

34. What are the commonly used movement types in Sub-Contracting process?
541 – Issues of goods from warehouse to subcontractoru2019s stock
542 – Reversals of goods issues from warehouse to subcontractoru2019s stock
543 – Consumption from subcontracting stock (Automatic updating during GR)
544- Co-products receiving
545- Goods receipt of by-products from subcontracting (Stock provided to vendor)
101 – Finished good/ Sub-Contracted good received after processing.
35. What are accounting entries in standard sub-contracting process?
Accounting entries in standard sub-contracting process are as follows:
For finished goods received:
Debit stock account of assembly(FG) (BSX)
Credit Change in Stock (BSV)
For amount payable to vendor:
Debit SC/JW charges (FRL)
Credit GR/IR (WRX)
For material provided to vendor:
Debit Consumption Account of components (GBB-VBO)
Credit Stock account of components (BSX)
If there is a price difference and customization is done for accounting for price difference in
subcontracting, PRD transaction key comes in picture.

36. What are the possible values of procurement type in Material Master?
Procurement type is maintained in MRP1 view of material master. This is a plant specific view as
MRP is done at plant level. Various procurement types in material master are as follows:In-house
production (E)
External procurement (F)
No procurement
Both Procurement types (X)

37. What are the requirements for an ‘MRP Run’?

MRP should be activated in that plant
Master Data for MRP should be maintained (Planning Calendar etc.)
MRP data for material should be maintained
MRP1 view should be maintained (e.g.. Reorder point, Safety stock etc.)
MRP2 view should be maintained (e.g.. Plan delivery time etc.)
MRP can be run using MD03

38. What is a MRP Area?

MRP Area is an organizational unit for which material requirement planning can be carried out
independently. MRP Areas are of three types:
Plant MRP Area
MRP Areas for Storage Locations
MRP Areas for Subcontractors
After defining MRP areas, MRP area is assigned to material in material master.

39. What is MRP list?

The system creates MRP lists during the planning run. The MRP list always displays the future
stock/requirements situation at the time of the last planning run. The MRP list is stored in the system
until it is either deleted manually or replaced by a new list from a subsequent planning run.
40. What MRP procedures in Consumption Based Planning?
MRP procedures in CBP are as follows:
Reorder Point Procedure
Forecast based Planning
Time phased material planning

41. What is the difference between standard purchasing organization and reference purchasing
organization?
Purchasing organization is an organizational unit within Logistics. A standard purchasing
organization must be provided to one or more plants for which it is directly responsible for
procurements.
A purchasing organization is assigned to reference purchase organization to avail conditions and
centrally agreed contracts or release orders contained in the assigned reference purchasing
organization

42. Why do we use document types in SAP?

Document types are used to distinguish the business transactions to be posted. It also helps in
determining the account types to be posted and subsequent transactions to complete the process.
Document types are defined at client level.

43. Can we receive the goods before the scheduled delivery date in scheduling agreement?
No, we cannot receive the goods before scheduled delivery date. GR can be posted on or after the
scheduled dates. Though, SAP has provided some OSS notes to resolve this. (708973, 741385)

44. Can changes be made in PO once it is released?

This can be controlled by settings given in release indicator in PO release procedure. If it is a
significant change, it will re-trigger approval cycle.

45. What is the use of ‘Info Update’ indicator in purchasing documents?

This indicator is used to decide if the info record is to be created/updated or not based on this
purchasing document.

46. What is a Material Ledger?

A material ledger retains all transactions that relate to the purchase and use of materials for producing
goods. Material ledger data is valuation and control data for a material in a plant for a specific posting
period. Material ledger contains data for material movements that are relevant to the valuation of the
material.

47. What is a ‘Return Delivery’?

Return Delivery is used if we want to return goods to a vendor for any reason such as bad quality, or
bad packaging etc. In normal cases, return delivery is done by movement type 122. For creating
return delivery, reason for return is a mandatory field.
48. How to deactivate a vendor so that it cannot be used for further transactions?
A vendor can be blocked at various levels as follows:
All Company Code
Single Company Code
All Purchasing Organization
Single Purchasing Organization

49. What is EAN?

An article can be carried in different units of measure. An European article number (EAN) is created
as a unique indicator for each of these units of measure. The most important use of EANs within a
company is to identify articles at the point of sale (POS) using the barcode.

50. What are basic tables used for Material Master?

Some of the basic tables used in Material master are:
MAKT: Material Descriptions
MARA: General Material Data
MARD: Storage Location Data for Material
MVER: Material Consumption
MARC: Plant Data for Material
MVKE: Sales Data for Material
MAST: Material to BOM link
MARM: Unit of Measurement
MBEW: Material Valuation

1. How does the PO pick up the pricing schema?

Ans -: system will search pricing schema with the combination of schema group for vendor and
schema group for purchase organization.

2. Who we configure material master?

MM Consultant who is assigned for the particular project will configure the Material Master in real
time.

3. What are the steps involved in creating a pricing procedure?

1. Maintain condition tables, the condition tables have key field’s 2.maitain access sequence with
required condition tables. 3. Maintain condition types, here you can assign accesses sequence, also
you can assign supplementary conditions with main condition type. 4. Maintain calculation schema
with the systematic arrangement of condition types. 5. Maintain schema group for purchase
organization and schema group for vendor. 6. Assign calculation schema with the combination of
schema group for vendor and schema group for purchase organization.
4. What are the advantages of working with scheduling agreements
In Scheduling agreement we just create the delivery schedule lines to intimate the vendor about the
material delivery schedule. No need to create any purchase order against the SA. In case of Contract
we need to create release orders.

5. What are the steps involved in consignment cycle?

Consignment Info Record creates with material and vendor. Consignment Purchase Order (create
with item category k) Goods Receipt with movement type 101K Consignment Stock to Own Stock,
Transfer posting with movement type 411 k Goods Issue to direct consumption 201K settlement
through—mrko

6. What are the fields in purchasing view?

Base Unit of Measure Purchasing Group Material Group,these 3 fields are mandatory. Purchasing
Value Key GR processing time

7. What is GR blocked stock? When it can be used?

When we have some issues in the received stock and we do not want the quantity to be considered in
the inventory the we can maintain the stock as GR Blocked stock. It is only recorded in the purchase
order history. This stock is NOT valuated. You can display goods receipt blocked stock from two
viewpoints: 1.Goods receipt blocked stock for a material (at plant level) 2.Goods receipt blocked
stock for a purchase order item

8. What is RTP?
Returnable transport packaging (RTP) is a multi-trip packaging medium (for example, pallets or
containers) in which goods can be transported more than once between vendors and customers.

9. What is meant by consignment stock?

The Consignment stock is a stock that is supplied by the vendor is in the companies premises with the
company having no liability for the same. The liability for the company will only be affected when
the goods are issued from the consignment stock for use.

10. What is the difference between the stock transfer between, two plants belonging to same
company code and those belonging to different company code?
1- for STO between plants at the same Company, the stock value don't effected, so that No Account
document created 2- for STO between two different companies, the stock value updated to the 2
plants, so that an Account document created.

11. What are the steps in automatic account assignment config.

Material type is assigned to A/c Cat Ref.; A/c Cat. Ref is assigned to Val. Class; Val. class assigned
to G/L A/c. Configuration: OMWM : Activate Val. grouping Code OMSK : Create A/c cat. ref and
Val. Class; then A/c cat ref assigned to material type. OMWD : Val. area (plant) assigned to Val. grp.
code (0001) OBYC : Assign Val. modifier (0001), New Val. Class and G/L A/c Now create new
material and assign new val. class in accounting 1 data screen. Then create PO, GR.
12. How do you create movement types? What are the steps involved? When will you
recommend a new movement type?
Transaction code is omjj you can copy new movement type which is near-by old one. When we will
go to new movement type, if there is no possibility to done transaction with old movement type.
Steps:1)entry control data 2)short text 3)allowed transactions 4)help text 5)up date control data
6)account grouping 7)reasons for movement

13. What is meant by access sequence? When it is used?

Access sequence is a search strategy; it searches for valid condition records of a certain condition
type

14. What are the types of special stocks available?

Special stocks are stocks that are managed separately as a result of their not belonging to your
company or being stored at a particular location. Example: Consignment Subcontracting Stock
transfer Third-party processing Returnable transport packaging Pipeline handling Sales order stock
Project stock

15. What are the types of info records?

Standard, consignment, subcontracting & pipeline

16. Tell me about the subcontracting cycle.

Actually, in subcontracting, customer has to send raw materials or halb's to vendor and then customer
has to back the processed good.
in this cycle , 1) customer has to create p.o. with item category 'L'. 2) Customer has to move material
to vendor with moment type 541. 3) And gets back the processed good from vendor with moment
type 101.

17. Tell me about the various movement types and usage

we are using different movement types for different pupas. Ex-101---receipt area 201--consumption
or issue 301?transfer posting 501?receipt with out po,rtp,scrapping 411?transfer posting ,consignment
to own

18. What is the difference between a contract and a scheduling agreement?

Contract is a long term outline agreement between vendor and ordering party over a predefined
material or services over certain frame work of time Scheduling is a long term outline agreement
between vendor and ordering party over a predefined material or services procured on predetermined
dates over a frame work of time
19. How does the system calculate taxes?
The system calculates the Taxes based on the Tax rates maintained in a tax code, the Calculation is
based on the taxing procedure assigned to the Country. Non deductible tax is identified based on the
Account key assigned to the Condition type in the Taxing procedure. The Non deductible tax
Account keys are NAV - Non-deduct. Input tax ( This will distribute the tax into a new line item)
NVV - Non-d.input tax dist ( this will Distribute to relevant expense/revenue items )

20. What is meant by batches? How can the batches be searched?

Sub division of material is having different characteristics is called batch. For example - nokia cell
batteries.

21. What are the settings required for quota arrangement?

In material master Purchasing data screen, Quota arrange usage (field) : 1 (select 1), MEQ1 : Here
split the quota depends on the vendor capability ME51 : Create PR ME56 : Assign source for above
PR (Automatic assignment; depends on quota ratting) ME21 : Create PO for open PR, Now system
sugest the quota ratting first vendor.

22. What is meant by MRP Type and lot sizing?

It is procedure that you set in the system on how the Material is planned Reorder Point Seasonal
requirement Replenishment Vendor Managed Forecast Based Master production Scheduling Lot size:
You can define your requirements (to be produced or procured) in terms of Weekly, Monthly, Qty
based, Maximum Replenishment

23. What is a reference purchase organization? When can it be used?

It is reference for all the other existing Purchase Orgns. It is not assigned to either to plant or comp
code. The contracts, terms and conditions can be utilized by other Put Orgns.

24. Explain the concept of split valuation and when can it be used? What are the settings
required?
If you can procure the same material from Domestic as well as foriegn vendor, so, you can differ the
valuation class.
In this case, you will go to split valuation. Settings : 1. Go to OMW0, here activate the split val. 2. Go
to OMWC, Here select Global type (valuation type), click on create Ex. Domestic - at the same time
Ext. PO allowd (2); Int. PO not allowed (0), Act. cat. Ref. 0001 (Raw mat.), again click on create.
Same procedure repeated for foreign. go back,Slect Global categories, create, Max. single chat. again
create.go back. Here select your Val. cat. at the same time click on Cat--> types icon, here assign
your val. types (domestic & foriegn both are activate). in same page select types--> OUS icon, here
activate the plant.save.
Now create new material, In accounting 1 view you can assign val. cat.save. Again enter to mm01,
Give material no, Ind. sector, Mat. type, Give enter, this time system will ask the plant, sto.loc, Val.
type, here you can select the val. type, now system directly enter to accounting 1 view.
Now you can select various val. class. repeat same procedure to another val. type. Then, create po for
above material, this time system will ask the val. type for this particular vendor. try it.
25. What are valuation area, valuation category and valuation class?
Valuation area is the level at which the material stocks are valuated (Value Basis). It can be either
company Code or Plant. Valuation category is the criteria for defining partial stocks. Valuation class
is to group the materials to assign to a set of GL Accounts.

26. What is meant by a release strategy?

It is on line approval process of a purchase requisition or a purchase order. With this procedure we
can have better control on procurement. It can be done by one or group of persons having
authorization to approve the requisitions with the help of release codes.
Release strategy, means a plan defining the release code with which an item of a pr or a complete pr
or a complete purchasing department must be release and the sequence in which release code has to
be effect by using this code is known as release strategy. ME29N - individual release for P.O ME28 -
collective release for P.O ME54N - individual release for P.R ME55 - collective release for P.R
ME35k - release for contract ME84 - release for scheduling Agreement.

27. What are release groups and release codes?

Release code is a two character ID allowing a person to release a requisition or an external purchasing
document. Release group is a group of release codes which can release a purchasing document for a
release strategy.
Release codes: It is a identity for respective person in purchase organization to release PO Release
groups: One or more release codes grouped together is called release group.

28. What is the movement type for return to vendor? How to reverse it?
Movement type for return to vendor is 122.for the reverse movement type is 123.

29. What is LSMW?

It stands for Legacy System Migration Workbench. It is a tool used in SAP to upload the data from
the legacy system to SAP system.

30. What is the difference between LSMW and CATT?

LSMW is legay system migration work bench is basiclly used for migrating data from legacy system
to SAP system. Where as CATT is computer added testing tool used for testing but now days it is
used for migration mainly by the functional consultant

31. How to give specifications for developments?

In SAP for any kind for Z development function consultant need to give the functional specification
in which he have to give the purpose of the developlement as well as logic for the selection. He also
need to give the field and table which are required for the same. He also need to prepare one or two
test cases to test output the report/development.

32. What are the types of tables in SAP?

There are 3 types of table in SAP . 1- Transperent Table 2- Cluster Table 3-Pool Table
33. What are the documents generated in the MIGO 101 movement type? What are the
accounts hit?
Goods receipt with ref. to po in 101 mov. type Material Doc, Accounting Doc. BSX (inventory
Posting) Stock account - Debit, WRX (GR/IR account) - Credit

34. can anyone explain me what is the mm organization structure

FI Plant-created by basis MM Purchase org-created by basis MM Storage Locations-created by basis
MM Sales org- created by basis SD Shipping points- created by basis SD et

35. Can anyone explain in detail all the 16 fields of Pricing Procedure?
The 16 fields of pricing procedure are;- 1. Step 2. Counter 3. Condition 4. Description 5. From 6. To
7. Manual 8.Required 9. Statistics 10. Print 11. Subtotal 12. Requirement 13. cal type 14.Base type
15.A/c key 16. Accurate.

36. Can anyone give an overview on Account Determination?

Every time while making the Purchase Order and Purchase Requisition it is not possible to assign the
material to the cost Center and Gl Account so While creating the material code we will assign the
material to Valuation Class Assigning material to GL account ie Automatic account Determination
Material types is assigned to A/c Cat Ref, A/c Cat. Ref is assigned to Val. Class; Val. Class is
assigned to G/L A/c. Val. Area also assigned to Val. Grouping code. Val. modifier assigned to Val.
class as well as G/L A/c. Configuration : OMWM : Activate Val. grp. code OMSK : Create New A/c
Cat. Ref; Val. Class. and A/c Cat Ref is assigned to Mat. type. OMWD : Assign val. area (plant) to
Val. grouping code (0001) OBYC : Assign Val. Modifier (0001), New Val. class, New G/L A/c. Now
you can create new material and assign new val. calss in Accounting 1 view. For this material you
can create po, and GR now debit in your GL account.

37. What is difference between "terms of payment" and "payment terms" Fields are available
in vendor master purchasing view and accounting view respectively. System can take two
different values for same vendor? why different values are maintained?
Major difference between terms of payment is depend on suppliers policy. payment terms is depend
on purchaser policy

38. What is difference between stock transfer & transfer posting?

Stock Transfer is physically goods move from one location to another location. ex. store to store or
plant to plant. Transfer posting is goods move within the stock type. ex. Blocked stock to Quality
inspection stock to Unrestricted use.

39. A PO has 50 items all the 50 items have the same price. Instead of entering the price for
each item 50 times is there any option in SAP where the common price can be entered in one
go?
Infact using the fast change you can select any fields your want to change in 1 go. for example: plant,
net price,delv date etc.
40. Can anyone explain third party procurement process?
Third Party Procurement. In this we required Customer, supplier in spite of all std data. we order the
supplier to send material but not to our premises. the supplier should send it directly to customer.
while creating purchase order we have to give customer and subcontracting check box ticked in the
delivery tab and also use proper item category.

Interview Questions on SAP MM-3

1. TELL ME ABOUT YOURSELF ASAP:

2. EXPLAIN ASAP ROADMAP? 3. WHAT IS BUSINESS BLUE PRINT?

ASAP is a clearly defined implementation strategy that ensures customers a quick & predictable
implementation, regardless of size or complexity of environment. The components that make up
ASAP are
1. Methodology: The ASAP roadmap defined the phases of implementation process & supports these
with a comprehensive project plan. 2. Tools: Supported by a comprehensive set of both PC-based &
R/3-resident tools. 3. Service: Hotline, Consulting, Training, Project reviews, SAPNet. 4. Project
related knowledge like – Project Management, Change Management, Risk Analysis & Review
programs. The methodology consists of 5 phases 1. Project Preparation: Provides initial planning &
preparation for R/3 project
2. Business Blueprint: Detailed documentation of the results gathered during requirements
workshops. On this basis, you achieve a common understanding of how the company intends to run
their business within the R/3 system.
3.Realization: Implement all the business & process requirements based on business blueprint. You
configure system in 2 work packages, Baseline, & Final configuration.
4. Final preparation: Complete Testing, End user training, system Management, & cutover activities
to finalize your readiness to go live. After completion of this phase, you will be ready to run your
business in your R/3 system.
5. Go live & Support: Transition from a project-oriented, pre-production environment to successful
& live production operation. 6. Continuous Improvement: Provide on-going support & assistance for
post go-live. It covers solutions for those activities which are standard in a productive environment:
Business changes, technology changes, or change in the user community.

ENTERPRISES STRUCTURE:
3.5. EXPLAIN OVERALL SAP ENTERPRISE STRUCTURE?
STORAGE LOC DIVISION>, SALES ORG,> PLANT,> COMPANY CODE,> CLIENT

4. EXPLAIN MM ENTERPRISE STRUCTURE ELEMENTS?

P GROUP P. ORG. SLOC PLANT COMPANY CODE CLIENT

5. WHAT ARE THE DIFFERENT TYPE OF PURCHASE ORGANIZATION?

Plant specific Purchase organization Cross Plant Purchase organization Cross Company Code
Purchase organization Standard Purchase Organization Reference Purchase Organization
 6. WHY WE MUST ASSIGN PLANT WITH COMPNAY CODE?
To maintain the valuation process and a plant is a site operating as a production facility or an
individual/group of storage areas close together for a company. A plant can only belong to only one
company code.

7. WHAT IS REFERENCE PURCHASE ORGANIZATION?

A central PORG can exist side by side with local purchase organization, the local purchase
department can use contracts or conditions created by central purchase organization. You can assign
several purchasing organizations to one reference purchasing organization, but each individual
purchasing organization should be assigned to just one reference purchasing organization.

8. WHERE WE ASSIGN PURCHASING GROUP?

Nowhere – it is not an unit in the Organizational structure

9. WHAT LEVEL THE STORAGE LOCATION MAINTAINED?

Storage Location is maintained at Plant level.
MATERIAL MASTER:

10. HOW TO CHANGE MATERIAL TYPE? Using Tcode MMAM we can change material type
Cannot be changed if stock exists or PO, Reservation, PR, Contracts & If the accounting type differs.
Initially stock has to be cleared , by moving all the material to a special stock.

11. IS IT POSSIBLE TO CHANGE VALUATION CLASS? WHAT IS THE IMPACT? Yes, If

valuated stocks already exist, you can change the valuation class only as follows: a) Post the stocks of
the material to an interim account. b) Change the valuation class in the material master record. c) Post
the stocks of the material back to their original account. If open purchase orders already exist, you
can only change the valuation class if you first flag the corresponding purchase order items for
deletion. If production orders exist for which a goods movement has already taken place, you can
only change the valuation class if you first set the status of the production orders to Deleted.

12. IS IT POSSIBLE TO CHANGE PRICE CONTROL? WHAT IS THE IMPACT? Changing

the material valuation price does not involve material master, it is an accounting transaction in which
the total stock of the plant is revaluated. In price control S, if the MAP which reflect the development
of the delivered price, differs too greatly from the standard price. In price control V, the system
modifies the current valuation price to suit the delivered price, you only need to change the price
manually, if there is no movement of goods for a longer period of time. MR21- CHANGE
MATERIAL PRICE
13. TELL ABOUT PURCHASING VALUE KEYS?
Key that determines reminder intervals and tolerances. The reminder intervals are specified in days,
the system automatically creates the remainder or urging letters.

14. EXPLAIN CROSS PLANT SPECIFIC MATERIAL STATUS & PLANT SPECIFIC
MATERIAL STATUS?
The cross-plant material status restricts the usability of the material for all plants, that is, it defines
whether a warning or error message is displayed if you include the material in a particular function.
The material status is defined in the material master record and depends on the material concerned.
The material status can be assigned at client level at the individual plant level. Plant Specific material
status can be set at in Purchasing view & source list, if blocking indicator set, the material cannot be
procured externally.

14. WHAT ARE THE MATERIAL TYPES YOU WORKED?

DIEN – services, FERT – finished product, HALB – semi finished, HAWA – Trading goods, ROH –
raw material, UNBW – non valuated material, VERP – packaging, NLAG – non stock material, HIBE
– Consumables \ Lab chemicals

16. WHAT ABOUT CONFIGURATION OF MATERIAL TYPES?

A material type is specified for each material. The material type is part of general data.
Material type determines the views, type of Inventory management (qty/value based) on a valuation
area basic, specifies that can be included in BOM or not, can configure price control as an optional
value, The system assigns the stock a/c and consumption a/c bases on the valuation class. Account
Category Reference assigns the permitted valuation classes to the material type.
17. WHAT ARE THE VIEWS YOU WORKED IN MATERIAL MASTER?
Basic Data, Classification, Purchasing, MRP, General Plant/Storage,
Accounting

IS THERE ANY SALES VIEW FOR ROH? IS THERE ANY PURCHASE VIEW FOR FERT?
ITS NEEDED? WHAT IS ALTERNATIVE SOLUTION?
No, sales view for ROH, Yes, there is purchasing view or FERT, yes it is needful, sometimes we
need to buy finished products, or the end product of our company is a finished product.

18. WHAT ARE THE DIFFERENCE BETWEEN BY-PRODUCT & CO-PRODUCT?

WHERE WE MENTIONED THESE PRODUCTS?
BY-PRODUCT is like scrap which is a by product of a raw material when used for producing
components, CO-PRODUCT is two products as the same operation.
19. WHAT IS THE DIFF. BETWEEN VALUATED STOCK & NON
VALUATED STOCK?
20.WHAT ARE THE DIFFERENCE BETWEEN VALUATED STOCK
AND NON VALUATED STOCK?
You manage low-value advertising or office materials in a warehouse, and can get an up-to-date
report on stock levels at any time. Stock records are kept on a quantity basis, but the value is posted
to a consumption a/c at the time of GR. UNBW
You cannot post a GR of non-valuated material direct into consumption. You have to post the
goods into the warehouse first and then enter the goods issue. Also include Returnable transport
packaging, which is maintained as a special stock.
Generally all the material are valuated with qty/value update. Except NLAG– non value/stock
material, direct post to consumption a/c.
22. HOW TO CHANGE STOCK TO NON STOCK ITEM?
Based upon the material type.

23. WHAT ARE THE ALTERNATIVE UOM IN MM?

The BUM may be each, but the purchase dept. procure material in pairs, then we have to have
to maintain AUOM that is1 PAIR = 2 Each entered in Basic data view1, additional data.

24. WHAT LEVEL THE MATERIALS ARE MAINTAINED?

The material is maintained at client level.

25. WHAT ARE THE VIEWS & FIELDS AVAILABLE IN MATERIAL MASTER?
Basic Data 1: Text, Basic UOM, Material Group, Old Material No., X Plant Material status,
Dimensions (weight, volume, size), Packaging material data, Configuration Management.
Basic Data 2: Basic Material, Design Drawing ( No link indi, Doc, Doc type, page), CAD indicator
Classification: Class, std. Class indicator, status of class, characteristics & value
Purchasing : Basic UOM, Order Unit, P Group, M Group, Plant specific Material status, Purchase
Value Key, Auto PO indi.,
Batch Management indi, GR processing time, Quota arrangement usage, JIT schedule
indicator Purchase Order text: Text
MRP1 : MRP group, MRP type, ABC indicator, Reorder point, MRP controller, Lot size, Min/Max
lot size,

MRP2 : Procurement Type, Quota arrangement usage, JIT del. Schedule, GR processing time,
Plant delivery time, Schedule
Margin key, Safety stock, Min safety stock
MRP3 : Forecasting ( Period indi., Fiscal year variant), Planning data (strategy group, planning
material, planning plant)
Availability check,
MRP4 : storage location MRP, BOM explosion, Repetitive manufacturing
Plant/sloc1 : Unit of issue, storage bin, batch management indi., shelf life data.
Plant/sloc2 : weight\volume
Accounting1: Valuation Category, Valuation class, Price control, Price unit, Previous period/year
button, std cost esti button
Accounting2: Tax data, LIFO indicatior

26. CAN WE CHANGE THE INDUSTRY SECTOR?

27. HAVE YOU CREATED MATERIALS MATERIAL TYPES? NO.

28. HOW TO EXTEND MATERIAL MASTER TO ANOTHER PLANT?
MM01 Using this we can extend material master by typing the another plant and system will
display the message that “material already exist will be extended and MRP type & Valuation
Class, price control, price.

29. WHAT IS THE USAGE OF KMAT & VARIANT CONFIGURATION? KMAT is

a configurable material .
First create class & characteristics (eg. Window / windowless envelope with various sizes) and them
create material in material master basic data 2 view, material is configurable is selected, in purchase
batch indicator is selected, and then create configuration profile.
Class type 300.
LESS-IMPORTANT IN MATERIAL MASTER
30. CHANGING BASE UOM POSSIBLE?

YES, But if no stock and no PR or PO exists, no stock in current or previous periods, clear stock
using 561 movement type.

31. WHAT ABOUT NUMBER RANGE FOR MATERIAL MASTER?

Number Range is based on Material Type, Material No. can be 18 characters

32. WHAT IS THE USAGE OF HERS?

HERS – Manufacturer Parts
33. WHY MATERIAL GROUPS NEEDED?
Group together of material with same characteristics

34. HOW TO CREATE STORAGE LOCATION AUTO?

Default data can be set for the organization level like plant, sloc

35. HOW TO DELETE THE MATERIAL?

MM06 FLAG MATERIAL FOR DELETION MM16 SCHEDULE FOR DELETION
36. TELL ME ABOUT PRODUCT HIERARCHY? WHERE WE ASSIGNED? WETT –
COMPETITIVE MATERIAL. It is used for analyses and price determination.
The product hierarchy on the Basic Data screen is used to depict the competitive materials of
competitor 1 in relation to those of competitor 2. Here, your own company and its materials are
also regarded as a competitor and as competitive materials respectively. You can use this
representation as a basis for market analyses.

VENDOR MASTER & PARTNER FUNCTIONS :

37. TELL ME ABOUT CONFIGURATION ABOUT VENDOR MASTER?
In accounting, the vendor is regarded as the company’s crediting business partner. The vendor
master record is therefore maintained by accounting & purchasing. Each user department can
maintain bother general data & Purchasing & Accounting-specific data centrally or decentrally. In
addition, Purchasing often maintains data at corporate group level.
38. CAN WE MAINTAIN VENDOR AT PLANT LEVEL?
NO
39. WHAT IS ONE TIME VENDOR?
You can use one-time master record to cover a number of vendors. You normally use one-time
master records for “one-time” vendors.

40. EXPLAIN PARTNER FUNCTIONS?

The vendor can have various functions in its interaction with your company. For eg. During the
procurement transaction the vendor is the order recipient, then the supplier of goods, the invoicing
party, and finally, the payee.
By maintaining partner roles in the vendor master record, you can distribute one or more of these
roles among different vendor master records.

41. WHAT ARE VIEWS & FIELDS IN VENDOR MASTER?

Views are General data, Purchasing data, Accounting data.
GENERAL DATA – Address,
Control – Tax information, reference data
Payment transactions – country, bank key, a/c, alternate payee
COMPANY CODE DATA – Accounting info – Rec. a/c, cash management group, Interest
calculation, withholding tax

Payment transactions – Payment terms, Tole. group, chk double inv., payment methods,
payment block Correspondence – Dunning Procedure,

Withholding tax
PURCHASING ORGANIZATION DATA – Purchasing data – Order currency, terms of payment,
inco terms, min, order value, vendor

schema group, Indicators for GR – based Inv. Verify, Auto

PO, Auto ERS, ABC indicator, P- group, Planned delivery
time
Partner functions – like Ordering add, vendor, invoice presented by, employee responsible
42. WHAT LEVEL VENDOR MASTER MAINTAINED?
Company code level & Purchase organization level

LESS-IMPORTANT IN VENDOR MASTER:

43. WHAT IS THE DIFFERENCE BETWEEN MK01 & XK01?
MK01 – Vendor at Purchase Organization level, XK01 – Vendor centrally

44. WHAT IS CHECK DOUBLE INVOICE?

If you have set the Duplicate invoice check Indicator in a particular vendor master record, when
you enter an invoice for this vendor and there is an entry in the field reference, the R/3 system
always checks if there is already an invoice containing the same data s that just entered.

The following data is checked: COMPANY CODE, VENDOR, REFERRENCE, DOCU. DATE,
AMOUNT &CURRENCY.

45. WHAT IS VSR?

Divided a total vendor product range according to a variety of criteria.
The vendor sub-ranges to which you wish to assign a material in the info record must be already be
stored in the vendor master.

PURCHASE INFO RECORD:

46. EXPLAIN PIR? WHAT IS THE PROBLEM IF WE DON’T CREATE PIR ? ME11
Serves as a source of Information for Purchasing. The PIR contains information on a specific
material and a vendor supplying the material.
The PIR quickly determines, which materials have been previously supplied by a specific vendor
and which vendor supplied a specific material.The PIR contains price, conditions, no. of last
purchase order, tolerance limits for over deliver or under-delivery, planned delivery time, vendor
evaluation data, an indicator showing whether regular vendor, the VSR to which to material
belong, the availability period during which the vendor can supply the material.

47. WHAT ARE THE DIFFERENT TYPES OF PIR?

Procurement types – standard, sub contracting, pipeline & consignment
48. WHAT ARE VIEWS & IMPORTANT FIELDS IN PIR?
General data – reminder days 1,2,3, sub range, order unit, regular vendor indi., Purchase Org data –
plnd. Dely time, P group, std qty, min qty, rem. Shelf life, under/over delivery tolerance, GR- based
IV, NO ERS, Max qty, Net Price, Effective price, valid to , conversion, incoterms,
Texts -- Info record text, Purchase order text

49. WHAT LEVEL PIR MAINTAINED?

ORGANIZATIN LEVELS – P ORG – PLANT

SOURCE LIST:
50. EXPLAIN SOURCE LIST? WHAT IS THE PROBLEM IF WE DON’T CREATE
SOURCE LIST ?
The source list contains the allowed, preferred and/or blocked sources of supply for a material in a
plant that are valied wihin a certain period. Each source is defined in the source list by a source
record.
Sources are administered using source lists and quota arrangements. Source list records and quota
arrangements are used in source determination Buyers are not allowed to buy from the blocked
sources.
The MRP indicator in the source list stipulates how the source defined in a source list record is
taken into account in materials planning.
The purpose of source determination is to make it possible for a purchase requisition to be assigned
to a source automatically.
If a source list requirement exists, a material may not be procured from other sources other than
those included in the source list. Can be maintained manually, from Outline agreement, from PIR,
Automatic generation
51. WHAT ARE VIEWS & IMPORTANT FIELDS IN SOURCE LIST?
Material, Plant, Valid from, To, Vendor, Porg, Order Unit, Agreement, Fix indicatior, Blk indicator

52. WHAT LEVEL SOURCE LIST MAINTAINED?

Plant level

QUOTA ARRANGEMENT:

53. EXPLAIN ABOUT Q/A? If a certain material is to be procured alternately from

different sources of supply, these individual sources can be assigned quotas. The quota indicate
the percentages of a total requirement that are to be procured from each of the various sources
over a period.
Quota arrangement usage indicator must be set in the material master record.
In planning run we can choose to allocate entire qty of quota to a single source, or split among the
sources and for this splitting quota indicator has to be set.
54. WHAT IS THE FORMULA FOR Q/A?
Quota rating = (quota allocated qty + quota base qty)/quota
You can instruct the system to calculate the quota base qty for a new source within the
existing quota arrangement.
55. WHAT LEVEL Q/A MAINTAINED?
Pant level

57. WHY SYSTEM FINDS VENDOR WITH LOW QUOTA RATING?

The source with the lowest quota rating represents the effective source, even in the case of a
quota rating of zero. If more that on source has a quota rating of zero, the one with the highest
quota is the effective source.

OUTLINE AGREEMENTS:
58. EXPLAIN ABOUT OUTLINE AGREEMENT & SUB DIVISIONS?
Outline agreement is a longer term purchase agreement with a vendor concerning the supply of
materials or the performance of services according to predetermined conditions. These are valid for a
certain period of time and cover a predefined total purchase quantity or value.
An outline agreement can be a contract or a scheduling agreement. There are two types of contracts:
Qty contract and Value contract
The items of a contract can relate to a single plant or all the plants covered by a purchasing
organization ( centrally agreed contract )
Distributed contracts are centrally agreed contacts that are made available to other R/3 systems for
the purpose of issuing release orders against them.
Can create with reference to PR, RFQ or another O/A
59. WHAT LEVEL O/A MAINTAINED?
WHAT ARE THE DIFFERENCE BETWEEN CONTRACT &
S/AGREEMENT? CONTRACT SCHEDULING AGREEMENT
Only contains overall qty or value contains specific qty & delivery
date There is no contract for STO STO S/A is available (ME37)
We cant create by referring S/A Can create by refereeing centrally agreed
contract There is distributed or centrally agreed contract Not available
Can create for Material Unknown Not available
No item categories available Item categories
available It has contract release order We generate
S/A release

ME31K, to release ME35K ME31L,ME37 STO S/A, ME38- Maintain delivery schedule, ME35L -
Release
CONTRACT:

61. EXPLAIN ABOUT CONTRACTS & TYPES?

A contract is a longer term agreement with a vendor to supply material for a certain period of
time.
Individual delivery qty & dates are specified subsequently in contract release order issued against
the contract. Two types: Qty contract : MK, Value contract: WK
If there is a source list requirement for the plant first we create contract & then source list,
otherwise we cant create contact release order.

62. WHAT ARE THE IMPORTANT FIELDS IN CONTRACTS?

Vendor, Agreement type, Porg, P group, Item category, a/c assignment category, validity start &
end date, terms of delivery & payment, Material, short text, Target qty, net price

63. WHAT LEVEL CONTRACT MAINTAINED?

SHEDULING AGREEMENT:

64. EXPLAIN ABOUT S/A?

Contracts only contains overall target qty or overall value. But in S/A contains specific order qtys
& delivery dates.

65.WHAT ARE THE IMPORTANT FIELDS IN S/A?

Initial screen -- Vendor, agreement type, (LPA, LU), P-org, P-group, plant
Item overview screen – Material no, plant, target qty, net price, conditions.

66.WHAT LEVEL S/A MAINTAINED?

Purchase Organization level.
To create delivery schedule – ME38

Initial screen enter S/A no. and select item and select delivery schedule button, now enter
delivery date, scheduled qty and save it.

Then generate the S/A release using ME84

We send to the vendor S/A release in the form of forecast delivery schedule based on
previous S/A Then the vendor send material to us.
PURCHASING:
66. EXPLAIN PURCHASING PROCESS?

Organization levels : COMPANY CODE CLIENT PORG-PGROUP SLOC PLANT

PROCESS : Determination or requirements, Source determination, Vendor selection, PO
processing, PO Monitoring, Goods receipt, Invoice verification, Payment Processing.

Two types of purchasing documents – External –RFQ, PO, Quotation, Contract, SA Internal – PR
Account assignment only possible for PR, PO, outline agreement, not for RFQ

67. HOW TO PRINT PO?

ME9F – TO PRINT PO or using print immediate option.

69. WHAT ARE DIFFERENT ITEM CATEGORIES & ACCOUNT ASSINMENT

CATEGORIES IN PURCHASING?

ITEM CATEGORIES: 10 : Standard, B-Limit, K-Consignment, L-Sub contract, S-Third-party,

T-Text, U-Stock-transport,

D-Services, M- Material Unknown, W- Material Group

AA CATEGORIES : 18: A-Asset, K-Cost center, F-Order, P-Project, U-Unknown

70. WHAT IS AUTO PO & TYPES?

You can have PO generated automatically from PR to which a source has been assigned.
Auto PO indicator has to be ser for the material and vendor.
You cannot generate RFQ’s or SA’s delivery schedules using this function.

71. EXPLAIN CONSIGNMENT PROCESS?

Consignment stock is stored in company, but it is the property of vendor. Consignment stock is
managed under the same no. of company stock. KONS -
The consignment stock is valuated only when the material is withdrawn. Consignment stock is
allocated to one of 3 types.
1. Unrestricted use stock 2. QI stock 3. Blocked stock
Withdraw of material from consignment stock is only possible to allocate unrestricted use (ready for
use)
We can make transfer posting between the 3 stock types after GR.
In Material Master MRp2 view there is field special procurement, we have to enter 10 for
consignment
72. WHAT IS THE FINAL PROCESS IN CONSIGNMENT?
The final step in consignment is settling consignment liabilities in – MRKO

73. WHAT ARE A/C DOC. CREATED IN CONSIGNMENT?

74. Consignment a/c Dr. to Liabilities from consignment store Cr. For 201K
When settling consignment liabilities the a/c docs created are Liabilities from Consignment Stores a/c
Dr. To vendor a/c Cr.

74. WHEN CONSIGNMENT STOCK VALUATED?AT GR VALUATED? Consignment

stock is valuated at GI

EXPLAIN SUB-CONTRACTING PROCESS?

In Sub-contracting process the vendor receives the material from the company & they produces
the end products

77.HOW TO MONITORING THE S/C?

ME20 - REPORT TO MONITOR MATERIALS PROVIDED TO VENDOR

The report contains the components in the sub-contract order and listed sub-contract PO NO.,
the Qty of component required at certain data.

75. HOW SCRAP HANDLED IN S/C?

Any waste generated during Sub-contract can be maintained as component with Negative qty
in BOM
For scrapping 553 MT is used.

76. WHAT ARE A/C DOC. CREATED IN S/C?

77. WHAT IS S/C SUBSEQUENT ADJUSTMENT?

MB04 – SUBCONTRACT SUBSEQUENT ADJUSTMENT
If vendor informs to company after GR a greater or smaller qty actually consumed than planned
If more qty consumed enter positive qty else Negative qty (for 543, 545 Manual input not allowed)
If a component is entered for by product, we can use Movement Type 545 for GR from by-
products from sub contract.
80. HOW TO RETURN MATL. TO VENDOR IF REJECTED?
122 – return delivery to vendor
RELEASE PROCEDURE:
81. EXPLAIN RELEASE PROCEDURE PR OR PO?
Release procedure defines the approval process for PR & other External Purchasing documents.The
objective is to use an online approval system.

82. EXPLAIN PR WITHOUT CLASSIFICATION IN R/P?

Item level only possible.

83. HOW MANY RELEASE CODES ARE POSSIBLE?

Max of 8 release codes possible.

84. CAN WE CHANGE VALUE OF R/P & WHAT EFFECTS AFTER CHANGED?
WHERE WE CAN SET?
Yes, we change in SPRO, further documents subject to release strategy will be get affected by new
values.
84. WHY PR WITHOUT CLASSIFICATION AVAILABLE?

PR is an internal document, In a single PR we can have many vendors and materials, and
with without classification we can release at item level as well as header level.

86. CONVERT TO WITH CLASS. TO WITHOUT CLASS. & REVESAL

POSSIBLE? HOW?
External Documents are subject to release with classification only, PR we can create without
classification or with classification and in release group we can select the overall release and if
future we can alter these.

87. TELL ME ABOUT WORK FLOW USED IN R/P?

Work flow is used to assign users or departments to the release code
88. WHAT IS COMMUNICATION STRUCTURE IN R/P?

Communication Structures are tables used to create the classes with characteristics in Release
Procedures, we canCEKKO for PO, RFQ, Contract, SA, CEBAN for PR (fields like Plant-
WERKS, Net order value –GNETW)

89. CAN WE APPLY WITHOUT CLASSIFICATION TO PO?

NO
PRICING PROCEDURE:

90. EXPLAIN PROCESS OF PRICING PROCEDURE? Pricing procedure determines

how the system calculates the effective price in a purchase order
It is also used in PR/RFQ, Contract, SA

91. WHAT IS CONDITION TABLE ? CAN WE CREATE THESE TABLES?

A condition table consists of condition keys & data part. The data part contains a no. that references
a record in another table. In SAP std. System TABLE 017 has condition keys, vendor, Material.

92. TELL ME THE STRUCTURE PRICING PROCEDURE?

Condition Type -- it represents the price factors in the system. The various condition types are
discount, % on disc. Custom duty. In condition type we specify that the price factor is calculated
as absolute or % on qty.
Condition Table -- A condition table consists of condition keys & data part. The data part contains a
no. that references a record in Another table. Access Sequence -- It is a search strategy by means the
system searches for valid records in various condition tables. It consists of one or more accesses.
Some conditions have no condition tables and no access sequence eg. Header disc. Entered manually
7 supplement.. Calculation Schema -- It groups together all condition types, that is used to calculate
the price We can define variety of calculation schemas for P.Org or vendors RM0000 – To
determine the purchase price in Pur. Doc.

93. WHAT IS ALTERNATIVE ACCESS SEQUENCE?

94. WHAT IS TIME DEPENDENT & TIME INDEPENDENT CONDITIONS?

3 kinds of price
1. Gross Price – without any discount & surcharges into a/c
2. Net Price - With any discount & surcharges into a/c
3. Effective price – After deduction of tax, discounts, delivery cost, Miscellaneous provisions
There are 2 kinds of condiditons
Time dependent Conditions – Validity period & scales are specified in these conditions. No sub-totals
( Net price, Effective price) are created. Conditions in Info record & contract are always time-
dependent.
Supplementary conditions are time-dependent. SAP recommends time dependent conditions.
For Quotations & S/A using doc. Type we can maintain
Time independent Conditions – No validity period & scales. The conditions in PO are always time
independent. Sub-totals are created in Time-independent conditions.
95. HOW PO PICKS UP PRICING?
Based on the condition type the system searches the condition table as thru access sequence it finds
the sequence and calculates price using the defined calculation schema.

96. WHAT ARE HEADER LEVEL & ITEM LEVEL CONDITIONS? Header level
conditions are applicable for items, and item level conditions are applicable for that particular
item.

LESS-IMPORTANT IN PRICING PROCEDURE:

97. WHAT IS ACCRUALS & NUETRALS?
98. WHAT IS CONDITION GROUP?
99. WHAT IS TAX PROCEDURE VS PRICING PROCEDURE?
AUOMATIC ACCOUNT DETERMINATION:
100. EXPLAIN THE PROCESS OF AAD?
The system should automatically determine the relevant G/L a/c for each transaction in MM
BSX – Inventory Posting
WRX – GR/IR clearing a/c
PRD – Price difference
We can configure automatic posting to the MM areas such as Inventory Management & Invoice
Verification
Influencing factors of Automatic postings
1. Organization level i.e. Chart of a/c & Val grouping code
2. Chart of a/c
3. Material type & Valuation Class
4. Based on Movement type
5. AG Account Grouping or Account Modifier
Posting Keys are Independent from chart of a/c.
We must assign chart of a/c to each company code
We must configure AAD for each chart of a/c
Valuation grouping code is maintained at chart of a/c level.
First activate Valuation Grouping code (valuation modifier)
Define valuation level
Valuation class is a key for a/c determination. It determines the G/L a/c for material types.
A material type may have several valuation classes & vice versa.

The link between material type & valuation class is Account category reference
If material subject to split valuation R/3 determines valuation class for the valuation type
Valuation String contains Transaction / Event keys. We can't assign them in R/3
First value string triggered based on Material Type, transaction, PO type, Special Stock, a/c
assignment category for Movement type.
Account Grouping / a/c modifier / General Modifier
We assign a/c grouping to each movement type in OMWN
We can change a/c grouping depends on Movement type & special stock
indicator in IM We can't change for Invoice verification.
Based on the a/c assignment category, the systems proposes the a/c using transaction key GBB & a/c
grouping.
EXPLAIN SIMULATION BASED ON MATERIAL, PLANT, TRANSACTION
Valuation level must be plant level.

A/c category reference – used to simplify the assignment of Valuation class to

Material type It is a bridge between Material type & Valuation class

Valuation Class – Determines the G/L a/c for Material type based on
transaction PRD has both dr. and cr. G/L a/c’s

WRX has one a/c no.

EXPLAIN A/C GROUPING WITH MOVEMENT TYPE 201
A/c assignment category : K cost center Item category in PO: std

Value string determines the Transaction event keys possible for given Movement type.
System finds G/L a/c based on
1. Chart of a./c
2. Valuation grouping code
3. Transaction event key
4. Account Modifier (a/c grouping code)
5. Valuation class - is a group of material with same a/c determination

101. EXPLAIN AAD WITH GR & WHAT ARE A/C DOCUMENTS CREATED WHEN GR
&IV?
300000 - Inventory Raw Material a/c Dr.
191100 - Goods receipt/Invoice receipt a/c Cr.
191100 - GR/IR a/c Dr.
- Vendor a/c Cr.

101. WHAT IS ACCOUNT MODIFIER?

Key which has a different meaning depending on the procedure. It is used to differentiate account
determination. The key’s meaning is predefined in the SAP system and cannot be changed. Each
movement is assigned a account grouping OMWN
102. WHAT IS MANUAL A/C ASSIGNMENT?

For each item to be posted to a consumption account, you need the account assignment category and
the account assignment date (for example, the number of the cost center to be charged) If no material
master exist you need a material desc., material group & account assignment If material exist and it
refers a particular dept. you need manual a/c assignment.

103. WHAT IS VALUATION LEVEL?

Valuation level can be Company code or Plant, SAP recommends Plant level valuation

SPLIT VALUATION:

104. EXPLAIN THE PROCESS OF SPLIT VALUATION?

If a material is subject to split valuation, you can valuate partial stock of this material at different
prices and manage them using separate accounts.
If a material is split valuated, you can mention in PO, which valuation type you can enter for a
material is determined by valuation category
The valuation category is defined in the Material master of a material. It determines whether the
material is subject o split valuation . The specified material type also should be maintained in the
material master.
106. WHAT IS THE DIFF. BETWEEN BATCH MANAGEMNT & USING VALUATION
CATEGORY ‘X’?

Reason for Batch Management – 1. Defect tracking, Call back activities used for hazardous
materials, chemicals & pharma.
Batch levels – 1. Plant 2. Material 3. Client SAP recommends plant level in SPRO
We can use split valuation for batches if value based IM, The Batch No. is Valuation type.
Valuation category ‘x’ is used for Batch Management, and The Batch No. itself is the Valuation type.

107. WHY MAP USED IN SPLIT VALUATION?

Moving Average Price is used because, is a material is created using split valuation, it
indicates that the procurement is subject to change often and the stock should be valuated
accordingly.
INVENTORY MANAGEMENT:

108. WHAT ARE SPECIAL STOCKS IN IM?

Stock type in IM

1. Unrestricted Use stock

2. Quality Inspection
3. Blocked stock

4. GR blocked stock
Special stock is IM
1. K – Consignment
2. U – Sub contracting stock
3. E – Sales Order stock
4. Q – Project stock
5. M – RTP

the system,
109. WHATwe must
AREenter
MOVEMENT
MT to differentiate
TYPESvarious
YOU KNOWgoods movement.
? When weIt isenter
a 3 digit
goodskey.
movement in
Movement type controls a/c determination, field selection.

110. HAVE YOU CREATED ANY MOVEMENT TYPE?

111. WHAT ARE THE A/C DOC WHEN WE USE 101,561,501?

101 – Good Receipt Inventory Raw Material & GR/IR clearing a/c

561 - Receipt per Initial entry of stock balances into Unrestricted use. – Inventory Raw
Material & Inventory taking
501 – GR without PO - Inventory Raw material & Raw material consumed a/c

112. EXPLAIN IN DEPTH ABOUT TRANSFER POSTING & STOCK TRANSFER

WITHIN PLANT AND STORAGE LOCATIONS?

STO between plants and storage location by 1 step & 2 step 1 step movement type 301

2 step movement type 303 & 305 reservation only possible with 1 step. Transfer Posting with SD - GI
with MT 351 -- transfer posting to stock in transit from Unrestricted use.
113. WHAT IS GR/IR DOCUMENT TYPES?
By what means goods is received 1. PO, Others, Reservation, Inbound delivery, Outbound delivery.
If you plan pick, pack, Transport , you can post goods movement via. Shipping application
component, The system takes into account all the points that are involved in shipping. To create a
delivery via shipping VL01N to create Outbound delivery for a PO
Inbound delivery

PHYSICAL INVENTORY:

114. HOW PHYSICAL INVENTORY CARRIED OUT IN COMPANIES?

Physical Inventory is carried out by means of comparing the actual physical stock with that of the
system stock.

115. EXPLAIN THE PROCESS OF PI?

Regardless of the Physical inventory method, the process of physical inventory can be divided into 3
phases:

1. Physical Inventory Preparation

- Create a physical inventory document. MI01 - Block Materials for Posting

- Print and distribute the physical inventory document,

2. Physical Inventory Count
- Counting Stocks MI04
- Entering the result of the count on the physical inventory document print out
3. Physical Inventory Analysis
- Entering the result of the count into the system MI07
- Initiating a recount, if necessary MI11

116. WHAT ARE THE 4 PI PROCEDURES?

Periodic, Continuous, Sampling, Cycle counting

117. WHAT ARE MOVEMENT TYPES INVOLVED IN PI?

701 - Inventory differences in Unrestricted stock
703 - Inventory differences in QI stock
707 - Inventory differences in Blocked stock
118. WHAT ARE THE A/C DOC CREATED WHEN WE USE PI?
If counted qty <> system quantity

Stock a/c Dr.

Income from PI a/c cr.
119. HOW TO BLOCK MATL. FOR POSTING IN PI?

The blocking of material is carried out by selecting block check box in

MI01 The block is automatically cancelled when difference is posted.

STOCK TRANSPORT ORDER:

120. EXPLAIN THE PROCESS IN STO?

In the company stock transfer between plants using 2 step procedure
However, within plant using 1 step procedure, because the slocs are located within the same building.

121. WHAT IS THE DIFF. BETWEEN NB & UB?

NB for standard purchasing documents and UB only for stock transport order, no vendor and no IV
only supply & receiving plant.

122. WHAT ARE THE MOVEMENT TYPES INVOLVED & WHEN WE ENTERED?
1 step MT 301
2 step MT 303, 305 any damage post using 305 and scrap using MT551 - MB1S
STO without SD delivery create doc. With ME27/ME21N and post PI with 351 and GR
with 101 STO with SD single step MT 641 , MT 647

123. WHAT ARE THE A/C DOC CREATED IN STO?

Accounting document creates only for 301, 303 and not for 305 A/c created in 301 are Inventory raw
material dr. & cr.
INVOICE VERIFICATION:
124. WHAT ARE THE DIFFERENCE BETWEEN LOGICAL IV & CONVENTIONAL IV?

The invoice data is based on the Purchase Orders for stock or Non-stock materials requested and
shipped to your company. You want to review the information sent by the vendor

The main task of IV procedure is to complete the procedure of Material Procurement by posting
vendor Invoices and to pass on information concerning the invoice to FA and subsequent application.
In conventional invoice verification 1. Parking Invoices & 2. Posting directly to material or G/L a/c
is possible In LIV 1.Distributed systems, 2.unlimited multiple selection 3.posting in background
4.invoice reduction 5.Invoices for BPO 6.Installment conditions 7.Cross company code posting are
possible.

125. WHAT ARE THE A/C DOC CREATED IN IV?

GR/IR clearing a/c Dr. To Vendor a/c Cr.

WHAT ARE THE DIFFERENCE BETWEEN CREDIT MEMO & INVOICE?

You usually receive credit memos from vendor if you were overcharged.
A credit memo can be entered with reference to a PO or GR You must post the credit memo as a
subsequent debit/credit.

The total quantity invoiced for PO item remains the same, the total value invoiced is reduced. The
system posts credit memo to the same a/c, but with +,- signs.

126. WHAT WE HAVE TO DO IF GR QTY & IV QTY MISSMATCHED OR REVERSAL

& WHAT ARE THE A/C DOC CREATED IN GR/IR CLEARING?
We can post invoice only to the GR qty. The system credits/debits the stock a/c as a result of your
clearing the GR/IR a/c. For a material with MAP the system cr/dt the stock a/c only if there is
sufficient stock coverage otherwise, it makes the posting to a price difference a.c

** you cannot reverse this documents.

127. WHAT ARE THE DIFF. TYPE OF VARIANCES IN IV?

Quantity variances – Delivered qty - already invoiced with inv. Qty Price variance – Compares PO
price with the Invoice price PO Qty Price variances: - GR before IR,

Date variance - Compares pladned delivery date to the Invoice entry date. [schedule variance)
MM TABLES:

128. TELL ME ABOUT SOME OF MM TABLES & FIELDS?

MARA – General material data

MATNR – Material No

MTART – Material Type

MATKL – Material group

MEINS – Base UOM

MARC – Plant data for material

WERKS – Plant
MATNR – Material No.
MMSTA – Plant specific Material status
EKGRP – P group
MARD – Storage location data for material

MATNR – Material NO.

WERKS – Plant
LGORT – storage location
LABST – Unrestricted use qty
INSME – quality inspection stock
SPEME – Blcoked stock qty
LFB1 – Vendor Master company code data
LIFNR – Vendor No.
BURKS – Company code
ZTERM – Terms of payment
CEBAN – PR Release Strategy
CEKKO – PO Release strategy
EKGRP - Purchasing group
LIFNR - Vendor No.
MATNR - Material No.
EKORG - Purchase Organization
WERKS - Plant
EKGRP - Purchasing group
MATKL - Material group
EKORG - P Organization
MATKL - Material Group
GWSRT - Total value of item
GNETW- Total net order value

SYSTEM LANDSCAPE:

130. EXPLAIN SYSTEM LANDSCAPE OF YOUR COMPANY?

131. WHERE YOU CREATE NUMBER RANGE & REL. PROCEDURE?

132. HOW TO TRANSPORT THE DATA?

132. CAN WE USE THE REQUEST NO FROM QI SERVER TO

PRODUCTION SERVER THAT ALREADY USED?

BUSINESS PROCESS:

133. EXPLAIN THE BUSINESS PROCESS?

CIN :EXPLAIN ABOUT CIN ,CENVAT,VAT & ETC…?

CIN is an add-on component for SAP It features India specific requirements

1.Excise 2.CENVAT 3.sales tax 4.OCTROI 5.TAX-TDS CIN integrated with FI, MM, SD
In MM we can post
1. The vendors excise invoice
2. Special procedures for subcontract
3. Creation of excise registers
4. Material valuated based on vendors excise invoice Process

Verify MIGO Excise Invoice capture JLIEX_C PO-ME27N & MIRO (with excise post Excise
Invoice J1IEX_P & S Tax)
BATCH MANAGEMENT:

135. EXPLAIN BATCH MANAGEMENT?

The reason for Batch Management are 1.Defect tracking, 2.Call back activities used for hazardous
materials, chemicals & pharma.
Batch levels : 1.Plant 2.Material 3.Client

SAP recommends plant level in SPRO

We have to set characteristics ie. Properties class type: -022 at plant level, -023 at client level
We can use split valuation for batches if the value based IM.
The Batch No. is valuation type
To indicate whether a batch is usable or not
In customizing we can activate batch status management

client (or) Material Level AUTO MANUAL Plant (selected)

Status Unrestricted can be used & Restricted cannot be used.

SLED = Total shelf life + Production Date in GR

If no data in Material Master we have to enter at GR.

NON IMPORTANT IN MM:

VENDOR EVALUATION:

136. EXPLAIN ABOUT VENDOR EVALUATION PROCESS?

EXTERNAL SEVICE MASTER

137. EXPLAIN ABOUT EXTERNAL SEVICE MASTER?