questions sap mm
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Interview Questions on SAP MM
1. What are the types of special stocks available?
Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third
party.
2. What are the types of inforecors?
Standard, consignment,subcontracting & pipeline.
!. What is "eant by consi#n"ent stock?
The stock 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.
$. What are the steps involve in consi#n"ent cycle?
reate consignment info record with proper ta! code, create Po with item category ",
maintain output condition record for "#$S, process %R, no invoice verification done,
but settlement is done through R"# transaction.
%. &ell "e about the subcontractin# cycle.
The Po is created with item category ' , the goods is transferred to subcontractor by
()* movemet. for this movement note no accounting docs take place. +hen %R is
done automatically, () movemnt takes place which take care of the consumption of
components from stock.
'. (ow are the byproucts taken care of in subcontractin#?
-ou can add these by products in the # for the header matl.
). What is "eant by scales?
an scales be used in standard purchase order/ -ou can fi! a price in the info record
for a say 0ty from *1*22 price RS*(2 & if the order 0ty is *2*1 (221 the prices is *)2 .
Scales cannot be used directly in P# but can be pulled into the P# from various
master data like info record, 0uota arrangement.
*. What is the ifference between a contract an a scheulin# a#ree"ent?
+ith regard to #utline 3greement4*. -ou can create the centrally contract 5cross1plant6 where you can maintain different
pricing conditions for each and every plant
7. -ou have to create the Release #rder with reference to #utline 3greement.
. $o detailed delivery schedule can be made in the Release #rder.
). $o Release documentation is created.
(. #nly time1dependent conditions can be created.
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8. Some 9tem ategory :: and :+: can be used.
+ith regard to Scheduling 3greement4
*. The Plant 'ocation must be entered in the Scheduling 3greement.
7. +e do not have to create any other purchasing document e!cept for delivery
schedule line via Transaction ;< or RP running 5with the appropriate setting of
Source 'ist6.. =elivery Schedule line items are created subject to your specific re0uirement.
). an create both Scheduling 3greement with and without Release =ocumentation
5subject to the =ocument Type 'P or 'P36 with the selection of either >R or ?9T
delivery schedule.
(. ;ither time1dependent or time1independent conditions can be created subject to the
customi@ing in the =ocument Type of the Scheduling 3greement.
8. 9tem ategory :: and :+: can not be used.
+. (ow oes the syste" calculate ta,es?
1-. (ow oes the syste" calculate noneuctible ta,es?
11. What is "eant by batches? (ow can the batches be searche?
3 batch is a subdivision of your stock of a material having the same characteristics.
>or instance4
1 food production uses batches to indicate the day of production.
1 paint production uses batches based on production date and the used ingredients. 9t is
very hard to reproduce the same color in e!actly the same way at two different
moments.
1 ore may be divided in batches based on their mineral content.
-ou can search batches using the standard search facility 5match code, key >)6 based
on the naming convention of the batches or, if you use batch classification, based on
the characteristics of the batches.
12. (ow is a shelflife ite" "ana#e in SAP? What is the full cycle?
1!. What are the settin#s re/uire for /uota arran#e"ent?
To set up a 0uota arrangement for the procurement of a material, proceed as follows4
aster data 1A Buota arrangement 1A aintain, enter the material and plant number, press ;$T;R to display the overview screen for the 0uota arrangement periods, ;nter
a validity period for 0uota arrangement, ;nter date until which the 0uota arrangement
is valid. The start date is calculated by the system. Press ;$T;R .
Select the 0uota arrangement and choose %oto 1A 9tem overview to display the item
overview screen of the 0uota arrangement. ;nter a 0uota arrangement item for each
source of supply you want to include in the 0uota arrangement.
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-ou must enter the following data.
1 Procurement type
1 Special procurement type, ;nter k in the S column, for e!ample, if a consignment
arrangement for the material e!ists with the vendor.
1 Cendor number
1 Procurement plant 5supplying plant641 Buota column, enter the 0uota assigned to each item.
Press ;$T;R .
The percentage distribution of the 0uotas is calculated and displayed automatically by
the system.
Save the 0uota arrangement. The system assigns a number to the 0uota arrangement
item automatically
1$. What is "eant by M0P &ype an lot siin#?
1%. an it be confi#ure in such a way that the e,ternal re/uisitions can also betaken into account while M0P runs in consu"ptionbase plannin# if 34 is
selecte as M0P type?
1'. (ow are free ite"s "ana#e in a P5? yu nee to tick the te" as free in the
P5. &he price will be ero for such P56s.
1). What are the ifferences between release proceure with classification an
release proceure without classification? When are they use?
Release procedure with classification means the Purchase re0usition can be released
both at item level & at the header level. Release procedure with out classification canalso be used for PR which is used for item level release only. all other e!ternal
documents cannot be relesed with classification. The two procedures are mutually
e!clusive 5that is to say, you must decide in favor of one of them only 1 you cannot
use both6.
1*. Is it possible to have a release proceure without classification for a P5?
$o
1+. What is the "a,i"u" nu"ber of levels available in SAP?
=id not get this 0uestion Dpls clarify.
2-. Is it possible to have scales in a /uotation?
$o
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21. What is 70 blocke stock? When it can be use?
+henever you are not sure about the 0uality of the product received, you can put in
%R blocked stock.
22. (ow are the variations in subcontractin# taken care of in SAP?
2!. (ow to #ive specifications for evelop"ents?
+e normally prepare a business re0uirement document in which we specify what is
re0uired. what field & tables have to be referred for the re0uired development.
2$. (ow to create P0 or P5 by M0P?
The PR is created according to the safety stock mentioned for the material or can be
triggered from a re0uirement . >or creating a P#, you need to have the scheduling
agreement in place .3fter the RP is run the schedule lines are generated which are
nothing but the P#.
SAP MM Interview Questions and Answers
Questions
1. What is the difference between the stock transfer between two plants belonging to same
company code and those belonging to different company code?
2. What are the important fields in purchasing view?
3. What are the steps in automatic account assignment configuration?
4. How do you create movement types? What are the steps involved? When will you
recommend a new movement type?
. What is meant by access se!uence? When it is used?
". How does the #$ pick up the pricing schema?
%. What are the steps involved in creating a pricing procedure?
&. What are the types of special stocks available?
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'. What are the types of info records?
1(. What is meant by consignment stock?
11. What are the steps involved in consignment cycle?
12. )ell me about the subcontracting cycle.
13. How is scrap accounted in subcontracting?
14. How are the byproducts taken care of in subcontracting?
1. )ell me about the various movement types and usage.
1". What is meant by scales? *an scales be used in standard purchase order?
1%. What is the difference between a contract and a scheduling agreement?
1&. How does the system calculate ta+es?
1'. How does the system calculate nondeductible ta+es?
2(. What is meant by batches? How can the batches be searched?
21. How is a shelf,life item managed in -#? What is the full cycle?
22. What are the settings re!uired for !uota arrangement?
23. What is meant by /0# )ype and lot siing?
24. *an it be configured in such a way that the e+ternal re!uisitions can also be taken into
account while /0# runs in consumption,based planning if is selected as /0# type?
2. What is a reference purchase organiation? When can it be used?
2". +plain the concept of split valuation and when can it be used? What are the settings
re!uired?
2%. What are valuation area5 valuation category and valuation class?
2&. What is meant by a credit memo?
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2'. How are free items managed in a #$?
3(. What is meant by a release strategy?
31. What are release groups and release codes?
32. What are the differences between release procedure with classification and release procedure
without classification? When are they used?
33. 6s it possible to have a release procedure without classification for a #$?
34. 6s it possible to have scales in a !uotation?
3. What is 70 blocked stock? When it can be used?
3". What is the movement type for return to vendor? How to reverse it?
3%. How are the variations in subcontracting taken care of in -#?
3&. What are the tools available for data migration in -#?
3'. What is the difference between 8-/W and *))?
4(. How to give specifications for developments?
41. How do you plan for a vendor rating system and move about?
42. What is 0)#?
43. What is the movement type used in receipt of 0)#?
44. How is an item with serial no. managed?
4. How do you make variants?
4". What are the types of tables in -#?
4%. How to inventory e+cise duty in -#?
4&. What are the documents generated in the /67$ 1(1 movement type? What are the accounts
hit?
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4'. What is the difference between lot and batch?
(. What are the business benefits achieved by maintaining -ource list and info record ?
1. How source determination works ?
Answers
1. stock transfer from plant to plant generally takes place within a company code. 6t can5
however5 also take place between two company codes5 if the plants are assigned to different
valuation areas5 which belong to different company codes.
9nlike a stock transfer from storage location to storage location5 a stock transfer from plant
to plant affects both accounting and /aterials #lanning5 as follows:
o Accounting: ccounting is affected if both plants are assigned to different valuation
areas. )his means that a stock transfer leads not only to a !uantity update but also to
a value update ;stock value5 7<8 accounts=. )hus5 parallel to the material document
for stock transfer5 an accounting document is created.
o Materials Planning:/aterials planning are affected because a change of plant
stock is taken into account by /aterials #lanning
2.
o 0><uotation
o #urchase re!uisition
o #urchase order
o /aster data ;6nfo record5 -ource list5 *onditions5 endors etc.=
o $utline agreements
3. /aterial type is assigned to <c *at 0ef.@ <c *at. 0ef is assigned to al. *lass@ al. class
assigned to 7<8 <c.
*onfiguration:
$/W/ : ctivate al. grouping *ode
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$/-A : *reate <c cat. ref and al. *lass@ then <c cat ref assigned to material type.
$/WB : al. area ;plant= assigned to al. grp. code ;(((1=
$C* : ssign al. modifier ;(((1=5 Dew al. *lass and 7<8 <c
Dow create new material and assign new val. class in ccounting 1 data screen. )hen create
#$5 70.
4. )ransaction code is $/EE
Cou can copy new movement type which is near,by old one.
When we go to new movement type5 if there is no possibility to done transaction with old
movement type.
-teps: 1= entry control data 2= short te+t 3= allowed transactions 4=help te+t =up date control
data "=account grouping %=reasons for movement
. *ondition type has an access se!uence assigned to it which determines which tables to access
for data and in what se!uence. )his has a se!uence of table based on the most specific to
most generic.
6t can be used for any new condition type creation.
". )he pricing procedure assigned to a vendor has a calculation schema attached to it. )his
schema defines the various conditions pre,re!uisite5 calculation F se!uence in the #$.
7enerally5 only one type of pricing procedure is followed for all the vendors.
%. )o create a pricing procedure5 the steps will be
o *reate *ondition tables
o *reate access se!uence by placing the different condition tables from most specific to
the most general.
o *reate the condition types
o ssign the ccess se!uence to the condition type
o *reate the pricing procedure
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o #lace the all condition types in a se!uential order as per the business re!uirement
and pricing needs.
&.
o *onsignment stock , vendor
o *omponents provided to vendor
o #roGect stock
o *onsignment stock customer
o #ipeline material
o $rders on hand
'.
o -tandard
o #ipeline
o *onsignment
o -ubcontracting
1(. *onsignment stock is the material which is lying in the premises but is not owned by the
company. 6t has no value assigned to it until it is taken into own stock. $nce it is used in
production or to be sold5 it is taken into own stock.
11. *onsignment cycle is similar to a standard purchase cycle. )he difference it that no
accounting document is created at the time of goods receipts only !ty is updated.6t is settled
once the same is utilied.
12. When the material is sent for subcontracting i.e. some value addition5 it is converted into a
different material. 6t needs a $/ to define the components of the finished item being
received.
13. When the material is sent for subcontracting i.e. some value addition5 it is converted into a
different material. 6t needs a $/ to define the components of the finished item being
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received.)he scrap or the process loss can be adGusted while doing a !uality inspection of the
material received after subcontracting.
14. products can be taken care of by defining them in the $/.
1.
o 1(1 70 in unrest. 9se
o 1(3 70 in locked stock
o 1( 0elease from lock to 9nrest. 9se stock.
o 122 0eturn to vendor from unrest. 9se stock.
o 124 0eturn to vendor from blocked stock
o 3(1 #lant to #lant transfer.
o 3(' /aterial to /aterial transfer
o 311 )ransfer from stg loc to stg loc
o 2"1 6ssue for consumption
o 411 )aking consignment stock into own stock
o 1 Withdrawal for scrapping
1". y using scales we can fi+ the price of a material accordingly5 for e+ample5 we can fi+ the
material price.
ased on the !uantity like
>or !uantity 1 to 1(( price is 0s1(((
>or !uantity 1(1 to 2(( price is '((
8ike that5 you can fi+ price.
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1%. scheduling agreement can be made for *onsignment5 -ubcontracting F stock transfer.
contract5 also known as a blanket #$5 can be made for standard items and can be restricted
to a alue or ty.
1&. ased on the calculation schema of that condition F based on access se!uence assigned to it.
1'. *ondition type in the standard system: Don,deductible input ta+ D-
Bepending on the ta+ code in the #$ item and the ta+ calculation schema5 the system
calculates the non,deductible ta+ portion and inserts it in the condition type with the
category D.
)he condition type has the calculation rule Iabsolute amountI.
Dormally5 the access se!uence that regulates ta+ code determination is assigned to thecondition type.
2(. atch is a subdivision of your stock of a material having the same characteristics
e+: medicines5food products
We can search batches using the standard search facility ;match code5 key >4= based on the
naming convention of the batches or5 if you use batch classification5 based on the
characteristics of the batches.
21. )here are actually two types of shelf life
o )otal shelf life
o /inimum remaining shelf life
)otal -helf life , 6f total shelf life is maintained then the minimum shelf life will also to be
entered mandatory.
While taking 70 for such item5 it actually asks the user to enter the manufactured date sothat the system automatically calculates the e+piry date.
/inimum shelf life , While taking the 705 it asks the user to enter the date of 70 date so that
it checks whether the days entered in material master has been satisfied. 6f the condition is
not satisfied then it will not allow to take receipt for that item.
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2. )o set up a !uota arrangement for the procurement of a material5 proceed as follows:
/aster data ,J uota arrangement ,J /aintain5 enter the material and plant number5
#ress D)0
6t display the overview screen for the !uota arrangement periods5 nter a validity period for
!uota arrangement5 nter date until which the !uota arrangement is valid. )he start date is
calculated by the system.
#ress D)0
-elect the !uota arrangement and choose5 7oto ,J 6tem overview to display the item
overview screen of the !uota arrangement. nter a !uota arrangement item for each source
of supply you want to include in the !uota arrangement.
Cou must enter the following data.
o #rocurement type
o -pecial procurement type5 nter k in the - column5 for e+ample5 if a consignment
arrangement for the material e+ists with the vendor.
o endor number
o #rocurement plant5;supplying plant=
o uota column5 enter the !uota assigned to each item
#ress D)0
)he percentage distribution of the !uotas is calculated and displayed automatically by the
system.
-ave the !uota arrangement. )he system assigns a number to the !uota arrangement itemautomatically.
o 6t is procedure that you set in the system on how the /aterial is planned
o 0eorder #oint
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o -easonal re!uirement
o 0eplenishment
o endor /anaged
o >orecast ased
o /aster production -cheduling
8ot sie:
Cou can define your re!uirements ;to be produced or #rocured= in terms of Weekly5 /onthly5
ty based5 /a+imum 0eplenishment.
o Ces you can do it based on the /0#2 tab for material master you need to give you
/0# type as and in /rp2 set automatic reorder point tab. Dow run /B(2 and
/B(4.
o 6t is reference for all the other e+isting #urchase $rgniations.6t is not assigned to
either to plant or comp code. )he contracts5 terms and conditions can be utilied by
other #urchase $rganiations.
o When the same material to be valuated differently then we can go for split valuation.
$ften we use split valuation in chemical industries related to chemicals.
>or e+ample5 color5 ph5 !uality.
We need to define valuation categories and valuation types.
o >or valuation category: origin5 valuation types are local procurement and foreign
procurement
o >or valuation category: procurement types5 valuation types are in,house procurement
and e+ternal procurement.
o >or valuation category: !uality5 valuation types are poor !uality5 medium !uality5
high !uality.
like this we can define valuation categories and valuation types.
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CUSTOMIZATION SETTINGS
//,J 89)6$D DB **$9D) --67D/D) ,J -#86) 89)6$D.
o Befine valuation categories and valuation types.
o ssign valuation types to valuation category.
o ssign plants in which valuation is effecting.
$nce customiation settings are done.
o *reate material master and fill account cat reference in accounting view.
o gain for same material type give valuation types which u taken and give the moving
avg price.
NET STEP
o *reate /21D #urchase order
o /67$
$nce taken to /67$ check // ,-tock overview and /(2, ccounting views.
2. aluation area is generally company or plantaluation category ,split valuation is
applicable or not.
aluation class, whether the materials fall in to which category for simplification such as raw
materials5 semi finished goods like that.
3. *redit memo is as similar as money back to your account.
>or +. 6f you did e+cess payments ;the difference between #$ price and ccount )ransfer
price= to the vendor than the actual payment or under some circumstances vendor isreturning some amount to your account5 for this you need to maintain one account type5 that
account type is called credit memo. )his may be Gust to identify why and from where the
money has been posted in your account.
6f this is not maintained5 at the valuation level conflicts in payment differences may arise.
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4. When you create purchase order for vendor at that time show in line item data in
which one check bo+ available for free delivery. -o when you want to create purchase
order with free !uantity click on that check bo+.
. 0elease strategy means5 value of the purchase order is more than certain limit5 that
can be released by // manager. )hat movement type is /2'D.
". 0elease code is a two character 6B allowing a person to release a re!uisition or an
e+ternal purchasing document. 0elease group is a group of release codes which can
release a purchasing document for a release strategy.
%. 0elease procedures with classification can be used for both internal and e+ternal
purchasing documents5 whereas release procedures without classification can be used
only for internal documents.
&. Do5 release procedure without classification not possible for e+ternal documents like
#$.
With classification will allow release at header and 6tem.
Without classification will allow release item ,wise only.
>or a #$ you will want a release header wise and not item wise. Hence you need to use with
classification.
>or #0 you can use anyone of them i.e.5 with or without classification.
'. #ossible in case of time dependent conditions.
1(. When we have some issues in the received stock and we do not want the !uantity to
be considered in the inventory then we can maintain the stock as 70 locked stock.
6t is only recorded in the purchase order history. )his stock is D$) valuated.
Cou can display goods receipt blocked stock from two viewpoints:
o 7oods receipt blocked stock for a material ;at plant level=
o 7oods receipt blocked stock for a purchase order item
11. /ovement )ype 1"1 is used for return to vendor. Eust select return button in the #$.
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12. -ubse!uent adGustment can be #rocesses through ),*ode , /67$
13. 8-/W , 8egacy -ystem /igration Workbench ;9sed to upload the data from Don
-# to -# -ystem=
*)) , *omputer ided )est )ool ;9sed to *reate test cases as well as upload data=
14. 8-/W is uesd to migration of data from non,sap system to the sap system or sap
system to sap system5 here the data is migrated from the one system to another
system. so this is a migration tool
Whereas *)) is a computer aided testing tool5 used to test the abap obGect
1. 6n -# for any kind of development5 function consultant need to give the functional
specification stating the purpose of the developlement as well as logic for theselection5 related fields and tables. He also needs to prepare one or two test cases to
test output the report<development.
1". ased on #rice5 uality5 Belivery and -ervice.Cou can give points to this categories
and you can maintain )*ode:/"1
1%. 0eturnable transport packaging ;0)#= is a multi,trip packaging medium ;for
e+ample5 pallets or containers= in which goods can be transported more than once
between vendors and customers.
0eturnable transport packaging from a vendor that is stored at a location on your premises is
managed as special stock and clearly assigned as belonging to the vendor. 6t is the property of
the vendor and is therefore not included in the customerKs valuated stock.
1&. )he movement type used in the receipt of 0)# is ;(1 /=
1'. Serial Nu!"er:6f you want to distinguish each 6tem ;generally unit of measure will
be 5 #*.. etc= in the inventory5 then serial number will be used.-eparate serial
number profile need to be created and placed at work scheduling view or plant data
storage view of material master.
Advantage: we can track the movements of each serial number of material.
*onfiguration settings
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Cou have to configure the serial number profile F assign it to /aterial master. 6n the
configuration profile of serial number5 you have to check the check bo+ for serial number
re!uired for processing F set the 7oods movement transaction where you want to
automatically create the serial number or create the serial number for the material using
)code 6(1.
Buring -erial Dumber profile in -erialiing #rocedure you have to maintain the following
settings:
//-8 , /aintain goods receipt and issue doc. (3 (2
-B8- , /aintain delivery (3 (2
-B0 , /aintain returns delivery (3 (2
6n -erialiation profile5 there is a checkbo+ for ;+isting re!uired= uncheck that check bo+ F
then test your transaction. Cou will get a button I*reate new in serial numberI in selection
screen during goods receipts...*reate new serial number for material there F then make
goods receipt.
ssign -erial Dumber to e+isting stocks
6(2 , dit , -pecial -erial Dumber >unctions
o *hange to , >rom -tock
o -tock )ype , K(1K
o #lant , KLLLLK
o -torage 8ocation KLLLLK
o -ave
dit , -pecial -erial Dumber >unctions
o *hange back , )o -tock
2(. 7o to any reports
-elect save variant ;*trlM>1(=
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*reate the layout as you want then save the variant in your name.
21. )here are only 3 types of table in -#.
o )ransparent )able
o *luster )able
o #ool )able
22. t the time of 7oods 0eceipt ;)*ode /67$= capture +cise duty in +cise tab. )his is
part 1 capture. )*ode E16L5 #art 25 #ost +cise duty
23. )he Bocuments that are generated are: /aterial Bocument F ccounting Bocument.
ccounts that are hit are:
o 0aw/terial<-tock <$perations cct ;Bepends on the )ype of usiness= , Bebit
o 70<60 *learing cct ,*redit
o Ins#ection $ot:6n the uality /anagement ;/= component5 you process !uality
inspections on the basis of inspection lots . 6f you want to inspect a specific !uantity
of a material or a piece of e!uipment5 an inspection lot must be created in the system.
)he documentation describes how inspection lots are created automatically ormanually and how you use the inspection lots to process different types of
inspections. $nce an inspection lot has been created5 you can inspect the goods5
record the inspection results or defects5 and complete the inspection with a usage
decision.
%atc&:*ertain materialsK features cannot always be guaranteed to be e+actly alike in
production. >or e+ample5 you cannot guarantee that a certain color will always have the same
shade. /inor differences between production lots cannot be avoided. Cou need to be able to
uni!uely identify the individual production lots of the same material and manage them
separately in inventory.
/aterials that re!uire such precise identification5 for e+ample pharmaceutical products5 are
identified and managed in stock not only according to material number5 but also according to
batch number.
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With batch handling5 you can manage not only production lots from in,house production5
but also production lots from vendors as separate entities.
o Sourcelist:6t is a combination of one material with more than one vendor or
plants;in internal=and sourcelist is the higher priority than inforecord.you can
stratify the vendor for a material with sourcelist.
g:you have 4 info records for a same material with different vendors. 6f you are not
maintained sourcelist5 check while creating #0.6t will display all vendors. 6f you have
sourcelist there you have selected a vendor as fi+ed. Cou will only get one vendor5please
check.
In'o record:6s a combination of one material with one vendor
-ource determination: if you activate this indicator5 you give vendor during #0 creation .otherwise
you can give the vendor at the time of #$. you can save the #0 without vendor. SAP MM
Interview Questions and Answers
What is meant by scales?We can fix a price in the info record for range of ty from !"!## price $s%!## & if the order ty is !#!"'##" the prices is $s%(#%Also scales cannot be used directly in P) but can be pulled into the P) fromvarious master data li*e info record+ uota arrangement etc%
What is the procedure to delete materials permanentlyfrom Material Master?,he process for deleting the materials permanently from material master is by using transaction codeMM-# and the navigation is Material Master.)ther.$eorgani/ation.Material.0hoose% ,hen build variantwith selection range of material master records to be selected for deletion and maintain run parametersand then execute%
1sing ,ransaction 0ode MM-! navigate as follows MaterialMaster.)ther.$eorgani/ation and then build the second variant+ maintain runparameters and execute% It is also important to remove the records manually form info
records+ P)+ P$ reservation etc for successful deletion of the material%
What M$P procedures are available in MM"02P30onsumption 2ased Planning4?
5arious material planning methods are used in M$P 3Material $euirements Planning4%!% $eorder point procedure 35M4
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6% 7orecast"based planning 3554 8% ,ime"Phased materials planning 3P94,hese are specified in material creation 3MM#!4 under the M$P ! tab%
:xplain the function )2;0?
,he 7unction )2;0 stands for 0onfigure Automatic Postings% When the systemsettings are entered for the Inventory Management and Invoice 5erification transactionsthe automatic posting to <=> accounts% Postings are made to <=> accountsautomatically in the case of Invoice 5erification and Inventory Management where thetransactions are relevant to 7inancial and 0ost Accounting%
What is the procedure to ma*e the period indicator in the
M$P6 view as P@?,o ma*e the period indicator in the M$P6 view as P@ the transaction variant S9# andthen S:(8 is used%
What is the procedure to ma*e the Source >istautomatically appear in Material Master as default if maintained at plant level using )M:'?
,he maintained source list reuirement in )M:' was not maintained the source list for the material+ Po canBt be released% So it is reuired to maintain source list for allmaterials in the plant where the indicator is set if maintain source list at plant level ismaintained or it can ma*e use of info record to do so automatically%
>ist some info records types?,he lists of Info $ecords ,ypes are Standard+ 0onsignment+ Subcontracting and Pipeline%
:xplain what is consignment stoc*?,he 0onsignment stoc* is a stoc* that is supplied by the vendor is in the companies premises with thecompany having no liability for the same% ,he liability for the company will only be affected when thegoods are issued from the consignment stoc* for use%
Is it possible to have scales in a uotation?Co+ it is not possible to have scales in a uotation
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What is the subcontracting cycle?,he Subcontracting 0ycle is that when Po is created with item category >+ the goods is transferred tosubcontractor by 'D! movements% 7or this movement note no accounting documents ta*e place% When<$ is done automatically+ 'D8 movementsB ta*es place which ta*e care of the consumption of components from stoc*%
:xplain the procedure to create P$ or P) by M$P?,he procedure to create P$ is according to the safety stoc* mentioned for the material or can betriggered from a reuirement% 7or creating a P)+ you need to have the scheduling agreement in place%After the M$P is run the schedule lines are generated which is nothing but the P)%
What types of special stoc*s are available?Special Stoc*s that are available are Subcontracting+ consignments+ pipeline+ proEect+ sales order+ $,P+stoc* transfer+ and the third party%
Is it possible to have scales in a uotation?Co+ it is not possible to have scales in a uotation
:xplain the steps that are involved in consignment cycle?,he steps that are involved in consignment cycle is by creating consignment info record with proper taxcode+ maintain output condition record for F)CS+ no invoice verification done+ create Po with itemcategory F+ process <$+ but settlement is done through M$F) transaction%
:xplain the difference between a contract and ascheduling agreement?,he 0ontract agreement or the )utline Agreement is that create the centrally contract 3cross"plant4 whereit can maintain different pricing conditions for each and every plant% It creates the $elease )rder withreference to )utline Agreement% Co detailed delivery schedule can be made in the $elease )rder% Co$elease documentation is created% )nly time"dependent conditions can be created+ Some Item 0ategoryGMG and GWG can be used%
Whereas the Scheduling Agreement is the Plant >ocation what must be entered in the Scheduling Agreement% Its no need to create any other purchasing document except for delivery schedule line via,ransaction M:8H or M$P running 3with the appropriate setting of Source >ist4% 9elivery Schedule lineitems are created subEect to your specific reuirement% It can create both Scheduling Agreement with or without release of 9ocumentation 3subEect to the 9ocument ,ype >P or >PA4 with the selection of either 7$0 or I, delivery schedule% :ither time"dependent or time"independent conditions can be createdsubEect to the customi/ing in the 9ocument ,ype of the Scheduling Agreement% Item 0ategory GMG and GWGcan not be used%
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What is the difference between release procedure withclassification and without classification and when are theyused?,he release procedure with classification deals with the purchase reuisition it can be released both at
item level and at the header level% 0oming to release procedure without classification can also be used for purchase reuisition which is used for item level release only% All other external documents cannot bereleased with classification ,hese two procedures are mutually exclusive to say+ it has to be decided infavor of one of them only%
In what way does the Subcontracting was cared by thebyproducts?,he 2yproducts ta*e care of subcontracting in 2)M for the header%
What is the procedure to give specifications for developments?,he procedure to give specifications are normally prepared for the business reuirement document inwhich we specify what is reuired+ what field and tables have to be referred for the reuired development%
2. How is the MM module integrated with other modules of SAP?
• The MM module deals with materials procurement on the basis of the production required;
therefore it is lin!ed with the PP module.
• The S" module is proportionall# related to the MM module because it uses information about
the quantit# of material sent for production.
• The $M module is related to the MM module because the MM module maintains information
about materials storage and materials transfers inside an organi%ation.
• The &' module is also related to the MM module because e(er# operation performed in the
MM module directl# impacts the financial processes of the organi%ation.)*. $hat are the main components of the MM module? How are these components used in
SAP?
• The MM module deals with materials procurement on the basis of the production required;
therefore it is lin!ed with the PP module.
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• The S" module is proportionall# related to the MM module because it uses information about
the quantit# of material sent for production.
• The $M module is related to the MM module because the MM module maintains informationabout materials storage and materials transfers inside an organi%ation.
• The &' module is also related to the MM module because e(er# operation performed in the
MM module directl# impacts the financial processes of the organi%ation.
2. +rgani%ational Structure
). $hat is the organi%ational structure in the MM module?
The organi%ational structure in the MM module is a hierarch# in which (arious organi%ational
units are arranged according to their tas!s and functions. The different organi%ational units
that constitute the organi%ational structure of the compan# are as follows,
• -lient A self/contained unit in the SAP s#stem with separate master records and its own set
of tables.
• -ompan# code The smallest organi%ational unit. 0ou can create an independent set of
accounts for this unit for the purpose of e1ternal reporting.
• Plant An organi%ational unit where materials are produced or goods and ser(ices are
pro(ided. 0ou can di(ide an enterprise into (arious plants according to production
procurement maintenance and materials planning.
• Storage location An organi%ational unit where the goods produced in the plant are stored.
• $arehouse number An alphanumeric !e# that represents a warehousing s#stem which ismade up of different organi%ational and technical storage areas.
• Storage t#pe An area such as a goods receipt area goods issue area or pic!ing area. Also
the ph#sical or logical di(ision of a comple1 warehouse.
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• Purchasing organi%ation An organi%ational unit that procures materials and ser(ices and
negotiates with (endors to purchase materials or goods.
• Purchasing group An alphanumeric !e# for a bu#er or a group of bu#ers who are in(ol(ed in
purchasing acti(ities. The purchasing group is responsible for materials procurement anddealing with (endors.
2. $hat are the le(els of organi%ational units of nterprise Structure in 34*?
The client is the highest le(el unit of the organi%ational units in nterprise Structure in SAP
34*. The client is followed b# the compan# code which represents a unit with its own
accounting balance and profit and loss 5P678. The ne1t le(el of organi%ational units in
nterprise Structure is the plant which represents an operational unit of a compan#.
*. "efine -lient. $hat is its importance in SAP?
• A client can be defined as a person compan# or organi%ation that purchases goods from
another person compan# or organi%ation. 'n terms of SAP a client is defined as a unit that
has its own master records and a set of tables. The client is important in SAP because it
stores and maintains data about the organi%ation where SAP is implemented.
9. How to create a client in MM module?
0ou can create a client in the MM module either b# using the transaction code S--9 or b#
performing the following steps,
• Select SAP Menu : Tools : Administration : Administration : -lient Administration .
• "ouble clic! S--9;-lient Maintenance . The displa# (iew -lients, +(er(iew screen appears.
• Select "ispla# : -hange . The information dialog bo1 appears.
• -lic! -ontinue. The change (iew -lients, +(er(iew screen appears where #ou can create a new
client.
<. "efine compan#. How is it different from a client? $hat are the data in MM that are
maintained at the compan# code le(el?
• A compan# is an organi%ational unit for which indi(idual financial statements are drawn per the
rele(ant commercial laws. A compan# consists of one or more compan# codes. $ithin a compan#
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all compan# codes must use the same transactions in addition to the same fiscal #ear
brea!down; howe(er compan# code currencies can (ar#.
• A compan# is different from a client because a client can itself be a compan# or an
organi%ation that has multiple companies. &or e1ample the owner of the entire SAP s#stem is aclient. The s#stem will ha(e onl# one operational client but the client ma# further ha(e a group
of companies. The following data are held at the compan# code le(el,
o Material number
o -lassification data
o Multilingual description
o =nits of measure
o Technical data
>. How to create a compan# code in SAP?
• 'n SAP a compan# code is created using the transaction +@2. The compan# code field is
represented b# a four/character alphanumeric string. 0ou can create a compan# code in SAP b#
performing the following steps,
o +pen the SAP -ustomi%ing 'mplementation guide.
o Select 2nterprise Structure : "efinition : &inancial Accounting : 2dit -op# "elete -hec!
-ompan# -ode . The -hoose Acti(it# dialog bo1 appears.
o "ouble/clic! 2dit -ompan# -ode "ata . The change (iew -ompan# -ode, +(er(iew screen appears
where #ou can create a compan# code.
. How can #ou assign a compan# code to a compan# in SAP?
• 'n SAP a compan# code is created using the transaction +@2. The compan# code field is
represented b# a four/character alphanumeric string. 0ou can create a compan# code in SAP b#
performing the following steps,
o +pen the SAP -ustomi%ing 'mplementation guide.
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o Select 2nterprise Structure : "efinition : &inancial Accounting : 2dit -op# "elete -hec!
-ompan# -ode . The -hoose Acti(it# dialog bo1 appears.
o "ouble/clic! 2dit -ompan# -ode "ata . The change (iew -ompan# -ode, +(er(iew screen appears
where #ou can create a compan# code.B. How man# charts of accounts can be assigned in a compan#?
0es. +ne chart of accounts can be assigned to se(eral -ompan# -odes. Howe(er the re(erse is
not possible; i.e. #ou will not be able assign more than one chart of accounts to a single-ompan# -ode.
C. How man# compan# codes can be assigned in one chart of accounts?
0ou can assign man# compan# codes to a chart of accounts.
)@ How man# compan# codes can be assigned to a compan#?
0ou can assign onl# one compan# code to a plant.
)). $hat is a plant in MM?
A plant is an organi%ational unit where materials are produced or goods and ser(ices are
pro(ided. 'n SAP a plant is represented b# a unique four/digit alphanumeric number. A plant is
allocated to one compan# code and a compan# can ha(e man# plants. 'n the organi%ational unit
a plant can be at one of the following locations,
• -orporate headquarters
• -entral deli(er# warehouse
• Manufacturing facilit#
• 3egional sales office
)2. How is a plant defined in MM?
0ou can define a plant in the MM b# performing the following steps,
•
Select 'MD : 2nterprise Structure : "efinition : 7ogistic;Deneral : define -op# "elete-hec! Plant .
• -lic! 21ecute . The -hoose Acti(it# dialog bo1 appears.
• Select "efine Plant to create a plant. The change (iew Plants, +(er(iew screen appears.
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• -lic! Eew 2ntries . The Eew 2ntries, "etails of Added 2ntries screen appears.
• Specif# the plant code in the plant field.
• -lic! the address icon to displa# the dit Address field.
• Specif# the required (alues in the fields such as Title Eame and Search Term )42.
• -lic! +F. The Eew 2ntries, "etails of Added 2ntries screen appears again.
• -lic! the Sa(e icon to sa(e the newl# defined plant.
)*. $hat are the prerequisites for creating a plant?
There are three prerequisites that are required in order to create a plant. The# are as follows,
• -ompan# calendar -omprised of wor! da#s public holida#s and compan# holida#s. (er# SAP
s#stem is pro(ided with a compan# calendar that can be modified per the schedule of the compan#.
• -ountr# !e# Helps in defining a plant.
• 3egion !e# 3efers to a state or pro(ince that is associated with the countr#. 't is required along
with the countr# !e#.
)9. How man# compan# codes can be assigned to a plant?
0ou can assign onl# one compan# code to a plant.
)<. -an a compan# code be assigned to man# plants?
0ou can assign man# plants to one compan# code.
)>. $hat is the menu path to assign a plant to a compan# code?
0ou can assign a compan# code to a plant b# na(igating the following menu path, SAP Menu :
Tools : -ustomi%ing : 'MD : 21ecute ProGect : "ispla# 'MD 5SAP reference 'MD8 : 2nterprise
Structure : Assignment : 7ogistics/Deneral : Assign -ompan# -ode to Plant .
). "efine Storage location in SAP.
• A storage location is defined b# performing the following steps,
o Select Tools : -ustomi%ing : SAP 3eference 'MD : 2dit ProGect .
o Select 2nterprise Structure : "efinition : Materials Management : Maintain Storage .
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o -lic! the cloc! icon . The "etermine $or! Area, 2ntr# dialog bo1 appears.
o Specif# the (alue 5P@@)8 for the plant in the dialog bo1.
o -lic! the chec! mar! icon . The change (iew Storage 7ocations, +(er(iew screen appears.
o -lic! Eew 2ntries . The Eew 2ntries, "etails of Added 2ntries screen appears.
o Specif# the (alue of the storage location and description fields.
o -lic! the Sa(e icon to sa(e the storage location.
o -lic! the 1it icon to create the storage location.
)B. How will #ou define a storage location?
A storage location is defined b# performing the following steps,
• Select Tools : -ustomi%ing : SAP 3eference 'MD : 2dit ProGect .
• Select 2nterprise Structure : "efinition : Materials Management : Maintain Storage .
• -lic! the cloc! icon . The "etermine $or! Area, 2ntr# dialog bo1 appears.
• Specif# the (alue 5P@@)8 for the plant in the dialog bo1.
• -lic! the chec! mar! icon . The change (iew Storage 7ocations, +(er(iew screen appears.
• -lic! Eew 2ntries . The Eew 2ntries, "etails of Added 2ntries screen appears.
• Specif# the (alue of the storage location and description fields.
• -lic! the Sa(e icon to sa(e the storage location.
• -lic! the 1it icon to create the storage location.
)C. How is a storage location assigned to a plant?
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• 0ou can assign a storage location to a plant either b# using the transaction code +@C or b#
performing the following steps,
o +pen the SAP -ustomi%ing 'mplementation guide.
o Select 2nterprise Structure : "efinition : Materials Management : Maintain Storage 7ocation .
The (iew cluster Maintenance, 'nitial Screen window appears with the "etermine $or! Area,
2ntr# dialog bo1 opened.
• 'n the "etermine $or! Area, 2ntr# dialog bo1 enter a plant number and clic! -ontinue. The
change (iewStorage 7ocations, +(er(iew screen appears where #ou can assign a storage
location to the plant.
2@. -an storage locations be created automaticall#? How can the# be created automaticall#?
Storage locations can be created automaticall# when an inward goods mo(ement for a materialis performed. 'n order to create storage location automaticall# open the SAP 'mplementation
guide and clic! Materials Management : 'n(entor# Management and Ph#sical 'n(entor# : Doods
3eceipt : -reate Storage 7ocation Automaticall# .
3. Master Data in SAP MM
). $hat is Master data in MM module?
The master data in the MM module acts as reference data defining (arious business entities
and pla#ing a !e# role in the core operation of the business.
2. How is master data important in MM module?
The master data in the MM module contains all of the basic information needed to manage
material. The data is stored and sorted on the basis of different criteria such as the
descripti(e nature of the material 5si%e dimension and weight8 and the control functions of
the material 5material t#pe and industr# sector8. Apart from data maintained b# the user the
master data also stores data that is automaticall# updated b# the s#stem 5such as stoc!le(els8.
*. $hat are the (arious t#pes of master data in MM module?
The different t#pes of master data in the MM module are as follows,
• Material master
• endor master
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• Purchasing information record
• Source list
• Iuota arrangement
9. $hat is a Material Master file?
A material master file stores and maintains all of the information related to managing a
material. The material master is sorted on the basis of different criteria.
<. $h# are material master records used in SAP?
Material master records are used in the SAP 34* s#stem to manage material/specific data.
The material information stored in material master records is used b# all logistics areas in the
SAP 34* s#stem. The material master records integrate all material/specific data into a single
database obGect that eliminates the problem of data redundanc#. Jecause material master
records store data in a single database obGect the same data can be shared b# all
departments such as purchasing in(entor# management materials planning and in(oice(erification.
>. How is the information of material master records updated?
0ou can manuall# update the information in the material master records howe(er there are
some e1ceptions for which the information can be updated b# the SAP 34* s#stem onl# fore1ample administrati(e data.
. $hat are the t#pes of industr# sectors defined in Material Master data?
• The different t#pes of industr# sectors defined in the material master data are as follows,
o Aerospace and defense
o Je(erage
o -hemical industr#
o &ood and related products
o Mechanical engineering
o Pharmaceuticals
o Plant engineering4construction
o 3etail
o 3etailing
o Ser(ice pro(iders
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B. $hat data in material master is maintained at the client le(el?
The general data i.e. the data applicable to the compan# as a whole is stored at the clientle(el.
C. $hat are the data in material master that are maintained at the compan# code le(el?
The data that is specific to a particular compan# and the plant and storage areas assigned to
that compan# is maintained at the compan# code le(el.
)@. $hat are the plant/specific data in material?
The M3P data and forecast data are the plant/specific data in the material master.
)). $hat is the lot si%e attribute of a material?
• The lot si%e attribute represents the reorder quantit# for a material. A material can ha(e a
periodic optimum or static 5fi1ed8 lot si%e.
)2. How is material information structured in material master records?
Material information is structured in material master records on the basis of different
criteria such as the materialKs master detail 5including its name si%e dimension and weight8
which shows its descripti(e nature and the materialKs detail related to control functions 5such
as material t#pe price control and industr# sector8. Material master records also store
information about the data that can be automaticall# updated b# the s#stem. &or e1ample the
stoc! le(el can be automaticall# updated b# the s#stem on the basis of the material data
update.
)*. $hat is a batch?
A batch is a group of materials combined into one quantit# for (arious reasons. er# often
materials with the same characteristics and (alues are grouped into a batch. &or e1ample inthe chemical industr# a specified number of containers of a specific product ma# be
considered a batch if the# were produced at the same time and ha(e the same ph#sical and
chemical characteristics.
)9. $h# is batch record important?
• A batch represents a quantit# of a particular material processed at the same time with the
same parameters. These materials produced as one batch ha(e the same characteristics and
(alues which ma# (ar# from the materials of another batch produced on the same da#.
• A batch record is important because batch records indicate that the batch conforms to the
current Dood Manufacturing Procedures 5DMP8. The batch record also contains specific
information about the product tested anal#tical methods and test results.
)<. How to create a batch?
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0ou can create a batch record manuall# b# using the transaction code MS-)E. The na(igation
path for creating a batch is, SAP Menu : 7ogistics : Materials Management : Material Master :
Jatch : -reate .
)>. $hat are the important fields in a batch master record?
• The important fields in a batch master record are as follows,
o Production date 3efers to the date when the batch was produced.
o Self/life e1piration date 3efers to the date when the life of the batch will e1pire.
o A(ailable from 3efers to the date from which the batch will be a(ailable to other
departments.
o Jatch status Allows the batch to be classified as ha(ing restricted or unrestricted use.
o Ee1t inspection 3efers to the ne1t qualit# inspection date of the batch.
o Hendor batch 3efers to the batch number assigned b# the (endor.
o -lass Allows the user to sort the batch for use in specific classes.
o -haracteristics Helps in assigning a class to the batch.
o 3elease status Specifies the status of the batch.
o 7in!ed document Helps the user to lin! the documents related to the batch.
o "ocument t#pe Allows the user who is purchasing the batch to specif# a document.
o "ocument Helps the user to select the rele(ant document.
o "ocument part Allows the user to enter the part of the document that is related to the
batch.
o Hersion Specifies the document (ersion of the batch.
). How can batch records be changed?
• 0ou can change a batch record b# using the transaction code MS-2E. The na(igation path of
changing the batch record is, SAP Menu : 7ogistics : Materials Management : Material Master
: Jatch : -hange .
• 't is important to note that these changes to the batch record will also be a(ailable for
re(iew.
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)B. How to delete a batch?
0ou can delete a batch b# using the MS-2E transaction code. 0ou can alternatel# delete abatch record b# flagging the batch master record. &or this #ou need to first select the batch
in the -hange mode.
)C. $hat is Jatch 'nformation -oc!pit?
The Jatch 'nformation -oc!pit 5J'-8 is the main switching point ha(ing a wide range of options
for scrutin# and control of batches. 't stores at a single location all the information related to
the anal#sis of a particular batch.
2@. $hat are the le(els at which a batch number can be configured?
A batch number can be configured at se(eral different le(els, client le(el plant le(el and
material le(el. 0ou can select a batch number at an# of the following le(els,
• -lient le(el $hen #ou configure a batch at the client le(el #ou need to assign the batch
number onl# once throughout the whole client. +nl# one batch number e1ists for each material
assigned at this le(el.
• Plant le(el 'n SAP the plant le(el is the default le(el for the batch number. At plant le(el a
batch number is unique for a plant and material. This means that #ou can ha(e a batch of the
same number at a different plant within the same compan#.
• Material le(el At this le(el material numbers are assigned to the products. The material
number helps to differentiate between two products in case their batch numbers are the same.
The materials are identified b# the combination of the material number and batch number.
2). How are batch numbers assigned?
The batch number is predefined in SAP. 0ou can change the batch numbers either b# using the
+MA" transaction code or b# using the na(igation path 'MD : 7ogistics/Deneral : Jatch
Management : Jatch Eumber Assignment : Maintain 'nternal Jatch Eumber Assignment 3ange .
&ollow either of the two configuration steps to change the batch number,
• 0ou can assign a batch number internall# using the internal number range either b# using the
+M-L transaction code or b# following the na(igation path "ispla# 'MD : 7ogistics/Deneral :Jatch Management : Jatch Eumber Assignment : Acti(ate 'nternal Jatch Eumber Assignment
: Acti(ate Jatch Eumber Assignment .
• 0ou can also configure the s#stem to allow automatic numbering of a batch b# following the
na(igation path "ispla# 'MD : 7ogistics/Deneral : Jatch Management : Jatch Eumber
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Assignment : Acti(ate 'nternal Jatch Eumber Assignment : 'nternal Jatch Eumber
Assignment for Assigned Doods 3eceipt .
22. $hat is a serial number?
A serial number is assigned to an item to identif# it and to store information about it. A serialnumber is mostl# used to refer to equipment such as motors drills or (acuums. 'n MM an item
of material contains a serial number as well as a material number. This combination helps touniquel# identif# an item of material.
2*. $hat is a class t#pe? How will #ou configure a class t#pe?
• A class t#pe is the SAP s#stemKs top/le(el unit which is used to control the SAP s#stemKs
classes. 't performs the following tas!s,
o "efines the class obGects
o -hec!s if class obGects can be used in other classes or not
o "efines the class maintenance screen
• 0ou can configure a class t#pe b# using the following menu path, SAP -ustomi%ing
'mplementation Duide : -ross Application -omponent : -lassification S#stem : -lasses :
Maintain +bGect T#pes and Material T#pes .
29. A material does not ha(e a master record. How can we procure that?
There ma# be instances when a material does not ha(e a master record. 0ou can perform
different functions in different situations to procure the master record. &or e1ample,
• 0ou can create a material master record if there is no material master record for a particular
material.
• 0ou can e1tend the material master record if the material master record e1ists for a
particular material but the user department does not ha(e the master data.
• 0ou can also e1tend the material master record if the material master record e1ists for a
particular material and the user department has the master data but it has been entered in adifferent organi%ational le(el.
2<. State the importance of classification data.
-lassification data allows #ou to search for materials on the basis of the characteristic (alues
entered into the classes. This feature is (er# useful when the customer wants to search for a
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particular (endor and particular batches.
2>. $hat is an AJ- indicator?
An AJ- indicator is an indicator assigned b# the AJ- anal#sis procedure. An AJ- indicator
pro(ides details of the consumption (alue of the material in(ol(ed in the AJ- anal#sis. The AJ-
anal#sis is performed b# multipl#ing the current price of the materials b# their quantit#. The
different consumption (alues are gi(en as follows,
• A materials'mportant parts high usage4consumption (alue
• J materials7ess important parts medium usage4consumption (alue
• - materials3elati(el# unimportant parts low usage4consumption (alue
2. $hat are the main master files used in MM?
The following are the main master files used in MM,
• Material master file
• 'n(entor# master file
• endor master file
2B. Di(e some e1ample of master data in material management 5MM8.
Material master material master general data 5MA3A8 ta1 -lassification material 5M7AE8info records source list and (endor master are e1amples of master data in MM.
2C. How is the (endor created?
0ou can create a (endor b# using the transaction code F@) and performing the following
steps,
• Add the (endor name compan# code purchasing organi%ation account group and (endor
address.
• Add the countr# ban! !e# ban! account and the name of the account holder.
• Sa(e the data.
• This creates a (endor record in the s#stem.
*@. $hat is (endor master data?
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endor master data contains details of each (endor that supplies materials or ser(ices to an
enterprise. The (endor master data is stored in indi(idual (endor master records consisting of
data such as the (endorKs name the (endorKs address the currenc# used for the transaction
pa#ment terms and the contact personKs name 5on the sales staff8.
*). $hat are the different sections in (endor master data?
• &ollowing are the three sections in (endor master data,
o Deneral data Pro(ides general information about the (endor that can be
entered into the s#stem for creating (endor records. Deneral data can pro(ide the name
address telephone and fa1 of the (endor through specified search terms. Additional
information can also be added to the (endor master record b# the accounting and purchasing
departments using the transaction code F@).
o Accounting data 3efers to financial information entered at the compan# code
le(el. The financial information includes ta1 information ban! details reconciliation accountpa#ment terms pa#ment methods and dunning information. 0ou can enter this financial data
using the transaction code &F@).
o Purchasing data 3efers to data entered while creating a (endor at the
purchasing organi%ation le(el. "ifferent purchasing organi%ations ha(e different purchasing
data. The purchasing data includes partner functions purchasing default fields and in(oice
(erification indicators. 0ou can enter this data using the transaction code MF@).
*2. $hat are the different fields in (endor master data?
• The different fields in (endor master data are as follows,
o The name and address of the (endor
o The currenc# in which the transaction will be done
o The terms and conditions of pa#ment
o The names of important contact persons
o The accounting information such as the reconciliation account in the general
ledger**. How do we create a (endor number range?
• $hen #ou create a number range it is important to remember that (endor numbers
such as material numbers can be assigned e1ternall# or internall#. 0ou can create (endor
number ranges b# selecting the following na(igation path, 'MD : &inancial Accounting : Hendor
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Accounts : Master "ata : Preparations for -reating Hendor Master "ata : -reate Eumber
3anges for Hendor Accounts .
• &or configuring the (endor number range #ou should enter a unique number for the
range which is a two character field and then specif# the limit for the number range. The
current number field is used to define the current number. The 1t. field Specifies whether
the number range is defined e1ternall# b# the user.
• *9. $hat is dunning procedure? How can it be configured?
• Sometimes #ou ma# need to send a pa#ment reminder or a dunning notice to a person or
an organi%ation to remind them of their outstanding debts. The process b# which the s#stem
controls dunning is called dunning procedure. "unning procedure can be configured b# using the
&JMP transaction code or the following na(igation path, 'MD : &inancial Accounting : Accounts
3ecei(able and Accounts Pa#able : Jusiness Transactions : "unning : "unning Procedure :
"efining "unning Procedures .
*<. How do we assign material to (endors?
• Select the following na(igation path to lin! (endors to materials, SAP Menu : 7ogistics :
Material Management : Purchasing : Master "ata : 'nfo 3ecord : -reate . Alternati(el# the
M)) transaction code is used for this purpose.
*>. $hat is the transaction code to access the Materials Management -onfiguration menu?
• The +7MS transaction code is used to access the Materials Management configuration
menu.
*. $hat are the (arious transaction codes to access the MM configuration?
• The following are the (arious transaction codes to access the MM configuration,
Transaction
Code
Description
+7M" Accesses Material Management/-onsumption Jased Planning 5MM/
-JP8
+7MJ Accesses Material Management/'n(entor# Management 5MM/'M8
+7M Accesses Material Management/Purchase 5MM/P=38
+7M7 Accesses Material Management/$arehouse Management
+7MS Accesses the material master data
+7M$ nables (aluation and account assignment
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*B. $rite the names of some important MM tables
• The following table lists the important MM table names,
Table Name Purpose'EA =sed for general data of the 5purchasing8 information record
MA3- =sed in plant data for materials
'E =sed for purchasing organi%ation
MAST =sed for bills of material 5J+M8 lin!
MFP& =sed for header material document
MAFT =sed for material description
MA3" =sed in storage location data for materialMA3A =sed for general materials data
MJ$ =sed for material (aluation
*C. $hat are purchasing information records?
• Purchasing information records also !nown as info records contain information related
to the material and the (endor who is suppl#ing the material. The# also contain details about
the material such as the current price.
9@. $hat are the categories of purchasing information records?
• The categories of purchasing information records are as follows,
o Standard -ontains information for the standard purchase order. 'n this t#pe
of purchasing info record #ou can create info records for materials and ser(ices that do not
ha(e master records.
o Subcontracting -ontains ordering information for subcontract orders.
o Pipeline -ontains information on commodities that are sent through a pipeline
such as oil or water.
o -onsignment -ontains information on materials that are in the (endorKs
possession and are !ept b# the (endor at some other premises at his own cost.
9). $hat are the prerequisites for creating a purchasing info record?
• The prerequisites for creating a purchasing info record are as follows,
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9<. $hat is the document management s#stem 5"MS8 in SAP?
• The "MS in SAP helps #ou store e1ternal documents such as pictures of the goods ormaterial. J# using the "MS #ou can set the ma1imum si%e of the picture that can be uploaded
in a document. The "MS helps to lin! these e1ternal documents with the appropriate SAP
obGects.
4. Procurement and Purchasing in sap mm
). $hat are the special stoc!s used in MM?
• Special stoc!s are stoc!s that are managed separatel# regardless of whether the#
belong to #our compan#. The compan# manages a material b# using a data record which
contains all the required information. The different t#pes of special stoc!s are as follows,
o Sales order stoc!
o 3eturnable pac!aging with customer
o -onsignment stoc! at customer
o endor consignment stoc!
o 3eturnable transport pac!aging
o Subcontracting
o Pipeline
2. $hat are the differences between compan#/owned special stoc!s and e1ternall#/ownedspecial stoc!s?
• The differences between compan#/owned special stoc!s and e1ternall#/owned special
stoc!s are listed in the following table,
Company-!ned Special Stoc"s #$ternally-!ned Special Stoc"s
Stoc!s that belong to the compan#
but are stored with the wholesaler or
the customer are called compan#/
owned special stoc!s.
Stoc!s that belong to the wholesaler
or the customer but are stored at the
compan# are called e1ternall#/owned
special stoc!s.
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Company-!ned Special Stoc"s #$ternally-!ned Special Stoc"s
-ompan#/owned special stoc!s aremanaged at the production le(el. 1ternall#/owned special stoc!s aremanaged at the place where the# arestored.
*. $h# is negati(e stoc! needed in an organi%ation?
+rgani%ations need negati(e stoc! when a material is shipped to a customer and production is
not confirmed or there is not enough stoc! to satisf# the requirement. The s#stem still allowsthe issuing of the material and in(entor# shows a negati(e quantit# of stoc! until the
production of the material is confirmed.9. $hat are special procurement t#pes?
'n a normal purchasing s#stem the customer purchases the goods from the wholesaler4retailer
and the possession of the goods transfers from the wholesaler4retailer to the customer. This
might not be the case with special procurement t#pes where the transfer of goods ma# not
necessaril# be from the wholesaler4retailer to the customer directl#. &or e1ample #ou might
order a good for a friend of #ours who in turn purchases the good from the
wholesaler4retailer and then transfers the good to #ou. The friend is the third part# in(ol(ed
in this process. Therefore the possession of the good indirectl# transfers to the customer.This t#pe of procurement is called the special procurement t#pe. The special procurement t#pe
defines the e1ternal procurement or in/house production of the material. The following list
shows the special procurement t#pes a(ailable in the SAP s#stem,
• -onsignment
• Subcontracting
• Stoc! transfer using the stoc! transport order 5ST+8
• Production in another plant
• Third/part# processing
• 3eturnable transport pac!aging
• Pipeline handling
<. "efine consignment stoc!. $hat are the main features of consignment stoc!?
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-onsignment in a general sense is the act of holding the ownership of materials but storing
the materials at some other premises until the materials are sold or shifted somewhere else.
The stored materials are !nown as consignment stoc! in the SAP s#stem. Therefore stoc!
that is stored at the customerKs premises but is the supplierKs propert# until the stoc! istransferred to the customerKs stoc! list is called the consignment stoc!. The main features of
the consignment stoc! are as follows,
• 0ou can combine the consignment stoc! with #our a(ailable stoc! at an# point in time.
• 0ou can e(aluate the consignment stoc! in an# currenc#.
• The price of the consignment stoc! fluctuates. This means that #ou can determine the price
of the consignment according to the mar!et conditions.
• 0ou can price the consignment stoc! in an# unit.
• 0ou can use different features of purchasing such as discounts in the consignment stoc!.
• The consignment stoc! is e(aluated at a price quoted b# different (endors.
>. How is the pricing of consignment stoc!s done? $hat information does consignment
info record contain?
• Prior to ordering a material from a (endor or posting a goods receipt to the consignment
stoc! #ou need to obtain the consignment price. 'f the consignment material is ordered from
se(eral (endors the s#stem maintains the consignment stoc! of each (endor separatel#. The
reason the s#stem maintains the consignment stoc! separatel# is that the price of the
consignment stoc! ma# (ar# from one (endor to another.
• The consignment information 5info8 record contains the consignment price required for the
purpose of material (aluation and accounting.
. How are the consignment stoc!s created?
-onsignment stoc!s are created in the normal purchase order 5P+8 or requisition but the main
thing to consider is that #ou must enter the F categor# for the consignment item. As a resultthe goods issued are posted to consignment stores and the in(oice receipt is not generated.B. "efine the consignment c#cle?
• -onsignment c#cle is similar to the purchase c#cle e1cept that when #ou create goods
receipts of the consignment stoc!s onl# quantit# 5IT08 is updated and no accounting
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)*. How can #ou do in(oicing in case of consignment stoc!s?
0ou can in(oice in the case of consignment stoc!s b# performing either of the following,
• 'n(oice with P+
• 'n(oice without P+
)9. $hat do #ou mean b# subcontracting?
Subcontracting can be defined as the processing of materials b# an e1ternal supplier.
)<. How is subcontracting used in case of MM?
Subcontracting is the process b# which the (endor recei(es the materials to produce the end
product. Subcontracting in(ol(es the following procedures,
• 0ou order the end product b# using the subcontract order. The components that the (endor
needs to manufacture the end product are mentioned in the P+.
• "uring the in(entor# management process the components are posted to the stoc! of material
pro(ided to the (endor. 7ater the components are supplied to the (endor.
• The (endor then processes the ser(ice and deli(ers the materials ordered. The consumption of
the components is posted.
• 'f after posting the goods receipt the (endor notifies #ou that the quantit# of thecomponents actuall# consumed is different than planned in the P+ #ou must ma!e an
adGustment.
• The (endor then charges for the ser(ice for which the in(oice is posted in 'n(oice
(erification.
)>. $hat information does the subcontracting info records contain?
A subcontracting info record consists of ordering information related to subcontract orders.&or e1ample if #ou entered into a contract with an outside source for the assembl# of a
component the subcontracting info record would contain the price specified b# the (endor forthe assembl# wor!.
). How do we create subcontracting P+?
• Perform the following steps to create a subcontracting P+,
o nter the material to order and the categor# of the item for subcontracting 578 in the order
item.
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o Press the nter !e# to displa# the screen for component processing.
o 'n the component processing screen enter the components required b# the (endor to
manufacture the ordered material 5end product8. $hen entering the components #ou need to
ta!e care of the following points,
o 0ou do not need to enter the date required for the components. The s#stem proposes this date
when #ou press the nter !e#. 't is calculated as follows,
"eli(er# date of the item 5planned deli(er# time8
o 'f #ou do not wish the quantit# of the components to be altered e(en if the order quantit# of
the end product is changed then set the indicated field to fi1ed quantit#.
o 'f #ou want to allocate a particular batch of the component to the (endor for the manufacture
of the ordered material enter the desired batch.
o To determine whether or not the components are a(ailable on the date required
select -omponent 7ist : -omponent A(ailabilit# .
o $hen #ou enter a bill of material as the material in the subcontract order the components are
automaticall# created.
o 0ou can also determine the components in the bill of material at a later date 5for e1ample if
the bill of material is subsequentl# changed8 b# selecting 'tem : Do to : -omponents : Eew
J+M 21plosion . The e1isting entr# of the components is remo(ed and again determined in the
bill of material.
o Sa(e the P+.
• $hen #ou print the P+ the components are printed per order item.
)B. How can we (iew the stoc!s pro(ided to (endor?
The stoc!s of material pro(ided to a (endor can be (iewed b# using the S- Stoc! Monitoring
for endor report. The report can be accessed b# selecting Purchase Order > Reporting > SC
Stocks per Vendor from the menu. With this report, the current status of the stocks, planned
issues, and planned receipts can be viewed.)C. How are components 5materials8 pro(ided to (endor?
The components or rather the quantities of the components required to manufacture the end
product are pro(ided in the stoc! of material to be pro(ided to the (endor. The stoc! of
material pro(ided to the (endor is the total (aluated stoc! that is a(ailable for M3P. The total
(aluated stoc! is managed at the plant le(el at the site of the (endor. This stoc! can be either
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rules or for placing an accurate (alue on the in(entor# for ta1 purposes.
9. $hat are the initial configuration steps for ph#sical in(entor#?
The steps for purchase acquisition are as follows,
• "efining the default (alues for the ph#sical in(entor# document
• 3eporting batch inputs
• 3ecording tolerances for ph#sical in(entor# differences
• 'n(entor# sampling as well as configuration of c#cle counting
<. $hat is the difference between managing stoc! b# quantit# and managing stoc! b# (alue?
• Transactions that ma!e changes in the stoc! result in stoc! updates that are recorded in real
time. At an# point in time one can (iew the stoc! o(er(iew which represents the current
situation at that time. That is the essence of stoc! management b# quantit# and can applied tothe following stoc! t#pes,
o 7ocated in the warehouse
o +rdered but not #et recei(ed
o 7ocated in the warehouse and reser(ed for a particular purpose
o 3eser(ed for qualit# inspection
•
The managing stoc! b# (alue option re(iews the stoc! materials qualitati(el# rather thanquantitati(el#. The (aluatioEof stoc! is done either at the plant le(el or at the location le(el.
=pdates that can be done when managing stoc! b# (alue are as follows,
o The quantit# and (alue for the goods mo(ement
o The accounts that are assigned for cost accounting
o The D47 accounts for financial accounts with automatic assignment of accounts
• The (aluation area is the organi%ational le(el at which the stoc! (alue is maintained. 't can be
either at plant le(el or storage le(el.
>. $hat are the special stoc!s in SAP?
Special stoc!s are defined as stoc!s that must be managed separatel# b# a compan#. The# can
be either compan# owned or e1ternal stoc!s. The# can be categori%ed as follows,
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• Maintaining cop# rules for reference documents
• Setting up d#namic a(ailabilit# chec!s
• -onfirming the negati(e items
)@. $hat is Doods mo(ement? $hat t#pe of documents is created after goods mo(ement?
Doods mo(ement refers to the mo(ement of stoc!. This mo(ement of stoc! could be either
inbound from the (endor outbound to a customer between different plants or e(en between
different stoc!s within a plant. After goods mo(ement the SAP s#stem creates two t#pes of
documents, material documents and accounting documents.
)). $hat are the goods mo(ements that ta!e place in MM?
The goods mo(ements can be defined as the ph#sical or logical mo(ements of materials that
lead to a change in stoc! le(els or results in material consumption. The goods mo(ements arepart of the MM polic#. The goods mo(ements in SAP are as follows,
o Doods receipt 3epresents the ph#sical mo(ement of goods or materials into the compan#. 't
increases the stoc! quantit#. The goods receipt can be of the following t#pes,
Doods receipt with reference to a purchase order
Doods receipt with reference to a Production order
Doods receipt without reference
o Doods issue 3epresents the ph#sical mo(ement of goods or material ouTof the compan#. 't
reduces the stoc! quantit#. The goods issue can be of the following t#pes, Doods consumption in the compan#
Doods deli(er# to customers
o Stoc! transfer 3epresents the mo(ement of materials from one location to another location.
The locations can be either within the same plant or different plants.
o Transfer posting 3epresents the stoc! transfer that can either be ph#sical or logical. 'n
logical stoc! transfers goods are transferred onl# in records while the actual stoc! transfer
does noToccur. Some e1amples of ph#sical stoc! transfer are,
Stoc! transfer between two storage locations in a plant
Stoc! transfer between two plants
Transfer of materials to customer consignment stoc!
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• Some e1amples of logical stoc! transfer are,
o 3elease of materials from stoc! in qualit# inspection
o Transfer of materials from (endor consignment stoc! to own stoc!
o Jatch splitting
o Transfer posting material/to/material
)2. $hat is Doods 3eceipt 6 Doods 'ssue?
• Doods receipt is the process that enables the receipt of material from a (endor or from the
in/house production process. There are other t#pes of goods receipts in SAP that include
initial stoc! creation. The goods receipt process also increases stoc! due to one of the
following processes,
o 3eceipt of production order
o 3eceipt of purchase order
o 'nitial in(entor# entr#
o +thers
• Doods issue is a process in which the stoc! in the warehouse is reduced due to an# of the
following reasons,
o Shipment to a customer
o Stoc! withdrawal for a production order
o 3eturn of materials
o Material required for sampling
o Scrapping of materials
)*. $h# is goods receipt important to a compan#?
Doods receipt indicates a receipt or inward mo(ement of stoc! of materials or goods. $hen an
e1ternal (endor pro(ides stoc! to the compan# the goods receipt is generated as a purchase
order and when the material is produced in/house the goods receipt is generated as a
production order. A goods receipt is important to a compan# because using a goods receipt
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mo(es material into stoc! updates the stoc! le(els and thereb# indirectl# enables the
production process.
)9. How is a goods receipt performed?
• The steps to perform a goods receipt are as follows,
o nter the header data.
o Select the mo(ement t#pe and the purchase order number.
• The document is posted in the database.
)<. How do #ou post the goods if the P+ number is not !nown?
'f the purchase order number is not !nown #ou must enter search criteria for the purchase
order in the initial screen. As a result the list of purchase orders is displa#ed. The desired
purchase order items can then be copied.)>. How is the (endor returned processed without a purchase order reference?
• 0ou first need to obser(e the 3eturn column and then select 'tem "etail : M'D+D3 : Doods
3eceipt for Purchase +rder . 'f the intention is to deduct the stoc! then mo(ement t#pe )>) is
used; otherwise )>2 is used to undo the changes. 7astl# #ou must ensure that the document is
a return purchase order. The document is then sa(ed.
• Alternati(el# #ou can use the M2)E transaction code for this purpose.
). $hat happens when a goods receipt is posted?
$hile posting a goods receipt the following e(ents occur,
• The material document is created.
• The accounting document is created.
• Three printed (ersions of goods receipt notes are modified.
• The stoc! le(el changes.
)B. $hat is the result of goods mo(ement?The following e(ents are initiated when goods mo(ements ta!e place,
• &irst a materials document is generated which is proof of the goods mo(ements.
• Accounting documents are generated if the mo(ement of goods requires a change in the
financial accounts.
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• The stoc!s of the materials quantities are updated.
• The stoc! (alues in the material master are updated.
• &inancial and material documents are updated.
o