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? 5. What is meant by access sequence? When it is used? 6. How does the PO pick up the pricing schema? 7. What are the steps involved in creating a pricing procedure? 8. What are the types of special stocks available? 9. What are the types of info records? 10. What is meant by consignment stock? 11. What are the steps involved in consignment cycle? 12. Tell me about the subcontracting cycle. 13. How is scrap accounted in subcontracting? 14. How are the byproducts taken care of in subcontracting? 15. Tell me about the various movement types and usage. 16. What is meant by scales? Can scales be used in standard purchase order? 17. What is the difference between a contract and a scheduling agreement? 18. How does the system calculate taxes? 19. How does the system calculate nondeductible taxes? 20. What is meant by batches? How can the batches be searched? 21. How is a shelf-life item managed in SAP? What is the full cycle? 22. What are the settings required for quota arrangement? 23. What is meant by MRP Type and lot sizing? 24. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in consumption-based planning if VB is selected as MRP type? 25. What is a reference purchase organization? When can it be used? 26. Explain the concept of split valuation and when can it be used? What are the settings required? 27. What are valuation area, valuation category and valuation class? 28. What is meant by a credit memo? 29. How are free items managed in a PO? 30. 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. Is it possible to have a release procedure without classification for a PO? 34. Is it possible to have scales in a quotation? 35. What is GR blocked stock? When it can be used? 36. What is the movement type for return to vendor? How to reverse it? 37. How are the variations in subcontracting taken care of in SAP? 38. What are the tools available for data migration in SAP? 39. What is the difference between LSMW and CATT? 40. How to give specifications for developments? 41. How do you plan for a vendor rating system and move about? 42. What is RTP? 43. What is the movement type used in receipt of RTP? 44. How is an item with serial no. managed? 45. How do you make variants? 46. What are the types of tables in SAP? 47. How to inventory excise duty in SAP? 48. What are the documents generated in the MIGO 101 movement type? What are the accounts hit? 49. What is the difference between lot and batch? 50. What are the business benefits achieved by maintaining Source list and info record ? 51. How source determination works ?

Answers
1. A stock transfer from plant to plant generally takes place within a company code. It can, however, also take place between two company codes, if the plants are assigned to different valuation areas, which belong to different company codes. Unlike a stock transfer from storage location to storage location, a stock transfer from plant to plant affects both accounting and Materials Planning, as follows:
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Accounting:Accounting is affected if both plants are assigned to different valuation areas. This means that a stock transfer leads not only to a quantity update but also to a value update (stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an accounting document is created.

Materials Planning:Materials planning are affected because a change of plant stock is taken into account by Materials Planning

2.

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RFQ/Quotation Purchase requisition Purchase order Master data (Info record, Source list, Conditions, Vendors etc.) Outline agreements

3. 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. 4. Transaction code is OMJJ You can copy new movement type which is near-by old one. When we 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 5. Condition type has an access sequence assigned to it which determines which tables to access for data and in what sequence. This has a sequence of table based on the most specific to most generic. It can be used for any new condition type creation. 6. The pricing procedure assigned to a vendor has a calculation schema attached to it. This schema defines the various conditions pre-requisite, calculation & sequence in the PO. Generally, only one type of pricing procedure is followed for all the vendors. 7. To create a pricing procedure, the steps will be

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Create Condition tables Create access sequence by placing the different condition tables from most specific to the most general. Create the condition types Assign the Access sequence to the condition type Create the pricing procedure Place the all condition types in a sequential order as per the business requirement and pricing needs.

8.
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Consignment stock - vendor Components provided to vendor Project stock Consignment stock customer Pipeline material Orders on hand Standard Pipeline Consignment Subcontracting

9.
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10. Consignment stock is the material which is lying in the premises but is not owned by the company. It has no value assigned to it until it is taken into own stock. Once it is used in production or to be sold, it is taken into own stock. 11. Consignment cycle is similar to a standard purchase cycle. The difference it that no accounting document is created at the time of goods receipts only qty is updated.It is settled once the same is utilized. 12. When the material is sent for subcontracting i.e. some value addition, it is converted into a different material. It needs a BOM to define the components of the finished item being received. 13. When the material is sent for subcontracting i.e. some value addition, it is converted into a different material. It needs a BOM to define the components of the finished item being received.The scrap or the process loss can be adjusted while doing a quality inspection of the material received after subcontracting. 14. products can be taken care of by defining them in the BOM. 15.
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101 GR in unrest. Use 103 GR in Blocked stock 105 Release from Block to Unrest. Use stock. 122 Return to vendor from unrest. Use stock.

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124 Return to vendor from blocked stock 301 Plant to Plant transfer. 309 Material to Material transfer 311 Transfer from stg loc to stg loc 261 Issue for consumption 411 Taking consignment stock into own stock 551 Withdrawal for scrapping

16. By using scales we can fix the price of a material accordingly, for example, we can fix the material price. Based on the quantity like For quantity 1 to 100 price is Rs1000 For quantity 101 to 200 price is 900 Like that, you can fix price. 17. A scheduling agreement can be made for Consignment, Subcontracting & stock transfer. A contract, also known as a blanket PO, can be made for standard items and can be restricted to a Value or Qty. 18. Based on the calculation schema of that condition & based on access sequence assigned to it. 19. Condition type in the standard system: Non-deductible input tax = NAVS Depending on the tax code in the PO item and the tax calculation schema, the system calculates the non-deductible tax portion and inserts it in the condition type with the category N. The condition type has the calculation rule "absolute amount". Normally, the access sequence that regulates tax code determination is assigned to the condition type. 20. Batch is a subdivision of your stock of a material having the same characteristics ex: medicines,food products We can search batches using the standard search facility (match code, key F4) based on the naming convention of the batches or, if you use batch classification, based on the characteristics of the batches.

21. There are actually two types of shelf life 1. Total shelf life 2. Minimum remaining shelf life Total Shelf life - If total shelf life is maintained then the minimum shelf life will also to be entered mandatory. While taking GR for such item, it actually asks the user to enter the manufactured date so that the system automatically calculates the expiry date. Minimum shelf life - While taking the GR, it asks the user to enter the date of GR date so that it checks whether the days entered in material master has been satisfied. If the condition is not satisfied then it will not allow to take receipt for that item. 22. To set up a quota arrangement for the procurement of a material, proceed as follows: Master data -> Quota arrangement -> Maintain, enter the material and plant number, Press ENTER It display the overview screen for the quota arrangement periods, Enter a validity period for quota arrangement, Enter date until which the quota arrangement is valid. The start date is calculated by the system. Press ENTER Select the quota arrangement and choose, Goto -> Item overview to display the item overview screen of the quota arrangement. Enter a quota arrangement item for each source of supply you want to include in the quota arrangement. You must enter the following data.
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Procurement type Special procurement type, Enter k in the S column, for example, if a consignment arrangement for the material exists with the vendor. Vendor number Procurement plant,(supplying plant) Quota column, enter the quota assigned to each item

Press ENTER

The percentage distribution of the quotas is calculated and displayed automatically by the system. Save the quota arrangement. The system assigns a number to the quota arrangement item automatically. 23. It is procedure that you set in the system on how the Material is planned
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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. 24. Yes you can do it based on the MRP2 tab for material master you need to give you MRP type as VB and in Mrp2 set automatic reorder point tab. Now run MD02 and MD04. 25. It is reference for all the other existing Purchase Orgnizations.It is not assigned to either to plant or comp code. The contracts, terms and conditions can be utilized by other Purchase Organizations. 26. When the same material to be valuated differently then we can go for split valuation. Often we use split valuation in chemical industries related to chemicals. For example, color, ph, quality. We need to define valuation categories and valuation types. 0. For valuation category: origin, valuation types are local procurement and foreign procurement 1. For valuation category: procurement types, valuation types are in-house procurement and external procurement. 2. For valuation category: quality, valuation types are poor quality, medium quality, high quality. like this we can define valuation categories and valuation types.

CUSTOMIZATION SETTINGS
MM-> VALUATION AND ACCOUNT ASSIGNMENT -> SPLIT VALUATION. 3. Define valuation categories and valuation types. 4. Assign valuation types to valuation category. 5. Assign plants in which valuation is effecting. Once customization settings are done. 6. Create material master and fill account cat reference in accounting view. 7. Again for same material type give valuation types which u taken and give the moving avg price.

NEXT STEP
8. Create ME21N Purchase order 9. MIGO Once taken to MIGO check MMBE -Stock overview and MB02- Accounting views. 27. Valuation area is generally company or plantValuation category -split valuation is applicable or not. Valuation class- whether the materials fall in to which category for simplification such as raw materials, semi finished goods like that. 28. Credit memo is as similar as money back to your account. For Ex. If you did excess payments (the difference between PO price and Account Transfer price) to the vendor than the actual payment or under some circumstances vendor is returning some amount to your account, for this you need to maintain one account type, that account type is called credit memo. This may be just to identify why and from where the money has been posted in your account. If this is not maintained, at the valuation level conflicts in payment differences may arise. 29. When you create purchase order for vendor at that time show in line item data in which one check box available for free delivery. So when you want to create purchase order with free quantity click on that check box.

30. Release strategy means, value of the purchase order is more than certain limit, that can be released by MM manager. That movement type is ME29N. 31. 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. 32. Release procedures with classification can be used for both internal and external purchasing documents, whereas release procedures without classification can be used only for internal documents. 33. No, release procedure without classification not possible for external documents like PO. With classification will allow release at header and Item. Without classification will allow release item -wise only. For a PO you will want a release header wise and not item wise. Hence you need to use with classification. For PR you can use anyone of them i.e., with or without classification. 34. Possible in case of time dependent conditions. 35. When we have some issues in the received stock and we do not want the quantity to be considered in the inventory then 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: 0. Goods receipt blocked stock for a material (at plant level) 1. Goods receipt blocked stock for a purchase order item 36. Movement Type 161 is used for return to vendor. Just select return button in the PO. 37. Subsequent adjustment can be Processes through T-Code - MIGO 38. LSMW - Legacy System Migration Workbench (Used to upload the data from Non SAP to SAP System) CATT - Computer Aided Test Tool (Used to Create test cases as well as upload data) 39. LSMW is uesd to migration of data from non-sap system to the sap system or sap system to sap system, here the data is migrated from the one system to another system. so this is a migration tool

Whereas CATT is a computer aided testing tool, used to test the abap object 40. In SAP for any kind of development, function consultant need to give the functional specification stating the purpose of the developlement as well as logic for the selection, related fields and tables. He also needs to prepare one or two test cases to test output the report/development. 41. Based on Price, Quality, Delivery and Service.You can give points to this categories and you can maintain TCode:ME61 42. 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. Returnable 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. It is the property of the vendor and is therefore not included in the customer's valuated stock. 43. The movement type used in the receipt of RTP is (501 M) 44. Serial Number:If you want to distinguish each Item (generally unit of measure will be EA, PC.. etc) in the inventory, then serial number will be used.Separate 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. Configuration settings You have to configure the serial number profile & assign it to Material master. In the configuration profile of serial number, you have to check the check box for serial number required for processing & set the Goods movement transaction where you want to automatically create the serial number or create the serial number for the material using Tcode IQ01. During Serial Number profile in Serializing Procedure you have to maintain the following settings: MMSL - Maintain goods receipt and issue doc. 03 02 SDLS - Maintain delivery 03 02 SDRE - Maintain returns delivery 03 02

In Serialization profile, there is a checkbox for (Existing required) uncheck that check box & then test your transaction. You will get a button "Create new in serial number" in selection screen during goods receipts...Create new serial number for material there & then make goods receipt. Assign Serial Number to existing stocks IQ02 - Edit - Special Serial Number Functions 0. Change to - From Stock 1. Stock Type - '01' 2. Plant - 'XXXX' 3. Storage Location 'XXXX' 4. Save Edit - Special Serial Number Functions 5. Change back - To Stock 45. Go to any reports Select save variant (Ctrl+F10) Create the layout as you want then save the variant in your name. 46. There are only 3 types of table in SAP. 0. Transparent Table 1. Cluster Table 2. Pool Table 47. At the time of Goods Receipt (TCode MIGO) capture Excise duty in Excise tab. This is part 1 capture. TCode J1IEX, Part 2, Post Excise duty 48. The Documents that are generated are: Material Document & Accounting Document. Accounts that are hit are:
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RawMAterial/Stock /Operations Acct (Depends on the Type of Business) - Debit GR/IR Clearing Acct -Credit

49. Inspection Lot:In the Quality Management (QM) component, you process quality inspections on the basis of inspection lots . If you want to inspect a specific quantity of a material or a piece of equipment, an inspection lot must be created in the system. The documentation describes how inspection lots are created automatically or manually and how

you use the inspection lots to process different types of inspections. Once an inspection lot has been created, you can inspect the goods, record the inspection results or defects, and complete the inspection with a usage decision. Batch:Certain materials' features cannot always be guaranteed to be exactly alike in production. For example, you cannot guarantee that a certain color will always have the same shade. Minor differences between production lots cannot be avoided. You need to be able to uniquely identify the individual production lots of the same material and manage them separately in inventory. Materials that require such precise identification, for example pharmaceutical products, are identified and managed in stock not only according to material number, but also according to batch number. With batch handling, you can manage not only production lots from in-house production, but also production lots from vendors as separate entities. 50. Sourcelist:It 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. Eg:you have 4 info records for a same material with different vendors. If you are not maintained sourcelist, check while creating PR.It will display all vendors. If you have sourcelist there you have selected a vendor as fixed. You will only get one vendor,please check. Info record:Is a combination of one material with one vendor 51. Source determination: if you activate this indicator, you give vendor during PR creation .otherwise you can give the vendor at the time of PO. you can save the PR without vendor. source determination is used to identify the source of supply.