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SAP MM Questions & Answers

1. How to match Internal Branch (within our own Plant & Storage Location)
Material Transfer Sent & Posted document?

In Standard SAP theres no posting reference for MTN Material Transfer Note
through user exit we can develop a Program to copy sender document no in the posted
document text field (based on this New report can be developed)

2. What is the use of Tables in MM. i.e. how the tables get created?

Through SE11 you can create a new Table.


Material Master MARA, MARM, MARC, MARD, and MBEW & MVKE will update.

In Vendor Master - LFA1, LFB1 & LFM1 will be updated.

The same applies to EKKO, EKPO for P.O, and


If in any error, only the message no. or the table no. is shown, then how to
resolve the error using message no. or table no.?

Contact ABAP or BASIS person to resolve this.

3. Tell me about the subcontracting cycle.

The Po is created with item category L, the goods is transferred to subcontractor by
541 movements. For this movement note no accounting docs take place. When GR is
done automatically, 543 movements takes place which take care of the consumption of
components from stock.
How are the byproducts taken care of in subcontracting?
You can add these as by products in the BOM for the header material.

4. What is the procedure to delete materials permanently from Material Master?

The process for deleting the materials permanently from material master is by
using transaction code MM70 and the navigation is Material
Master>Other>Reorganization>Material>Choose. Then build variant with selection
range of material master records to be selected for deletion and maintain run
parameters and then execute.
Using Transaction Code MM71 navigate as follows Material
Master>Other>Reorganization and then build the second variant, maintain run
parameters and execute. It is also important to remove the records manually form info
records, PO, PR reservation etc for successful deletion of the material.

5. What MRP procedures are available in MM-CBP (Consumption Based

SAP MM Questions & Answers
Various material planning methods are used in MRP (Material Requirements
Reorder point procedure (VM)
Forecast-based planning (VV)
Time-Phased materials planning (PD)
These are specified in material creation (MM01) under the MRP 1 tab.

6. Explain the function OBYC?

The Function OBYC stands for Configure Automatic Postings. When the system
settings are entered for the Inventory Management and Invoice Verification
transactions the automatic posting to G/L accounts. Postings are made to G/L accounts
automatically in the case of Invoice Verification and Inventory Management where the
transactions are relevant to Financial and Cost Accounting.

7. What is the procedure to make the period indicator in the MRP2 view as P?
To make the period indicator in the MRP2 view as P the transaction variant
SHD0 and then SE93 is used.

8. What is the procedure to make the Source List automatically appear in

Material Master as default if maintained at plant level using OME5?
The maintained source list requirement in OME5 was not maintained the source
list for the material, Po cant be released. So it is required to maintain source list for all
materials in the plant where the indicator is set if maintain source list at plant level is
maintained or it can make use of info record to do so automatically.

9. List some info records types?

The lists of Info Records Types are Standard, Consignment, Subcontracting and

10. Explain what is consignment stock?

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

11. Is it possible to have scales in a quotation?

No, it is not possible to have scales in a quotation

12. What is the subcontracting cycle?

The Subcontracting Cycle is that when Po is created with item category L, the
goods is transferred to subcontractor by 541 movements. For this movement note no
accounting documents take place. When GR is done automatically, 543 movements
takes place which take care of the consumption of components from stock.

13. Explain the procedure to create PR or PO by MRP?

The procedure to create PR is according to the safety stock mentioned for the
material or can be triggered from a requirement. For creating a PO, you need to have
the scheduling agreement in place .After the MRP is run the schedule lines are
generated which is nothing but the PO.

14. What types of special stocks are available?

Special Stocks that are available are Subcontracting, consignments, pipeline,
project, sales order, RTP, stock transfer, and the third party.

15. Is it possible to have scales in a quotation?

No, it is not possible to have scales in a quotation
SAP MM Questions & Answers

16. Explain the steps that are involved in consignment cycle?

The steps that are involved in consignment cycle is by creating consignment
info record with proper tax code, maintain output condition record for KONS, no invoice
verification done, create Po with item category K, process GR, but settlement is done
through MRKO transaction.

17. What is the difference between release procedure with classification

and without classification and when are they used?
The release procedure with classification deals with the purchase requisition it
can be released both at item level and at the header level. Coming to release
procedure without classification can also be used for purchase requisition which is used
for item level release only. All other external documents cannot be released with
classification. These two procedures are mutually exclusive to say, it has to be decided
in favor of one of them only.

18. What is the procedure to give specifications for developments?

The procedure to give specifications are normally prepared for the business
requirement document in which we specify what is required, what field and tables have
to be referred for the required development.

19. How many company codes can be assigned to a plant? Can a company
code be assigned to many plants?
- You can assign only one company code to a plant.
- You can assign many plants to one company code.

20. At which level is the purchase order history kept?

PO history is updated in table: EKBE and if you go to see, there is a field client
and purchasing document/plant. You can see that PO history is updated at PO line item
level and also see it at the header level then in status tab, you can see the following
gets updated
Still to delivered
Down payments

21. What are the important fields in a batch master record?

Production date Refers to the date when the batch was produced.
Self-life expiration date Refers to the date when the life of the batch will
Available from Refers to the date from which the batch will be available to
other departments.
Batch status allows the batch to be classified as having restricted or
unrestricted use.
Next inspection Refers to the next quality inspection date of the batch.
Vendor batch Refers to the batch number assigned by the vendor.
Class allows the user to sort the batch for use in specific classes.
Characteristics Helps in assigning a class to the batch.
Release status specifies the status of the batch.
Linked document helps the user to link the documents related to the batch.
Document type allows the user who is purchasing the batch to specify a
Document Helps the user to select the relevant document.
Document part allows the user to enter the part of the document that is
related to the batch.
SAP MM Questions & Answers
Version specifies the document version of the batch.

22. What are the various transaction codes to access the MM configuration?
The following are the various transaction codes to access the MM configuration:
Transaction Code Description
OLMD Accesses Material Management-Consumption Based Planning
OLMB Accesses Material Management-Inventory Management (MM-
OLME Accesses Material Management-Purchase (MM-PUR)
OLML Accesses Material Management-Warehouse Management
OLMS Accesses the Material Master data
OLMW Enables valuation and account assignment

23. Some important MM tables?

The following table lists the important MM table names:
Table Name Purpose
EINA Used for general data of the (purchasing) information record
MARC Used in plant data for materials
EINE Used for purchasing organization
MAST Used for bills of material (BOM) link
MKPF Used for header material document
MAKT Used for material description
MARD Used in storage location data for material
MARA Used for general materials data
MBEW Used for material valuation

24. What is EAN?

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

25. How to integrate MM with Fico?

- Answer 1. By using transaction code OBYC we can get the details of MM,
Fico integration.
- Answer2. Go to IMG settings in Financial accounting and do the
configuration for MM-FI settings
- Answer3. Value from MM to FI is defined in OBYC. on the material master
the flows of values are assigned on the Costing, Accounting tabs where the
system helps to post the necessary stock values into the appropriate GL
accounts. Helps to determine, the GL accounts updated when there is a
movement of goods.

26. What is Legacy System Migration Workbench? How it can be carried out
in SAP?
- LSMW is used for migrating data from a legacy system to SAP system, or
from one SAP system to another.
Apart from standard batch/direct input and recordings, BAPI and IDocs are
available as additional import methods for processing the legacy data.
The LSMW comprises the following main steps:
* Read data (legacy data in spreadsheet tables and/or sequential files).
* Convert data (from the source into the target format).
* Import data (to the database used by the R/3 application.
SAP MM Questions & Answers
But, before these steps, you need to perform following steps:
* Define source structure: structure of data in the source file.
* Define target structure: structure of SAP that receives data.
* Field mapping: Mapping between the source and target structure with
conversions, if any.
* Specify file: location of the source file

27. How is scrap accounted in subcontracting?

The scrap or the process loss can be adjusted while doing a quality inspection of
the material received after subcontracting.

28. Tell me about the various movement types and usage.

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

29. How to create PR or PO by MRP?

The PR is created according to the safety stock mentioned for the material or can
be triggered from a requirement. For creating a PO, you need to have the scheduling
agreement in place .After the MRP is run the schedule lines are generated which is
nothing but the PO.

30. How to create new transaction codes?

In transaction code SE93 you can create, Change & Display a Transaction Code.

31. What does the system use for the account assignment category to
determine the default account?
Transaction key GBB and Valuation group code

32. Is it possible that Reservations that are flagged for deletion can be un-
deleted by simply removing the flag?
Not Possible (flagged for deletion cannot be reversed)
33. What are the benefits to business if Source list and info record got
Source list: It is a combination of one material with more than one
vendor or plants (in internal) and source list is the higher priority than info
record. You can stratify the vendor for a material with source list.
Eg: if you have 4 info records for a same material with different vendors. If you
are not maintained source list, check while creating PR (Purchase Requisition). It
will display all vendors If you have source list there you have selected a vendor
as fixed. You will only get one vendor in PR.
Info record: Is a combination of one material with one vendor
SAP MM Questions & Answers

34. What details can be generated If Materials planning set to automatic?

Purchase Requisitions, Planned Orders, Delivery Schedules.

35. What is MM closing and what is FI closing? How can I know if period is
a. Error in system (Movement Error - Posting Only Possible Between
period _______- _______-)
MM closing means that you cannot post materials document. In MM area you have
two open periods current and previous.
Using MMRV transaction code - we can check Company code present Period.
If you check Allow posting to previous period - it will forbid MM posting in previous
a. Check whether the MM Period for posting is Open or Not..

36. What are all Transaction code Available to Solve MM Posting Period
Answer: T-Codes help to solve the posting period error:

37. How inventory differences are calculated?

Answer: Go through the Physical Inventory Process: -
1. Physical Inventory Preparation: -
- MI01/MI02/MI03 Create/Change/Display a Physical inventory document.
- MI01 - Blocking Materials for Posting
- MI21 - Print and distribute the physical inventory document.
2. Physical Inventory Count: Physical Stock Count
3. Physical Inventory Analysis:
- MI04/MI05/MI06 Enter/Change/Display the result of the count into the system
- MI11 - Initiating a recount, if necessary
- MI07/MI08 - Posting inventory differences
- MI20 Generating Difference List

38. How to Inactivating the standard Movement Types. Say for eg. I don't
want end user to use this Movement Type 501- Receipt without ref to PO.
(I don't want to delete this movement type, being an SAP standard one. One option
what I thought of is to control in the authorisation profile, profile to exclude selected
movement types.)
Is there any other way we can do this?
Answer: Delete the accounts assignments which are used for 501 movement type.
Transaction code is OBYC

39. In my company theres a situation to change materials valuation class

How to do it?
Answer: By changing the master to the Material type which associated with that
valuation class - Using Transaction: MMAM (Material masters Material Type can be

40. How to Add more Views to existing Material Master

In MM02, Showing only 3 views ...BASIC DATA 1, BASIC DATA 2 &
CLASSIFICATION..... How to add
Answer: - Use MM01 - Enter the material for which you want to add the views.
- Then you enter the same material in copy from material
- Then you may find all the view
- Then select the views you want to add and make entries in the same view
and save it
Or else - using MASS / MM50 Transaction code we can extend views for Material
SAP MM Questions & Answers

41. Why we are maintaining 4 views for MRP Material Requirement

Planning in Material Master? What is the reason behind that?
The 4 MRP views that we maintain has got its individual importance like in
- MRP1 - For consumption based planning
- MRP2 - Procurement type (in house or external)
- MRP3 - For planning strategy & consumption period
- MRP4 - For repetitive mfg.

42. SAP Split Valuation for Materials Helps to maintain

1. Stock from in-house production has a different valuation price than externally
procured stock.
2. Stock obtained from one manufacturer is valuated at a different price than stock
obtained from another manufacturer.
3. Different batch stocks of a material have different valuation prices.
4. Value damaged and repair part differently from a new part.
Split valuation, get activated using 'OMW0' Transaction code.

43. Tell me the difference between transfer postings and stock transfers.
What are the material documents that are generated and what are the
accounts hits.
Stock Transfer = physically stock transfer of goods,
Transfer posting = may physical (or) logical (not physical) stock transfer of
Transfer posting and stock transfer:
Transfer posting: plant to Plant / Storage location to Storage Location.
In which if the valuation area is same. i.e,
- Storage Location to Storage Location within one plant then there will be no
accounting entry occurs.
- However if its Storage Location to Storage Location but with two different
plant and valuation area + valuation price is diff then there will accounting
doc and material doc created for the same.
Stock Transfer: There are unrestricted stock, quality inspection stocks, blocked
stocks; also you can have GR
Blocked stock, special stock too. It will update the quantity.

44. How many stock transfer process are available in SAP?

1. Two step stock transfer (MM/SD),
2. Two step stock transfer (MM only) Move type 303& 305,
3. One step stock transfer Move type 301.

45. Multiple Currency Quotation or Invoice from Vendor how to handle this
in SAP?
This scenario can be used specially in Purchase Order, where you can define/select
the currencies for a Vendor.
The Vendor currency is maintained (say) USD and you want to attach EURO, GBP
to the existing vendor without creating same Vendor in Data Base
Step: 1 Use of SAP Standard Functionality of Vendor Sub-Range
Step: 2 Activate the Sub-Range Field in PO and make it Mandatory
How to Use vendor Sub-Range
A. T-code XK02 Select Vendor and then Select Purchasing Data (Maintain
additional Purchasing Data)

46. Month End Closing activity :

a. MM period closing, using MMPV (this initializes the one period and at the same
time it closes the previous one).
b. Physical Inventory if required.
SAP MM Questions & Answers
c. Material Ledger Closing (If material ledger is activated).

47. Year End Closing activity:

a. GR/IR Clearing Account settlement.
Account balance i.e. GR/IR clearing, these accounts may have some
difference due to credit memos generated and no deliveries for the same or may
be no GR posting for later deliveries because of the closed period.
b. Physical Inventory. (Run T Code MI22 - look at "Doc status" - any open PI not yet
Post Difference)
c. Material Ledger Closing (If material ledger activated).

From MM point of view note down the followings:

1) Check for open POs which are pending for GR (which are supposed to be posted in
current year).
2) Check for open Physical inventory docs.
3) Check for Subcontracting that are still pending (which are supposed to be posted in
current year).
4) Make sure all goods movements are completed in current year.
5) For excise number ranges - there is a list objects from which you need to maintain the
number ranges,

Please maintain the number ranges for the following objects:

Transaction Code:
1. SNRO with help of Object
2. OMBT - Number Range
a. Number range assignment for Accounting Documents (Finance).
b. Number range assignment for Material and Physical inventory document
c. Number range assignment for Goods receipt or issue slips.
d. Maintenance of factory calendar (Transaction code SCAL).

Thanks & Regards,
"Every day is a day to have a positive attitude. Smile and keep positive regardless of the
circumstances that attempt to beat you down."

SR. Sakthivel, SAP Functional Consultant |

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