62017 50 TOP SAP MM-cin interview Questions and Answers 2017 Download Interview Questions Answers pdf .com SEHEGIPSAP NEG ER PERE ON BAONS MNGRSP D F.C ANSWERS & iqapat Chttp://interviewquestionsanswerspa.com/author/iqapdf/) @ SAP mm Interview Questions (Chup: /interviewquestionsanswerspdf.com /category/sap-mm-interview-questions/) @March 28,2014 @1 Comment (hitp://interviewquestionsanswerspdi.com/2014/03/sap-mm-interview-questions-and-answers/ #comments) Ads by Google . ware ‘ List of top 50 sap mm interview questions and answers for Interview Questions PDF (eee beginners and experienced pdf free download.these MM Sap ‘most frequently asked sap mm interview questions. sap mm interview Questions and Answers 1. What is the difference between a Purchase Requisition and a Purchase Order? APRis an internal document that sends notification to purchase department when sc material is service is required. PR can be generated by department that needs any mat or service. APO is a document sent to vendor by purchaser which is an official request of mentio: material or services. POs are generally binding on purchaser, though it depends on ter and conditions mentioned in PO. 2. What are different Info Records types? ip lrtrviewquosionsanswerspalcomagt-lopsap-mm-cinsnterviow-questns-and-answers! wns62017 50 TOP SAP MM-cin interview Questions and Answers 2017 Download Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline 3. What is a consignment Stock? The stock supplied by the vendor is in the purchasing company’s premises but the con has no liability for the same. The liability for the company will only arise one the good issued from the consignment stock for use. However, in this case, even before the use, purchasing company can check in system how much stock is lying in inventory. ] SAP MM Interview Questions and Answers 4. What is Sub-Contracting cycle in MM? In Sub-contracting, we send raw material or input material to sub-contractor and ther receive the finished goods. A sub-contracting PO is created with item category ‘L’. Inp1 material is sent to vendor for processing with movement type 541. When GR is done u movement type 101, movement type 543 takes place automatically and takes care of consumed material. 5. What is meant by Scales in MM? ‘When we maintain price in Info Records, we can make use of scales. It is used when ps a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales a1 ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! 2ssco? OTOP SAP MMcin itervew Questor and Answers 2017 Dood maintained in various master data like info record, quota arrangement ete. from wher: scales can be pulled in a Purchase Order. 6. How to Flag a material for deletion? ‘A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a material for deletion, it is flagged for deletion at all correspo lower levels. Transaction MMO6 is used to flag a material for deletion. 7. Cana material be used after flagging it for deletion? Yes, even after flagging a material for deletion, it can be used till it is actually deleted. just trigger a warning message whenever the material is used. If you want a material t« blocked for any use with immediate effect, you should use a material status which is tk in Basic View 1 for general level or in MRP 1 view for plant level blocking. 8. What is the function of OBYC? OBYC is t-code used for configuring Automatic Account Posting. Postings are made to G/L accounts automatically in the case of Inventory Managemen Invoice Verification relevant to Financial and Cost Accounting. 9. What is valuation grouping code related to OBYC? Valuation grouping code is used to group the valuation area, In SAP, we can have valu level at Company code level or at plant level. General practice is to use the valuation area at plant level, because valuation may diffe from one plant to another. The valuation grouping code makes it easier to set automat account determination. If we need to define common account determination for sever: ip lrtrviewquosionsanswerspalcomagt-lopsap-mm-cinsnterviow-questns-and-answers! ans62017 SOTOP SAP MMcin itervew Questor and Answers 2017 Dood valuation areas, we can assign same valuation grouping code to all those valuation are We can maintain the valuation group code in OMWD for various valuation areas. Books: Discover the Joy of Reading. Shop Now. 10. What types of special stocks are available? Various special stock types available in SAP are Consignment, Subcontracting, pipelin project, sales order stock, Returnable transport packaging, stock transfer, and the thir party. 11. What is the difference between Contracts and Scheduling Agreements: A contract is a pre-determined long term agreement to supply material or service for a certain period of time. Specific delivery dates are not mentioned in the contracts. Cont can be of two types: Value Contract or Quantity contract In Scheduling agreements, we can enter scheduling lines which gives details of quantit that should be delivered on specific date, Plant must be entered in SA so that materi be delivered at plant. These are generally used for materials whose requirements are predictable. 12. How can we create new transaction codes in SAP? New transaction codes can be created using t-code SE93. 13. What are release procedures with and without classification? ‘ification: Release Strategy with Clas PR can be released at header level as well as item level. It can be used for both internal/external documents. Can be set on any field available in structure CBBAN ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! ans.62017 50 TOP SAP MM-cin interview Questions and Answers 2017 Download Release Strategy without Classification: PR can be released only at item level. It can be used only for internal documents such as PR. his strategy can be used only on 4 parameters which are Account assignment categor Plant, Material Group and value of PR. 14. What is meant by batches? Abatch is a subset of the total stock of a material. It represents a homogeneous unit w has unique specification, Normally, a batch is assigned to the quantity of material proc during a given production run. A batch number uniqueness can be assigned at any of t following 3 levels: At client level: The same batch number can be assigned only once within the entire cl At material and plant combination level: Same batch number can be assigned to mate with different specification in each plant. At material number level: A batch assigned to a material has the same speci ion for plants where material is extended. Batch number can be reassigned with a different specification for each material. 15. How to handle free items in PO? While creating PO, we can tick the item as free item in item overview section of PO. Tt price will be zero for free marked item. 16, What information is maintained in Accounting View of material mast Accounting view is a plant specific view. Besides other information, it contains import information such as valuation class and price control. Valuation class helps in determi the relevant GL account used for account posting, It is also used while configuring OB ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! ss62017 50 TOP SAP MM-cin interview Questions and Answers 2017 Download settings. Price control indicator determines if material is maintained at Standard price or Moving average price (V). 17. What is the use of Material types? ‘Material Types’ is used to group various materials based on some common properties helps in maintain material master data for a particular material. Using material types, can control which all views are required for a material type, which fields are required « optional, the material number range etc. 18. What is the use of ‘Partner Functions’ for a vendor? Partner Function is used to define responsibilities and duties of other business partne Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier), PI(Invoice presented by) ete. 19. What is the use of ‘Material Status’? Material Status helps in determining the usability of a material. It is a 2-digit code whi can be maintained as plant specific material status, cross-plant material status, and distribution material status. 20. What is the ‘Price Control Indicator’? ‘Price Control Indicator’ is maintained in accounting view and is used to determine ho material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If t indicator is set to S, all inventory postings are posted at standard price maintained in material master. If there are variances in any transaction due to different price, the va is posted in price difference account. ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! ais62017 S0 TOP SAP Min nervow Questons and Answers 2017 Dolo If price control indicator is set at V, goods received will be done at GR price. The movi average price will be adjusted in material master using weighted average formula. If gx movements or invoice receipts are posted using a price that differs from the moving av price, the differences are posted to the stock account. 21, What are various types of Stock transfer? The physical movement of stock between different physical locations is called as ‘Stocl transfer’. Stock transfer can be either a single step process or a two-step process. Varic Stock transfers are: Inter Company (Company to Company) Inter Plant/Intra Company (Plant to Plant) Intra Plant (Storage location to Storage location) 22, What are various Stock Types? In SAP, commonly used stock types are: Unrestricted Stock (Stock that is available for use) Restricted Stock Quality Inspection Stock (Not the unrestricted stock but can be considered for MRP) Blocked Stock (Stock rejected by quality or production) GR Blocked Stock (Conditionally accepted stock. Not the unrestricted stock) . What are various procedures for counting Physical Inventory? Physical Inventory procedures in SAP MM are as follows: Periodic Inventory (All stocks are counted on a pre-determined date) Continuous Inventory (stocks are counted continuously during the entire fiscal year) Cycle Counting (Counting is done at fixed intervals) ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! m562017 OTOP SAP MMcin itervew Questor and Answers 2017 Dood Inventory Sampling (Randomly selected material stocks are physically counted on the balance sheet key date. If variances are small enough, it is presumed that the book inventory balances for the other stocks are correct.) 24. What is the use of ‘Split Valuation’? Within a valuation area, sometimes, we need to valuate various stocks of a material separately. It can be because of different origin, quality, status, etc. We use split valuat in such cases. In this case, material is managed at several partial stocks which are sub- stocks of main material stock. Any transaction, relevant for valuation, is carried at this partial stock level. In accounting view, we define if we need split valuation for any mat 25. What are the various stock valuation methods? Stock revaluation can be done by following three methods: LIFO(Last In First Out): Materials received last are consumed first. You can assume example of elevator where people who enter last exit first! FIFO(First In Firs Out): Materials received first are consumed first. Lowest Value Method: Stocks are valued at their original price or the current market p whichever is lower. 26. How do you set ‘Automatic Account Assignment’ in MM? Once OBYC settings are properly done, system finds the correct G/L account using the following data: Chart of Accounts: Chart of Accounts is determined based on plant or company code u in transaction Valuation Grouping Code: It is determined based on the valuation area. Valuation Grouping Code is maintained in t-code OMWD. Transaction Key: eg. BSX, GBB ete. Transaction keys are determined automatically fre the transaction (invoice verification) or the movement type (inventory management). ip lrtrviewquosionsanswerspalcomagt-lopsap-mm-cinsnterviow-questns-and-answers! ais62017 S0 TOP SAP Min nervow Questons and Answers 2017 Dolo Account grouping /Account Modifier (only for offsetting entries, consignment liabiliti and price differences) Valuation class of material or (in case of split valuation) the valuation type: The valuat class allows you to define automatic account determination that is dependent on the material. This can be achieved by as signing different valuation classes to the materials material master (Accounting view) and by igning different G/L accounts to the post transaction for every valuation class 27. What are ‘Transaction Keys’ while setting OBYC? Since each movement type is assigned to a ‘value string’ which in turn is identified wit transaction key, the goods movement determines the correct transaction key. Transac Keys’ are pre-defined in the system to enable transaction postings in Inventory Management and Accounting (Invoice Verification). ‘amples of pre-defined transact keys are: BSX (Inventory Postings) WRX (GR/IR Clearing Postings) PRD (Cost/Price differences) UMB (Revenue/Expenses from revaluation) GBB (Offsetting entries in Stock postings) BSX, WRX, and PRD are relevant for a GR with reference to a purchase order for a ma with standard price control. The transaction key UMB is used when the standard price changed and the movement is posted to a previous period. GBB is used to identify the account to post to as the offsetting entry to the stock account (when not referencing a purchase order) such as miscellaneous goods receipts, goods issues for sales orders wi account assignment, and scrapping etc. 28. What is a Business Area? ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! ans62017 SOTOP SAP MMcin itervew Questor and Answers 2017 Dood The business area is an organizational unit within financial accounting. It corresponds defined business segment or area of responsibility, to which value movements recorde Financial Accounting can be assigned. It is usually derived automatically as it linked t« other organizational units. For eg, Business area for a combination of plant and divisic maintained by t-code OMJ7. 29. What is a Cost Center? Cost Center accounting is used for controlling purposes. It is an organizational unit wi controlling area which represents a defined location of cost incurrence. For example, ¢ department can be a cost center for recording all expenses incurred for that departme: 30. What is a Profit Center? Profit Center Accounting evaluates the profit or loss of individual, independent areas \ an organization. Profit center is an organizational unit in controlling to recognize your profit. Profit center is attached to material master at plant level. 31. How to create Tax calculation procedure in MM? Tax can be calculated for each line item of a PO separately based on the tax code. Earli TAXINJ, which is a formula based tax procedure, was used. Now, TAXINN, which is a condition based tax procedure, is generally used. Tax procedure contains the conditior and necessary specification for each condition type. Account keys are assigned to cond types and these account keys determine the G/L to which the tax amount is to be posted(OB4o). These account keys are maintained using t-code OBCN. (All these transactions are under Financial Accounting Global Settings >> Tax on Sales/Purchas >> Basic Settings). Tax codes are assigned to country codes and country are linked wi procedure. Thus, based on tax code, corresponding tax procedure is determined and tl calculation is done based on condition types in that tax procedure. ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! sais62017 50 TOP SAP MM-cn interview Questions and Answers 2017 Download 32. How is scrap material taken care of in sub-contracting? Scrap can be maintained in BOM as operational p, component scrap, By-Product ¢ Product. Common practice is to maintain scrap as by-product and receive it back alon; processed material. 33. How are the by-products taken care of in sub-contracting? When you create BOM using CSo1, we can maintain main components with + ve quan and By Products / Scraps with — ve quantities. When you make Goods Receipt for Subcontracting Purchase Order with 101 movemen type, components are automatically consumed with movement type 543 By Products / Scrap are updated as stock provided to vendor movement type 545. Now we can receiy scrap/ By product back in company’s inventory using movement type 542 (reversal of with t-code MB1B. 34. What are the commonly used movement types in Sub-Contracting pro: 541 — Issues of goods from warehouse to subcontractoru2o1gs stock 542 — Reversals of goods issues from warehouse to subcontractoru2019s stock 543 — Consumption from subcontracting stock (Automatic updating during GR) 544- Co-products receiving 545- Goods receipt of by-products from subcontracting (Stock provided to vendor) 101 — Finished good/ Sub-Contracted good received after processing 35. What are accounting entries in standard sub-contracting process? Accounting entries in standard sub-contracting process are as follows: For finished goods received: Debit stock account of assembly(FG) (BSX) Credit Change in Stock (BSV) ip lrtrviewquosionsanswerspalcomagt-lopsap-mm-cinsnterviow-questns-and-answers! 1562017 S0TOP SAP MM-cinitevew Quast and Answers 2017 Dowoed For amount payable to vendor: Debit SC/JW charges (FRL) Credit GR/IR (WRX) For material provided to vendor: Debit Consumption Account of components (GBB-VBO) Credit Stock account of components (BSX) If there is a price difference and customization is done for accounting for price differer subcontracting, PRD transaction key comes in picture. 36. What are the possible values of procurement type in Material Master? Procurement type is maintained in MRP1 view of material master. This is a plant spec view as MRP is done at plant level. Various procurement types in material master are follows: In-house production (E) External procurement (F) No procurement Both Procurement types (X) 37. What are the requirements for an ‘MRP Run’? MRP should be activated in that plant Master Data for MRP should be maintained (Planning Calendar etc.) MRP data for material should be maintained MRP! view should be maintained (e.g... Reorder point, Safety stock ete.) MRP2 view should be maintained (e.g. Plan delivery time ete.) MRP can be run using MDo3 38. What is a MRP Area? ip lrtrviewquosionsanswersplcomfag0-lopsap-mm-cinsnterviow-questns-and-answers! vans62017 OTOP SAP MMcin itervew Questor and Answers 2017 Dood MRP Area is an organizational unit for which material requirement planning can be cz out independently. MRP Areas are of three types: Plant MRP Area MRP Areas for Storage Locations MRP Areas for Subcontractors After defining MRP areas, MRP area is assigned to material in material master. 39. What is MRP list? The system creates MRP lists during the planning run. The MRP list always displays tl future stock/requirements situation at the time of the last planning run. The MRP list stored in the system until it is either deleted manually or replaced by a new list from a subsequent planning run. 40. What MRP procedures in Consumption Based Planning? MRP procedures in CBP are as follows: Reorder Point Procedure Forecast based Planning Time phased material planning 41. What is the difference between standard purchasing organization and reference purchasing organization? Purchasing organization is an organizational unit within Logistics. A standard purcha: organization must be provided to one or more plants for which it is directly responsibl procurements. A purchasing organization is assigned to reference purchase organization to avail conditions and centrally agreed contracts or release orders contained in the assigned reference purchasing organization ip lrtrviewquosionsanswerspalcomagt-lopsap-mm-cinsnterviow-questns-and-answers! sais62017 50 TOP SAP MIM-cin inteview Questions and Answers 2017 Download 42. Why do we use document types in SAP? Document types are used to distinguish the business transactions to be posted. It also in determining the account types to be posted and subsequent transactions to complet process. Document types are defined at client level. 43. Can we receive the goods before the scheduled delivery date in schedi agreement? No, we cannot receive the goods before scheduled delivery date. GR can be posted on « after the scheduled dates. Though, SAP has provided some OSS notes to resolve this. (708973, 741385) 44. Can changes be made in PO once it is released? This can be controlled by settings given in release indicator in PO release procedure. I a significant change, it will re-trigger approval cyc 45. What is the use of ‘Info Update’ indicator in purchasing documents? This indicator is used to decide if the info record is to be created/updated or not based this purchasing document. 46. What is a Material Ledger? A material ledger retains all transactions that relate to the purchase and use of materi: producing goods. Material ledger data is valuation and control data for a material ina for a specific posting period. Material ledger contains data for material movements th: ralavant ta tha waluatinn nf the matarial ip lrtrviewquosionsanswerspalcomfagl0-lopsap-mm-cinsnterviow-questns-and-answers! wis62017 50 TOP SAP MM-cn interview Questions and Answers 2017 Download Fal Interview Questions Answers P. 635 lik Share Be the fist of your friends to like this a a Interview Questions and Answers pa free download for freshers experienced MCQs Real time cetiication basic asked objective programming on TT & NON-IT Placement Papers FAQs hp dinterviewques ionsanswerspdcomfagS0-lo-sap-mm-cindnteview-questns-and-answers! sss