WHAT IS THE DIFFERENCE BETWEEN A PURCHASE REQUISITION AND A PURCHASE ORDER?

A PR is an internal document that sends  notification to purchase department when

some material is service is required. PR can be generated by department that needs any
material or service.

A PO is a document sent to vendor by purchaser which is an official request of mentioned

material or services. POs are generally binding on purchaser, though it depends on terms
and conditions mentioned in PO.
WHAT MRP PROCEDURES ARE AVAILABLE IN MM-CBP (CONSUMPTION BASED PLANNING)?

Various material planning methods are used in MRP (Material Requirements Planning).
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.
CAN YOU CHANGE A PURCHASE REQUISITION AFTER IT HAS BEEN CREATED?

Yes. Use Transaction ME52N. Check to see if the PR has already had a PO issued against
it. If so, you must inform the Purchasing Group. Check if the PR has been approved. If so,
you may only make changes to a limited extent and may be subject of approval. Check if
the PR was created by MRP. In this case, you don’t have much control over the
modification process. All changes to items are logged and stored. Information stored
includes when the information was changed, who changed it, what the changes were, etc.
HOW DO WE CREATE CONSIGNMENT STOCKS?

Everything is the same as a normal PR or PO, except: Enter the item category “K” for the
consignment item. This ensures that the Goods Receipt is posted to the consignment stores
and an invoice receipt cannot be generated for the item. Also, do not enter a net price.
WHAT IS VENDOR EVALUATION AND HOW DO YOU MAINTAIN IT?

Vendor Evaluation helps you select the Source of Supply by a score assigned to a particular
vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use
Transaction ME61 and enter the Purchasing Organization and Vendor Number.
WHAT ARE THE COMPONENTS OF THE MASTER DATA THAT DETAILS A COMPANY’S
PROCUREMENT; USED BY, VENDOR EVALUATION FOR EXAMPLE?

The key components of Master Data are: Info Record (ME11), Source List (ME01), Quota
Arrangement (MEQ1), Vendor (MK01), Vendor Evaluation (ME61), and Condition Type
(MEKA).
HOW DO WE GET A PROPER LIST OF VENDORS TO SEND AN RFQ?
Either use the Information Record to see who has sold a particular material to the
organization in the past, or go through the Source List.
HOW DO YOU CREATE A SOURCE LIST?

Use Transaction ME01. Enter the Material Number and the Plant Data. Enter source list
records, validity period, period of time material is procurable, Vendor Number, responsible
Purchasing Organization (or number of the Agreement or Contract), PPL (if the material can
be procured from another plant), Fixed Source (?), MRP control. Also, a check should be
done to see whether any source list records overlap.
WHAT ARE DIFFERENT INFO RECORDS TYPES?

Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.
UNDER WHAT CONDITIONS ARE “PLANNED ORDERS” CREATED? WHAT MAY PLANNED ORDERS
BE CONVERTED TO AND HOW IS THAT CONVERSION ACCOMPLISHED?

Planned orders are always created when the system creates an internal procurement
proposal. In the case of vendor procurement, the MRP Controller may create a planned
order or directly create a PR. The next step for a planned order is to be converted to a PR
so it goes to purchasing and is to eventually become a PO. A planned order can be
converted to a PR using transaction code MD14.
WHAT IS A CONSIGNMENT STOCK?

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

In Sub-contracting, we send raw material or input material to sub-contractor and then

receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input
material is sent to vendor for processing with movement type 541. When GR is done using
movement type 101, movement type 543 takes place automatically and takes care of
consumed material.
WHAT IS MEANT BY SCALES IN MM?

When we maintain price in Info Records, we can make use of scales. It is used when price
of a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC,
price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are
maintained in various master data like info record, quota arrangement etc. from where
scales can be pulled in a Purchase Order.
HOW TO FLAG A MATERIAL FOR DELETION?
A material must be flagged for deletion before deleting it using Archive and Delete program.
A deletion flag can be set at client level, plant level or storage location level. Whatever level
you flag a material for deletion, it is flagged for deletion at all corresponding lower levels.
Transaction MM06 is used to flag a material for deletion.
CAN A MATERIAL BE USED AFTER FLAGGING IT FOR DELETION?

Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It will
just trigger a warning message whenever the material is used. If you want a material to be
blocked for any use with immediate effect, you should use a material status which is there in
Basic View 1 for general level or in MRP 1 view for plant level blocking.
WHAT IS THE FUNCTION OF OBYC?

OBYC is t-code used for configuring Automatic Account Posting.

Postings are made to G/L accounts automatically in the case of Inventory Management and
Invoice Verification relevant to Financial and Cost Accounting.
WHAT IS VALUATION GROUPING CODE RELATED TO OBYC?

Valuation grouping code is used to group the valuation area, In SAP, we can have valuation
level at Company code level or at plant level.

General practice is to use the valuation area at plant level, because valuation may differ
from one plant to another. The valuation grouping code makes it easier to set automatic
account determination. If we need to define common account determination for several
valuation areas, we can assign same valuation grouping code to all those valuation areas.
We can maintain the valuation group code in OMWD for various valuation areas.
WHAT TYPES OF SPECIAL STOCKS ARE AVAILABLE?

pecial stock types available in SAP are Consignment, Subcontracting, pipeline, project,
sales order stock, Returnable transport packaging, stock transfer, and the third party.
WHAT IS THE DIFFERENCE BETWEEN CONTRACTS AND SCHEDULING AGREEMENTS?

A contract is a pre-determined long term agreement to supply material or service for a

certain period of time. Specific delivery dates are not mentioned in the contracts. Contracts
can be of two types: Value Contract or Quantity contract

In Scheduling agreements, we can enter scheduling lines which gives details of quantity
that should be delivered on specific date. Plant must be entered in SA so that materials can
be delivered at plant. These are generally used for materials whose requirements are
predictable.
HOW CAN WE CREATE NEW TRANSACTION CODES IN SAP?
 New transaction codes can be created using t-code SE93.
WHAT ARE RELEASE PROCEDURES WITH AND WITHOUT CLASSIFICATION?

Release Strategy with Classification:

 PR can be released at header level as well as item level.
 It can be used for both internal/external documents.
 Can be set on any field available in structure CEBAN
Release Strategy without Classification:
 PR can be released only at item level.
 It can be used only for internal documents such as PR.
This strategy can be used only on 4 parameters which are Account assignment category,
Plant, Material Group and value of PR.
WHAT IS MEANT BY BATCHES?

A batch is a subset of the total stock of a material. It represents a homogeneous unit which
has unique specification. Normally, a batch is assigned to the quantity of material produced
during a given production run. A batch number uniqueness can be assigned at any of the
following 3 levels:

At client level: The same batch number can be assigned only once within the entire client.

At material and plant combination level: Same batch number can be assigned to material
with different specification in each plant.

At material number level: A batch assigned to a material has the same specification for all
plants where material is extended. Batch number can be reassigned with a different
specification for each material.
HOW TO HANDLE FREE ITEMS IN PO?

While creating PO, we can tick the item as free item in item overview section of PO. The
price will be zero for free marked item.
WHAT INFORMATION IS MAINTAINED IN ACCOUNTING VIEW OF MATERIAL MASTER?

Accounting view is a plant specific view. Besides other information, it contains important
information such as valuation class and price control. Valuation class helps in determining
the relevant GL account used for account posting. It is also used while configuring OBYC
settings. Price control indicator determines if material is maintained at Standard price(S) or
Moving average price (V).
WHAT IS THE USE OF MATERIAL TYPES?
‘Material Types’ is used to group various materials based on some common properties. It
helps in maintain material master data for a particular material. Using material types, we
can control which all views are required for a material type, which fields are required or
optional, the material number range etc.
IF YOU HAVE A MULTI-LINEITEM PO, CAN YOU RELEASE THE PO ITEM BY ITEM?

No, a PO is released at the header level meaning a total release or “With Classification”.
PRs, on the other hand, have two release procedures possible. “With Classification” as
described above, and “Without Classification” where it is only possible to release the PR
item by item
WHAT IS A MATERIAL TYPE?

A Material Type describes the characteristics of a material that are important in regards to
Accounting and Inventory Management. A material is assigned a type when you create the
material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products”
are examples. In the standard MM module, the Material Type of ROH denotes an externally
procured material, and FERT indicates that the relevant material is produced in-house.
WHAT IS A PRICE COMPARISON?

Perform a price comparison using ME49 and one may compare quotations from different
vendors.
WHAT IS A SOURCE LIST?

The Source List identifies preferred sources of supply for certain materials. If it’s been
maintained, it will ID both the source of supply and the time period. The Source List
facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to
select the proffered source during the source determination process.
WHAT ARE THE VARIOUS “STEPS” IN THE MM CYCLE FROM MATERIAL CREATION THROUGH
INVOICE?

The following creates a rough picture of the MM Cycle. Create material, create vendor,
assign material to vendor, procure raw material through PR, locate vendor for certain
material, processing GR, goods issue, and invoice verification.
GIVE SOME EXAMPLES OF THE INFORMATION RELATING TO A MATERIAL’S
STORAGE/WAREHOUSING?

Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross
Weight, Volume, and Hazardous Materials Number. Also, there are various Storage
Strategies information and options.
WHAT ARE THE VARIOUS FEATURES OF CONSIGNMENT STOCKS?
Consignment Stocks remain the legal property of the Vendor until the organization
withdraws the material from the consignment stores. The invoice can be due at set periods
of time, for example monthly, and it is also a configuration possibility that the organization
will take ownership of the stock after a certain period of time. Consignment Stock is
allocated to the available stock because the Consignment Stock is managed under the
same material number as your company’s stock. The most important characteristic of
Consignment Stock is that it isn’t valuated. When the material is withdrawn, it is valuated at
the price of the respective vendor. Before procuring the stock, consideration should be
given if one consignment is coming from multiple vendors. If so, we can manage all of them
independently at the price of the individual vendors.
WHAT IS A QUOTATION?

Once a vendor has received an RFQ, the vendor will send back a quote that will be legally
binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a
purchasing organization regarding the supply of material(s) or performance of service(s)
subject to specified conditions.
WHAT IS THE SOURCE LIST?

The Source List identifies preferred sources of supply for certain materials. If the Source
List has been properly maintained, it will identify both the source of a material and the
period of time in which you can order the material from the source.
WHAT IS AN INVOICE VERIFICATION?

The Invoice Verification component completes the material procurement process and allows
credit memos to be processed. Invoice Verification includes entering invoices and credit
memos that have been received, checking accuracy of invoices with respect to price and
arithmetic, and checking block invoices (these are the ones which differ too much from the
original PO).
WHAT ARE THE DIFFERENT TYPES OF INVOICE VERIFICATION?

Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of

the items of a purchase order can be settled together, regardless of whether or not an item
has been received in several partial deliveries. All of the deliveries are totaled and posted
as one item. Invoices based on Goods Receipts. With goods receipt-based Invoice
Verification, each individual goods receipt is invoiced separately. Invoices without an order
reference. When there is no reference to a PO, it is possible to post the transaction directly
to a Material Account, a G/L Account, or an Asset Account. You can park Invoices that
reference POs and GRs as well as Invoices with no reference in the system. When you park
a document or change a parked document, neither substitution nor validation is supported.
WHY WOULD AN ORGANIZATION NEED TO ALLOW NEGATIVE STOCKS?
Negative Stocks are necessary when Goods Issues are entered necessarily (business
process reasons) prior to the corresponding Goods Receipts and the material is already
located physically in the warehouse.
WHAT IS THE USE OF ‘PARTNER FUNCTIONS’ FOR A VENDOR?

Partner Function is used to define responsibilities and duties of other business partners.
Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address),
GS(Goods supplier), PI(Invoice presented by) etc.
WHAT IS THE USE OF ‘MATERIAL STATUS’?

Material Status helps in determining the usability of a material. It is a 2-digit code which can
be maintained as plant specific material status, cross-plant material status, and distribution
material status.
WHAT IS THE ‘PRICE CONTROL INDICATOR’?

Price Control Indicator’ is maintained in accounting view and is used to determine how a
material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If the
indicator is set to S, all inventory postings are posted at standard price maintained in
material master. If there are variances in any transaction due to different price, the variance
is posted in price difference account.

If price control indicator is set at V, goods received will be done at GR price. The moving
average price will be adjusted in material master using weighted average formula. If goods
movements or invoice receipts are posted using a price that differs from the moving
average price, the differences are posted to the stock account.
WHAT ARE VARIOUS TYPES OF STOCK TRANSFER?

The physical movement of stock between different physical locations is called as ‘Stock
transfer’. Stock transfer can be either a single step process or a two-step process.

Various Stock transfers are:

Inter Company (Company to Company)

Inter Plant/Intra Company (Plant to Plant)

Intra Plant (Storage location to Storage location)

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)

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.)
WHAT IS THE USE OF ‘SPLIT VALUATION’?

Within a valuation area, sometimes, we need to valuate various stocks of a material

separately. It can be because of different origin, quality, status, etc. We use split valuation in
such cases. In this case, material is managed at several partial stocks which are sub-stocks
of main material stock. Any transaction, relevant for valuation, is carried at this partial stock
level. In accounting view, we define if we need split valuation for any material.
WHAT ARE THE VARIOUS STOCK VALUATION METHODS?

Stock revaluation can be done by following three methods:

LIFO(Last In First Out): Materials received last are consumed first. You can assume
example of elevator where people who enter last exit first!

FIFO(First In Firs Out): Materials received first are consumed first.

Lowest Value Method: Stocks are valued at their original price or the current market price
whichever is lower.
WHAT ARE THE ORGANIZATIONAL LEVELS OF THE ENTERPRISE STRUCTURE IN R/3?

The top level of the organizational plan is the Client, followed by Company Code, which
represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary).
The next level down is Plant, an operational unit within a company (HQ, Assembly Plant,
Call Center, etc.). The Purchasing Organization is the legally responsibly group for external
transactions. This group is further subdivided into Purchasing Groups.
HOW DO YOU SET ‘AUTOMATIC ACCOUNT ASSIGNMENT’ IN MM?

Once OBYC settings are properly done, system finds the correct G/L account using the
following data:

Chart of Accounts: Chart of Accounts is determined based on plant or company code used
in transaction

Valuation Grouping Code: It is determined based on the valuation area. Valuation Grouping
Code is maintained in t-code OMWD.

Transaction Key: eg. BSX, GBB etc. Transaction keys are determined automatically from
the transaction (invoice verification) or the movement type (inventory management).

Account grouping /Account Modifier (only for offsetting entries, consignment liabilities, and
price differences)

Valuation class of material or (in case of split valuation) the valuation type: The valuation
class allows you to define automatic account determination that is dependent on the
material. This can be achieved by assigning different valuation classes to the materials in
material master (Accounting view) and by assigning different G/L accounts to the posting
transaction for every valuation class.
WHAT IS ‘TRANSACTION KEYS’ WHILE SETTING OBYC?

Since each movement type is assigned to a ‘value string’ which in turn is identified with a
transaction key, the goods movement determines the correct transaction key. Transaction
Keys’ are pre-defined in the system to enable transaction postings in Inventory
Management and Accounting (Invoice Verification).

Examples of pre-defined transaction keys are:

BSX (Inventory Postings)

WRX (GR/IR Clearing Postings)

PRD (Cost/Price differences)

UMB (Revenue/Expenses from revaluation)

GBB (Offsetting entries in Stock postings)

BSX, WRX, and PRD are relevant for a GR with reference to a purchase order for a
material with standard price control. The transaction key UMB is used when the standard
price has changed and the movement is posted to a previous period. GBB is used to
identify the GL account to post to as the offsetting entry to the stock account (when not
referencing a purchase order) such as miscellaneous goods receipts, goods issues for
sales orders with no account assignment, and scrapping etc.
WHAT IS A BUSINESS AREA?

The business area is an organizational unit within financial accounting. It corresponds to a

defined business segment or area of responsibility, to which value movements recorded in
Financial Accounting can be assigned. It is usually derived automatically as it linked to other
organizational units. For eg. Business area for a combination of plant and division is
maintained by t-code OMJ7.
WHAT IS A COST CENTER?

Cost Center accounting is used for controlling purposes. It is an organizational unit within a
controlling area which represents a defined location of cost incurrence. For example, any
department can be a cost center for recording all expenses incurred for that department.
WHAT IS A PROFIT CENTER?

Profit Center Accounting evaluates the profit or loss of individual, independent areas within
an organization. Profit center is an organizational unit in controlling to recognize your profit.
Profit center is attached to material master at plant level.
HOW TO CREATE TAX CALCULATION PROCEDURE IN MM?

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

Scrap can be maintained in BOM as operational scrap, component scrap, By-Product or

Co-Product. Common practice is to maintain scrap as by-product and receive it back along
with processed material.
What is SAP MM?
SAP Material Management is a useful module in SAP Hana training Bangalore that
arrangements with acquirement taking care of and material administration. This module
primarily manages the Procurement Process, Master Data (Material and Vendor
Master), Inventory Management, Valuation of Material and Account Determination,
Material Requirement Planning, Invoice Verification.
What are the fundamental segments in SAP MM?
– Determine necessities
– Source assurance
– Vendor Selection
– Order Processing
– Order development
– Goods receipts and Inventory administration
– Invoice Verification
What are the kinds of uncommon stock accessible?
The kinds of unique stock accessible are subcontracting, dispatch, venture, pipeline,
deals arrange, stock exchange, returnable bundling with client, and so on
Tell me about the subcontracting cycle?
The Po is created with item category L, the goods is transferred to subcontractor by 541
movemet. for this movement note no accounting docs take place. When GR is done
automatically, 543 movemnt 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 by products in the BOM for the header matl.
What is meant by scales?
Can scales be used in standard purchase order? You can fix a price in the info record
for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 .
Scales cannot be used directly in PO but can be pulled into the PO from various master
data like info record, quota arrangement.

Interested in mastering SAP MM Certification? Learn more about SAP MM Tutorials

in this blog post.

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

With regard to Outline Agreement:
1. You can create a central contract (cross-plant) where you can maintain different pricing
conditions for each and every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category ‘M’ and ‘W’ can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery schedule
line via Transaction ME38 or MRP running (with the appropriate setting of Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation
(subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery
schedule.
5. Either time-dependent or time-independent conditions can be created subject to the
customizing in the Document Type of the Scheduling Agreement.
6. Item Category ‘M’ and ‘W’ can not be used.
What is meant by batches? How can the batches be searched?
A batch is a subdivision of your stock of a material having the same characteristics.
For instance:
– food production uses batches to indicate the day of production.
– paint production uses batches based on production date and the used ingredients. It is
very hard to reproduce the same color in exactly the same way at two different moments.
– ore may be divided in batches based on their mineral content.
You 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.
What are the settings required for quota arrangement?
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 to 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.
– 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
What are the differences between release procedure with classification and release
procedure without classification? When are they used?
Release procedure with classification means the Purchase requisition can be released
both at item level & at the header level. Release procedure with out classification can
also be used for PR which is used for item level release only. all other external
documents cannot be relesed with classification. The two procedures are mutually
exclusive (that is to say, you must decide in favor of one of them only – you cannot use
both).
Is it possible to have a release procedure without classification for a PO?
No
Is it possible to have scales in a quotation?
No
What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received, you can put in GR
blocked stock.
How to give specifications for developments?
We normally prepare a business requirement document in which we specify what is
required. what field & tables have to be referred for the required development.
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 are
nothing but the PO.
Explain the Significance of the batch record?
A batch explains about a quantity of a specific product that is processed at the same
time and consists of same parameters. The produced materials in this batch have the
same characteristics and values. The batch record provides the data about a specific
batch and helps to know whether the product has gone through Good Manufacturing
Process (GMP).
Mention the accounts created in SAP MM?
 Account Assignment is required for the order of the item that is purchased; it is vital
in SAP MM as it distinguishes following things

 Type of Account Assignment

 The account that will charge when you post the goods or invoice receipt
 Account assignment data that is required
 1. What is the difference between CBP and MRP?
 The main difference between CBP and MRP

CBP MRP

When the materials are planned using this, the prediction When the materials are planned using this, the
for the required materials is done by past demand of the prediction for the required materials is done by
same materials. SOP which is sales & operation planning

Forecasting, planning which is time phased and reorder Since this is used for the planning of the future
point are used here everything depends on the size of the lot that
was previously given.

 2. What do you know about SAP MM?

 SAP has a functional module which is known as SAP MM. It looks after the management of
the material and obtaining handling. The module consists mainly about master data,
configuration of system and transactions to complete the procurement to pay process
 3. Can you elaborate about SAP and how it is useful in Industries ?
 SAP stands for Systems, Applications and Processing the Data. It is the most popular
software application used to provide enterprise business solutions. This ERP software
application was first introduced in Germany (Mannheim) in the year 1972. ERP stands as
Enterprise Resource Planning.
It provides solutions by incorporating various business tasks like sales, purchase and
production. SAP obtains details from one business process and integrates it into another
business process, thus speeding up the business process. It is broadly used in industries,
since it updates and process important data very quickly and used by the department to
determine how to prepare the products and also it can program business process and provide
real time solutions for business.
 4. Can you explain the essential components in SAP MM?
 To define the requirements, determination sources, selection of vendors, order processing,
follow up with the clients, receipts of goods and inventory management, verification of bills,
payment systems etc.
 5. Do you know about organizational structure in the MM module?
 The structure in the MM module is a ladder in which various organizational unis are arranged
designed according to the functions and tasks of each of them. The units that make the
structure of the organization are as given below.
 The first is the client and this unit is independent. This unit has a different record system and
well as its own table sets. The second is the company code. This is one of the smaller units of
the organization. For the need of external report one can make a self-reliant account sets for
the unit of company code. The third is the plan. This is where the supplies are formed and the
services and goods are given. The industry can be broken down into different plants based on
maintenance, supplies, production, procurement etc. The next is the location of the storage.
The produced goods are kept in this unit. The next is the number of the warehouse this shows
the system of the warehouse. It is different for every area of storage and organization. After
that is the storage type which tells one the different areas such as issuing area, area for picking
up the goods etc. The next is the organization of the purchasing which is the unit that
negotiates with others for purchasing and also obtains the services and the material. The next
is the group purchasing which a code for an individual buyer or a group who actually purchase
the materials. This unit is also partially involved in negotiating and obtaining the goods.
 Learn SAP MM Tutorial
 6. Explain in detail about order of purchase?
 This is a final and formal confirmation of the essential materials to be supplied by the vendor
to the industry. This will involve the all the names of the essential materials with the equivalent
plant. The details of the purchase which would include the code of the company, vendor’s
name, the delivery date of the materials.
 7. Why is record of the information of purchase useful?
 It is essential because it collectsvarious informationon the vendor and the materials supplied
by them. For instance the current price at which the vendor is selling the material is recorded
in the purchase record.
 8. What are the important criteria in purchasing?
 The important criteria in purchasing includes the following the unit of the order, the group of
material, the base unit, the group of purchasing, the validity, the indicator of tax for that
material, the part number of the manufacturer, and the manufacturer.
 9. Elaborate on the goods receipt in the SAP System?
 Once the purchase is processed by the vendor the material and goods are deliveredto the
party that ordered it and this process is known as the goods receipt. During this time when the
 material is delivered the party that acquires it checks for the quality and the condition of the
materials and goods. After the verification the receipt is finally poster.
 10. What is the code used for extension of the view of material?
 The code used for the transaction of the material view is MM50.
 11. What is the code for deleting a particular batch?
 The code for deleting a batch is MSC2N. Alternatively, if one flags the batch of the master
record then the batch record can be deleted completely.
 12. How is a receipt posted?
 The goods receipt can be posted by going to the option of logistics and then to the materials
management and then the inventory management and the choosing the goods movement and
then choosing the T code which is MIGO.
 13. What do you mean source list and what is the code of the source list?
 The source list is to identify the home of the supply from where the materials come. The code
for
creating the source list: ME01.
 14. What is essential for creating a record of purchase information?
 The essential information for making a record of purchase information is as follows
The number of the material, the part number of the manufacturer, the number of the vendor,
the level code of the organization.
 15. What is planned delivery and GR processing time?
 The meaning of planned delivery is the number of business days in which the person is
expected to receive the materials and goods. The GR processing time is the number of
business day in which the person has to inspect and place the material in the storage, after
obtaining the goods and materials.
 16. What is the Material Requirement Panning and mention the code to access this list?
 Material Requirement Planning is the first working manuscriptfrom where the controller of MRP
starts the work and it includes the planning of the information of the goods and materials. For
accessing a single item one can use the code MD05.
 17. What is known as RFQ?
 RFQ is an abbreviation for Request For Quotation. It is a kind of a form which is given to the
vendors for them to submit any quotation which is indicative of the terms and conditions and
the price of the goods and materials. It has details of the quantity of the goods, information
about the goods, the delivery date of when the form is to be submitted.
 18. Explain what is reservation?
 Reservation is the blocking of the stock beforehand so that its availability is ensured later in
time. It ensures that the stock is made available and can be used as per requirement.
 19. What is the code used for reservation?
 The transactional code used for reservation is MMBE.
 20. What is CBP?
 CBP essentially means the consumption value of the materials in the past. It is used to know
about the requirements in the future. Based on the consumption of the services in the past the
average requirement of the goods can be calculated.

 Explore SAP MM Sample Resumes! Download & Edit, Get Noticed by Top
Employers!Download Now!
 21. What is the type for the reversal of the issue of the goods?
 The transactional type for the reversal of the issue of the goods is the number 262.
 22. How is quota rating checked?
 The formula for checking the quota rating is addition of the base quantity of the quota and the
allocated quantity quota and divides it by the overall quota.

23. Mention the last stage in the cycle of procurement?

 The last stage of the procurement cycle is the verification of the invoice. This also updates the
documents which are related in the accounts and finances. There is a difference between the
real invoice and the blocked one the real invoice can be handled by verification of the invoice.
 24. Mention, for the stock transport order, some movement types.
 Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which
can be used an easy way for transferring materials.
 25. What are the point of differences between the purchase order and the purchase
requisition?
 Purchase requisition is said to an internal sheet and it is a appeal that is done to the
organization which is going to purchase the services and send the list of the goods. But
purchase order is the formal sheet that is send to the vendor which has the list of the essential
items that needs to be taken from the vendor.

26. How does one do a verification of the invoice?

 When the invoice is related to an existing sheet then every information which is relevant is
taken out by the system. This includes material, vendor, delivery and its terms, payment etc.
One has to enter the invoice and the system takes out the account, tax, discount and
 corrections which are relevant. If the invoice is been posted data like the average of the price
are reorganized.
 27. How are parked documents showed?
 Parked documents are showed with the codes FBV3 and FB03. FBV3 displays the parked
sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs to
know if any documents still need approval or if they still need completion.
 28. What are the different types of ERPs?
 Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel,
BAAN. These are some of the different types of Enterprise Resource Planning.
 29. What is NetWeaver?
 NetWeaver is an incorporated technology in which every product in the MySAP group can be
used in a single go of a server which is known as SAP Web Application Server. This technology
is very useful and helps the user efficiently. One of the advantages of using this is that the
data related to SAP can be accessed by the enterprise through or even through mobile. This
is not only cost effective but also time effective. If one uses this a lot of money is saved which
could otherwise go in training a new user in the SAPclient.
 30. Explain about Meta data, Transaction data and master data? Can SAP be called a
type of database?
 Meta data: Meta data informs a person about the information of a data. This gives a person
in-depth information about the hierarchy of the information or it is also called as Meta Objects.
There are many types of meta data. Some of the metadatas are structural meta data,
descriptive metadata, reference metadata, statistical metadata and administrative metadata.
Each of these type have a different kind of function in a system.
 Next is the transaction data. This is nothing but the information pertaining to the transactions
which happen on the day today basis. After that comes the master data. Data provides
essential information about the materials, the employees and even information related to the
customer of that service. One can also call it the data of reference. For instance: the person
orders for a product which is 20 units. So instead of asking for the customer’s address 20
times, the same information can be used from the master data of the customer.
 SAP cannot be called as a database. Since it is an application it uses the databases which is
provided by other retailers. These retailers include Server, Oracle, SOL and many other
retailers.

 1. What is the difference between CBP and MRP?
  The main difference between CBP and MRP

CBP MRP

When the materials are planned using this, the prediction When the materials are planned using this, the
for the required materials is done by past demand of the prediction for the required materials is done by
same materials. SOP which is sales & operation planning

Forecasting, planning which is time phased and reorder Since this is used for the planning of the future
point are used here everything depends on the size of the lot that
was previously given.

 2. What do you know about SAP MM?

 SAP has a functional module which is known as SAP MM. It looks after the management of
the material and obtaining handling. The module consists mainly about master data,
configuration of system and transactions to complete the procurement to pay process
 3. Can you elaborate about SAP and how it is useful in Industries ?
 SAP stands for Systems, Applications and Processing the Data. It is the most popular
software application used to provide enterprise business solutions. This ERP software
application was first introduced in Germany (Mannheim) in the year 1972. ERP stands as
Enterprise Resource Planning.
It provides solutions by incorporating various business tasks like sales, purchase and
production. SAP obtains details from one business process and integrates it into another
business process, thus speeding up the business process. It is broadly used in industries,
since it updates and process important data very quickly and used by the department to
determine how to prepare the products and also it can program business process and provide
real time solutions for business.
 4. Can you explain the essential components in SAP MM?
 To define the requirements, determination sources, selection of vendors, order processing,
follow up with the clients, receipts of goods and inventory management, verification of bills,
payment systems etc.
 5. Do you know about organizational structure in the MM module?
 The structure in the MM module is a ladder in which various organizational unis are arranged
designed according to the functions and tasks of each of them. The units that make the
structure of the organization are as given below.
 The first is the client and this unit is independent. This unit has a different record system and
well as its own table sets. The second is the company code. This is one of the smaller units of
 the organization. For the need of external report one can make a self-reliant account sets for
the unit of company code. The third is the plan. This is where the supplies are formed and the
services and goods are given. The industry can be broken down into different plants based on
maintenance, supplies, production, procurement etc. The next is the location of the storage.
The produced goods are kept in this unit. The next is the number of the warehouse this shows
the system of the warehouse. It is different for every area of storage and organization. After
that is the storage type which tells one the different areas such as issuing area, area for picking
up the goods etc. The next is the organization of the purchasing which is the unit that
negotiates with others for purchasing and also obtains the services and the material. The next
is the group purchasing which a code for an individual buyer or a group who actually purchase
the materials. This unit is also partially involved in negotiating and obtaining the goods.
 Learn SAP MM Tutorial
 6. Explain in detail about order of purchase?
 This is a final and formal confirmation of the essential materials to be supplied by the vendor
to the industry. This will involve the all the names of the essential materials with the equivalent
plant. The details of the purchase which would include the code of the company, vendor’s
name, the delivery date of the materials.
 7. Why is record of the information of purchase useful?
 It is essential because it collectsvarious informationon the vendor and the materials supplied
by them. For instance the current price at which the vendor is selling the material is recorded
in the purchase record.
 8. What are the important criteria in purchasing?
 The important criteria in purchasing includes the following the unit of the order, the group of
material, the base unit, the group of purchasing, the validity, the indicator of tax for that
material, the part number of the manufacturer, and the manufacturer.
 9. Elaborate on the goods receipt in the SAP System?
 Once the purchase is processed by the vendor the material and goods are deliveredto the
party that ordered it and this process is known as the goods receipt. During this time when the
material is delivered the party that acquires it checks for the quality and the condition of the
materials and goods. After the verification the receipt is finally poster.
 10. What is the code used for extension of the view of material?
 The code used for the transaction of the material view is MM50.
 11. What is the code for deleting a particular batch?
 The code for deleting a batch is MSC2N. Alternatively, if one flags the batch of the master
record then the batch record can be deleted completely.
 12. How is a receipt posted?
 The goods receipt can be posted by going to the option of logistics and then to the materials
management and then the inventory management and the choosing the goods movement and
then choosing the T code which is MIGO.
 13. What do you mean source list and what is the code of the source list?
 The source list is to identify the home of the supply from where the materials come. The code
for
creating the source list: ME01.
 14. What is essential for creating a record of purchase information?
 The essential information for making a record of purchase information is as follows
The number of the material, the part number of the manufacturer, the number of the vendor,
the level code of the organization.
 15. What is planned delivery and GR processing time?
 The meaning of planned delivery is the number of business days in which the person is
expected to receive the materials and goods. The GR processing time is the number of
business day in which the person has to inspect and place the material in the storage, after
obtaining the goods and materials.
 16. What is the Material Requirement Panning and mention the code to access this list?
 Material Requirement Planning is the first working manuscriptfrom where the controller of MRP
starts the work and it includes the planning of the information of the goods and materials. For
accessing a single item one can use the code MD05.
 17. What is known as RFQ?
 RFQ is an abbreviation for Request For Quotation. It is a kind of a form which is given to the
vendors for them to submit any quotation which is indicative of the terms and conditions and
the price of the goods and materials. It has details of the quantity of the goods, information
about the goods, the delivery date of when the form is to be submitted.
 18. Explain what is reservation?
 Reservation is the blocking of the stock beforehand so that its availability is ensured later in
time. It ensures that the stock is made available and can be used as per requirement.
 19. What is the code used for reservation?
 The transactional code used for reservation is MMBE.
 20. What is CBP?
 CBP essentially means the consumption value of the materials in the past. It is used to know
about the requirements in the future. Based on the consumption of the services in the past the
average requirement of the goods can be calculated.

 Explore SAP MM Sample Resumes! Download & Edit, Get Noticed by Top
Employers!Download Now!
 21. What is the type for the reversal of the issue of the goods?
 The transactional type for the reversal of the issue of the goods is the number 262.
 22. How is quota rating checked?
 The formula for checking the quota rating is addition of the base quantity of the quota and the
allocated quantity quota and divides it by the overall quota.

23. Mention the last stage in the cycle of procurement?

 The last stage of the procurement cycle is the verification of the invoice. This also updates the
documents which are related in the accounts and finances. There is a difference between the
real invoice and the blocked one the real invoice can be handled by verification of the invoice.
 24. Mention, for the stock transport order, some movement types.
 Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which
can be used an easy way for transferring materials.
 25. What are the point of differences between the purchase order and the purchase
requisition?
 Purchase requisition is said to an internal sheet and it is a appeal that is done to the
organization which is going to purchase the services and send the list of the goods. But
purchase order is the formal sheet that is send to the vendor which has the list of the essential
items that needs to be taken from the vendor.

26. How does one do a verification of the invoice?

 When the invoice is related to an existing sheet then every information which is relevant is
taken out by the system. This includes material, vendor, delivery and its terms, payment etc.
One has to enter the invoice and the system takes out the account, tax, discount and
corrections which are relevant. If the invoice is been posted data like the average of the price
are reorganized.
 27. How are parked documents showed?
 Parked documents are showed with the codes FBV3 and FB03. FBV3 displays the parked
sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs to
know if any documents still need approval or if they still need completion.
 28. What are the different types of ERPs?
 Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel,
BAAN. These are some of the different types of Enterprise Resource Planning.
 29. What is NetWeaver?
 NetWeaver is an incorporated technology in which every product in the MySAP group can be
used in a single go of a server which is known as SAP Web Application Server. This technology
is very useful and helps the user efficiently. One of the advantages of using this is that the
data related to SAP can be accessed by the enterprise through or even through mobile. This
is not only cost effective but also time effective. If one uses this a lot of money is saved which
could otherwise go in training a new user in the SAPclient.
 30. Explain about Meta data, Transaction data and master data? Can SAP be called a
type of database?
 Meta data: Meta data informs a person about the information of a data. This gives a person
in-depth information about the hierarchy of the information or it is also called as Meta Objects.
There are many types of meta data. Some of the metadatas are structural meta data,
descriptive metadata, reference metadata, statistical metadata and administrative metadata.
Each of these type have a different kind of function in a system.
 Next is the transaction data. This is nothing but the information pertaining to the transactions
which happen on the day today basis. After that comes the master data. Data provides
essential information about the materials, the employees and even information related to the
customer of that service. One can also call it the data of reference. For instance: the person
orders for a product which is 20 units. So instead of asking for the customer’s address 20
times, the same information can be used from the master data of the customer.
 SAP cannot be called as a database. Since it is an application it uses the databases which is
provided by other retailers. These retailers include Server, Oracle, SOL and many other
retailers.

 1. What is the difference between CBP and MRP?
 The main difference between CBP and MRP

CBP MRP
When the materials are planned using this, the prediction When the materials are planned using this, the
for the required materials is done by past demand of the prediction for the required materials is done by
same materials. SOP which is sales & operation planning

Forecasting, planning which is time phased and reorder Since this is used for the planning of the future
point are used here everything depends on the size of the lot that
was previously given.

 2. What do you know about SAP MM?

 SAP has a functional module which is known as SAP MM. It looks after the management of
the material and obtaining handling. The module consists mainly about master data,
configuration of system and transactions to complete the procurement to pay process
 3. Can you elaborate about SAP and how it is useful in Industries ?
 SAP stands for Systems, Applications and Processing the Data. It is the most popular
software application used to provide enterprise business solutions. This ERP software
application was first introduced in Germany (Mannheim) in the year 1972. ERP stands as
Enterprise Resource Planning.
It provides solutions by incorporating various business tasks like sales, purchase and
production. SAP obtains details from one business process and integrates it into another
business process, thus speeding up the business process. It is broadly used in industries,
since it updates and process important data very quickly and used by the department to
determine how to prepare the products and also it can program business process and provide
real time solutions for business.
 4. Can you explain the essential components in SAP MM?
 To define the requirements, determination sources, selection of vendors, order processing,
follow up with the clients, receipts of goods and inventory management, verification of bills,
payment systems etc.
 5. Do you know about organizational structure in the MM module?
 The structure in the MM module is a ladder in which various organizational unis are arranged
designed according to the functions and tasks of each of them. The units that make the
structure of the organization are as given below.
 The first is the client and this unit is independent. This unit has a different record system and
well as its own table sets. The second is the company code. This is one of the smaller units of
the organization. For the need of external report one can make a self-reliant account sets for
the unit of company code. The third is the plan. This is where the supplies are formed and the
services and goods are given. The industry can be broken down into different plants based on
 maintenance, supplies, production, procurement etc. The next is the location of the storage.
The produced goods are kept in this unit. The next is the number of the warehouse this shows
the system of the warehouse. It is different for every area of storage and organization. After
that is the storage type which tells one the different areas such as issuing area, area for picking
up the goods etc. The next is the organization of the purchasing which is the unit that
negotiates with others for purchasing and also obtains the services and the material. The next
is the group purchasing which a code for an individual buyer or a group who actually purchase
the materials. This unit is also partially involved in negotiating and obtaining the goods.
 Learn SAP MM Tutorial
 6. Explain in detail about order of purchase?
 This is a final and formal confirmation of the essential materials to be supplied by the vendor
to the industry. This will involve the all the names of the essential materials with the equivalent
plant. The details of the purchase which would include the code of the company, vendor’s
name, the delivery date of the materials.
 7. Why is record of the information of purchase useful?
 It is essential because it collectsvarious informationon the vendor and the materials supplied
by them. For instance the current price at which the vendor is selling the material is recorded
in the purchase record.
 8. What are the important criteria in purchasing?
 The important criteria in purchasing includes the following the unit of the order, the group of
material, the base unit, the group of purchasing, the validity, the indicator of tax for that
material, the part number of the manufacturer, and the manufacturer.
 9. Elaborate on the goods receipt in the SAP System?
 Once the purchase is processed by the vendor the material and goods are deliveredto the
party that ordered it and this process is known as the goods receipt. During this time when the
material is delivered the party that acquires it checks for the quality and the condition of the
materials and goods. After the verification the receipt is finally poster.
 10. What is the code used for extension of the view of material?
 The code used for the transaction of the material view is MM50.
 11. What is the code for deleting a particular batch?
 The code for deleting a batch is MSC2N. Alternatively, if one flags the batch of the master
record then the batch record can be deleted completely.
 12. How is a receipt posted?
 The goods receipt can be posted by going to the option of logistics and then to the materials
management and then the inventory management and the choosing the goods movement and
then choosing the T code which is MIGO.
 13. What do you mean source list and what is the code of the source list?
 The source list is to identify the home of the supply from where the materials come. The code
for
creating the source list: ME01.
 14. What is essential for creating a record of purchase information?
 The essential information for making a record of purchase information is as follows
The number of the material, the part number of the manufacturer, the number of the vendor,
the level code of the organization.
 15. What is planned delivery and GR processing time?
 The meaning of planned delivery is the number of business days in which the person is
expected to receive the materials and goods. The GR processing time is the number of
business day in which the person has to inspect and place the material in the storage, after
obtaining the goods and materials.
 16. What is the Material Requirement Panning and mention the code to access this list?
 Material Requirement Planning is the first working manuscriptfrom where the controller of MRP
starts the work and it includes the planning of the information of the goods and materials. For
accessing a single item one can use the code MD05.
 17. What is known as RFQ?
 RFQ is an abbreviation for Request For Quotation. It is a kind of a form which is given to the
vendors for them to submit any quotation which is indicative of the terms and conditions and
the price of the goods and materials. It has details of the quantity of the goods, information
about the goods, the delivery date of when the form is to be submitted.
 18. Explain what is reservation?
 Reservation is the blocking of the stock beforehand so that its availability is ensured later in
time. It ensures that the stock is made available and can be used as per requirement.
 19. What is the code used for reservation?
 The transactional code used for reservation is MMBE.
 20. What is CBP?
 CBP essentially means the consumption value of the materials in the past. It is used to know
about the requirements in the future. Based on the consumption of the services in the past the
average requirement of the goods can be calculated.

 Explore SAP MM Sample Resumes! Download & Edit, Get Noticed by Top
Employers!Download Now!
 21. What is the type for the reversal of the issue of the goods?
 The transactional type for the reversal of the issue of the goods is the number 262.
 22. How is quota rating checked?
 The formula for checking the quota rating is addition of the base quantity of the quota and the
allocated quantity quota and divides it by the overall quota.

23. Mention the last stage in the cycle of procurement?

 The last stage of the procurement cycle is the verification of the invoice. This also updates the
documents which are related in the accounts and finances. There is a difference between the
real invoice and the blocked one the real invoice can be handled by verification of the invoice.
 24. Mention, for the stock transport order, some movement types.
 Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which
can be used an easy way for transferring materials.
 25. What are the point of differences between the purchase order and the purchase
requisition?
 Purchase requisition is said to an internal sheet and it is a appeal that is done to the
organization which is going to purchase the services and send the list of the goods. But
purchase order is the formal sheet that is send to the vendor which has the list of the essential
items that needs to be taken from the vendor.

26. How does one do a verification of the invoice?

 When the invoice is related to an existing sheet then every information which is relevant is
taken out by the system. This includes material, vendor, delivery and its terms, payment etc.
One has to enter the invoice and the system takes out the account, tax, discount and
corrections which are relevant. If the invoice is been posted data like the average of the price
are reorganized.
 27. How are parked documents showed?
 Parked documents are showed with the codes FBV3 and FB03. FBV3 displays the parked
sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs to
know if any documents still need approval or if they still need completion.
 28. What are the different types of ERPs?
 Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel,
BAAN. These are some of the different types of Enterprise Resource Planning.
 29. What is NetWeaver?
 NetWeaver is an incorporated technology in which every product in the MySAP group can be
used in a single go of a server which is known as SAP Web Application Server. This technology
is very useful and helps the user efficiently. One of the advantages of using this is that the
data related to SAP can be accessed by the enterprise through or even through mobile. This
is not only cost effective but also time effective. If one uses this a lot of money is saved which
could otherwise go in training a new user in the SAPclient.
 30. Explain about Meta data, Transaction data and master data? Can SAP be called a
type of database?
 Meta data: Meta data informs a person about the information of a data. This gives a person
in-depth information about the hierarchy of the information or it is also called as Meta Objects.
There are many types of meta data. Some of the metadatas are structural meta data,
descriptive metadata, reference metadata, statistical metadata and administrative metadata.
Each of these type have a different kind of function in a system.
 Next is the transaction data. This is nothing but the information pertaining to the transactions
which happen on the day today basis. After that comes the master data. Data provides
essential information about the materials, the employees and even information related to the
customer of that service. One can also call it the data of reference. For instance: the person
orders for a product which is 20 units. So instead of asking for the customer’s address 20
times, the same information can be used from the master data of the customer.
 SAP cannot be called as a database. Since it is an application it uses the databases which is
provided by other retailers. These retailers include Server, Oracle, SOL and many other
retailers.


If the PO number is not known, you must enter the search criteria for the PO in
the initial screen. As a result, the list of purchase orders is displayed. The
desired PO items can then be copied.
1. Question 297. How Can A Goods Receipt Be Posted When Purchase
Order Number Is Unknown?
Answer :
If the goods receipt does not have a purchase order, some companies do not
accept the goods receipt and refuses to accept the delivery. On the other
hand, other companies accept the delivery of materials and keep the materials
into the quality or blocked stock till the situation is resolved. For obtaining the
 goods receipt without a purchase order number, the companies use the MIGO
transaction. After entering the required details of the material, the goods
receipt is posted and the material becomes a part of the plant stock.
2. Question 298. How Do We Receive Goods From Production?
Answer :
The goods from the production can be posted either to the warehouse or
consumption. They are posted with the same movement type.
3. Question 299. How Can The Logical Value For The Stock Items Be
Found?
Answer :
You need to use the MC49 transaction code to find the logical value of the
stock items by date.
4. Question 300. What Are The Ways Of Receiving Goods?
Answer :
The goods can be received as per the reference to inbound delivery. The
following are the different ways of receiving the goods:
o Order
o Others
o Outbound Delivery
o Purchase Order
o Reservation
o Transport
o Transport ID code
5. Question 301. What Is Movement Type?
Answer :
While implementing the goods movement in an organization, the movement
type is required to be entered. It is a three-digit identification key that is
entered as per the movement type. The following are the common movement
types that are used in SAP:
o 102: Goods that are receipt against a purchase order
o 201: Goods that are issued
o 321: Goods released from quality inspection stock
6. Question 302. What Does A Movement Type Control?
Answer :
The movement acts as a controlling factor in inventory management. It
handles the following activities:
o Updating of quantity
o Updating of consumption and stock
o Displaying of particular fields in a document
7. Question 303. List The Movement Types For Unplanned Goods
Received?
Answer :
The following are the movement types used for unplanned goods received:
o 501
o 561
 o 531
8. Question 304. How Will An Item Be Returned To A Vendor?
Answer :
While posting the goods to the goods receipt in the purchase order, you need
to enter the items that can be returned to the vendor. There is no need to
explicitly reference the purchase order.
9. Question 305. What Is Goods Issue Reversal?
Answer :
The process of issuing the material back to the stock of material is known as a
goods issue reversal. For example, if goods issued to the production order are
500 kg of material and only 300 kg is consumed, then the rest 200 kg is
returned to stock.
10. Question 306. Name The Documents That Are Created When A Goods
Issue Is Posted?
Answer :
The following documents are created when a goods issue is posted:
o Material document
o Accounting document
o Goods issue slip
o Stock changes
o General ledger account changes
11. Question 307. What Are The Different Ways Of Stock Transfer?
Answer :
A stock transfer can be made physically or logically. In other words, when you
move material from one storage location to another it is said that the stock
transfer is done physically. Whereas when you move stock from the quality
inspection status to the unrestricted status, it is said that the stock transfer is
done logically. The different ways of stock transfer are as follows:
o From storage location to storage location
o From plant to plant
o From company code to company code
12. Question 308. What Is Transfer Posting?
Answer :
The physical and logical stock transfers are collectively called the transfer
posting. The stock transfers typically change the stock type, batch number, or
material number. The transfer posting is related to the documentation of the
stock changes resulting from a stock transfer.
13. Question 309. How Is Stock Transfer From One Storage Location To
Another Done?
Answer :
The stock transfer from one place of location to another place of location is
carried out in a plant. The posting of this kind of transfer is done without
entering the value of the stock material as the management of the items is
done within the same plant.
14. Question 310. How Is Stock Transfer From One Plant To Another Plant
Done?
Answer :
The transfer of the stock from one plant to another is a bigger activity as
compared to transfers done under the same plant. The material planning as
well as accounting details is affected in case of the transfer of goods within a
plant. In case of plant to plant transfer, the accounting data of the two stocks is
affected if they are assigned to different valuations. In other words, if there are
any changes in the value of the stock items from the source plant to the
destination plant, the accounting entries need to be adjusted accordingly. In
this case, the stock value and G/L accounts need to be updated. The
materials planning are also affected, because the stock transfer is scheduled
and implemented according to the guidelines in materials planning. The plant
to plant stock transfer is done by one-step or the two-step procedure but only
the one-step procedure can be planned with a reservation.
15. Question 311. How Is The Stock Transferred From Company Code To
Company Code?
Answer :
The stock transfer between different company codes is done in a way similar
to that of inter-plant transfer, but differs in the company code. During the stock
transfer process, two accounting statements are created, one for removal of
stock from the source company and the other for receiving in the destination
company.
16. Question 312. What Is A Stock Posting?
Answer :
Stock posting is defined as a transaction, which occurs when you update an
item quantity in the system, for example, updating the database after goods
issue or goods receipt.
17. Question 313. What Do You Mean By Physical Inventory?
Answer :
Physical inventory is the recording of actual stock levels (quantities) of
materials by counting, weighing, or measuring at a given storage location at a
specific time.
18. Question 314. How Is The Value Of The Cross-company-code Stock
Displayed?
Answer :
You need to perform the following steps to display the value of the cross-
company-code stock in transit:
Select Environment-> Stock-> Stock in transit.
19. Question 315. What Is Returnable Transport Packaging (rtp)?
Answer :
Returnable transport packaging is a medium used to transport goods between
vendors and customers. Once the goods are received, the returnable
packaging is returned to the vendor. The best example is the crate for cold
drinks; it needs to be returned back after receiving the cold drinks.
20. Question 316. What Is Sales Order Stock?
Answer :
o The stocks assigned to a sales order but still available in the
company premises is called the sales order stock.
o The raw material ordered by the customer for processing a specific
order and finished goods are the type of materials that come under
the category of sales order stock.
21. Question 317. What Is Project Stock?
Answer :
The stock available in the company premises to execute a project is called the
project stock. It is allotted to a work breakdown structure element and is
specific to the project only. All accounting treatment in MM is done for the
specific project head.
22. Question 318. What Is Invoice Verification?
Answer :
Invoice verification is used to store details of vendor invoices and forms an
important part of purchasing and inventory management. It consists of
entering invoices and credit memos, checking accuracy of invoices in
accordance to price, and checking block invoices.
23. Question 319. What Are The Different Types Of Invoice Verification?
Answer :
The different types of invoice verification are as follows:
o Invoices based on purchase orders
o Invoices based on goods receipts
o Invoices without an order reference
24. Question 320. Name The T Code For Invoice Verification?
Answer :
An invoice is verified by using the OLMR T code.
25. Question 321. How Do You Perform Invoice Verification?
Answer :
Invoice verification is a process of checking the accuracy of an invoice in
terms of the quantity, price, and other related information. The invoice can be
issued for several processes. For example, if an invoice is issued for a
purchase order, then the system checks for the relevant information, such as
vendor, material, quantity, delivery date, and payments details.
26. Question 322. Define Ers?
Answer :
ERS stands for Evaluated Receipts Settlement. It refers to the process of
settling down receipts of the goods in an automatic manner. In this process,
an agreement is made between the vendor and the user that vendors do not
prepare any invoice for the goods ordered. Rather, the system would
automatically generate and post the invoice document on the basis of
purchase order and receipts of goods. In addition, ERS also offers the
following advantages:
o Using ERS, all the purchasing transactions are quickly closed.
 o Errors of communication are avoided.
o Invoice verification is not prone to price and quantity variances.
27. Question 323. With Reference To Which Documents Can Invoice
Verification Be Done?
Answer :
In SAP, invoice verification is done on the basis of the following:
o Document date, purchase order number, invoice amount, tax
amount, and terms of payment(if required)
o Purchase order that comprises vendors, terms of payment(if
required), currency , and invoice items
o Purchase order history that comprises quantity and amount
o R/3 system settings that comprise the rate at which the tax is
calculated
o Vendor master record that comprises bank information
28. Question 324. What Are The Benefits Of Document Parking?
Answer :
The benefit of document parking is that you can modify the invoice in a parked
status whereas the invoice that is placed on hold cannot be modified.
29. Question 325. How Do You Display The Parked Document?
Answer :
You can display the parked documents by using either FB03 or FBV3. The
FB03 transaction code displays all the posted documents; whereas, the FBV3
code shows only the parked documents that have not been posted to the
expenditure balance.
30. Question 326. What Is Stochastic Block?
Answer :
Stochastic Blocking is the process of checking the incoming invoices. In this
process, blocking of the invoices is done randomly. Invoices with high value
have the highest probability to get blocked. It is set for the whole invoice
instead at the item level. When posting of the invoice is done, an R is set in
the Payment Block field in the document header data.
31. Question 327. What Are The Different Accounts Used In Invoicing?
Answer :
Different accounts used in invoicing are as follows:
o Vendor accounts
o Stock accounts
o GR/IR clearing accounts
o Tax account
o Price differences account
o Cash difference clearing account
o Freight clearing account
32. Question 328. What Are The Different Types Of Variances In Invoices?
Describe Them.
Answer :
The different types of variances in invoices are listed and described as follows:
 o Quantity Variance— If there is a difference between the quantity
mentioned in the invoice and the quantity delivered.
o Price Variance— If there is a difference between the price
mentioned in the invoice and in the purchase order.
o Quantity and Price Variance—If there are differences in both the
quantity and price.
o Order Price Quantity Variance — If there is a difference between
the price per ordered quantity, such as $50 per piece is mentioned
on the purchase order but the invoice contains $60 per piece.
33. Question 329. Why Does The Invoices Get Blocked?
Answer :
Invoices can be blocked due to the following reasons:
o Variance in the invoice item
o Amount of an invoice item
o Stochastic block
o Manual block
34. Question 330. What Happens When An Invoice Is Blocked? What Are The
Different Ways To Block An Invoice?
Answer :
When an invoice is blocked, the invoice amount cannot be paid to the vendor.
Blocking an invoice also blocks the individual items. The different ways to
block an invoice are listed as follows:
o Manual Block
o Stochastic or Random Block
o Block due to Amount of an Invoice Item
o Block due to Variance of an Invoice Item
35. Question 331. How Can We Post An Invoice Directly Without Any
Reference?
Answer :
In case of invoices posting without a reference, proposed values for the
invoice items are not displayed by the system, because the system does not
determine any purchase order items and posted goods receipt for the invoice.
As a consequence, information related to the accounts changed by the
offsetting entry for the vendor line item,is not found in the database of the
system.
36. Question 332. What Is The Menu Path To Create A Document/e-mail
Notification For Your Supplier?
Answer :
The following is the menu path to create a document/e-mail notification for
your supplier:
Select Material Management-> Logistics Invoice Verification -> Message
Determination.
37. Question 333. What Is The Difference Between Gr-based Iv And Po-
based Iv?
Answer :
 GR-based IV means Goods Receipt based Invoice Verification. In this
process, each receipt of the individual goods is invoiced separately.

On the other hand, PO-based IV means Purchase Orders based Invoice

Verification. In this process, all the items that are in the purchase order list are
arranged and are placed together. It is not taken into consideration whether
the item is received in a single delivery or multiple deliveries. After all the
items are collected, these items are then posted in the form of one single item.
38. Question 334. How Do You Create The Vendor Account Group?
Answer :
Perform the following steps to create the vendor account group in SAP:
Select Display IMG->Financial Accounting->Account Payable/Receivable-
>Vendor Accounts-> Master Records-> Preparation of Creating Vendor
Master Records->Define Accounts Groups with Screen Layout /Define Screen
Layout Per Activity.
39. Question 335. What Is The Purpose Of Material Valuation?
Answer :
Material valuation in SAP MM module is necessary to determine the stock
value of materials.
40. Question 336. How To Determine Stock Value?
Answer :
The stock value of the materials is calculated using the following formula:
Stock value = Stock quantity * Material price.
41. Question 337. How Material Valuation Is Associated With Financial
Accounting?
Answer :
Material valuation in MM module is associated with Financial Accounting as
any change in the stock value also updates the G/L account in Financial
Accounting.
42. Question 338. What Are The Factors Controlling Material Valuation?
Answer :
The factors that control material valuation are:
1. System settings
2. Material master record
43. Question 339. What Is Valuation Area?
Answer :
Valuation area is the organizational level at which the material valuation is
carried out.
44. Question 340. Define Valuation Class?
Answer :
Valuation class is a group of different materials that share some common
properties. This group is defined so that you do not have to manage a
separate account for each material.
45. Question 341. What Is The Significance Of Account Assignment
Category?
 Answer :
Account assignment category determines the account assignment details that
are required for the purchase order item, such as cost center or account
number. It is useful in SAP MM as it helps in determining the following:
1. The type of account assignment
2. The accounts that will be charged when you post the invoice or goods
receipt
3. The account assignment data that you should provide
46. Question 342. What Are The Different Types Of Account Assignment
Categories?
Answer :
The different types of account assignment categories are:
o Single account assignment: Specifies one account assignment for an
item in the purchase order
o Multiple account assignment: Allocates the costs associated with the
purchase order item
47. Question 343. What Is Lifo Valuation?
Answer :
LIFO is a balance sheet valuation technique. It stands for last in-first out
principle, i.e. the material added to the stock in last is valuated first. In this
technique, the pricing of old material in stock is not affected by the pricing of
new material. In this technique, a layer of stock increased or decreased is
created for a fiscal year, on the basis of which the valuation is done. For
example, if the stock is increased then a layer is created for that stock.
However, to use the LIFO, you have to configure it.
48. Question 344. What Is The Release Procedure?
Answer :
The release procedure allows you to create condition records for the planning
process. It is used to creating Purchase Requisitions (PR), Purchase Orders
(PO), Request for Quotation (RFQ), Outline Agreements, and Service Entry
Sheets.
49. Question 345. What Is Release Strategy? How Many Release Points Can
Be Involved In A Release Process?
Answer :
The release strategy specifies the release codes with which a purchase
document must be released and the sequence in which the release must be
used. You can define a maximum of eight release codes with their respective
release strategies. You can involve 8 release points in a release process.
50. Question 346. Can You Release The Po Item By Item When You Have A
Multiline-item Po?
Answer :
No, you cannot release the PO item by item. PO can be released at the
header level by using the with classification release procedure.
51. Question 347. How Are The Release Procedures For Pr And Po Defined?
Answer :
 The transaction codes ME54 and ME29N are used to define the release
procedures for PR and PO, respectively.
52. Question 348. How To Release Blocked Purchase Documents?
Answer :
You can release a blocked purchase document by using your release code.
This process is called the release transaction. After you have released the
document, you can also cancel the document using the same release code.
53. Question 349. How To Reject Approvals In Sap-r/3? Will It Affect The Sap
Business Workflow?
Answer :
You can use the ME54N transaction code or purchase requisitions and
ME29N transaction code for purchase order to reject approvals in SAP R/3.
This does not affect the SAP business workflow.
54. Question 350. How Many Procedures Are Available To Release Purchase
Requisition?
Answer :
There are two types of procedures available to release purchase requisition:
o With classification: In this procedure, you can release the purchase
requisition both at item level and in total.
o Without classification: In this procedure, you can release the
purchase requisition only at item level.
55. Question 351. How To Release Purchase Order? Which Transaction
Code Is Used To Display As Well As Reset The Release Of Po?
Answer :
You can release a purchase order at header level. You cannot release a
single item in purchase order. You need to release all the items at a time. The
ME29N transaction code is used to display as well as reset the release of
purchase order.
56. Question 352. How Many Types Of Release Procedure Are Available For
Po?
Answer :
There are two types of release procedures available for PO:
o Individual release: In this type of release procedure, you can release
only one item at a time.
o Collective release: In this type of release procedure, you can release
all the items at a time but using the release code.
57. Question 353. What Is A Release Criterion?
Answer :
The release criterion defines the strategy with which a purchase requisition or
an external purchase document is released. The release criteria contains the
characteristics and the values of the characteristics which determine the
status of the document, that is, either blocked or not blocked (a characteristic
can be the total value of the document, say greater than $100,000). The
criterion can be based on any one of the following or a combination of these: