STOCK IN HAND

(EACH)

OPENING STOCK 100

PURCHASE NEW STOCK 200

Stock issue 100

Second time purchase

new stock 300

Opening stock total stock

value 100

Purchase new stock value 300(100+200)

Stock issue 200(300-100)
Second time purchase
new stock 500
 STOCK PRICE STOCK VALUE OFFSET PRICE DIFFERENCE(EUR)
(EUR) (EUR) DR

50 5000 0

2000-Because it should be 200*50=10000 , but it is

12000 so difference of 2000 is debit to price
60 12000 difference account
50 5000 0

40 12000

50 5000

2000-Because 12000+5000 should be 17000 , but we

50(Stock price remains same as stock valuated is at 15000 , so the difference of 2000
its standard price) 15000(300*50=15000) is debited
50 10000 0

25000
FERENCE(EUR)
CR

30000- Credited because

300*50=15000 , but we got
it for much less 12000 so a
difference of 3000 is
credited to the acount

0
0

3000
moving average price

10 ps
10 ps
moving average price

OPENING STOCK

PURCHASE NEW STOCK

STOCK ISSUE
AGAIN NEW STOCK

Opening stock total stock

value

PURCHASE NEW STOCK

STOCK ISSUE

AGAIN NEW STOCK

total value of the material /total quantity
map
200 200/10
250 250/10
200+250/20 450/20

STOCK IN HAND STOCK PRICE

(EACH) (EUR)

100 50

200 60
56.66667(STOCK ISSUE ALWAYS WITH
100 THE SAME PRICE )
300 40

100 50

200 56.66667
100 56.66667

500 56.66667, 46.66

 20
22.5
22.5

STOCK VALUE
(EUR)

5000

12000 29000

5666.667
12000

5000
17000(300 *50=15000 should be the stock value , but 2000 is divided into
=2000/300=6.6666666667+50=56.66667, so 56.66667*300=17000
5666.667

23333.33(Actually 56.66667*500=28333.335 , which is more , calucaltion is ,

28333.335-23333.33=5000.005, so 50000.005/500=10.04, so 56.666-
10.04=46.66, so 46.66*500=23330
 ooo1 controlling
service cost center
service profit center

scmb pur org

435 pur grp
scm plant
ooo1 SL
scm CC
400000 GL
service # 1000011
service Pr 10000071
service po 4500000124
service entry sheet 100000001
sjl system

service po 45
1.LEARN THE SCREEN TABS AND ICONS THAT ARE PRESENT IN MADHUS DOCUMENT

2.LEARN MRP COMPLETELY

3.LEARN VIDEOS OF GANESH PADALA FOR INTERVIEW

4.RELEASE PROCEDURE FOR CONTRACTS AND PRS AND SA

5.CHECK THE TABLES VIDEO AND LEARN HOW TO DO IT

6.BATCH MANAGEMENT WITH CLASSIFICATION

7.IDOCS AND LSMW UPLOADING METHODS

8.ACTIVATE METHODOLOGY

9.STOCK AGEING REPORT

10.WORK FLOW CONCEPT FOR PR AND PO- FOR RELEASE

11.SUCCESS IT NOTES FOLLOW

12.QM-MM INTEGRATION

13.DATA MIGRATION FROM ECC SYSTEM TO S4 HANA

14.BATCH MANAGEMENT DETERMINATION FOR INVENTORY

15.ALL THE FIELDS OF RFQ , PR AND PO , MIGO, MATERIAL MASTER AND BP CREATION

16.CREATION STEPS FOR BP

17.RUN SCENARIOS OF THIRD PARTY , CONSIGNMNT , SUBCONTRACTING , STO .

18.RTP PROCESS

19. PARTNER FUNCTIONS

20. CREATING DIFFERENT VENDOR ACCOUNT GROUPS LIKE -DOMESTIC , IMPORT IN S4 HANA

21.ASSIGN SOURCE OF SUPPLY IN PR CREATION

22. HOW TO BLOCK VENDOR IN BP--https://blogs.sap.com/2016/06/27/how-to-mark-business-partners-for-deletion-in-s4-han

23.IMPORT PROCUREMENT AND DOMESTIC AND INTERNATIONAL PROCUREMENT.

24.MNO5-MNO4 T CODE TO SET MESSAGES FOR THE PO OUTPUT RUN THIS SCENARIO

25.RETURN PO CASE SCENARIO AND FREE GOODS SENARIO OPTIONS PRESENT IN PO

26.MAINTAIN 2 VENDORS IN SAME PO THROGH CONDITIONS TAB IN CONDITONS TAB ON PO

partners-for-deletion-in-s4-hana/
1. What is SAP MM and what do you know about it?
It is one of the modules in SAP that deals with the management of materials and procurement process.
account determination, material valuation, inventory management, invoice verification, material requiremen

2. List out the essential components of material management.

Determine requirements

Source determination

Vendor Selection

Order Processing

Order follow up

Goods receipts and Inventory management

Invoice Verification

3. What are the benefits or uses of material management?

Material valuation

Multi-location inventory

Bin management

The lot and serial traceability

Product life cycle management

Inventory replenishment

Scheduling and resourcing

4. What are the features of material management?

Purchasing

Production and material control

Non-production stores

Transportation

Material handling

Receiving

5. What is material requirement planning (MRP)?

It is a module in SAP enterprise resource planning. It is a type of planning tool to help production and pro
feasible and realistic plans which helps to quickly initiate procurement and production process.

6. What is consumption-based planning (CBP)?

It is based on past consumption values which makes use of the forecast or other statistical proc
requirements. It is triggered when the stock level falls below a predefined reorder point or by forecast re
past consumption values.

7. What is the difference between MRP and CBP?

In material requirement planning, the prediction of material requirement is based on sales and op
consumption-based planning the prediction of material requirement is made, based on historical demand f

13. What are contracts in material management?

A contract is a long-term agreement with a vendor to supply a material or provide a service for a certa
specified consequently in release orders issued against the contract when the customer requires them.

14. Define purchase requisition.

A purchase requisition is a primary document which is used as part of the accounting method to laun
purchase. By processing a purchase order, suitable controls can monitor the legitimacy of purchase, as
requirement for the products.

15. How do you create and release purchase requisition in SAP material management?

Purchase requisition creation can be done in T-code ME51N and is a straightforward process:
 1. Execute ME51N transaction.

2. Purchase requisition document type: NB – standard.

3. Source determination: ON or OFF.

4. Header note.

5. Material: material number.

6. Quantity and UoM.

7. Storage location: in which the material is stored.

8. Vendor: automatically determined by using source determination – field number

9. Tracking number: covered in previous topics, a desired value can be entered manually
10. Valuation price: copied from material master data if maintained there, if not must be entered manual
optional).

11. After entering the desired information in the fields, we can save transaction data.

16. What is a special stock in material management?

Special Stocks are the stocks which belong to a company code. These are not placed in any storage loca
is performed.

17. Mention the different types of stocks.

A. Valuated Stock

1. Unrestricted Stock

2. Quality Inspection Stock

3. Blocked Stock

B. Non-Valuated Stock

C. Special Stock
 1. Subcontracting

2. Consignment

3. Stock Transport Order

4. Third Party Processing

5. Returnable Transport Packaging

6. Pipeline Handling

18. Define consignment stock.

During the consignment process, when a vendor provides material or goods, the company stores it in their
the owner of the material until a customer takes it. The liability arises as soon as the material is removed fr

19. What is meant by master data?

Master Data is basically created centrally and is valid for almost all the applications. It remains constant o
update it on a regular basis. For example, the Vendor is a type of master data and he is used for creating p

20. What is master data management?

Master data management is a comprehensive method of enabling an enterprise to link all of its critical
reference. When properly done, MDM improves data quality, while streamlining data sharing across per
addition, MDM can facilitate computing in multiple system architectures, platforms, and applications.

21. What is inventory management?

Inventory management is used to manage the inventory for the goods. It is based on several key proces
types, reservations, goods issue, and goods receipt.

22. What is movement type and mention a few standard movement types?
Movement types are used as indicators of what is the purpose of the goods movement (e.g. from the s
location, receipt from the purchase order, issue for the delivery, receipt from production).

23. Define stock population.

Stock population is the total of all stock management units included in an inventory sampling. These s
uniquely defined through the allocation of the stock management levels to a given inventory sampling. As
is also defined when you allocate stock management levels.

24. What is returnable transport packaging (RTP)?

Returnable transport packaging (RTP) is a multi-trip packaging medium in which goods can be transport
retailers and customers.
25. What are quotations in SAP material management?
Quotations in SAP MM are certain requests for vendors which provides us with some information about
conditions, schedules of deliveries and other information in order to select the best source for our procurem

26. What is a request for quotation (RFQ) document?

RFQ or Request for Quotation also known as Invitation for Bid is a document which an organization subm
suppliers to invite them for the bidding process for a product or service.

27. Mention the RFQ process.

For creating a request for quotation RFQ :

Enter the transaction code or t-code as ME41 (This will lead you to ‘create RFQ’ screen)

Enter RFQ type as ‘AN’

Enter the quotation deadline i.e the last date by which a vendor must submit their quotation.

Enter Purch organization and purchasing group

Enter the delivery date and Plant

Click on Enter

Next, you’ll see a new screen wherein you need to fill the item codes.

After entering the item codes, enter the vendor details

You can create more requests with different vendor details.

28. What is a request for proposal (RFP)?

RFP or Request for Proposal is a document which requests a proposal, which is generally made throu
agency or a company for the acquisition of some commodity, asset, or service to any potential suppliers to

29. What is a request for information (RFI)?

A request for information or RFI is a basic business process which collects written information about th
generally follows a format which can be used for comparative purposes.

30. What is the difference between RFQ, RFP, and RFI?

What is invoice processing?

Status of Solution

Key deliverables

31. What is invoice processing?

Invoice processing is a process a company’s account payable uses to manage supplier invoices. It begins
and ends when payment has been made and reported in the general ledger.

32. What is movement in goods out (MIGO)?

MIGO or Movement in Goods Out is used for goods movement such as goods issue, goods receipt, pla
location to storage location transfer, etc. Basically, MIGO is booked by the logistics department where the g

33. What is movement in receipt out (MIRO)?

MIRO or Movement in Receipt Out deals with invoice verification activities for bills raised from the vendors
booked by the finance department.

34. What do you mean by goods receipt and post goods receipt?
Goods receipt is the physical inbound transfer for goods or material into the warehouse. It is the transfe
post goods received from external vendors or from in-plant production. All goods receipts result in
warehouse.
Post-Goods Receipt is used to post the receipt of goods with reference to the purchase order with whic
the material is delivered for some purchase order, it is important for all of the departments involved that th
system references this purchase order.

1) Explain what is SAP MM?

SAP MM (Material Management) is a functional module in SAP that deals with procuremen
management. The MM module contains master data, system configuration and transactions
procure to pay process.

2) What are the essential components in SAP MM?

 Determine requirements

Source determination

Vendor Selection

Order Processing

Order follow up

Goods receipts and Inventory management

Invoice Verification

3) Mention what are the types of special stock available?

The types of special stock available are subcontracting, consignment, project, pipeline, sale
returnable packaging with customer, etc.

4) List out important field in purchasing view?

The critical fields in purchasing view are

Base unit of measure

Order unit

Purchasing group

Material group
 Valid from

Tax indicator for material

Manufacturer part number

Manufacturer, etc.

5) Explain the importance of the batch record?

A batch tells about a quantity of a particular product, which is processed or produced at the
same parameters. The materials produced in such batch have the same values and charac
batch record gives the information about a particular batch product and helpful in knowing w
gone through GMP (Good Manufacturing Process).

6) Explain how you can link a document to a vendor master record?

To link the document with the vendor master record by using the XK01 transaction code or
menu path

SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > C

7) Mention what are the major purchasing tables? List the transaction codes for them

Purchase requisition > EKBN

Purchase requisition account assignment > EBKN

Release documentation > EKAB

 History of purchase documents > EKBE

8) Mention what are the data contained in the information record?

The information record contains data related to the units of measurement, such as the prod
materials used by specific vendors, etc. It also contains information on the tolerance limit of
data, vendor evaluation data, planned delivery time, availability status for goods.

9) Mention what is the transaction code to delete a batch?

The transaction code MSC2N is used to delete a batch. By flagging the batch master record
batch record alternatively.

10) Mention what is the transaction code used to extend the material view?

To extend the material view transaction, code MM50 is used.

11) Explain how you can change the standard price in the master material?

The standard price for the material data cannot be updated or changed directly. However, to
price you can perform the following steps

Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-ZKDAT) for

Select Logistics > Material Management > Valuation > Valuation Price Determination > Fu
12) What is Source List and what is the transaction code for creating Source List?

To identify sources of supply for materials a source list is used. To create a source list the tr
ME01.

13) For creating a purchasing info record what are the pre-requisites?

The pre-requisites for creating a purchase info record are

Material Number

MPN ( Manufacturer Part Number )

Vendor Number

Organizational level code

14) Explain the terms Planned delivery and GR processing time?

Planned delivery means number of calendar days required to obtain the material, and GR p
number of workdays required after receiving the material for inspection and placement into

15) What is purchase requisition as related to SAP? Mention the document types tha
requisition?
Purchase requisition in SAP determines both stock and non-stock items to the purchasing d
done either manually or automatically, the document types used in purchase requisition are

RFO ( Request For Quotation )

Outline Agreement

PO ( Purchasing Order )

16) Explain how consignment stocks are created?

In the normal purchase order or requisition, consignment stocks are created. While creating
things to be considered is that you must enter K category for the consignment item. As a re
are posted to consignment stores and invoice receipt is not generated.

17) Explain how is the vendor return processed without a purchase order reference?
First you have to observe the return column and then select -- Item Detail > MIGO_GR > G
Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 1
changes. In the end, you have to ensure that the document is a return purchase order, and
saved.

You can also use transaction code M21N for this purpose

18) Explain how you can create a vendor account group in SAP?

To create vendor account group in SAP

 Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation

19) Explain what are the accounts created in SAP MM?

Assignment of account is necessary for the purchase order item, it is important in SAP MM
following things

Account assignment type

Account that will be charged when you post the invoice or goods receipt

Account assignment data that you should provide

20) Explain what MRP (Material Requirement Planning) list is and what is the transac
MRP list?

MRP list is the initial working document from which the MRP controller starts working, and i
results information for the material. For an individual item, you can access the MRP list by u
code MD05. You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material

21) Explain what is CBP? What is the difference between CBP and MRP?

CBP is the past consumption values of stock; it is used to forecast future requirements. On
consumption values, the net requirement of goods is calculated.
The difference between CBP and MRP is that when you plan materials using MRP, you hav
materials requirement based on sales and operations planning (SOP). While in CBP you ha
material requirement based on historical demand for materials.
RFI RFP RFQ

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