Interview Questions on SAP MM for Level 1 Support

1. What are the types of special stocks available?

Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third
party.

2. What are the types of inforecords?

Standard, consignment,subcontracting & pipeline.

3. What is meant by consignment stock?

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

4. What are the steps involved in consignment cycle?

Create consignment info record with proper tax code, create Po with item category K,
maintain output condition record for KONS, process GR, no invoice verification done,
but settlement is done through MRKO transaction.

5. 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.

6. How are the byproducts taken care of in subcontracting?

You can add these by products in the BOM for the header matl.

7. 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.

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

With regard to Outline Agreement:
1. You can create the centrally 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.

9. How does the system calculate taxes?

10. How does the system calculate nondeductible taxes?

11. 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.

12. How is a shelf-life item managed in SAP? What is the full cycle?

13. 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

14. What is meant by MRP Type and lot sizing?

15. Can it be configured in such a way that the external requisitions can also be
taken into account while MRP runs in consumption-based planning if VB is
selected as MRP type?

16. How are free items managed in a PO? yu need to tick the tem as free in the
PO. The price will be zero for such PO's.

17. 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 requsition 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).

18. Is it possible to have a release procedure without classification for a PO?

No

19. What is the maximum number of levels available in SAP?

Did not get this question …pls clarify.

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

No
21. 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.

22. How are the variations in subcontracting taken care of in SAP?

23. 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.

24. 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.

SAP MM Interview Questions and Answers For

Level 2 Support
Questions

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

1. A stock transfer from plant to plant generally takes place within a company code. It can,
however, also take place between two company codes, if the plants are assigned to different
valuation areas, which belong to different company codes.

Unlike a stock transfer from storage location to storage location, a stock transfer from plant
to plant affects both accounting and Materials Planning, as follows:

o Accounting:Accounting is affected if both plants are assigned to different valuation

areas. This means that a stock transfer leads not only to a quantity update but also to
a value update (stock value, G/L accounts). Thus, parallel to the material document
for stock transfer, an accounting document is created.
o Materials Planning:Materials planning are affected because a change of plant
stock is taken into account by Materials Planning
2.
o RFQ/Quotation
o Purchase requisition
o Purchase order
o Master data (Info record, Source list, Conditions, Vendors etc.)
o Outline agreements
3. Material type is assigned to A/c Cat Ref.; A/c Cat. Ref is assigned to Val. Class; Val. class
assigned to G/L A/c.

Configuration:

OMWM : Activate Val. grouping Code

OMSK : Create A/c cat. ref and Val. Class; then A/c cat ref assigned to material type.

OMWD : Val. area (plant) assigned to Val. grp. code (0001)

OBYC : Assign Val. modifier (0001), New Val. Class and G/L A/c

Now create new material and assign new val. class in Accounting 1 data screen. Then create
PO, GR.

4. Transaction code is OMJJ

You can copy new movement type which is near-by old one.
 When we go to new movement type, if there is no possibility to done transaction with old
movement type.

Steps: 1) entry control data 2) short text 3) allowed transactions 4)help text 5)up date control
data 6)account grouping 7)reasons for movement

5. Condition type has an access sequence assigned to it which determines which tables to access
for data and in what sequence. This has a sequence of table based on the most specific to
most generic.

It can be used for any new condition type creation.

6. The pricing procedure assigned to a vendor has a calculation schema attached to it. This
schema defines the various conditions pre-requisite, calculation & sequence in the PO.
Generally, only one type of pricing procedure is followed for all the vendors.
7. To create a pricing procedure, the steps will be
o Create Condition tables
o Create access sequence by placing the different condition tables from most specific to
the most general.
o Create the condition types
o Assign the Access sequence to the condition type
o Create the pricing procedure
o Place the all condition types in a sequential order as per the business requirement
and pricing needs.
8.
o Consignment stock - vendor
o Components provided to vendor
o Project stock
o Consignment stock customer
o Pipeline material
o Orders on hand
9.
o Standard
o Pipeline
o Consignment
o Subcontracting
10. Consignment stock is the material which is lying in the premises but is not owned by the
company. It has no value assigned to it until it is taken into own stock. Once it is used in
production or to be sold, it is taken into own stock.
11. Consignment cycle is similar to a standard purchase cycle. The difference it that no
accounting document is created at the time of goods receipts only qty is updated.It is settled
once the same is utilized.
12. When the material is sent for subcontracting i.e. some value addition, it is converted into a
different material. It needs a BOM to define the components of the finished item being
received.
13. When the material is sent for subcontracting i.e. some value addition, it is converted into a
different material. It needs a BOM to define the components of the finished item being
received.The scrap or the process loss can be adjusted while doing a quality inspection of the
material received after subcontracting.
14. products can be taken care of by defining them in the BOM.
15.
o 101 GR in unrest. Use
o 103 GR in Blocked stock
o 105 Release from Block to Unrest. Use stock.
o 122 Return to vendor from unrest. Use stock.
o 124 Return to vendor from blocked stock
o 301 Plant to Plant transfer.
o 309 Material to Material transfer
o 311 Transfer from stg loc to stg loc
o 261 Issue for consumption
o 411 Taking consignment stock into own stock
o 551 Withdrawal for scrapping
16. By using scales we can fix the price of a material accordingly, for example, we can fix the
material price.

Based on the quantity like

For quantity 1 to 100 price is Rs1000

For quantity 101 to 200 price is 900

Like that, you can fix price.

17. A scheduling agreement can be made for Consignment, Subcontracting & stock transfer. A
contract, also known as a blanket PO, can be made for standard items and can be restricted
to a Value or Qty.
18. Based on the calculation schema of that condition & based on access sequence assigned to it.
19. Condition type in the standard system: Non-deductible input tax = NAVS
 Depending on the tax code in the PO item and the tax calculation schema, the system
calculates the non-deductible tax portion and inserts it in the condition type with the
category N.

The condition type has the calculation rule "absolute amount".

Normally, the access sequence that regulates tax code determination is assigned to the
condition type.

20. Batch is a subdivision of your stock of a material having the same characteristics

ex: medicines,food products

We can search batches using the standard search facility (match code, key F4) based on the
naming convention of the batches or, if you use batch classification, based on the
characteristics of the batches.

21. There are actually two types of shelf life

1. Total shelf life
2. Minimum remaining shelf life

Total Shelf life - If total shelf life is maintained then the minimum shelf life will also to be
entered mandatory.

While taking GR for such item, it actually asks the user to enter the manufactured date so
that the system automatically calculates the expiry date.

Minimum shelf life - While taking the GR, it asks the user to enter the date of GR date so that
it checks whether the days entered in material master has been satisfied. If the condition is
not satisfied then it will not allow to take receipt for that item.

22. To set up a quota arrangement for the procurement of a material, proceed as follows:

Master data -> Quota arrangement -> Maintain, enter the material and plant number,

Press ENTER

It display the overview screen for the quota arrangement periods, Enter a validity period for
quota arrangement, Enter date until which the quota arrangement is valid. The start date is
calculated by the system.
 Press ENTER

Select the quota arrangement and choose, Goto -> Item overview to display the item
overview screen of the quota arrangement. Enter a quota arrangement item for each source
of supply you want to include in the quota arrangement.

You must enter the following data.

o Procurement type
o Special procurement type, Enter k in the S column, for example, if a consignment
arrangement for the material exists with the vendor.
o Vendor number
o Procurement plant,(supplying plant)
o Quota column, enter the quota assigned to each item

Press ENTER

The percentage distribution of the quotas is calculated and displayed automatically by the
system.

Save the quota arrangement. The system assigns a number to the quota arrangement item
automatically.

23. It is procedure that you set in the system on how the Material is planned
o Reorder Point
o Seasonal requirement
o Replenishment
o Vendor Managed
o Forecast Based
o Master production Scheduling

Lot size:

You can define your requirements (to be produced or Procured) in terms of Weekly, Monthly,
Qty based, Maximum Replenishment.

24. Yes you can do it based on the MRP2 tab for material master you need to give you MRP type
as VB and in Mrp2 set automatic reorder point tab. Now run MD02 and MD04.
25. It is reference for all the other existing Purchase Orgnizations.It is not assigned to either to
plant or comp code. The contracts, terms and conditions can be utilized by other Purchase
Organizations.
26. When the same material to be valuated differently then we can go for split valuation. Often
we use split valuation in chemical industries related to chemicals.

For example, color, ph, quality.

We need to define valuation categories and valuation types.

0. For valuation category: origin, valuation types are local procurement and foreign
procurement
1. For valuation category: procurement types, valuation types are in-house procurement
and external procurement.
2. For valuation category: quality, valuation types are poor quality, medium quality,
high quality.

like this we can define valuation categories and valuation types.

CUSTOMIZATION SETTINGS

MM-> VALUATION AND ACCOUNT ASSIGNMENT -> SPLIT VALUATION.

3. Define valuation categories and valuation types.

4. Assign valuation types to valuation category.
5. Assign plants in which valuation is effecting.

Once customization settings are done.

6. Create material master and fill account cat reference in accounting view.
7. Again for same material type give valuation types which u taken and give the moving
avg price.

NEXT STEP

8. Create ME21N Purchase order

9. MIGO

Once taken to MIGO check MMBE -Stock overview and MB02- Accounting views.
27. Valuation area is generally company or plantValuation category -split valuation is applicable
or not.

Valuation class- whether the materials fall in to which category for simplification such as raw
materials, semi finished goods like that.

28. Credit memo is as similar as money back to your account.

For Ex. If you did excess payments (the difference between PO price and Account Transfer
price) to the vendor than the actual payment or under some circumstances vendor is
returning some amount to your account, for this you need to maintain one account type, that
account type is called credit memo. This may be just to identify why and from where the
money has been posted in your account.

If this is not maintained, at the valuation level conflicts in payment differences may arise.

29. When you create purchase order for vendor at that time show in line item data in which one
check box available for free delivery. So when you want to create purchase order with free
quantity click on that check box.
30. Release strategy means, value of the purchase order is more than certain limit, that can be
released by MM manager. That movement type is ME29N.
31. Release code is a two character ID allowing a person to release a requisition or an external
purchasing document. Release group is a group of release codes which can release a
purchasing document for a release strategy.
32. Release procedures with classification can be used for both internal and external purchasing
documents, whereas release procedures without classification can be used only for internal
documents.
33. No, release procedure without classification not possible for external documents like PO.

With classification will allow release at header and Item.

Without classification will allow release item -wise only.

For a PO you will want a release header wise and not item wise. Hence you need to use with
classification.

For PR you can use anyone of them i.e., with or without classification.

34. Possible in case of time dependent conditions.

35. When we have some issues in the received stock and we do not want the quantity to be
considered in the inventory then we can maintain the stock as GR Blocked stock.

It is only recorded in the purchase order history. This stock is NOT valuated.

You can display goods receipt blocked stock from two viewpoints:

0. Goods receipt blocked stock for a material (at plant level)

1. Goods receipt blocked stock for a purchase order item
36. Movement Type 161 is used for return to vendor. Just select return button in the PO.
37. Subsequent adjustment can be Processes through T-Code - MIGO
38. LSMW - Legacy System Migration Workbench (Used to upload the data from Non SAP to
SAP System)

CATT - Computer Aided Test Tool (Used to Create test cases as well as upload data)

39. LSMW is uesd to migration of data from non-sap system to the sap system or sap system to
sap system, here the data is migrated from the one system to another system. so this is a
migration tool

Whereas CATT is a computer aided testing tool, used to test the abap object

40. In SAP for any kind of development, function consultant need to give the functional
specification stating the purpose of the developlement as well as logic for the selection,
related fields and tables. He also needs to prepare one or two test cases to test output the
report/development.
41. Based on Price, Quality, Delivery and Service.You can give points to this categories and you
can maintain TCode:ME61
42. Returnable transport packaging (RTP) is a multi-trip packaging medium (for example,
pallets or containers) in which goods can be transported more than once between vendors
and customers.

Returnable transport packaging from a vendor that is stored at a location on your premises is
managed as special stock and clearly assigned as belonging to the vendor. It is the property of
the vendor and is therefore not included in the customer's valuated stock.

43. The movement type used in the receipt of RTP is (501 M)

44. Serial Number:If you want to distinguish each Item (generally unit of measure will be EA,
PC.. etc) in the inventory, then serial number will be used.Separate serial number profile
 need to be created and placed at work scheduling view or plant data storage view of material
master.

Advantage:we can track the movements of each serial number of material.

Configuration settings

You have to configure the serial number profile & assign it to Material master. In the
configuration profile of serial number, you have to check the check box for serial number
required for processing & set the Goods movement transaction where you want to
automatically create the serial number or create the serial number for the material using
Tcode IQ01.

During Serial Number profile in Serializing Procedure you have to maintain the following
settings:

MMSL - Maintain goods receipt and issue doc. 03 02

SDLS - Maintain delivery 03 02

SDRE - Maintain returns delivery 03 02

In Serialization profile, there is a checkbox for (Existing required) uncheck that check box &
then test your transaction. You will get a button "Create new in serial number" in selection
screen during goods receipts...Create new serial number for material there & then make
goods receipt.

Assign Serial Number to existing stocks

IQ02 - Edit - Special Serial Number Functions

0. Change to - From Stock

1. Stock Type - '01'
2. Plant - 'XXXX'
3. Storage Location 'XXXX'
4. Save

Edit - Special Serial Number Functions

5. Change back - To Stock

45. Go to any reports
 Select save variant (Ctrl+F10)

Create the layout as you want then save the variant in your name.

46. There are only 3 types of table in SAP.

0. Transparent Table
1. Cluster Table
2. Pool Table
47. At the time of Goods Receipt (TCode MIGO) capture Excise duty in Excise tab. This is part 1
capture. TCode J1IEX, Part 2, Post Excise duty
48. The Documents that are generated are: Material Document & Accounting Document.

Accounts that are hit are:

o RawMAterial/Stock /Operations Acct (Depends on the Type of Business) - Debit

o GR/IR Clearing Acct -Credit
49. Inspection Lot:In the Quality Management (QM) component, you process quality
inspections on the basis of inspection lots . If you want to inspect a specific quantity of a
material or a piece of equipment, an inspection lot must be created in the system. The
documentation describes how inspection lots are created automatically or manually and how
you use the inspection lots to process different types of inspections. Once an inspection lot
has been created, you can inspect the goods, record the inspection results or defects, and
complete the inspection with a usage decision.

Batch:Certain materials' features cannot always be guaranteed to be exactly alike in

production. For example, you cannot guarantee that a certain color will always have the same
shade. Minor differences between production lots cannot be avoided. You need to be able to
uniquely identify the individual production lots of the same material and manage them
separately in inventory.

Materials that require such precise identification, for example pharmaceutical products, are
identified and managed in stock not only according to material number, but also according to
batch number.

With batch handling, you can manage not only production lots from in-house production,
but also production lots from vendors as separate entities.

50. Sourcelist:It is a combination of one material with more than one vendor or plants(in
internal)and sourcelist is the higher priority than inforecord.you can stratify the vendor for a
material with sourcelist.
 Eg:you have 4 info records for a same material with different vendors. If you are not
maintained sourcelist, check while creating PR.It will display all vendors. If you have
sourcelist there you have selected a vendor as fixed. You will only get one vendor,please
check.

Info record:Is a combination of one material with one vendor

51. Source determination: if you activate this indicator, you give vendor during PR creation
.otherwise you can give the vendor at the time of PO. you can save the PR without vendor.
source determination is used to identify the source of supply.