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1606973900299
Answer :
Various material planning methods are used in MRP (Material Requirements Planning).
o Reorder point procedure (VM)
o Forecast-based planning (VV)
o Time-Phased materials planning (PD)
o These are specified in material creation (MM01) under the MRP 1 tab.
2. Question 2. Under What Conditions Are Planned Orders Created? What May Planned Orders Be Converted To And
How Is That Conversion Accomplished?
Answer :
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.
3. Question 3. What Are The Organizational Levels Of The Enterprise Structure In R/3?
Answer :
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.
4. Question 4. What Are The Different Ways To Organize Purchasing Organizations?
Answer :
A Purchasing Organization may be responsible for multiple plants and this is referred to as “Distributed Purchasing”. On the
other hand, “Centralized Purchasing” features one Purchasing Organization per Plant.
A Purchasing Organization doesn’t necessarily need to be assigned to a Company Code. This would enable procurement for
every company code as long as buyers are acting for an individual Plant, and that Plant is assigned to the Purchasing
Organization. Hence, a plant may be assigned to more than one Purchasing Organization.
5. Question 5. What Are Special Stocks?
Answer :
Special Stocks are stocks that are accounted for but are not owned by the client, are not stored at a regular facility.
Consignment, sales order, and project stock are examples.
6. Question 6. What Are Some Of The Options Available To Transfer Materials From One Plant To Another?
Answer :
Although it is possible to transfer materials from one plant to another without a Stock Transport Order, many advantages are
lost including entering a vendor number, planning a goods receipt in the receiving plant, monitoring process from PO history,
and the ability to create STO directly from a MRP PR.
7. Question 7. What Are Some Of The Common Stock Transport Order Movement Types?
Answer :
One step transfers of materials can be posted using MT 301. Other various transport scenarios differ in the MTs by the Goods
Issues and Good Receipts. Common Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt often
uses MT 101.
8. Question 8. What Is The Difference Between A Purchase Order And A Purchase Requisition?
Answer :
A Purchase Requisition is a document type that gives notification of a need for materials or services. A Purchase Order is a
document type that is a formal request for materials or services from an outside vendor or plant. Procurement types may be
defined at the line item and can be standard, subcontracting, consignment, stock transfer, or an external service.
9. Question 9. What Is An Indirectly Created Purchase Requisition?
Answer :
An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service
Management, or PP Production Planning and Control. The “directly created” Purchase Requisition, on the other hand, is
created by a person manually in the requesting department specifying what materials/services, units, and a delivery date.
10. Question 10. What Is An Rfq And How Is It Different From The Quotation Form?
Answer :
A RFQ is a purchasing document and an invitation to a vendor(s) for quotation regarding needed materials or services. If
multiple an RFQ is sent to multiple vendors, the system can automatically determine the best quote and send rejection letters
in response to all others. The RFQ and the Quotation Form are one in the same in the system as vendor’s quotes are entered
directly in the RFQ.
11. Question 11. What Are The Transactions That Will Result In A Change Of Stock?
Answer :
A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which results in an increase
in warehouse stock, a Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location
to another.
12. Question 12. When Would It Be Prudent To Post Goods Movements Via The Shipping Application?
Answer :
If picking, packing, and transportation operations need to be planned in detail. Also, in shipping, you can manage movements
like returns from customers, vendors, and returns to stock. Movement Types in shipping start with a 6.
13. Question 13. What Is A Reservation?
Answer :
A Reservation is a document used to make sure that the warehouse keeps a certain amount of a material or materials ready
for transfer at a later date. It contains information on what, quantity, when, where from and to. Reservations help effective
procurement by utilizing the MRP system to avoid out of/lack of stock situations.
14. Question 14. Can You Manually Generate A Purchase Requisition Referencing A Purchase Order Or A Scheduling
Agreement?
Answer :
A Purchase Requisition cannot be created with reference to either of these, as they are documents controlled by the
purchasing organizations.
Requirements can be automatically generated with MRP that reference a Scheduling Agreement if the source list is maintained
for item-vendor combination.
15. Question 15. How Is Gr/ir Account Related To Inventory?
Answer :
If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted. If you are not
involved about inventory, then the system does not need the GR/IR account when the IR is posted; the system needs a G/L
instead of the GR/IR account.
16. Question 16. How Do Planned And Unplanned Consumption Affect Movement Types?
Answer :
In a customized Movement Type, you have defined which consumption value gets posted in the movement. Many will always
be planned or unplanned, but for some there is a dependency on if the movement references a reservation. This would be
planned consumption.
17. Question 17. What Are Departmental Views?
Answer :
All functional areas of the system use the same material master data. The material master data is defined in individual screens
(departmental views) that can be added as needed. Thus a material can be created with only basic data and other
departments can add other information later as it becomes available.
18. Question 18. Is Material Data Valid For All Organizational Levels?
Answer :
Control of master data depends largely on how each company sets up its Organizational levels - centralized or decentralized.
Some material data is valid for all organizational levels while other data is valid only at certain levels. (I.e.: client, plant, sales
org., etc.).
19. Question 19. Why Would You Want To Create Physical Inventory Sheets To Perform An Inventory Cycle-count On A
Material Or Materials?
Answer :
For a cycle counting procedure, physical inventory documents need to be created. These are used to record inventory levels of
the material being cycle counted.
Use transaction MICN. Click on the Execute button. On screen “Batch Input: Create Physical Inventory Documents for Cycle
Counting”, perform the following, Click on the Generate Session button and Click on the Process Session button. This
procedure details how to create the physical inventory documents for cycle counting in a batch, rather than one at a time,
based on certain criteria. This would print physical inventory documents for all material/batches that meet those
requirements.
20. Question 20. What Is The Difference Between A Blanket Purchase Order And The Framework Order?
Answer :
In general, the Blanket POs are used for consumable materials such as office paper with a short text, with item category B.
There need not be a corresponding master record, for the simplicity of the procurement. The FO, Framework Order, document
type is used. Here, the PO validity period as well as the limits are to be mentioned. The GR, or Service Entry for the PO are not
necessary in the case of Blanket POs. One need not mention the account assignment category during creation of the PO. It can
be U, or unknown and be changed at the time of IR.
21. Question 21. What Is Release Procedure?
Answer :
Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to
define separate release procedures for different groups of materials for which different departments are responsible, and to
define separate procedures for investment goods and consumption goods.
22. Question 22. How Do You Display Parked Documents?
Answer :
There are two possible transactions to use here. They are FB03 and FBV3. The first shows all posted document types. This is
the best choice if you think the document has been posted to you actual balance. The later shows only parked documents that
have not yet posted to your expenditure balance. These documents are still encumbrances. It is the best choice if you are
trying to find which documents are still awaiting completion or approval. This transaction is very similar to the FBV2
transaction used with P-Card reconciliation and marking parked documents complete.
23. Question 23. How Do You Perform An Invoice Verification?
Answer :
If the Invoice refers to an existing document (PO, etc.), then the system pulls up all of the relevant information like Vendor,
Material, Quantity, Terms of Delivery, and Payment Terms etc. When the Invoice is entered, the system will find the relevant
account. Automatic posting for Sales Tax, Cash Discount, Corrections etc. When the Invoice is posted, certain data such as
Average Price of Material and Price History are updated. Use Transaction MIRO.
24. Question 24. How Do You Perform A Goods Issue?
Answer :
Use Transaction MIGO. On the initial screen, enter the header data (you need not enter the Movement Type or the Plant as
these are automatically copied from the order). Choose Goods Issue ,Create with Reference, To Order. If you know the order
number, enter it directly. Using the By-products Indicator, you can simultaneously post the Goods Receipt of planned by-
products. Using the Choose transaction/events indicator, you can display all transactions/events for an order and choose the
transaction/events for which you want to post a Goods Issue. Copy the desired item(s). Check data on the overview screen.
Post the document.
25. Question 25. Where Do You Perform A Goods Issue?
Answer :
Use Transaction MIGO.
It is possible that when MIGO is accessed that a different document screen appears than the one required. This occurs
because SAP remembers the last Goods Movement transaction accessed per user login. To reach the Goods Issue Purchase
Order screen, click the Dropdown Icon in the transaction field and select “Goods Issue”.
26. Question 26. How Will Items Be Returned To The Vendor?
Answer :
When you are posting a Goods Receipt for a PO, you can also enter items that you want to return to the vendor. To do this,
you no longer have to reference the purchase order with which the goods were originally delivered. From the item overview,
choose 161 (Return for PO) as the default value for the Movement Type. Enter the data for the return item(s) and post the
document.
27. Question 27. How Do You Create A Source List?
Answer :
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. To do so, choose Source List Check.
28. Question 28. How Do We Get A Proper List Of Vendors To Send An Rfq?
Answer :
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.
29. Question 29. What Are The Components Of The Master Data That Details A Companys Procurement Used By, Vendor
Evaluation For Example?
Answer :
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).
30. Question 30. What Is Vendor Evaluation And How Do You Maintain It?
Answer :
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.
31. Question 31. How Do We Create Consignment Stocks?
Answer :
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.
32. Question 32. Can You Change A Purchase Requisition After It Has Been Created?
Answer :
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. Select the desired item in the item overview and choose Go To Statistics Changes.
33. Question 33. What Is The Difference Between A Pr With A Master Record And Without A Master Record For The
Material Being Ordered?
Answer :
If the master record exists, then all of the information about the Source List, Information Record, and Vendor Evaluation
already exist in the system. If we don’t have a Master record for the material we are ordering, the material is generally being
ordered for direct usage or consumption. You can specify which consumption account is to be charged which is also known as
Account Assignment. For example, we assign the purchase costs associated with a requisition to our sales order or cost center.
If the first situation exists, many times purchasing enters into a longer-term purchasing agreement with a Vendor, which is
called an “Outline Agreement”. If the Outline Agreement is done, then Purchasing cannot issue a purchase order against a PR.
It can only set up such an agreement (either a “Contract” or a “Scheduling Agreement”).
34. Question 34. How Do We Know If A Po Has Been Issued?
Answer :
Bring the Requisition up by using Material Management, Purchasing, Purchase Requisition, Display. Where the requisition
overview screen is displayed, select an item by clicking on the selection box to the left of the item. Click on the General
Statistics icon on the application tool bar. Select item. General Statistics icon. The screen appears, in the middle, under Order
Statistics, in the field Purchase Order, if there is no number the PO has not been issued.
35. Question 35. Where Is Material Master Data Saved?
Answer :
Tables MARA and MARC.
36. Question 36. Where Is The Header Level And Item Level Data Saved In A Po?
Answer :
In SE11, we can see this information in table EKKO and EKP0 respectively.
37. Question 37. How Do You Generate An Automatic Po After Creating A Pr Using A Particular Material?
Answer :
In MMR and VMR check Auto PO (MM02/XK02).
Maintain the Source List and select the indicator for the source list record as MRP relevant (ME01). If more than one source
list record is generated, make one of them fixed. Run MRP and the PRs generated will be pre-assigned with the source of
supply (MD01). Enter ME59 for automatically creating POs from PRs.
38. Question 38. How Can You Disable A Reservation In Mrp?
Answer :
Use Transaction Code OPPI to check “block stock”.
39. Question 39. How Do You Find The Logical Value For Stock Item By Date?
Answer :
Use Transaction MC49.
40. Question 40. If You Have Created A Custom Movement Type And You Get A Not Allowed Error, Where Should You First
Look For The Cause?
Answer :
Using Transaction Code OMJJ, check “Allowed Transactions” for the customized Movement Types.
41. Question 41. How Do You Display A List Of All Reservations In The System?
Answer :
Run report RM07RESL.
42. Question 42. How Can You Post A Goods Receipt If The Po Number Is Not Known?
Answer :
If you selected PO Number Not Known in Transaction MIGO, you can specify search criteria for the POs on the initial screen.
The system then displays a list of purchase orders. Select and copy the required PO items.
43. Question 43. How Do You Perform A Goods Receipt?
Answer :
Use Transaction MIGO. Enter the Header Data, select the Movement Type, Enter the PO Number, select the PO items to be
copied, and then post the document.
44. Question 44. How Can An Invoice Be Verified?
Answer :
Transaction Code OLMR may be utilized.
45. Question 45. How Can You Process Vendor Returns Without A Purchase Order Reference?
Answer :
Use Transaction Code ME21N.
Look for the Return columns and click it at the item details, MIGO_GR, Goods Receipt for Return Purchase Order¬ Movement
type will be 161 to deduct the stock and 162 for reversal.¬ Before saving, check if there is a check in the Return Column to
ensure that it is a return Purchase Order.
46. Question 46. What Are Some Of The Initial Configuration Steps For Physical Inventory?
Answer :
Define Default Values for Physical Inventory Document, Batch Input Reports, Tolerances for Physical Inventory Differences,
and Inventory Sampling. Cycle Counting should be configured as well.
47. Question 47. What Are Some Of The Initial Configuration Steps For Inventory Management?
Answer :
Plant Parameters, Define System Message Attributes, Number Assignment (Allocate document type FI to transactions), Goods
Issues, Transfer Postings, Define Screen Layout, Maintain Copy Rules for Reference Documents, Setup Dynamic Availability
Check, Allow Negative Stocks ().
48. Question 48. When, In Initial Configuration, Why Would You Have To Setup Stock Transport Order?
Answer :
If it is required to carry out an inter-plant Stock Transfer through SD, then this configuration is required and must be carried
out.
49. Question 49. What Are Some Of The Initial Configuration Steps For Purchase Requisitions?
Answer :
Define Document Types, Processing Time, Release Procedure (with and without classification), Setup Authorization Check for
G/L Accounts, Define Number Range.
50. Question 50. What Data Does The Information Record Contain?
Answer :
The Information Records has data on Units of Measure, Vendor price changes after a certain level, what materials have been
procured by a specific vendor, price and conditions for relevant Purchase Organization, Tolerance limits for over/under
delivery, Vendor evaluation data, planned delivery time, and availability time the vendor can supply the material.
51. Question 51. How Do You Create A Vendor?
Answer :
Use Transaction Code XK01. Add the Vendor name, Company Code, Purchasing Organization, Account Group, and the Vendor
address. Next add the country, Bank Key, Bank Account, Account Holder (an actual name), and then save the data.
52. Question 52. What Are The Lot Size Attributes A Material Can Posses?
Answer :
Lot Sizing dictates the reorder quantity for a material. A material can have a static, periodic, optimum, or fixed lot size.
53. Question 53. What Are Some Of The Data Points Provided By Purchasing For A Material?
Answer :
Some of the key inputs when creating a material are Base Unit of Measure, Purchasing Group, Reminder days, tolerance levels,
shipping instructions, GR processing time, JIT schedule indicator, Critical part (), etc.
54. Question 54. How Do You Create A Material?
Answer :
Use Transaction Code MM01. Name the material, choose an industry sector, choose a material type, create or copy the views,
add a basic description, give it’s attributes/values, MRP information, reorder point, accounting valuation, warehouse
management information and then save the data.
55. Question 55. What Are The Main Purchasing Tables?
Answer :
EKBN Purchase Requisition
EBKN Purchase Requisition Account Assignment
EKAB Release Documentation
EKBE History of Purchase Document
56. Question 56. What Are The Key Fields For The Material Master?
Answer :
Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic Materials, Storage Conditions,
Temperature Conditions, Container Requirements, and Units or Measure Groups.
57. Question 57. Will Roh Have A Sales View? Will Fert Have A Purchasing View?
Answer :
They shouldn’t because ROH type materials are procured from the outside not sold and FERT type materials are created inside
and aren’t procured.
In some special cases, we have to sell raw materials (ROH) and buy finished goods (FERT) from outside sources. The views
must be extended in these cases using transactions OMS2 and MM50.
58. Question 58. How Do You Configure The Release Procedure?
Answer :
Use Transaction OMGQ.
59. Question 59. How Do You Create A Class?
Answer :
Class is defined as the group of characteristics, which can be attributed to a product. Use Transaction CL01. Enter the value for
the Class name and a small description. Select the group from it. The values on the different tabs are not mandatory, so you
can skip the values if you wish or you can go to any extent needed. Save, and the Class is created.
60. Question 60. How Do You Change Characteristic?
Answer :
Use Transaction Code CT04. Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, Required
Entry, Intervals as Values (?), descriptions for texts for characteristics and characteristic values, display options for
characteristics on the value assignment screen, Allowed Values, Default Values that are set automatically on the Value
Assignment Screen.
61. Question 61. How Do You Define A Release Procedure For Prs And Pos?
Answer :
Use Transaction ME54 and ME28 respectively.
62. Question 62. How Can One Keep Users From Using Standard Mm Movement Types?
Answer :
Standard Movement Types should not be deleted from the system. The account assignments, however, may be deleted for a
particular Movement Type in table T030 using transaction OBYC.
Another way to achieve the same result is to enter Movement Type in transaction OMJJ. Remove MBXX from allowed
transactions.
63. Question 63. What Needs To Be Present In Order For Material Type To Be Automatically Copied From One View To
Another?
Answer :
When creating any view, the Industry Sector and Material type will be automatically copied from an existing view, so long as at
least one view exists.
64. Question 64. How Do You Determine Which Views Of A Material Need To Be Added Or To See Which Plants A Material
Has Been Extended To?
Answer :
You can use transaction MM50.
To extend a material to a different plant requires selecting the new plant on the organizational level screen. Note that all
views of a material are not extended unless they were selected on the initial screen. In addition, each plant may have a
different system configuration requiring additional inputs on each of the departmental screens. Material changes made in one
plant do not change that material in other plants.
65. Question 65. When Creating A New Material, What May Prompt Some Of The Possible Material Types?
Answer :
Pressing F4 gives a list of choices. Select the material type for the material you are creating. For example, FHMI for Prod.
Resources/tools, ROH for Raw Materials, FERT for Finished Products, etc.
66. Question 66. When Can A Production Resource/tool Be Defined As A Material?
Answer :
A Production Resource / Tool can be defined as a material if purchasing and inventory functions are to be carried out for that
PRT.
The information required to be input is dependent upon which department views are being created. Thus, material master
information is typically entered at different times by numerous system users. Note that to add a view, the “Create Material”
transaction is used rather than the “Change Material” transaction.
67. Question 67. What Views Are Possible For A Material?
Answer :
The material type selected controls the views possible for material.
For a material to be used in the system it needs to be created for each plant. Multiple views of a material are possible but at a
minimum, the material needs to have a description and a base unit of measure assigned on the basic data view. Additional
department views (i.e. Accounting, Sales, Purchasing, MRP, Warehouse) can be added at a later time by extending the
material. As additional plants are added, a material will need to be extended to the plants before it can be used there.
68. Question 68. What Sap Program Is Used To Update Or Create Material Master Records?
Answer :
RMDATIND is used to update Material Master Records and can be used for such assignments as extending all materials to a
new plant.
69. Question 69. Where Can You Dictate How Planned Orders Are Converted Into Requisitions In Mrp?
Answer :
Look at the Transaction Code OPPR indicator. Assign proper indicator.
70. Question 70. What Are Some Of The More Important Materials Management Tables?
Answer :
EINA contains general data of the (Purchasing) Information Record; EINE includes Purchasing Organization of the same. MAKT
is the Materials Description table, MARA-General Materials data, MARC-Plant Data for Materials, MARD-Storage Location Data
for Material, MAST-Material to BOM Link, MBEW-Material Valuation, and MKPF-Header Material Document.
Some of the tables that directly pertain to the document types are T156 Movement Type and T023/T024 Groups Material and
Purchasing.
71. Question 71. How Are The Various Mm Configuration Transactions Accessed?
Answer :
Transaction Codes OLMD accesses MM-CBP, OLMB accesses MM-IM, OLME accesses MM-PUR, OLML accesses MM-
Warehouse Management, OLMS accesses Material Master Data, and OLMW is the proper transaction for valuation and
account assignment.
72. Question 72. How Do You Access The Materials Management Configuration Menu?
Answer :
Transaction Code OLMS has a host of options that are not accessible through the IMG.
73. Question 73. How Do You Set Price Control For Receipts (goods/invoice) Telling The System How To Value Stocks?
Answer :
Transaction Code OMW1 allows you to set price control to S (Standard Price) or V (Moving Average Price).
Under Standard Price (S), the materials and accounting documents are both valid. The one with the lower value will be posted
with a price variance entry.
74. Question 74. Why Would An Organization Need To Allow Negative Stocks?
Answer :
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.
75. Question 75. What Is An Invoice Verification?
Answer :
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).
76. Question 76. What Is The Source List?
Answer :
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.
77. Question 77. What Is A Quotation?
Answer :
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. The Quotation then need to be maintained in the “Maintain
Quotation: XXXX” screens.
78. Question 78. Give Some Examples Of The Information Relating To A Materials Storage/warehousing?
Answer :
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.
79. Question 79. What Are The Various Steps In The Mm Cycle From Material Creation Through Invoice?
Answer :
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.
80. Question 80. What Is A Source List?
Answer :
The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, 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 priffered source during the source determination process.
81. Question 81. What Is A Price Comparison?
Answer :
Perform a price comparison using ME49 and one may compare quotations from different vendors.
82. Question 82. What Is A Material Type?
Answer :
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.
83. Question 83. If You Have A Multi-lineitem Po, Can You Release The Po Item By Item?
Answer :
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.
84. Question 84. What Is Sap? How Is It Used In Industries?
Answer :
SAP is the most popular Enterprise Resource Planning (ERP) software application used to provide enterprise business
solutions. It was first introduced in 1972 in Mannheim, Germany. SAP stands for Systems Applications and Products in Data
Processing.
o SAP provides complete business solutions by integrating various business tasks, such as sales, purchase, and
production. It takes information from one business process and incorporates the same into another business process, thereby
speeding up business processes. For example, the information about the raw material in stock is used by the production
department to prepare products.
o It is most widely used in industries, because it automates business processes and provides real-time solutions for
them, that is, it updates and processes the data very quickly.
85. Question 85. What Is Sap R/3?
Answer :
o SAP R/3 is an ERP software officially launched in 1992. It is a replacement for the SAP R/2 mainframe computing based
ERP software and is based on client-server computing. With the advent of client-server computing, SAP AG, Germany (founder
of the SAP ERP software), launched SAP R/3 in the market to provide client-server based real-time business solutions. The
letter R in SAP R/3 represents the real-time business data processing, while 3 represents the three-tiers in client-server
computing.
o The three-tiers in client-server computing are: Presentation (Client), Application (Business logic), and Database (Stores
the actual business data).
o SAP R/3 integrates the various business areas, such as sales, purchase, and procurement, by using its different
functional modules, such as Material Management (MM), Sales and Distribution (SD), Financial and Controlling (FICO), and
Human Resource (HR).
o Different versions of SAP R/3 are 3.1i, 4.0b, 4.5b, 4.6b, and 4.6c with the latest version 4.70.
86. Question 86. What Are The Core Functionalities Of The Sap System?
Answer :
The core functionalities of the SAP system consists of Sales and Distribution (SD), Materials Management (MM), Financial
Accounting (FI), and Production Planning (PP). In the first phase, the companies implement the SAP software with these core
functionalities and later in the second and third phase, they may also introduce other functionalities, such as Controlling (CO),
Warehouse Management (WM), Human Resource (HR). However the type of modules and the phasing of implementation
solely depends on the type of industry the client works as well as the organization's readiness and urgency for the need to
adopt integrated enterprise system such as SAP.
87. Question 87. How Can You Define An Mm Module? What Is Its Importance In Sap R/3?
Answer :
MM stands for Material Management and is a part of the Logistic functional area of SAP R/3. It is an important SAP R/3
module, because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch
management and material storage. Since the materials are the most precious resource of an organization, extreme care needs
to be taken in all the processes related to materials management. Efficient material management is the essence of the MM
module of SAP R/3.
88. Question 88. How Is The Mm Module Integrated With Other Modules Of Sap?
Answer :
o The MM module deals with material procurement on the basis of the production required; therefore, it is linked with
the Purchasing Planning (PP) module.
o The Sales and Distribution (SD) module is proportionally related to the MM module, because it uses information
about the quantity of material sent for production.
o The MM module is related to the Warehouse Management (WM) module, because the MM module maintains
information about the material storage and material transfer inside an organization.
o The MM module is also related with the Financial Accounting (FI) module, because every operation performed in the
MM module directly impacts the financial process of the organization.
89. Question 89. What Are The Levels Of Organizational Units Of Enterprise Structure In R/3?
Answer :
The client is the top level of the organizational units of Enterprise Structure in R/3. The client is followed by the company code,
which represents a unit with its own accounting, balance, and P&L The next level of organizational units of Enterprise
Structure is plant, representing an operational unit of a company.
90. Question 90. Define Client. What Is Its Importance In Sap?
Answer :
A client can be defined as a person, company, or an organization that purchases goods from another person, company, or
organization and pays for that. In terms of SAP, a client can be defined as a unit that has its own master records and a set of
tables. It is important in SAP because it stores and maintains data about the organization where SAP is implemented.
91. Question 91. How To Create A Client In Mm Module?
Answer :
You can create a client in MM module either by using the transaction code SCC4 or by performing the following steps:
1. Click SAP menu-->Tools-->Administration-->Client Administration.
2. Double-click SCC4 Client Maintenance. The display View "Clients": Overview screen appears.
3. Click the Display -> Change button. The Information dialog box appears.
4. Click the Continue button. The Change View "Clients": Overview screen appears where you can create a new client.
92. Question 92. How To Create A Company Code In Sap?
Answer :
In SAP, the company code is created using the transaction OX02. The company code field is defined as a four-character
alphanumeric string. You can create a company code in SAP by performing the following steps:
1. Open the SAP Customizing Implementation guide.
2. Click Enterprise Structured-->Definition-->Financial Accounting-->Edit, Copy, Delete, Check Company Code. The Choose
Activity dialog box appears.
3. Double-click Edit Company Code Data. The Change View "Company Code": Overview screen appears where you can create a
company code.
93. Question 93. How Can You Assign A Company Code To A Company In Sap?
Answer :
You can assign a company code to a company by performing the following steps:
1. Open the SAP Customizing Implementation guide.
2. Click Enterprise Structured Assignments Financial Accounting -> Assign company code to company. The Change View "Assign
Company Code - Company": Overview screen appears where you can assign a company code to a company.
94. Question 94. How Many Charts Of Accounts Can Be Assigned In A Company?
Answer :
In a company, only one chart of accounts can be assigned.
95. Question 95. How Many Company Codes Can Be Assigned In One Chart Of Accounts?
Answer :
You can assign many company codes in a chart of accounts.
96. Question 96. How Many Company Codes Can Be Assigned To A Company?
Answer :
You can assign one or more company codes to a company.
97. Question 97. What Is A Plant In Mm?
Answer :
A plant is an organizational unit, where materials are produced or goods and services are provided. In SAP, it is represented by
a unique four-digit alphanumeric number. A plant is allocated to one company code and a company can have many plants. In
an organizational unit, a plant can be at one of the following locations:
o Corporate headquarters
o Central delivery warehouse
o Manufacturing facility
o Regional sales office
98. Question 98. How Many Company Codes Can Be Assigned To A Plant?
Answer :
You can assign only one company code to a plant.
99. Question 99. Can A Company Code Be Assigned To Many Plants?
Answer :
Yes, you can assign a company code to many plants.
100. Question 100. Define Storage Location In Sap.
Answer :
In SAP system, a storage location is the place where you can store your stock of goods, within the premises of a plant. Each
plant has at least one storage location assigned to it.
101. Question 101. Can Storage Locations Be Created Automatically? How Can They Created Automatically?
Answer :
Storage locations can be created automatically when an inward goods movement for a material is performed. In order to
create a storage location automatically, open the Sap implementation guide and then follow this path:
Materials Management->Inventory Management and Physical Inventory->Goods Receipt->Create Storage Location
Automatically.
102. Question 102. Can Two Plants Have A Common Storage Location?
Answer :
A storage location is a unique four-character alphanumeric key; therefore, it cannot be common for two plants.
103. Question 103. What Is The Menu Path To Configure The Storage Location?
Answer :
You can configure the storage location by navigating the following menu path:
Select Display IMG ->Enterprise structure ->Definition->Maintain storage location
104. Question 104. What Are The Different Ways Of Organizing Purchasing Organizations?
Answer :
The different ways to organize purchasing organizations is distributed purchasing and centralize purchasing. Distributed
purchasing represents multiple purchasing organization for multiple plants and centralized purchasing represents one
purchasing organization per plant.
105. Question 105. What Is The Reference Purchasing Organization In Sap?
Answer :
The reference purchasing organization can be defined as an organization whose conditions or contracts are linked to other
purchasing organizations. This organization can make conditions or contracts that can easily be used in other purchasing
organizations.
106. Question 106. What Is Master Data In Mm Module?
Answer :
Master data in MM module acts as a reference data defining various business entities and plays a key role in the core
operation of a business.
107. Question 107. How Is Master Data Important In Mm Module?
Answer :
A Master Data in MM module contains all the basic information needed to manage a material. The data is stored and sorted
on the basis of different criteria, such as the descriptive nature of the material (size, dimension, and weight), control function
of the material (material type and industry sector). Apart from the data maintained by the user, it also stores data that is
automatically updated by the system (such as stock levels).
108. Question 108. What Is A Material Master File?
Answer :
The complete information related to managing a material is stored and maintained in a data record in the material master,
which is sorted on the basis of different criteria.
109. Question 109. Why Are Material Master Records Used In Sap?
Answer :
Material master records are used in the SAP R/3 system to manage the materia I-specific data. The material information
stored in material master records is used by all logistics areas in the SAP R/3 system. The material master records integrate all
the material-specific data into a single database object that eliminates the problem of data redundancy. Since material master
records store data in a single database object, the same data can be shared by all departments, such as purchasing, inventory
management, materials planning, and invoice verification.
110. Question 110. How Is The Information Of Material Master Records Updated?
Answer :
You can manually update the information of the material master records; however, there are some exceptions that can be
updated by the system only, for example, the administrative data that is updated by the SAP R/3 system only.
111. Question 111. What Data In Material Master Is Maintained At The Client Level?
Answer :
The general data, that is, the data applicable to the company as a whole is stored at the client level.
112. Question 112. What Are The Data In Material Master That Are Maintained At The Company Code Level?
Answer :
The data that is specific to a particular company and the plant and storage areas assigned to the company is maintained at the
company code level.
113. Question 113. What Are The Plant-specific Data In Material?
Answer :
The MRP data and forecast data are the plant-specific data in material.
114. Question 114. What Is The Lot Size Attribute Of A Material?
Answer :
The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or a static or
fixed lot size.
115. Question 115. How Is Material Information Structured In Material Master Records?
Answer :
Material information is structured in material master records on the basis of different criteria, such as material's master detail
(such as name size dimension , and weight), that shows its descriptive nature and material's detail with a control function
(such as material type, price control and industry sector). Material master records also store the information about the data
that can be automatically updated by the system. For example, the stock level can be automatically updated by the system on
the basis of the material data update.
116. Question 116. What Is A Batch?
Answer :
A batch is a group of materials combined together quantity-wise for various reasons. Very often, the materials with the same
characteristics and values are grouped into a batch. For example, in a chemical industry, a certain number of containers of a
specific product may be considered a batch as these products were produced at the same time and have the same physical
and chemical characteristics.
117. Question 117. Why Is Batch Record Important?
Answer :
o A batch represents a quantity of a particular material processed at the same time with the same parameters. These
materials, produced under one batch, have the same characteristics and values. However, these characteristics may vary from
the materials of another batch produced on the same day.
o A batch record is important as having a batch record indicates that it conforms to the current Good Manufacturing
Procedures (cGMP) and contains specifications of the product tested, analytical methods, and test results.
118. Question 118. How To Create A Batch?
Answer :
You can create a batch record manually by using the transaction code MSC1N. The navigation path of creating a batch is: SAP
Menu -> Logistics -> Materials Management -> Material Master -> Batch -> Create.
119. Question 119. How Can Batch Records Be Changed?
Answer :
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP
Menu -> Logistics -> Materials Management -> Material Master -> Batch -» Change.
You can change the batch record, but you should note that these changes are also available for review.
120. Question 120. How To Delete A Batch?
Answer :
You can delete a batch by using the MSC2N transaction code.
You can delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change
mode.
121. Question 121. What Is Batch Information Cockpit?
Answer :
The Batch Information Cockpit (BIC) is the main switching point having a wide range of options for scrutiny and control. It
stores all the information related to the analysis of a particular batch at a single location.
122. Question 122. What Is A Serial Number?
Answer :
A serial number is provided to an item to identify it and to store information about it. A serial number is mostly used to refer
to equipments such as motors, drills, or vacuums. In MM, an item of a material contains serial number as well as a material
number. This combination of the material number and serial number helps to uniquely identify an item of a material.
123. Question 123. State The Importance Of Classification Data.
Answer :
The classification data allows you to search for the materials on the basis of the characteristics values entered into the classes.
This feature is very important when the customer wants to search for a particular vendor and batches.
124. Question 124. What Are The Main Master Files Used In Mm?
Answer :
The following are the main master files used in MM:
o Material master file
o Inventory master file
o Vendor master file
125. Question 125. Give Some Example Of Master Data In Material Management (mm).
Answer :
Material master, material master general data (MARA), tax classification material (MLAN), info records, source list, and vendor
master are the examples of master data in MM.
126. Question 126. What Is Vendor Master Data?
Answer :
Vendor master data contains details of each vendor who supplies materials or services to an enterprise. The vendor master
data is stored in individual vendor master records consisting data, such as vendor's name vendor's address currency used for
the transaction payment terms and contact person's name sales staff.
127. Question 127. What Are The Different Fields In A Vendor Master Data?
Answer :
The different fields in a vendor master data are as follows:
o The name and address of the vendor
o The currency in which the transaction would be done
o The terms and conditions of payment
o The names of important contact persons
o The different accounting information, such as the reconciliation account in the general ledger
128. Question 128. How To Create A Vendor Number Range?
Answer :
When you create a number range, it is important to remember that vendor numbers, such as material numbers can be
assigned externally or internally. You can create vendor number ranges by selecting the following navigation path:
IMG -> Financial Accounting -> Vendor Accounts -> Master Data -> Preparations for Creating Vendor Master Data -» Create
Number Ranges for Vendor Accounts.
For configuring the vendor number range, you should enter a unique number for the range which is a two character field and
then specify the limit for the number range. The current number field is used to define the current number. The Ext. field
defines whether the number range is defined externally by the user.
129. Question 129. What Is The Transaction Code To Access The Materials Management Configuration Menu?
Answer :
The OLMS transaction code is used to access the Materials Management Configuration menu.
130. Question 130. What Are Purchasing Information Records?
Answer :
The purchasing information records, also known as info record, contain information related to the material and vendor who is
supplying the material. It also contains details about the material, such as the current price of the material.
131. Question 131. What Are The Categories Of Purchasing Information Record?
Answer :
The following are the categories of purchasing information record:
o Standard — Contains information for the standard purchase order. In this type of purchasing info record, you can
create info records for materials and services which do not have master record.
o Subcontracting— Contains the ordering information for subcontract orders.
o Pipeline— Contains information of the commodity that is sent through the pipeline such as oil, water.
o Consignment— Contains information of the material that is in vendor's possession and is kept by the vendor at some
other premises at his own cost.
132. Question 132. What Are The Prerequisites Of Creating A Purchasing Info Record?
Answer :
The prerequisites of creating a purchasing info record are as follows:
o Material number — Before creating a purchasing info record, the material number of the Material Master record
should be known
o Manufacturer Part Number (MPN) Material number — Before ordering a material having a MPN, you must know its
MPN material number
o Vendor number— The number of the vendor master record should also be known
o Organizational level — Suppose the purchasing info record is for a particular purchasing organization or plant then
the code specific to that purchasing organization or plant is required
133. Question 133. How Can You Create A Purchasing Information Record?
Answer :
You can create a purchasing information record either manually or automatically by setting the Info update indicator when
maintaining a quotation, a purchase order, or an agreement.
134. Question 134. Can Purchasing Info Record Be Created Without A Material Number?
Answer :
Yes, you can create a purchasing info record without a material number. If the material is without the material number, you
need the following information for creating the purchasing info record:
o Material short text
o Order unit
o Material group
o Short term key
135. Question 135. How Is An Information Record Based On The Material Master Created?
Answer :
At first, you need to create the info record by selecting SAP Menu->Master Data-Info Record->Create. Details, such as vendor
number, material number, purchase organization, or plant number, are then entered. The number of the information record
(in case of external assignments) is then entered. Next, the general data for vendors, ordered quantity, origin of data,
supplying information, and Customs Tariff Number is entered. The planned delivery time, purchasing groups, and standard
purchasing quantity are then entered. The control data is then checked. The default value of tolerance data and purchasing
group are taken from the material master record. The net price is entered and then select Go TO->Texts to display the text
overview. If the PO text is already defined, it appears in the material master record; otherwise, it needs to be entered. After all
these entries, the record is saved.
136. Question 136. What Is Document Management System In Sap?
Answer :
Document management system (DMS) in SAP helps you store external documents, such as the goods or material pictures. By
using the DMS, you can set the maximum size of the picture that can be uploaded in a document. The DMS helps to link these
external documents with the appropriate SAP objects.
137. Question 137. How Will You Create A Document?
Answer :
You can create a document by using the CV01N transaction code or by using the following menu path:
SAP Menu -> Logistics -> Central Functions -> Document Management System -> Document -> CVOIN-Create.
138. Question 138. Name The Key Fields That You Must Specify While Creating A Document.
Answer :
The key fields that you must specify while creating a document are:
o Document Number — Refers to a unique alpha-numeric number that is used to identify the document. .
o Document Type— Refers to a document type that categorizes a document.
o Document Part— Refers to a document's section that is treated as an in dividual document.
o Document Version— Refers to a two-character number that represents the document version
139. Question 139. How Will You Link A Document To A Material Master Record?
Answer :
After creating a document, you can link it with the Material Master record by using the MM01 transaction code or by using the
following menu path:
SAP Menu -> Logistics -> Materials Management -> Material Master -> Material -> Create (General) -> MM01- Immediately.
140. Question 140. How Will You Link A Document To A Vendor Master Record?
Answer :
Once you complete creating a document, you can link that document with the vendor master record by using the XK01
transaction code or by using the following menu path:
SAP Menu -> Logistics -> Materials Management -> Purchasing -> Master Data -> Vendor -> Central -> XK01- Create.
141. Question 141. How Classification System Is Used To Describe A Document?
Answer :
A Document Management System (DMS) stores large number of documents; thereby, it becomes quite difficult to find the
right document. In such a case, the classification system is used to describe a document that uses a set of characteristics
combined together to form a class, which is later assigned to a document. The class assigned for a document can be used to
find a specific document from the DMS.
142. Question 142. What Is The Source Of Error "not Allowed" In Case Of Custom Movement Type Creation?
Answer :
You need to check the allowed transaction for the customized movement types and use the OMJJ transaction code.
143. Question 143. Give The Names Of The Tables Where The Header Level And Item Data Are Stored In A Purchase Order.
Answer :
The EKKO and EKPO are the two tables where the header and item level data are stored, respectively.
144. Question 144. Give The Names Of The Tables Where The Material Master Data Is Stored.
Answer :
The MARA and MARC are the two tables where the master data is stored.
145. Question 145. What Is The Vendor Evaluation? How Is It Maintained?
Answer :
The vendor evaluation is an activity to find a vendors performance by giving a particular score on a scale of 0 to 100.
Alternatively, you can use a transaction code ME61 and enter purchase organization and vendor number to view the details.
146. Question 146. Write The Name Of The Sap Program Used To Updated Or Create Material Master Records (mmr).
Answer :
The RMDATIND program of SAP is used to update or create Material Master Records (MMR).
147. Question 147. What Is The Storage Location-specific Material Master Data?
Answer :
There might be a case when you need to store a material at more than one storage locations. In this case, to store the data,
you need to create different material master records for each storage location. This is called the storage location-specific
material master data.
148. Question 148. When Is A Production Resource Tool (prt) Defined For A Material?
Answer :
If purchasing and inventory functions are carried out for Production Resource Tool (PRT), then a PRT is defined for a material.
149. Question 149. What Transaction Code Is Used To Extend The Material View?
Answer :
The MM50 transaction code is used to extend the material view.
150. Question 150. What Is Source List? What Is The Menu Path To Define A Source List?
Answer :
A source list is used to identify sources of supply for certain materials. The following is the menu path to define a source list:
Select Logistics -> Materials management -> Purchasing -> Source list.
151. Question 151. What Do You Mean By Material Numbers In Sap?
Answer :
Material numbers are unique numbers used to identify a material.
152. Question 152. What Does An Industry Sector Control?
Answer :
While creating the material master record for a material, you need to classify the material according to the industry type. This
is called the industry sector. The industry sector controls the screen appearance, the screen sequence, and the appearance of
industry-specific fields on individual screens in the material master record.
153. Question 153. Can We Change The Industry Sector Of An Existing Material?
Answer :
No, once assigned you cannot change the industry sector of an existing material.
154. Question 154. What Is Valuation Category?
Answer :
The valuation category specifies the standard used to differentiate the different partial stocks. In simple words, you can say
that valuation category is the criteria to define partial stocks. The standard system comprises a variety of valuation categories,
such as B and H. B is used for procurement type that is here the stock is divided up depending on whether the stock is
procured externally or manufactured in-house. On the other hand, H is used for origin, that is here the stock is divided oh the
basis of from where it was delivered. The valuation category in the Material Master record holds every material that is
assigned for valuation.
155. Question 155. What Does The Material Type Control?
Answer :
The material type controls the materials stock management, which implies:
o If there is a change in the quantity of the material, it should be updated in the material master record.
o Along with the change in the material master record, there should be changes in the stock accounts also.
156. Question 156. What Is The Transaction Code To Create A Material Type?
Answer :
MOS2 is the transaction code to create a material type.
157. Question 157. What Material Types Are Prompted While Creating A New Material?
Answer :
Click the F4 key to select the material type for a material that you want to create. For example, the material type FHMI is used
for Prod. Resources/tools, the material type ROH is used for raw materials, and FERT is used for finished product.
158. Question 158. What Is The Menu Path To Define Material Type Attributes?
Answer :
The following is the menu path to define material type attributes:
Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.
159. Question 159. Can We Change The Material Type Of A Material?
Answer :
Yes, we can change the material type of a material.
160. Question 160. How Are User Defaults Set For Views?
Answer :
You can set user defaults for views by selecting Defaults->Views.
161. Question 161. List The Steps To Create A Profile.
Answer :
You can create a profile by following these steps:
1. Select Profile -» MRP Profile from the Menu screen to display the Initial Create Profile screen.
2. Enter the value in the key file that you want to assign in the profile.
3. Select Goto -> Selection to display the Selection screen.
4. Enter a profile description and select the fields that you want to include in the profile.
5. Select Goto -> Data to display the Data screen.
6. Enter your data in the Data screen and save the profile by selecting Profile -> Save.
162. Question 162. How Are The Characteristics Changed?
Answer :
The characteristics are the properties that describe the length, color, and other related features of an object. Perform the
following steps to change the characteristics of an object:
Select SAP Menu->Gross App. Components->Classification System->Master Data->Characteristics
Alternatively, the CT04 transaction code is used to change the characteristics.
163. Question 163. How Is A Class Created?
Answer :
A class is a collection of the group of the characteristics for a particular object. You need to enter the class name and a
description for it and then select the group. After saving the details, the class is created. Alternatively, you can use CL01 T-code
for this purpose.
164. Question 164. Can You Include An Roh (raw Material) Type In The Sales View?
Answer :
Usually, the raw materials cannot be included in the sales view. However, the raw materials can be included in the sales view
only when they are sold to procure finished products in return.
165. Question 165. List The Key Fields Of The Material Master Table.
Answer :
The key fields of the material master table are material groups, material status, divisions, storage conditions, labs and offices,
basic materials, container requirements, measure groups, container requirements, and temperature.
166. Question 166. What Are The Major Purchasing Tables? List The T Codes For Them.
Answer :
The major purchasing tables along with their T-codes are as follows:
In procurement for consumption, you need to enter the account assignment (such as cost center) that specifies the purpose of
consumption. On the receipt of goods, the material or service is shown as it has been consumed.
246. Question 246. What Is The Difference Between External Procurement And Internal Procurement?
Answer :
In the external procurement, the procurement of raw material, trading goods, and services is made from the external supplier
for the organizational units of an enterprise that need such items or services.
In the internal procurement, the procurement of raw material, trading goods, and services is made from an organizational unit
of an enterprise for other organizational units of the same enterprise that needs such items or services.
247. Question 247. What Is A Document Type?
Answer :
A document type is used to differentiate between different kinds of purchasing documents. In other words, different
purchasing documents are distinguished on the basis of their document types. Document types are defined for RFQs, purchase
orders, and contracts.
248. Question 248. What Are The Ways Of Converting Planned Orders Into Purchase Requisitions?
Answer :
You can convert the Planned Orders into Purchase Requisitions either by converting them individually or by collectively
converting all the planned orders.
249. Question 249. What Transaction Code Is Used To Convert Planned Orders (po) Into Requisitions In Material
Requirement Planning (mrp)?
Answer :
The OPPR transaction code is used to convert Planned Orders (PO) into requisitions in Material Requirement Planning (MRP).
250. Question 250. Can You Add Custom Fields To Purchase Order(s) And Request For Quotation (s)?
Answer :
Yes, you can add custom fields to a Purchase Order and Request for Quotation.
251. Question 251. How Is Framework Order Different From Standard Po?
Answer :
Framework Order (FO) is a purchasing document used for procuring materials or services. This type of purchase order has an
extended validity period instead of a stipulated delivery date as in case of the Standard Purchase Order (PO).
252. Question 252. What Document Type Can Be Used In Case Of Service Procurement?
Answer :
The service procurement is used by the organizations to procure the services or part of the services. It consists of activities,
such as bidding, contract management, and all the activities from requisition to payment.
253. Question 253. What Do You Mean By Using Multiple Account Assignment In A Po?
Answer :
Using multiple account assignment in a PO allows you to apportion the cost associated with a PO item. When you use the
multiple account assignment, the account assignment data takes the form of individual account assignment items.
254. Question 254. How Is The Sto Different From The Standard Po?
Answer :
In STO, UB document type is used and it also requires a supplying plant for the movement of materials, whereas in the
standard PO, NB document type is used and requires a vendor for the procurement of material.
255. Question 255. How Can We Return A Material That We Have Received With Reference To A Po?
Answer :
In case of external vendor, when your company returns a good, received with reference to a purchase order, the reference of
the PO is not mandatory to post the return in the system. The system just posts a goods receipt correction and issues to a
credit memo against the vendor. However, if the vendor is internal, you may require the reference of the PO. In this case, the
system automatically updates the stock, without any internal billing.
256. Question 256. How Are Free Items Managed In A Po?
Answer :
Mark the item as FREE in the Purchase order. The price for such PO items will be zero.
257. Question 257. Which Documents Are Used As References When We Create Po?
Answer :
At the time of creating PO, we take the reference of Purchase Requisition, Request for Quotation, and any other Purchase
orders. However, it is not necessary to take the reference of these documents as most of the values are automatically taken by
the SAP R/3 system.
258. Question 258. What Is The Transaction Code To Set Price Control For Receipts (goods/invoice)?
Answer :
The transaction code OMW1 is used to set price control for receipts (goods/invoice).
259. Question 259. What Is The Difference Between Quantity And Value Contracts?
Answer :
Quantity Contracts— When the total quantity to be ordered is known in advance during the validity period, the quality
contract is used. This contract is considered as fulfilled when totaling of release orders of a given quantity has been issued.
Value Contracts — When the total value of the release orders does not exceed a definite and predefined value, the Value
contract is used. The contract is considered as fulfilled when totaling of release orders of a given value has been issued.
260. Question 260. What Is A Centrally Agreed Contract?
Answer :
A centrally agreed contract type is created without specifying the name of the plant. The plant specification is provided at the
time of creating the contract release order. In centrally agreed contract, different conditions for individual plants can be
maintained easily. Moreover, different ordering addresses or goods suppliers in the vendor master record can also be
specified in this type of centrally agreed contract. The centrally agreed contract is useful in the enterprises that have a central
purchasing department and the materials are required to be bought for different plants. In this case, they create a high-level
contract used by the other department-specific purchase organizations within the enterprise. The use of such centrally agreed
contracts usually results in more favorable conditions of purchase and helps maintain consistency in process of purchasing
throughout the enterprise.
261. Question 261. List The Important Fields Of A Service Master Record?
Answer :
The important fields of a Service Master Record are as follows:
o Service number— Defined for external or internal numbering of the service
o Service Category— Distinguishes between the types of services
o Descriptive text— Contains a short or long description of the service
o Base unit of measurement— Contains the unit in which you can measure the service
o Material/Service group— Allows the service to be selected for grouping purpose
o Valuation class— Finds the general ledger accounts that are related with the service
262. Question 262. What Is A Standard Service Catalog (ssc)?
Answer :
A Standard Service Catalog (SSC) is a general standardized catalog that contains the detailed explanation of services. The
descriptions of these services are stored as master records and help to remove data duplication.
263. Question 263. How Can Services Be Purchased?
Answer :
The services can be purchased by first creating a document in system which forms the base of the purchasing process. This
document can be a purchase requisition, an RFQ, or a purchase order. Now, determine the possible sources that can provide
the service. For this, you can either select a new service or a service that has been previously used. If the service is requested
for the first time, a bid invitation process is started. In the bid invitation process, you first need to create an RFQ and then
record the incoming quotations in it. The best quotation is determined based upon certain factors, such as price, warranty
period. The order is then placed to the successful bidder who receives either a standard purchase order or a release order
issued against an existing contract.
264. Question 264. What Is A Service Entry Sheet?
Answer :
A service entry sheet is a transaction in which the data related to the service that has been ordered is recorded using a
purchase order. You can use the ML81N transaction code to locate the service entry sheet. You can also locate the service
entry sheet by using the following path: SAP menu->Logistics->Materials Management -> Service Entry Sheets Maintain.
265. Question 265. What Is A Blanket Purchase Order? How Can It Be Created?
Answer :
A purchase order that has a validity period and contains a simple process of procuring materials or services is referred as a
blanket purchase order. For creating a blanket purchase order, use the ME21 or ME21N transaction code.
266. Question 266. In What Cases Item Category M (material Unknown) And Item Category W (material Group) Can Be
Used In Contract?
Answer :
The Item category M is used when the material issued is unknown. The item category W is used when the value and quantity
of material are unknown.
267. Question 267. How Can We Create An Sa In Sap?
Answer :
You can create a Scheduling Agreement (SA) in SAP either manually or by using the referencing techniques. To create a SA
manually, you have to enter all the information on scheduling agreement manually. You can even use reference documents
from where you will copy the information related to the scheduling agreement. These reference documents can be Purchase
requisitions, Request for Quotations, and Centrally agreed Contract.
268. Question 268. What Are Schedule Lines?
Answer :
Schedule Lines — The Schedule lines are generally created adjacent to the schedule agreements. For example, you have a
material that is procured through a subcontract and you are required to ensure the delivery of this material on specific days.
For this, you can create a schedule line for the schedule agreement of that material. In the source list of the schedule line, you
have to provide information regarding the vendor and schedule agreement along with the validity dates of delivery and also
specify the agreement, which is relevant for MRP.
269. Question 269. What Is Tax Code?
Answer :
The tax code defines how the tax will be calculated and posted in SAP R/3 System. Each item on which the tax is applicable is
allocated to a tax code. The R/3 System reads this tax code for each item and calculates tax for it. This tax and tax code is a
part of Purchase order.
270. Question 270. What Is Material Requirement Planning (mrp) In Sap?
Answer :
Material requirement planning guarantees the procurement and production of the required quantities of materials on time.
The MRP helps a company to determine which materials are to be produced and in what quantity they are to be produced.
271. Question 271. List The Types Of Mrp?
Answer :
The three types of MRP are as follows:
o Reorder-point planning — In this type of MRP, the procurement starts when the existing stock and the receipts fall
below the reorder point.
o Forecast-based planning — In this type of MRP, the forecast values and the future requirements of the material is
decided by the forecasting program.
o Time-based planning— In this type of MRP, the date of the planned requirement should match with a known date,
such as the date when the vendor delivers. If the vendor delivers the material on the same date, then you can start the
planning procedure from that date itself.
272. Question 272. What Is A Mrp List?
Answer :
The MRP list is a static list which is the initial working document for the MRP controller to start working from and contains the
planning result information for a material.
You can access the MRP list for an individual item by using the MD05 transaction code. You can also access the MRP list by
using the following navigation path: SAP menu->Logistics-> Materials Management->MRP->Evaluations->MRP List - Material.
273. Question 273. What Is The Difference Between Material Requirement Planning (mrp) And Consumption- Based
Planning?
Answer :
MRP and Consumption-based planning are two types of SAP planning used to determine a product's requirements. When you
plan materials by using MRP, you need to plan the materials requirement based on Sales and Operations Planning (SOP).
When you follow the consumption-based planning approach to plan the materials, you need to plan the future demand of the
product. This can be done by using the historical demand of materials.
274. Question 274. What Important Values Are Used To Define The Reorder Point?
Answer :
The following important values are used to define the reorder point:
o Safety stock
o Replenishment lead time
o Average consumption
275. Question 275. What Is A Procurement Proposal? What Are The Types Of Procurement Proposal?
Answer :
Procurement proposals are created by the system and are based on the settings defined by the purchasing department. They
help in ascertaining the required materials.
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.
334. 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.
335. 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.
336. 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.
337. 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.
338. Question 338. What Are The Factors Controlling Material Valuation?
Answer :
The factors that control material valuation are:
1. System settings
2. Material master record
339. Question 339. What Is Valuation Area?
Answer :
Valuation area is the organizational level at which the material valuation is carried out.
340. 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.
341. 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
342. 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
343. 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.
344. 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.
345. 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.
346. 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.
347. 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.
348. 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.
349. 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.
350. 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.
351. 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.
352. 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.
353. 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:
i. Account assignment category
ii. Material group
iii. Plant
iv. Total value
354. Question 354. What Is Release Code?
Answer :
The release code is a two-character field or ID that represents the person responsible for the approval of the release
procedure.
355. Question 355. What Do You Mean By Release Group?
Answer :
Release group is a two-digit code that is assigned with a class and contains one or more release strategies. For example,
release group 01 is defined for purchase requisitions and release group 02 is defined for purchase order.