SAP MM Frequently Asked 50 Interview Questions

1. Can storage locations be created automatically? How can they be created all.
Storage locations can be created automatically when an inward goods movement for a
material is performed. In order to create storage location automatically, open the SAP
Implementation guide and click Materials Management > Inventory Management
and Physical Inventory > Goods Receipt > Create Storage Location Automatically.

Create automatic storage location for plant and movement type by activating it:-

Material is not extended to any storage location but through automatic storage location its get extended
automatically to storage location L001:-

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 2.Explain how you can change the standard price in the master material?
The standard price for the material data cannot be updated or changeddirectly.
However, to change the standard price you can perform the following steps
Fill in the future fields price ( MBEW-ZKPRS ) and the effective data (MBEW
ZKDAT) for the materials
Select Logistics > Material Management > Valuation > Valuation Price
Determination > Future Price

MR21:-

3.Mention what is the transaction code used to extend the material view?
To extend the material view transaction, code MM5O is used.

In MM50 maintain maintenance status for required view and material

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 Maintain MRP (D) views:-

Maintain MRP view and save:-

4.What are the commonly used movement types in Sub-Contracting process?

541- issues of goods from warehouse to subcontractors stock
542 - Reversals of goods issues from warehouse to subcontractors stock
543 - Consumption from subcontracting stock (Automatic updating during GR)
544- Co-products receiving
545- Goods receipt of by-products from subcontracting (Stock provided to vendor)
101 — Finished good/ Sub-Contracted good received after processing

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 Goods issue to vendor 541:-

Goods Receipt: - MT 101-recieving assembled stock & MT 543-stock consuming by vendor.

Goods Receipt: - MT 544-co product received from vendor.

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 Transfer posting :- MT 542-Reversals of goods issues from warehouse to subcontractors
stock

Goods receipt of by-products from subcontracting-545

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 5.How are the by-products taken care of in sub-contracting?
When you create BOM using CS01, we can maintain main components with + ye quantities
and By Products / Scraps with - ye quantities. When you make Goods Receipt for
Subcontracting Purchase Order with 101 movementtype, components are automatically
consumed with movement type 543 By Products / Scrap are updated as stock provided to
vendor movement type 545. Now we can receive this scrap/ By product back in company's
inventory using movement type 542 (reversal of 541) with t-code MB1B.

Maintaining By-product in BOM

6.Can a material be used after flagging it for deletion?

Yes, even after flagging a material for deletion, it can be used till it is actually deleted. It
will just trigger a warning message whenever the material is used. If you want a material to
be blocked for any use with immediate effect, you should use a material status which is
there in basic view 1 for general level or in MRP 1 view for plant level blocking
General level :-

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 Plant level:-

7.What are release procedures with and without classification?

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

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 8. What is meant by batches?
A batch is a subset of the total stock of a material. It represents a homogeneous unit which
has unique specification. Normally, a batch is assigned to the quantity of material produced
during a given production run. A batch number uniqueness can be assigned at any of the
following 3 levels:
At client level: The same batch number can be assigned only once within the entire client.
At material and plant combination level: Same batch number can be assigned to material
with different specification in each plant.
At material number level: A batch assigned to a material has the same specification for all
plants where material is extended. Batch number can be reassigned with a different
specification for each material.

9. What is the use of 'Material Status'?

Material Status helps in determining the usability of a material. It is a 2-digit code which can be
maintained as plant specific material status, cross-plant material status, and
distribution material status.
Configuration:-
SPROLogistic generalMaterial Master Settings for key fields  Define material
status

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 Blocked for all procurement:-

10.What are various procedures for counting Physical Inventory?

Physical Inventory procedures in SAP MM are as follows:
Periodic Inventory (All stocks are counted on a pre-determined date)
Continuous Inventory (stocks are counted continuously during the entire fiscal year) Cycle
Counting (Counting is done at fixed intervals)
Inventory Sampling (Randomly selected material stocks are physically counted on the
balance sheet key date. If variances are small enough, it is presumed that the book inventory
balances for the other stocks are correct.)

11. What is the use of 'Split Valuation'?

Within a valuation area, sometimes, we need to valuate various stocks of a material
separately. It can be because of different origin, quality, status, etc. We use split
valuation in such cases. In this case, material is managed at several partial stocks which are
sub-stocks of main material stock, Any transaction, relevant for valuation, is carried at this
partial stock level. In accounting view, we define if we need split valuation for any material.

12. Outline 'Stock Valuation Methods' for Material Revaluation.

There are three methods with which you can evaluate your stock for Balance Sheet purposes.
Irrespective of the method you select, you will be able to valuate your stock either at the
Company Code level or at the Valuation Area level:

LIFO (Last-In-First-Out): This method is based on the assumption that the materials
received last were the ones issued/consumed first. The valuation is based on the initial
receipt.

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 FIFO(First-In-First-Out): Here the assumption is that the materials
received first are the ones consumed/issued first. So, the valuation is based on the most
recent receipt. The FIFO method can also be used in conjunction with the lowest value
method. By this you can determine whether the system should make a comparison
between the F1FO determined price and the lowest value price. You can also determine
whether the FIFO price should be updated in the material master record.

Lowest Value Method: Here, the stocks are valued at their original price or the current
market price whichever is lower. This method is suitable when the inventory needs
to be valued to take into account material obsolescence, physical changes in price
level.

13.What is the lot size attribute of a material?

The lot size attribute represents the reorder quantity for a material. A material can have a
periodic, optimum, or static (fixed) lot size.

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 14.What data in material master is maintained at the client level?
The general data, i.e., the data applicable to the company as a whole, is stored at the client
level.

15.What are the data in material master that are maintained at the company code
level?
The data that is specific to a particular company and the plant and storage areas assigned to
that company is maintained at the company code level.

16.What are the plant-specific data in material?

The MRP data and forecast data are the plant-specific data in the material master.

17. How is material information structured in material master records?

Material information is structured in material master records on the basis of different
criteria, such as the material's master detail (including its name, size, dimension, and
weight), which shows its descriptive nature, and the material's detail related to control
functions (such as material type, price control, and industry sector). Material master records
also store 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.

18.Why is batch record important?

A batch represents a quantity of a particular material processed at the same time with the
same parameters. These materials, produced as one batch, have the same characteristics and
values, which may vary from the materials of another batch produced on the same day.A
batch record is important because batch records indicate that the batch
Conforms to the current Good Manufacturing Procedures (GMP). The batch record also
contains specific information about the product tested, analytical methods, and test result.

19.How to create a batch?

You can create a batch record manually by using the transaction code MSC1N. The
navigation path for creating a batch is: SAP Menu > Logistics > Materials Management >
Material Master > Batch > Create.

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 1.Create material

2. Create characteristics(CT04)

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 3. create class(CL02)

4. Assign class and characteristics to material in classification view

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 5.Create 3 batch Z1,Z2,Z3 with different batch name 1996,1997,1998

6.create PO with respect to required batch and save

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 GR for batch :-

20. What are the important fields in a batch master record?

The important fields in a batch master record are as follows:
o Production date— Refers to the date when the batch was produced.
o Self-life expiration date— Refers to the date when the life of the batch will expire.
o Available from— Refers to the date from which the batch will be available to other
departments.
o Batch status— Allows the batch to be classified as having restricted or unrestricted use.
o Next inspection— Refers to the next quality inspection date of the batch.
o Vendor batch— Refers to the batch number assigned by the vendor.
o Class— Allows the user to sort the batch for use in specific classes.
o Characteristics —Helps in assigning a class to the batch.
o Release status —Specifies the status of the batch.
o Linked document —Helps the user to link the documents related to the batch.
o Document type —Allows the user who is purchasing the batch to specify a document.
o Document —Helps the user to select the relevant document.
o Document part —Allows the user to enter the part of the document that is related to the
batch.
o Version —Specifies the document version of the batch.

21. What is a reference purchase organization? When can it be used?

lt is reference for all the other existing Purchase Organization.
It is not assigned to either to plant or company code.
The contracts, terms and conditions can be utilized by other Purchasing Org.
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 22. What is GR blocked stock? When it can be used?
GR blocked stock- If you wish to accept goods from a vendor conditionally (because a
certificate is missing), you initially post the goods to the goods receipt blocked stock. Block
stock can be move to unrestricted use stock by using movement type 343.

23. Is it possible to maintain the same material master with same code in all plants in a
company. Our client is using same materials in all their four plants?
Material numbers are always maintained at Company code level. If you look at the Material
master data, some data is maintained at Company code level, some at Plant level and some
at Storage location level. If you have all the 4 plants attached to one company code, they
should have the same material number. What you need to do is to extend the material to all
the 4 plants if that’s your requirement. Also, if you have your valuation area as your Plant,
then you have the flexibility to maintain Plant specific pricing for the same material.
You can use MMO1 T code to copy material from old plant to new plant. But check for the
required details in your new plant and make changes accordingly.
24. Where we do the configuration for the cost centre allocation, because whenever we GR
a 'material, accounting document is created for that particular material. How that
particular material go in to the particular accounting (G/L, account)
In Tcode: OBYC Automatic Postings.
for Inventory Posting Trns Key is: BSX
for Offsetting entries like Goods issue, initial stock Trans Key is : GBB
Based on the Movement types, Valuation class it will be assigned to a G/L account. You can
refer the configuration in Tcode: OBYC
OBYC configuration BSXChart of account INT 

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 25. In ME23N what is the difference between PO Quantity and Scheduled Quantity?
PO Quantity which is known as committed quantity by vendor to supply as and when on or
before specific delivery date.
Scheduled Quantity is the quantity to be delivered by the vendor in respect of schedule line
as planned. The total PO quantity can be dragged and partially divided into different
segment of delivery date for different quantum of material .This quantity is referred to by
GR and IV for checking purposes also.

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 26. At which level is the purchase order history kept? How can we access ( see) it?
PO history is updated in table: EKBE and if you go to see, there is a field client and
purchasing document/plant.
PO history updation depends upon transaction and event type where there are different type
of transaction key:
1 Goods Receipt
2 Invoice Receipt
3 Subseq. Debit/Credit
4 Down Payment
5 Payment
6 Goods Issue for Stock Transfer
7 Consumption (Subcontracting)
8 Delivery (Stock Transfer)
9 Service Entry Sheet
A Down Payment Request C Down Payment Clearing
Q Comparison for Internally Posted Material (OnlyIS-OIL) R Return Delivery via Delivery
Note
P Invoice Parking
V Down Payment Request Clearing.

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 SE16N:-

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 PO history updation depends upon transaction and event type:-

27. Where is the purchase order text stored?

It is stored in the tables STXH, STXL. Text gets stored as object ID and text ID.

SE16NSTXH

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 SE16NSTXH

28. How to edit created P.O.? If user want to change some data like price, data etc. in a
created purchase order but system is not allowing it. As a support SAP MM functional
consultant what you would do?
This is an open question without direct answers and you should suggest the possibilities: If
you have made goods receipt against PO, then you cannot make any change to the price and
other condition details in PO if not you will be able to do it.
Also, check whether user have authorization for ME22N.
The Price came from lnforecord (if you have maintained the inforecord for material and
vendor combination), then in this case you cannot directly change the Price in PO. If you
want to change then check PO condition type is it PBXX, then you can change.
There is a procedure called as the field selection. When a purchase order is created, then it
requires a release. In the release procedure you can maintain the fields which cannot be
changed as per the field selection. For example, if I am an approver and I approved a
purchase order for 10 pieces and released it, in this case if the changes are allowed for the
quantity then the total release procedure becomes useless.

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 29. Explain the terms Planned delivery and GR processing time?
Planned delivery means number of calendar days required to obtain thematerial, and GR
processing means number of workdays required after receiving the material for inspection
and placement into storage.

30. Explain how is the vendor return processed without a purchase order reference?
First you have to observe the return column and then select — Item Detail >M1G0 GR >
Goods Receipt for Purchase Order. Use movement type 161 the intention is to deduct the
stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the
document is a return purchase order, and then the document is saved.

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 31.Explain what MRP (Material Requirement Planning) list is and what is the
transaction code to access MRP list?
MRP list is the initial working document from which the MRP controller starts working, and
it consists of planning resuks information for the material. For an individual item, you can
access the MRP list by using the transaction code MD05. You can also access the MRP list
by navigation path
SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List-
Material

32. Explain what is CBP? What is the difference between CBP and MRP?
CBP is the past consumption values of stock; it is used to forecast future requirements. On
the basis of past consumption values, the net requirement of goods is calculated. The
difference between CBP and MRP is that when you plan materials using MRP, you have to
predict the materials requirement based on sales and operations planning (SOP). While in
CBP you have to predict the material requirement based on historical demand for materials.
CBP:-

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 MRP:-

33. 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).

34. Material number has to be 30 Digit. So how to get this is SAP? The present
18 Digit is NOT at all sufficient for the business?
It has to be Alpha Numeric or sometimes only numbers. It must be external numbering
system only & not the SAP generated internal number range because
material number or name is given by Vendors.
Ex:ABC1234,89900-00988987,Y778009, 77777766665444433322211-A, etc
Solution: not possible according to sap standards but still with the help of Abap people we
can do it, the answer on top is correct, but also think about usability, You have 30 digits that
mean over a trillion variable materials... do you have a trillion materials?

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 35. Is it possible to have scale in a quotation?
NO

36. 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.

Creation of PR from MRP:-

Save PR

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 PR created and reflected in MRP :-

Creation of PR to PO from MRP:-

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 Adopt PR and save PO:-

PO is reflected in MRP:

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 37. What is meant by access sequence? When it is used?
An access sequence is a search strategy with the aid of which the SAP System searches for
valid condition records of a certain condition type.
For example, you can stipulate for a price that the SAP System first searches for a price for a
specific plant, and then for a generally applicable price.
For condition types for which you wish to maintain conditions with their own validity
period, you must assign an access sequence. With this, you define which fields the SAP
System checks in searching for a valid condition record.
Example:
An access sequence has been assigned to condition type PBOO so that prices can be
maintained in purchasing info records and contracts.
No access sequence has been assigned to condition type RCOO because it does not have a
validity period of its own. In the standard system, it is always maintained
simultaneously with the price and is valid for the period of the price.

38. How does the PO pick up the pricing schema?

The calculation schema picks up using vendor schema (if you assigncalculation schema only
to vendor schema then it will pick the same calculation schema for the vendors assigned to
particular vendor schema even though the Pur. Org is different, the condition is the vendor
record must be exist in all Pur. Org) or purchasing org schema (if you assign calculation
schema only to purchasing schema then the PO will pick up same calculation schema for
different vendors), or both at time (if you wants separate pricing for domestic and foreign
vendor under one Pur. Org maintain two vendor schemas different for two vendors and
assign it to purchasing org schema).

39.The Communication Structure in release Strategies. What is that link the release strategy
takes?
Communication Structure "CEBAN" to Create Purchase Requisition.
Communication Structure "CEKKO" to Create Purchase Order.
Communication Structure "CESSR" to Create Service Entry Sheet.

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 40. How many levels of approval can be allowed in Release Strategies
8 - Maximum of 99 levels can be set in standard SAP

41. What are the different ways to organize purchasing organizations?

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.
42. What are some of the common Stock Transport Order Movement Types?
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 303,305, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT
101.
Movement type 301 is used to transfer material from a storage location in one plant to a storage
location in a different plant through one step process.

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 303 and 305 are two step transfer postings where issuing plant issues stock through movement type
303 to stock in transit and the stock stays in transit until the material is received by the receiving
plant through movement 305.

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 Movement type 351 is only used if the goods issue is posted without a delivery in Shipping.

.
A goods issue for a stock transport order with delivery in Shipping is posted using movement types
641, 643.

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 43. What is the difference between a Blanket Purchase Order and the Framework
Order?
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.
44. If you have a multi-line item PO, can you release the PO item by item?
No, a PO is released at the header level meaning a total release or "WithClassification". PRs,
on the other hand, have two release procedures possible. "With Classification" and "Without
Classification" where it is only possible to release the PR item by item.

45. What do you understand by posting period?

Various documents like purchase order, request for quotation, goods receipt are essential
documents in a business. These documents need security i.e. if any of documents is
posted incorrectly then business can be affected at various concern levels. So, to secure
these documents we have a concept of posting period. Posting period means it will
allow you to post and make changes in the documents only in a specific time period.

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 46.How Does the System Determine the Correct ‘G1_, a/c' for a Posting?
Imagine that you are posting a goods movement.
Since the goods movement is from a plant, and the plant is assigned to a Company Code, the
goods movement identifies the relevant Company Code.
• As the Company Code has already been assigned to the Chart of Accounts, the
system is able to identify the GL accounts.
• The plant also determines the valuation area (and the optional 'valuation
groupingcode').
 Since each movement type is assigned to a 'value string' which in turn is identified with
a transaction key, the goods movement determines the correct transaction key.
• Since each of the transaction keys is associated with the relevant GL accounts,
through the value string, the movement type now identifies the relevant GL
Account, and the transaction is posted.

48. What are the different types of Invoice Verification?

Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of
the items of a purchase order can be settled together, regardless of whether or not an item
has been received in several partial deliveries. All of the deliveries are totaled and posted as
one item. Invoices based on Goods Receipts. Withgoods-receipt-based Invoice Verification,
each individual goods receipt is invoiced separately. Invoices without an order reference.
When there is no reference to a PO, it is possible to post the transaction directly to a
Material Account, a Gil, Account, or an Asset Account.
You can park Invoices that reference POs and GRs as well as Invoices with no reference in
the system. When you park a document or change a parked document, neither
substitution nor validation is supported. The system only carries out these functions after
you actually post a parked document.

49. What is the use of 'Info Update' indicator in purchasing documents?

This indicator is used to decide if the info record is to be created/updated or not based on
this purchasing document.

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 50. Problem is that after goods receipt and AFTER invoice verification, reversal of goods
receipt is being done. Client wants this more controlled as the GRIR account is being
affected. So no reversals to be done after Invoice verification. How to
approach this?

Make this setting: SPRO > Materials Management > Inventory Management and
Physical Inventory > Goods Receipt > For GR-Based IV, Reversal of GR
DespiteInvoice
Here remove the tick against Mvt 102 & 122.
Now the system will not allow to return the Good at any case.

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