1. What is SAP MM?

SAP MM (Materials Management) is a module within the SAP ERP

system that focuses on managing the procurement, inventory management, and
material planning processes of an organization. It helps businesses streamline their
supply chain operations, optimize inventory levels, and ensure the availability of
materials for production and other business processes.

2. What are the key components of SAP MM?

 Procurement: Involves the creation of purchase requisitions, purchase orders, and

managing relationships with suppliers.
 Inventory Management: Tracks and manages the movement of materials within an
organization, including goods receipts, goods issues, and transfers.
 Invoice Verification: Verifies and processes supplier invoices against purchase orders
and goods receipts.
 Material Requirement Planning (MRP): Ensures materials are available when needed
by calculating demand and creating procurement proposals.
 Master Data Management: Centralizes information about materials, vendors, and other
relevant data.

3. Explain the procurement process in SAP MM. The procurement process starts with
the creation of purchase requisitions (PRs) when a material is required. PRs are then
converted into purchase orders (POs) and sent to vendors. Once goods are received, a
goods receipt (GR) is recorded, and the invoice verification process ensures that invoices
match the purchase orders and goods receipts.

4. What is a Purchase Requisition? A Purchase Requisition (PR) is a formal request

generated within the organization when materials or services are needed. It initiates the
procurement process and contains details like material requirements, quantities, delivery
dates, and more.

5. What is a Purchase Order (PO)? A Purchase Order (PO) is a legally binding

document sent by a buyer to a vendor to request specific quantities of materials or
services at predefined prices. It outlines terms and conditions of the transaction.

6. What is a Material Master in SAP MM? The Material Master is a central repository
that holds comprehensive data about all materials managed within an organization. It
includes information such as material description, vendor details, pricing, units of
measure, stock levels, and more.

7. Explain the concept of Goods Receipt (GR) in SAP MM. Goods Receipt (GR) is the
process of recording the arrival of materials into an organization's inventory. It involves
physically receiving the goods, verifying them against purchase orders, and updating
inventory levels in the system.

8. What is Invoice Verification in SAP MM? Invoice Verification is the process of

comparing supplier invoices against corresponding purchase orders and goods receipts
to ensure accuracy. It involves three-way matching (invoice, PO, and GR) and helps
prevent payment errors.

9. What is a Purchase Info Record? A Purchase Info Record (PIR) contains information
about specific materials and the prices agreed upon with a particular vendor. It's used to
determine the source of supply and pricing during procurement.

10. What is Movement Type in SAP MM? Movement Types are three-digit codes that
categorize various goods movements within SAP MM. They indicate whether materials
are received, issued, transferred, or adjusted, and each movement type triggers specific
system actions.