SAP Interview Questions and Answer

FI-MM Integration(P2P)
Q1. What is SAP FI-MM integration?
• SAP ensures that data from one module automatically flows to
another module. In case of SAP FI-MM integration, functionality
and data from SAP MM (Materials Management) module triggers
automatic postings in SAP FI (Financial Accounting) module.
Q2. Describe a 'Purchase Cycle?
1. Determination of requirements: The process typically begins with the identification of a material requirements. The user
department responsible can manually pass a requirement for materials to the Purchasing department via a purchase requisition.
2. Determination of the source of supply: The SAP System helps the buyer determine possible sources of supply. You can use
determination of the source of supply to create requests for quotation (RFQs) and then enter the quotations. You can also access
existing purchase orders and conditions in the system.
3. Vendor selection: The system simplifies the selection of vendors by making price comparisons between the various quotations.
It automatically sends rejection letters.
4. Purchase order processing: The system facilitates data entry by providing entry aids when you are entering purchase orders. A
purchase order is a formal request to a vendor to supply you with goods or services at the conditions stated in the purchase order.
You specify in the purchase order whether the material is delivered for stock or for direct consumption (for example, cost center,
asset or project). The goods receipt and invoice verification are usually carried out on the basis of the purchase order.
5. Purchase order monitoring: The buyer can monitor the processing status of the purchase order online at any time and can
determine whether goods or an invoice have been received for the relevant purchase order item. The system also supports
reminder procedures.
6. Goods receipt: The system compares the goods receipt quantity with the purchase order quantity.
7. Invoice verification: Vendor invoices are checked for accuracy of prices and contents.
8. Payment processing: Financial Accounting normally deals with vendor payments.
Q3.What is a 'Purchase Requisition’ (PR)?

• A 'Purchase Requisition(PR) is the document that outlines a company's

purchasing needs of a material/service from vendor(s). A PR, typically
an internal document that can be created automatically or manually,
identifies the demand for a product and authorizes the purchasing
department to procure it. The PR, after identifying the vendor, is
processed further to result in a RFQ Request for Quotation or directly
to a Purchase Order (PO).
Q4. What Is a 'Purchase Order PO?
• A ’Purchase Order" (PO) is a legal contract between a vendor and a
buyer concerning the material/service to be purchased/procure on
certain terms and conditions. The order mentions, among other things,
the quantity to be purchased, price per unit, delivery related
conditions, payment/pricing information, etc.
Q5. Will the FI Document be treated with the Purchase Order PO?

• No. There will not be any document created on the FI side

during creation of a PO.
Q6. How do you go about settings the FI MM account
determination?
• FI MM settings are maintained in transaction OBYC. Within these are various
transaction keys to be maintained like BSX, WRX, GBB, PRD, etc. In each of
these transaction keys, you specify the GL accounts which get automatically
passed at the time of entry.
• Example – BSX – Stands for Inventory posting Debit.
                    WRX – Stands for GR/IR Posting.
GBB – Stands for Goods issue/scrapping /delivery of goods.
                   PRD – Stands for Price Differences.
Q7. At what level are the FI-MM, FI-SD account determination
settings?

• They are at the chart of accounts level.

Q8. What are the additional settings required while maintaining or
creating the GL codes for inventory accounts?
In the inventory GL accounts (Balance sheet) you should switch on the
“Post automatically only“ tick. It is also advisable to maintain the
settings for all FI-MM accounts and FI-SD accounts.
This helps in preserving the sanctity of those accounts and prevents
from having any difference between FI-MM & FI-SD.
Q9. What is Valuation and Account Assignment in SAP?

• This is actually the link between Material Management and Finance.

The valuation in SAP can be at the plant level or company code level.
If you define valuation at the plant level then you can have different
prices for the same material in the various plants. If you keep it at the
company code level you can have the only price. Across all plants.
• Valuation also involves price control. Each material is assigned to a
material type in Material Management and every material is evaluated
either in moving average price or Standard price in SAP. These are
two types of price control available.
Q10. What is the Valuation class?
• The valuation class in Accounting 1 view in Material Master is the main link
between Material Master and Finance. This valuation class along with the
combination of the transaction keys (BSX, WRX, GBB, PRD) defined above
determines the GL account during postings.
• We can group together different materials with similar properties by valuations
class. Eg. Raw material, Finished Goods, semi-finished.
• We can define the following assignments in customizing
• All materials with the same material type are assigned to just one valuation class.
Different materials with the same material type can be assigned to different
valuation classes.
• Materials with different material types are assigned to a single valuation class.
Q11. Can we change the valuation class in the material
master record?
• We can change it only if the stocks for that material are nil. If the stock
exists for that material, then we cannot change the valuation class. In
such a case, if the stock exists, we have to transfer the stocks or issue
the stock nil for the specific valuation class. Then only we will be able
to change the valuation class.
Thank You