Below are some important SAP MM interview questions which are asked in most MNC company interviews for beginners or professionals.
1. What is the difference between a Purchase Requisition and a Purchase Order?
A PR is an internal document that sends notification to purchase department when some material is service is required. PR can be generated by department that needs any material or service.
A PO is a document sent to vendor by purchaser which is an official request of mentioned material or services. POs are generally binding on purchaser, though it depends on terms and conditions mentioned in PO.
2. What are different Info Records types?
Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.
3. What is a consignment Stock?
The stock supplied by the vendor is in the purchasing company’s premises but the company has no liability for the same. The liability for the company will only arise one the goods are issued from the consignment stock for use. However, in this case, even before the use, purchasing company can check in system how much stock is lying in inventory.
4. What is Sub-Contracting cycle in MM?
In Sub-contracting, we send raw material or input material to sub-contractor and then receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input material is sent to vendor for processing with movement type 541. When GR is done using movement type 101, movement type 543 takes place automatically and takes care of consumed material.
5. What is meant by Scales in MM?
When we maintain price in Info Records, we can make use of scales. It is used when price of a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are maintained in various master data like info record, quota arrangement etc. from where scales can be pulled in a Purchase Order.
6. How to Flag a material for deletion?
A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a material for deletion, it is flagged for deletion at all corresponding lower levels. Transaction MM06 is used to flag a material for deletion.
7. 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.
8. What is the function of OBYC?
OBYC is t-code used for configuring Automatic Account Posting.
Postings are made to G/L accounts automatically in the case of Inventory Management and Invoice Verification relevant to Financial and Cost Accounting.
9. What is valuation grouping code related to OBYC?
Valuation grouping code is used to group the valuation area, In SAP, we can have valuation level at Company code level or at plant level.
General practice is to use the valuation area at plant level, because valuation may differ from one plant to another. The valuation grouping code makes it easier to set automatic account determination. If we need to define common account determination for several valuation areas, we can assign same valuation grouping code to all those valuation areas. We can maintain the valuation group code in OMWD for various valuation areas.
10. What types of special stocks are available?
Various special stock types available in SAP are Consignment, Subcontracting, pipeline, project, sales order stock, Returnable transport packaging, stock transfer, and the third party.
1. What is the difference between a Purchase Requisition and a Purchase Order?
A PR is an internal document that sends notification to purchase department when some material is service is required. PR can be generated by department that needs any material or service.
A PO is a document sent to vendor by purchaser which is an official request of mentioned material or services. POs are generally binding on purchaser, though it depends on terms and conditions mentioned in PO.
2. What are different Info Records types?
Different Info Record types are Standard, Consignment, Sub-Contracting and Pipeline.
3. What is a consignment Stock?
The stock supplied by the vendor is in the purchasing company’s premises but the company has no liability for the same. The liability for the company will only arise one the goods are issued from the consignment stock for use. However, in this case, even before the use, purchasing company can check in system how much stock is lying in inventory.
4. What is Sub-Contracting cycle in MM?
In Sub-contracting, we send raw material or input material to sub-contractor and then receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input material is sent to vendor for processing with movement type 541. When GR is done using movement type 101, movement type 543 takes place automatically and takes care of consumed material.
5. What is meant by Scales in MM?
When we maintain price in Info Records, we can make use of scales. It is used when price of a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are maintained in various master data like info record, quota arrangement etc. from where scales can be pulled in a Purchase Order.
6. How to Flag a material for deletion?
A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a material for deletion, it is flagged for deletion at all corresponding lower levels. Transaction MM06 is used to flag a material for deletion.
7. 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.
8. What is the function of OBYC?
OBYC is t-code used for configuring Automatic Account Posting.
Postings are made to G/L accounts automatically in the case of Inventory Management and Invoice Verification relevant to Financial and Cost Accounting.
9. What is valuation grouping code related to OBYC?
Valuation grouping code is used to group the valuation area, In SAP, we can have valuation level at Company code level or at plant level.
General practice is to use the valuation area at plant level, because valuation may differ from one plant to another. The valuation grouping code makes it easier to set automatic account determination. If we need to define common account determination for several valuation areas, we can assign same valuation grouping code to all those valuation areas. We can maintain the valuation group code in OMWD for various valuation areas.
10. What types of special stocks are available?
Various special stock types available in SAP are Consignment, Subcontracting, pipeline, project, sales order stock, Returnable transport packaging, stock transfer, and the third party.
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