Below are some important SAP MM interview questions which are asked in most MNC company interviews for beginners or professionals.
11. What is the difference between Contracts and Scheduling Agreements?
A contract is a pre-determined long term agreement to supply material or service for a certain period of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of two types: Value Contract or Quantity contract
In Scheduling agreements, we can enter scheduling lines which gives details of quantity that should be delivered on specific date. Plant must be entered in SA so that materials can be delivered at plant. These are generally used for materials whose requirements are predictable.
12. How can we create new transaction codes in SAP?
New transaction codes can be created using t-code SE93.
13. 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.
14. 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.
15. How to handle free items in PO?
While creating PO, we can tick the item as free item in item overview section of PO. The price will be zero for free marked item.
16. What information is maintained in Accounting View of material master?
Accounting view is a plant specific view. Besides other information, it contains important information such as valuation class and price control. Valuation class helps in determining the relevant GL account used for account posting. It is also used while configuring OBYC settings. Price control indicator determines if material is maintained at Standard price(S) or Moving average price (V).
17. What is the use of Material types?
‘Material Types’ is used to group various materials based on some common properties. It helps in maintain material master data for a particular material. Using material types, we can control which all views are required for a material type, which fields are required or optional, the material number range etc.
18. What is the use of ‘Partner Functions’ for a vendor?
Partner Function is used to define responsibilities and duties of other business partners. Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier), PI(Invoice presented by) etc.
19. 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.
20. What is the ‘Price Control Indicator’?
‘Price Control Indicator’ is maintained in accounting view and is used to determine how a material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If the indicator is set to S, all inventory postings are posted at standard price maintained in material master. If there are variances in any transaction due to different price, the variance is posted in price difference account.
If price control indicator is set at V, goods received will be done at GR price. The moving average price will be adjusted in material master using weighted average formula. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account.
11. What is the difference between Contracts and Scheduling Agreements?
A contract is a pre-determined long term agreement to supply material or service for a certain period of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of two types: Value Contract or Quantity contract
In Scheduling agreements, we can enter scheduling lines which gives details of quantity that should be delivered on specific date. Plant must be entered in SA so that materials can be delivered at plant. These are generally used for materials whose requirements are predictable.
12. How can we create new transaction codes in SAP?
New transaction codes can be created using t-code SE93.
13. 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.
14. 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.
15. How to handle free items in PO?
While creating PO, we can tick the item as free item in item overview section of PO. The price will be zero for free marked item.
16. What information is maintained in Accounting View of material master?
Accounting view is a plant specific view. Besides other information, it contains important information such as valuation class and price control. Valuation class helps in determining the relevant GL account used for account posting. It is also used while configuring OBYC settings. Price control indicator determines if material is maintained at Standard price(S) or Moving average price (V).
17. What is the use of Material types?
‘Material Types’ is used to group various materials based on some common properties. It helps in maintain material master data for a particular material. Using material types, we can control which all views are required for a material type, which fields are required or optional, the material number range etc.
18. What is the use of ‘Partner Functions’ for a vendor?
Partner Function is used to define responsibilities and duties of other business partners. Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier), PI(Invoice presented by) etc.
19. 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.
20. What is the ‘Price Control Indicator’?
‘Price Control Indicator’ is maintained in accounting view and is used to determine how a material will be valuated. It can be Standard Price(S) or Moving Average Price(V). If the indicator is set to S, all inventory postings are posted at standard price maintained in material master. If there are variances in any transaction due to different price, the variance is posted in price difference account.
If price control indicator is set at V, goods received will be done at GR price. The moving average price will be adjusted in material master using weighted average formula. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account.
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