SAP MM Interview Questions And Answers

1).Explain what is SAP MM?

Ans)SAP MM (Material Management) is a functional module in SAP that deals with procurement handling and material management. The MM module contains master data, system configuration and transactions to complete the procure to pay process.

2).What are the essential components in SAP MM?


  • Determine requirements
  • Source determination
  • Vendor Selection
  • Order Processing
  • Order follow up
  • Goods receipts and Inventory management
  • Invoice Verification

3). Mention what are the types of special stock available?

Ans) The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with customer, etc.

4). List out important field in purchasing view?

Ans)The critical fields in purchasing view are

  • Base unit of measure
  • Order unit
  • Purchasing group
  • Material group
  • Valid from
  • Tax indicator for material
  • Manufacturer part number
  • Manufacturer, etc.

5). Explain the importance of the batch record?

Ans) A batch tells about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While, the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process).

6).Explain how you can link a document to a vendor master record?

Ans) To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path
SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XK01- Create.

7). Mention what are the major purchasing tables? List the transaction codes for them?

Purchase requisition > EKBN
Purchase requisition account assignment > EBKN
Release documentation > EKAB
History of purchase documents > EKBE

8). Mention what are the data contained in the information record?

Ans)The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.

9). Mention what is the transaction code to delete a batch?

Ans) The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.

10). Mention what is the transaction code used to extend the material view?

To extend the material view transaction, code MM50 is used.

11). Explain how you can change the standard price in the master material?

Ans) The standard price for the material data cannot be updated or changed directly. 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

12).What is Source List and what is the transaction code for creating Source List?


To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.

13).For creating a purchasing info record what are the pre-requisites?

Ans)The pre-requisites for creating a purchase info record are

  • Material Number
  • MPN ( Manufacturer Part Number )
  • Vendor Number
  • Organizational level code

14).Explain the terms Planned delivery and GR processing time?

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

15).What is purchase requisition as related to SAP? Mention the document types that are used in purchase requisition?

Ans)Purchase requisition in SAP determines both stock and non-stock items to the purchasing department. It can be done either manually or automatically, the document types used in purchase requisition are

  • RFO ( Request For Quotation )
  • Outline Agreement
  • PO ( Purchasing Order )

16).Explain how consignment stocks are created?

Ans)In the normal purchase order or requisition, consignment stocks are created. While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated.

17). Explain how is the vendor return processed without a purchase order reference?

Ans)First you have to observe the return column and then select -- Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if 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.
You can also use transaction code M21N for this purpose

18).Explain how you can create a vendor account group in SAP?

Ans) To create vendor account group in SAP
Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout

19). Explain what are the accounts created in SAP MM?

Ans) Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things

  • Account assignment type
  • Account that will be charged when you post the invoice or goods receipt
  • Account assignment data that you should provide

20).Explain what MRP (Material Requirement Planning) list is and what is the transaction code to access MRP list?

Ans) MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results 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

21). Explain what is CBP? What is the difference between CBP and MRP?

Ans)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.

22).What Mrp Procedures Are Available In Mm-cbp (consumption Based Planning)?

Ans) Various material planning methods are used in MRP (Material Requirements Planning).

  • Reorder point procedure (VM)
  • Forecast-based planning (VV)
  • Time-Phased materials planning (PD)
  • These are specified in material creation (MM01) under the MRP 1 tab.

23). What Are Special Stocks?

Ans) Special Stocks are stocks that are accounted for but are not owned by the client, are not stored at a regular facility. Consignment, sales order, and project stock are examples.

24).What Are Some Of The Options Available To Transfer Materials From One Plant To Another?

Ans) Although it is possible to transfer materials from one plant to another without a Stock Transport Order, many advantages are lost including entering a vendor number, planning a goods receipt in the receiving plant, monitoring process from PO history, and the ability to create STO directly from a MRP PR.

25).What Are Some Of The Common Stock Transport Order Movement Types?

Ans) 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, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.

26).What Is The Difference Between A Purchase Order And A Purchase Requisition?

Ans) A Purchase Requisition is a document type that gives notification of a need for materials or services. A Purchase Order is a document type that is a formal request for materials or services from an outside vendor or plant. Procurement types may be defined at the line item and can be standard, subcontracting, consignment, stock transfer, or an external service.

27).What Is An Indirectly Created Purchase Requisition?

Ans) An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service Management, or PP Production Planning and Control. The “directly created” Purchase Requisition, on the other hand, is created by a person manually in the requesting department specifying what materials/services, units, and a delivery date.

28). What Is An Rfq And How Is It Different From The Quotation Form?

Ans)A RFQ is a purchasing document and an invitation to a vendor(s) for quotation regarding needed materials or services. If multiple an RFQ is sent to multiple vendors, the system can automatically determine the best quote and send rejection letters in response to all others. The RFQ and the Quotation Form are one in the same in the system as vendor’s quotes are entered directly in the RFQ.

29).What Are The Transactions That Will Result In A Change Of Stock?

Ans)A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which results in an increase in warehouse stock, a Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location to another.

30). When Would It Be Prudent To Post Goods Movements Via The Shipping Application?

Ans) If picking, packing, and transportation operations need to be planned in detail. Also, in shipping, you can manage movements like returns from customers, vendors, and returns to stock. Movement Types in shipping start with a 6.

31).What Is A Reservation?

Ans) A Reservation is a document used to make sure that the warehouse keeps a certain amount of a material or materials ready for transfer at a later date. It contains information on what, quantity, when, where from and to. Reservations help effective procurement by utilizing the MRP system to avoid out of/lack of stock situations.

32).What Are Departmental Views?

Ans)All functional areas of the system use the same material master data. The material master data is defined in individual screens (departmental views) that can be added as needed. Thus a material can be created with only basic data and other departments can add other information later as it becomes available.

33). What Is The Difference Between A Blanket Purchase Order And The Framework Order?

Ans) 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.

34). What Is Release Procedure?

Ans)Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to define separate release procedures for different groups of materials for which different departments are responsible, and to define separate procedures for investment goods and consumption goods.

35). How Do We Get A Proper List Of Vendors To Send An Rfq?

Ans)Either use the Information Record to see who has sold a particular material to the organization in the past, or go through the Source List.s

36). What Are The Components Of The Master Data That Details A Companys Procurement Used By, Vendor Evaluation For Example?

Ans)he key components of Master Data are: Info Record (ME11), Source List (ME01), Quota Arrangement (MEQ1), Vendor (MK01), Vendor Evaluation (ME61), and Condition Type (MEKA).

37). What Is Vendor Evaluation And How Do You Maintain It?

Ans) Vendor Evaluation helps you select the Source of Supply by a score assigned to a particular vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use Transaction ME61 and enter the Purchasing Organization and Vendor Number.

38).How Do We Create Consignment Stocks?

Ans) Everything is the same as a normal PR or PO, except: Enter the item category “K” for the consignment item. This ensures that the Goods Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price.

39).Where Is Material Master Data Saved?

Ans) Tables MARA and MARC.

40).Where Is The Header Level And Item Level Data Saved In A Po?

Ans) In SE11, we can see this information in table EKKO and EKP0 respectively.

41).How Can You Disable A Reservation In Mrp?

Ans)Use Transaction Code OPPI to check “block stock”.

42).How Do You Find The Logical Value For Stock Item By Date?

Ans) Use Transaction MC49.

43). How Do You Display A List Of All Reservations In The System?

Ans) Run report RM07RESL.

44).When, In Initial Configuration, Why Would You Have To Setup Stock Transport Order?

Ans)If it is required to carry out an inter-plant Stock Transfer through SD, then this configuration is required and must be carried out.

45).What Are Some Of The Initial Configuration Steps For Purchase Requisitions?

Ans) Define Document Types, Processing Time, Release Procedure (with and without classification), Setup Authorization Check for G/L Accounts, Define Number Range.

46).What Data Does The Information Record Contain?

Ans)he Information Records has data on Units of Measure, Vendor price changes after a certain level, what materials have been procured by a specific vendor, price and conditions for relevant Purchase Organization, Tolerance limits for over/under delivery, Vendor evaluation data, planned delivery time, and availability time the vendor can supply the material.

47).What Are The Lot Size Attributes A Material Can Posses?

Ans)Lot Sizing dictates the reorder quantity for a material. A material can have a static, periodic, optimum, or fixed lot size.

48).What Are Some Of The Data Points Provided By Purchasing For A Material?

Ans) Some of the key inputs when creating a material are Base Unit of Measure, Purchasing Group, Reminder days, tolerance levels, shipping instructions, GR processing time, JIT schedule indicator, Critical part (), etc.

49).How Do You Create A Material?

Ans)Use Transaction Code MM01. Name the material, choose an industry sector, choose a material type, create or copy the views, add a basic description, give it’s attributes/values, MRP information, reorder point, accounting valuation, warehouse management information and then save the data.

50). What Are The Key Fields For The Material Master?

Ans)Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units or Measure Groups.