SAP MM Interview Questions
1. What is SAP Materials Management (MM) ?
SAP Materials Management (MM) is a core module in SAP ERP that manages procurement and inventory functions. It ensures that materials are available in the right quantity and quality at the right time. MM integrates with other SAP modules like Finance (FI), Controlling (CO), Sales and Distribution (SD), Plant Maintenance (PM), Production Planning (PP), and Project System (PS).
2. What are the key components of SAP MM ?
Purchasing: Handles procurement processes.
Inventory Management: Manages material stock levels.
Material Master Data: Maintains essential data about materials.
Vendor Master Data: Stores information about vendors.
Invoice Verification: Manages invoice processing and payment.
Physical Inventory: Conducts stocktaking and reconciliation.
Valuation and Account Assignment: Manages material valuation and cost allocation.
3. What is a Material Master Record ?
A material master record is a central repository containing information about materials required for procurement, inventory, and production. It includes data like description, unit of measure, weight, and purchasing details.
4. What is a Vendor Master Record ?
A vendor master record holds information about external suppliers, including address, contact details, banking information, and tax-related data.
5. What are the types of procurement processes in SAP MM ?
Standard Procurement: Regular procurement of materials.
Subcontracting: Sending components to a vendor for assembly.
Consignment: Procuring materials that are stored in the company's premises but owned by the vendor.
Stock Transport Orders (STO): Moving stock between plants.
Third-Party Procurement: Procurement where the vendor delivers directly to the customer.
6. What is a Purchase Requisition (PR) ?
A PR is an internal document that initiates the procurement process by specifying material requirements and quantities.
7. What is a Purchase Order (PO) ?
A PO is a formal document sent to a vendor to procure materials or services under specified terms and conditions.
8. How is inventory managed in SAP MM ?
Inventory is managed through stock types (unrestricted, quality inspection, blocked), movement types (like 101 for goods receipt), and valuation methods. Integration with PS, PM, and PP ensures accurate inventory tracking related to projects, maintenance, and production.
9. What is Goods Receipt (GR) ?
GR is the process of receiving and verifying materials delivered by the vendor. It updates stock levels and triggers financial postings.
10. What is Invoice Verification in SAP MM ?
Invoice Verification ensures that the vendor invoice matches the purchase order and goods receipt. It triggers payment processes and financial postings.
11. What is the role of valuation in SAP MM ?
Valuation determines how material prices are calculated and recorded in the financial accounts. It can be based on standard price or moving average price.
12. What is the difference between stock and non-stock procurement ?
Stock Procurement: Materials are stored in inventory after procurement.
Non-Stock Procurement: Materials are procured for immediate consumption or for specific projects.
13. What are Movement Types in SAP MM ?
Movement types define the type of stock movement in the system, such as:
101: Goods receipt for a purchase order.
201: Goods issue for cost center.
301: Stock transfer between plants.
14. How is physical inventory conducted in SAP MM ?
Physical inventory involves counting stock quantities, reconciling discrepancies, and posting differences to ensure accurate inventory levels.
15. What is a Source List in SAP MM ?
A source list is used to determine preferred vendors for procuring specific materials within a validity period.
16. What is the role of quota arrangement ?
Quota arrangements distribute procurement quantities among multiple vendors according to predefined ratios, ensuring supplier diversification.
17. How does SAP MM integrate with other modules ?
SAP MM integrates with:
FI: For invoice verification and financial postings.
CO: For cost control.
SD: For processing sales and purchase cycles.
PP: For material requirements planning.
PM: For maintenance-related procurement.
PS: For project-related procurement and cost tracking.
18. What is Consignment Stock ?
Consignment stock is stored at the company's location but owned by the vendor. Payment is made to the vendor upon consumption.
19. What is a Stock Transport Order (STO) ?
An STO is used for stock transfer between plants, ensuring systematic movement and inventory tracking.
20. How is subcontracting handled in SAP MM ?
Subcontracting involves sending components to a vendor who processes them into finished goods. SAP MM tracks material movements and updates inventory.
21. What is Batch Management in SAP MM ?
Batch management enables tracking of material batches for quality control, inventory tracking, and regulatory compliance. It allows businesses to manage batches based on specific attributes such as manufacturing date, expiry date, or other product-specific data. Integration with other modules like PP, SD, and PM ensures seamless tracking of batches through the entire supply chain, from production to delivery. This ensures traceability, reduces quality-related risks, and enhances customer satisfaction.
22. What is Vendor Evaluation in SAP MM ?
Vendor evaluation assesses supplier performance based on criteria like delivery, quality, and price, helping in selecting the right suppliers.
23. What is Release Strategy in SAP MM?
A release strategy controls the approval process for procurement documents like purchase requisitions and orders based on predefined criteria.
24. What are Purchasing Info Records ?
Purchasing info records store information about the relationship between a vendor and a material, including pricing and conditions.
25. How is data migration handled in SAP MM ?
Data migration for SAP MM involves transferring master and transactional data using tools like LSMW, BAPIs, or IDocs.
This guide aims to help you prepare effectively for an SAP MM functional consultant interview by covering the most important and frequently asked questions.
If you have additional questions or experiences, feel free to share them in the comments section!
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