SAP MM Interview Questions and Answers
Intermediate / 1 to 5 years experienced level questions & answers
Ques 1. Explain the procurement process in SAP MM.
The procurement process in SAP MM involves creating purchase requisitions, converting them into purchase orders, goods receipt, and invoice verification.
Ques 2. Differentiate between a purchase order and a purchase requisition.
A purchase requisition is a request for materials or services, while a purchase order is a formal document that authorizes the purchase and includes delivery and payment terms.
Ques 3. Explain the purpose of the 'Info Record' in SAP MM.
The 'Info Record' in SAP MM contains information about a material and its source of supply. It helps in determining the source for procurement and pricing details.
Ques 4. How does the 'Invoice Verification' process work in SAP MM?
Invoice Verification in SAP MM involves checking and verifying vendor invoices against purchase orders and goods receipts to ensure accuracy before making payments.
Ques 5. What is the purpose of the 'Source List' in SAP MM?
The 'Source List' in SAP MM specifies the list of approved vendors for a particular material. It helps in controlling the sources from which materials can be procured.
Ques 6. Explain the concept of 'Material Requirement Planning (MRP)' in SAP MM.
Material Requirement Planning in SAP MM is a system that helps in planning and managing the procurement of materials based on demand forecasts and production schedules.
Ques 7. What is the purpose of the 'Quota Arrangement' in SAP MM?
The 'Quota Arrangement' in SAP MM is used to distribute procurement quantities among multiple vendors. It helps in achieving a balanced distribution of materials.
Ques 8. Explain the concept of 'Batch Management' in SAP MM.
'Batch Management' in SAP MM involves managing materials in batches, where each batch has a unique identifier. It is crucial for industries with specific quality control requirements.
Ques 9. Explain the concept of 'Cross-Company Code Transactions' in SAP MM.
Cross-Company Code Transactions in SAP MM involve transactions that span multiple company codes. It allows for centralized procurement and shared services across different entities.
Ques 10. What is the purpose of the 'Physical Inventory' process in SAP MM?
The 'Physical Inventory' process in SAP MM involves counting and verifying the actual quantity of materials in stock against the recorded quantity to maintain accurate inventory records.
Ques 11. Explain the concept of 'Subcontracting' in SAP MM.
'Subcontracting' in SAP MM involves sending raw materials to an external vendor for processing, and the vendor returns the finished goods. It is used for certain manufacturing processes.
Ques 12. Explain the concept of 'Outline Agreements' in SAP MM.
'Outline Agreements' in SAP MM are long-term agreements with vendors, such as contracts and scheduling agreements, defining terms and conditions for procurement over a specified period.
Ques 13. Explain the concept of 'Purchasing Information Record' in SAP MM.
The 'Purchasing Information Record' in SAP MM contains information about a material and its source of supply. It includes details like last purchase price and vendor performance data.
Ques 14. What is 'Landed Cost' in SAP MM?
'Landed Cost' in SAP MM includes all costs associated with bringing goods to the warehouse, such as shipping, customs duties, and insurance. It provides a comprehensive view of total costs.
Ques 15. What is 'Vendor Evaluation' in SAP MM?
'Vendor Evaluation' in SAP MM involves assessing and rating the performance of vendors based on factors like delivery timeliness, product quality, and adherence to terms and conditions.
Ques 16. Explain the purpose of the 'Consignment Stock' in SAP MM.
The 'Consignment Stock' in SAP MM allows a company to store materials at a customer's location until they are consumed. Ownership is transferred only when the materials are used.
Most helpful rated by users:
- Explain the concept of 'Material Valuation' in SAP MM.
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