SAP MM Interview Questions and Answers
Freshers / Beginner level questions & answers
Ques 1. What is SAP MM?
SAP MM (Material Management) is a module in SAP ERP that manages materials and resources for production, procurement, and other business processes.
Ques 2. What is a purchase requisition?
A purchase requisition is a formal request to procure a certain quantity of materials or services. It initiates the procurement process in SAP MM.
Ques 3. What is the significance of the 'Goods Receipt' in SAP MM?
The 'Goods Receipt' confirms the receipt of goods or services and updates the inventory in SAP MM. It is a critical step in the procurement process.
Ques 4. What is the purpose of 'Material Master' in SAP MM?
The 'Material Master' in SAP MM is a central repository for material-related information. It includes details such as material type, description, and storage location.
Ques 5. What is the purpose of the 'Vendor Master' in SAP MM?
The 'Vendor Master' in SAP MM contains information about the vendors from whom materials or services can be procured. It includes details like address, payment terms, and communication methods.
Ques 6. What is the purpose of the 'Reservation' in SAP MM?
A 'Reservation' in SAP MM is a request to set aside a certain quantity of materials for a specific purpose, such as production or maintenance.
Ques 7. What is a 'Service Entry Sheet' in SAP MM?
A 'Service Entry Sheet' is a document used in SAP MM to record the receipt of services. It includes details such as the type of service, quantity, and service provider information.
Ques 8. What is 'Inventory Management' in SAP MM?
'Inventory Management' in SAP MM involves the efficient handling of inventory, including goods receipts, goods issues, and stock transfers, to ensure accurate stock levels.
Ques 9. Explain the concept of 'Release Indicator' in SAP MM.
'Release Indicator' in SAP MM is a flag that determines whether a document, such as a purchase order, requires approval before it can be processed further.
Intermediate / 1 to 5 years experienced level questions & answers
Ques 10. 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 17. 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 18. 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 19. 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 20. 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 21. 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 22. 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 23. 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 24. 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 25. 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.
Experienced / Expert level questions & answers
Ques 26. Explain the concept of 'Source Determination' in SAP MM.
Source Determination in SAP MM involves determining the best source for procurement based on various factors like pricing, vendor performance, and delivery schedules.
Ques 27. Explain the concept of 'Material Valuation' in SAP MM.
Material Valuation in SAP MM involves assigning a value to materials in the inventory. Different valuation methods, such as moving average price and standard price, can be used.
Ques 28. How does 'Release Strategy' work in SAP MM?
Release Strategy in SAP MM is a workflow mechanism that allows specific individuals to release or approve documents such as purchase orders based on predefined criteria.
Ques 29. What is the purpose of the 'Automatic Account Determination' in SAP MM?
Automatic Account Determination in SAP MM involves assigning the appropriate general ledger accounts automatically based on the transaction and material type. It streamlines financial postings.
Ques 30. What is the significance of the 'Automatic PO Creation' feature in SAP MM?
The 'Automatic PO Creation' feature in SAP MM allows for the automatic creation of purchase orders based on predefined criteria, streamlining the procurement process.
Most helpful rated by users:
- Explain the concept of 'Material Valuation' in SAP MM.
- Explain the concept of 'Source Determination' in SAP MM.
Related interview subjects
| Pega interview questions and answers - Total 30 questions |
| ITIL interview questions and answers - Total 25 questions |
| Finance interview questions and answers - Total 30 questions |
| SAP MM interview questions and answers - Total 30 questions |
| JIRA interview questions and answers - Total 30 questions |
| SAP ABAP interview questions and answers - Total 24 questions |
| SCCM interview questions and answers - Total 30 questions |
| Tally interview questions and answers - Total 30 questions |