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SAP MM Interview Questions and Answers

Ques 21. 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.

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Ques 22. 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.

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Ques 23. 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.

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Ques 24. 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.

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Ques 25. 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.

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