Interview Questions With Answers On All Topics (Rev1)

SAP MM All Topics Interview Questions with Answers
Enterprise Structure
1. What is Enterprise structure?

SAP enterprise structure is an organizational structure that represents an enterprise in SAP system.
2. What are the elements for SAP MM Enterprise structure?

Purchase Organization, Plant, Storage Location and Purchase Group
3. What is purchase org?

Purchase Organization is the highest level of organizational unit in SAP MM, it is responsible for
procurement of materials and services from an external vendor or internal plant.
4. How many plants can be assigned to one purchase org?

Many of plants can be assigned to one P.org
5. Why plant is defined in logistic general?

Because a plant is needed for all Functional modules of SAP to perform business activities.
6. Will you define storage location?

No, we will maintain it within Plant
7. How many purchase org can be assigned to one company code?

Many purchase org can be assigned to one company code
8. Can two plants have a common storage location?

Yes, two plants can have common storage location.
Contact: +91-9110 455 125 www.riseinfotech.in Email id: info@riseinfotech.in

9. What is Table for plant and Storage location?
Table for Plant - T001W, Table for storage location – T001L
10. Difference between standard purchase org and Reference purchase organization?
Standard Purchase organization Reference Purchase organization
Standard Purchase organization

involves in Special Reference Purchase organization will
Procurements such as be used for Contracts Schedule
Consignment, Sub contracting agreements purpose
and Stock transport orders
It can be assigned to Plant or It is not assigned to any of Plant or
company code company code
It is not used for Global contract It is used for Global contract
preparation preparation
It can't be used as reference by It can be used as reference by local
local purchasing organization purchasing organization
11. How many Company Codes Can be assigned to One Chart of Accounts?
If the individual company code requires different COA, We can assign up to 2 COA, in addition to the
operational COA. If the company codes are in multiple countries.
12. What are the Prerequisites for Creating a Plant?

 Name and Address
 Country code
 Factory calendar
 Language and Currency
13. What is the Purchasing Value Key?

Purchasing value key determines the following things:
 Reminders keys- There are 3 keys which determine in how many days before or after the vendor has to
be reminded or urging letters for the material procurement.
 Over and under deliveries tolerances.
 Order acknowledgement requirements in Purchase order.
It gives all the conditions in which the procurement is made. You can have different purchasing value keys
which have to be customized with below path:
SPRO->IMG –> MM –> Purchasing –> MM –> Define Purchasing Value Keys or Transaction Code OME1

14. What is centralized and de centralized purchase org?
Centralized purchase organization is one who take the requirement from all the different plants and
negotiate with vendor is called central Purchase organization
Decentralized Purchasing are those who directly involves with plants to procure material /services with
vendor.
15. What data is stored in company code level?

All data that is valid for a particular company code, as well as for the plants and storage locations assigned
to it, is stored at company code level.
16. What is Cross company code purchase org?

If a purchase org is assigned to different com codes under same client then it is called cross comp
code purchase org
17. T - code to view the Enterprise structure in Company code level and Plant level?
EC01- Company Code level
EC02 - Plant level
18. What are the Assignments you will do in Material management?

Purchase organization to Company code
Purchase organization to Plant
19. What is movement type? T code to create movement type?
When you enter a goods movement in the system, you must enter a movement type to differentiate
between the various goods movements. A movement type is a three-digit identification key for a goods
movement. The following table contains examples of movement types.
Goods receipt for a purchase order – 101 Movement Type

Good Issue – 201 Movement Type
T- Code to create Movement Type - OMJJ
20. What are transaction keys?

Transaction keys are used to determine general ledger accounts used by the system

21. What is direct Procurement process?
The process of procuring materials that are directly used for production purposes is known as the direct
material procurement process. Using the direct procurement procedure, you can order BOM components
for a planned order directly instead of via the warehouse.
22. Without GR how to take stocks from vendors?

Use the transaction MIGO with Goods movement 501(Receipt W/O Purchase order in to warehouse)

MASTER DATA
1. What are the Master data in SAP MM?

Data that is created centrally and it is valid for all applications. It remains constant over the time but we
need to update it on regular basis.
Different types of master data are Material Master, Vendor Master, Purchase info Record, Source List &
Quota Arrange
2. What is the use of material Types?
 Number Assignment (Internal or External)

 Procurement type (Internal or External)
 Allowed Views, Field selection and screen sequence.
 Price control (Standard or moving average price)
 Quantity and value updates with respect Plant
 Field Reference keys
 X-Plant Material status
3. Use of industry sector?

It controls sequences of screens and the selection of fields in SAP MM.
4. T code for the list of materials?

MM60
5. T code to create material group?

T-Code: OMSF
6. How to select the views for material types?

Go to OMS2 transaction, select your material type and go to details. On the righthand side, you can see the
user departments screen. Just select the views which are required for you and deselect rest and save.
7. Difference between FERT and ROH material types?

 FERT -Finished products are produced in-house. Since they cannot be ordered by Purchasing, a material
master record of this material type does not contain purchasing data.
 ROH - Raw materials are always procured externally and then processed. A material master record of
this type contains purchasing data, but not sales data since they cannot be sold.

8. Different types of material Types?
Material Type Description

FERT Finished goods
ROH Raw material
HALB Semi-finished material
HAWA Trading material
NLAG Non stock Materials
UNBW Non valuated
DIEN Services
VERP Packaging Materials
9. What is Valuation class? And Use of valuation class?
 A valuation class is used to determine the general ledger account for the materials stock account.
 The usage of valuation class is a key for grouping materials that have the same account determination. If
different accounts are to be posted according to valuation class in a transaction, the account determination
for this transaction is to be set as dependent on the valuation class.
10. What are the fields in purchasing view and general plant view in material master?
Fields in purchasing view

 Base unit of measure.
 Order unit.
 Purchasing group.
 Material group.
 Valid from.
 Tax indicator for material.
 Purchasing value key
 Batch Management & Auto PO tick.
General Plant view

 Base unit of measure
 Gross weight
 Net weight
 Availability check
 Transportation Group
 Loading group
 Set up time
 Batch management tick

11. Mention all Tables of Material Master?
List of Tables Description
MARA General data
MARC Plant data
MARD Storage location data
MAKT Material description data
MARM Unit of Measurement data
MVKE Sales data
MBEW Valuation class details
12. Pre- Requisites to create vendor master?

 Purchase organization
 Company code
 Vendor Account group
 Partner function
13. What is vendor Account group and what is the use?

 A vendor account group is a classifying feature of vendor master records in SAP ERP. Vendors are
categorized according to their requirements. Some of the vendors having similar characteristics are
grouped together and placed in one category. For example, all local vendors can be placed under one
account group
It determines the following:

 Field selection in the vendor master (Required & suppress field).
 Number Assignment (Internal or External)
 Vendor status (It determines whether the vendor is a one-time vendor) that means particular use of
vendor master record in our business.
 Partner Schema (Determine which partner schemas are valid)
14. Can a valuation class be different for same material under two plants?
Different materials with the same material type can be assigned to different valuation classes. Materials
with different material types are assigned to a single valuation class.
15. Difference between service master and material master

Once you create service master that can be used by any company code or any plant in a system, but in case
of material master will have to extend it to each organization that is plant to plant.
16. Can you create vendor without purchasing data centrally?

No, we can’t create vendor without purchasing data

17. Tables of vendor master
 LFA1 General data

 LFB1 Company code data
 LFM1 Purchasing data
18. What is vendor partner functions?

Partner Determination process is used for designing the vendor master where your vendor act as what type
of vendor either they only supply materials or give service.
19. Can you create vendor without partner functions?

No, using partner functions we will define the rights and responsibilities of each business partner in a
business transaction for the vendor.
20. Prerequisites to create purchase info record

Vendor details, Material No, Purchase Org & Plant
21. Can you create PIR without purchasing view in material master
No we can’t
22. What are the imp field in purchase info record?

Reminder 1, 2, 3, Order unit, Planned delivery time, Purchasing group, Standard quantity, Minimum
quantity, Net price, Tax code & Tolerances.
23. Types of purchase info record?

 Standard
 Subcontracting
 Pipeline
 Consignment
24. Difference between quota arrangements and source list?

 Source list is for selecting single vendor.
 Quota arrangement is used for selecting multiple vendors for a material. This we need to mention in
material master
25. Why source list is important?

 The mandatory use of source lists can be defined per material or even at the plant level. It specifies the
allowed (and disallowed) sources of a material for a certain plant within a predefined period. Each source is
defined by means of a source list record.
26. How to deactivate the vendor?

Using T-Code: XK06 (Vendor flag for deletion)

27. Can we change the material type of the material?
Yes, we can
28. Can we change the Industry sector

No, we can’t
29. Table for Valuation class in material master?

MBEW
30. How to extend the material views?

Using T-code: MM50
31. Can we create a material without org level Plant and SL?
Yes we can create after that we need to extend by using t-code MM01
32. In which view we can select the procurement and special procurement types in material master?
MRP -2 view

Procurement to Pay (P2P) Cycle
1. Explain P2P Cycle?
The P2P cycle, also known as the procure-to-pay process, is a key business function in SAP and other ERP
systems. It covers the entire process of acquiring goods and services from suppliers and paying for them.
This cycle describes the steps that a company must take to procure the items and pay the appropriate
remittance to the supplier, less any discounts and adjustments.
2. What are Internal and External Purchasing documents?

An internal document is a record that is created and stored within a business. The document is used to
support the processes of the organization.
Example: Purchase requisition [PR].
Documents needed for the company record keeping that has somehow been handled by outside
individuals.
Example: PO, contract release order & SA, invoices, payment vouchers, VAT reports and tax returns are
produced because someone outside the business needs them.
3. What is PR, RFQ, and PO?

 PR: A purchase requisition is a document that an employee within your organization creates to request
a purchase of goods or services. It is an internal document and remains within the organization.
 RFQ: Request for quotation is a form of invitation that is sent to the vendors to submit a quotation
indicating their pricing and terms and conditions.
 PO: Purchase order is the formal and final confirmation of the requirement that is sent to vendor to
supply material or services.
4. Tables for PR, RFQ, PO, GR and IR?

Purchase requisition (PR):
EBAN - Purchase Requisition
EBKN - Purchase Requisition Account Assignment
Request for Quotation (RFQ):

EKKO- Purchasing Document Header
Purchase Order (PO)

EKKO - Purchasing Document Header
EKPO - Purchasing Document Item
Goods Receipt (GR):

MSEG- Document Segment: Material
MKPF- Header: Material Document

Invoice Receipt (IR):
RSEG - Document Item: Incoming Invoice
BKPF- FI - Financial Accounting
5. Different types of Item category?
Item Category Codes

Standard Blank
Service D
Consignment K
Sub-contracting L
Pipeline P
Limits B
6. Different types of PO’s?

 Standard Purchase Orders (NB)
 Framework PO (FO)
 Service PO (SV)
 Inventory PO
 Non-Inventory PO
 Blanket Purchase Orders
 Contract Purchase Orders
7. Different types of PO Document types and RFQ Document Types?

PO Document types
 NB -Standard PO
 UB -Stock Transport order
 FO -Framework order
 SV- Service PO
RFQ Document Types

 AN- Request for Quotation HS
8. What are the T codes you can use to Create, Change and Display for PR, RFQ and PO?
T-Codes Create Change/Edit Display
PR ME51N ME52N ME53N

RFQ ME41 ME42 ME43
PO ME21N ME22N ME23N

9. Pre-requisites to create PO?
PO Doc Type, Vendor, organizational data, , Material, Delivery date, quantity, Net price and Material types
10. What are the different ways to create the PO?

 Manual creation by using T-code : ME21N
 With reference to PR, RFQ, Contracts
 Automatic PO creation by using T-code ME59N
11. What is Service and Framework PO?

 Service PO: Service purchase orders are entered for services that are procured internally or externally.
These purchase orders are different from standard ones as they don't require a goods receipt since they
have no stock but we can enter Service enter sheet using T-code ML81N
We need to match Supplier Invoice with PO if its matches then will arrange payment to supplier (Two way
match)
Account Assignment – P
Item category - D
 Framework PO: Purchase Orders refer to the business process where you have a Purchase Order with a
validity period (start / end date) and a limit on the item. No Goods Receipt takes place. Payment is
triggered by Invoice. Multiple invoices can be processed.
Here also we need to match Supplier Invoice with PO if its matches then will arrange payment to supplier
(Two way match)
Account Assignment – U
Item Category – B
12. Can we create PO without Materials?

Yes, we can create PO without material for Service PO and Non Inventory PO by using Item category D and
B
13. What is the T-code to maintain the Price in RFQ?

ME47
14. What is the T-Code for Vendor Comparison for RFQ?

ME49

15. What is collective no in RFQ?
The collective number enables you to track all RFQs for a given competitive bidding process. The number
can be alphanumeric and up to 10 characters long. You enter it in the header data of the RFQ.
16. What are the Important fields in PO header data, Item data and Item Details ?
Header contains – PO document Type , Supplier details, conditions, Org data such as Company code, P.org
and Purchase group, text and validity
Item level contains- Line item number, Account Assignment, Item category, material no, quantities, units of
measure, item price, Plant, storage location, delivery date Etc
Item Details contains Delivery schedule, Material data, delivery tab, Invoice, Conditions, Delivery address,
Confirmation
17. From where does Currency will fetch in PO?

The PO currency is always fetched from Vendor Master.
18. What are the Organization data given in PO header?

Purchasing organization, Purchasing group and Company code.
19. Which movement type we can use for GR?

101 − Goods receipt for purchase order
20. What are the Vendor Return Movement Type?

Movement type --> 161 is used for material returned to vendor via Return PO
Movement type -> 122- system automatically picks up movement type 122 there you have to enter the
material document no against which you had already done Goods receipt with 101 In MIGO
21. T-code to view material document with reference to materials?

MB51
22. What will happen after GR? *

When you post a goods receipt, the system automatically creates a material document which serves as
proof of the goods movement, parallel to the material document, the system creates an accounting
document.
And Purchase order history will be generated in the PO item details level
23. What will happen after IR?

Document will generate confirming that a customer received the goods or services they paid a business
Invoice receipt is generated against a goods receipt. The values in GR document should ideally match to
that in the invoice receipt.
24. Can we create single PO for Different currency?
Yes, it is possible at item level conditions and enter - value will be converted to header level currency by
system automatically.
25. Difference between PR and PO?

 A Purchase Requisition highlights a need for goods or services (internal document), Purchase
requisition is basically formal request to buy a material.
 A Purchase Order is a formal request to a vendor for the supply of goods or services (external
document.), Purchase order is legal authorized document created by buyer for purchasing material. Vendor
supplies material as per dates and qty.
26. How to create Automatic PO and which T-code we can use?

T-code: ME59N
Choose Requisition Follow-on functions, Create purchase order Automat. via requisitions
27. What is Account assignment?

 It is a mapping between the Item Categories and Account Assignment that indicates what are the
relevant and correct combination that can be used.
 The nature of the account assignment (cost center, sales order, and so on) which accounts are to be
charged when the incoming invoice or goods receipt is posted. Which account assignment data you must
provide - GL Account, Business area, Cost center or WBS element

Release Strategy or Procedure
1. What is the difference between with classification and without classification in Release strategy?
 Without classification.
Without classification we can release in only Item level
Only Internal documents like PR, material group, plant and total value can be released without
Classification
 With classification.
can With classification we release in both header level and item level.
Both Internal and external Documents can be released like PR, RFQ, PO, MRP controller and
Purchasing group, purchase organization
2.What is mean by characteristic, class, release groups, release indicators. ?

 Characteristics: are the criteria for the release condition. If the characteristics are satisfied,
 Class: All the characteristics can be grouped under a class and this class is assigned to a release group.
 Class: All the characteristics can be grouped under a class and this class is assigned to a release group.
 Release Indicators: A release indicator is assigned to an external purchasing order at the time
of process with the help of release code.
3.What is mean by class type 032

Class Type 032 indicates Release strategy
4. What is the T code used for PR and PO release?

T-Code for PR Release: ME54N
T-Code for PO Release: ME29N
5.What is the input for Release procedure.?

Material group, plant, total value and account assignment
6. How many release code we can create in one release group?

We can Create Innumerable release groups.

7. How many release codes we can create in one release process?
Release strategy is limited to 8 release codes.
8.Is it possible to cancel release strategy after configuration?

It can be revoke
9.What is the purpose of changeability function in release strategy?

The changeability functionality only concerns the purchasing transactions.
This is intended and a new release strategy determination takes place if there is a modification of the data
in the external application. It defines how the system should react if purchasing document are changed
after the start of release procedure
10.PR is not created can we prepare PO for release strategy.

Yes, we can Create PO For Release strategy without PR Being Created.
11.What are the fields comes under company code, purchase organization, purchase group, net valve
 Company code: BUKRS
 Purchase organization: EKORG
 Purchase group: EKGRP
 Net valve: GNETW
12.Explain release strategy for PR and PO

PR: It is released in both with classification and without classification only at item level.
PO: It is released in only header level and with classification
The release strategy defines the approval process for purchase requisitions or external purchasing
documents. The strategy specifies the release codes necessary and the sequence in which releases have to
be effected. You can define a maximum of eight release codes

Pricing Procedure
1.Explain pricing procedure steps

It is combination of different kind of prices that fetch in PO.
Like Gross price, freight, discount, surcharges
Steps:
 Define Condition table – M/03
 Define access sequence – M/07
 Define Condition type – M/06
 Define calculation– M/08
 Scheme determination - OMFO
 Define condition record - MEK1
 Assign schema group to Vendor – XK01
2.Explain fields in calculation schema?

 Step- Step It indicates the position of the condition type in pricing procedure
 Counter -Counter used to minimize steps of same condition types. so that number of
steps can be reduced in the pricing procedure and hence enhancing the system performance.
 Condition Type-Condition Type It represents pricing element in pricing procedure as a
base price, discount, freight and tax.
 Description - System copies description of condition type from its description.
 From -This can be used as a base to the condition type for calculating further value.
 To-The range between the steps from and to can be used to specify the range between
same condition types.
 Manual-If we check the box then the entry is going to be manual, if we uncheck it, it is
going to be automatic.
 Mandatory-This indicator specifies that particular condition type is mandatory in the
pricing procedure.
 Statistical -This indicator if it is activated will not allow the value of the condition type to
be taken into net value calculation (that is, without altering the value or it will not consider for
account determination).
 Print -The value of this field specifies whether line item can be printed or not in the sales
document and at what level it is to be printed.
 Subtotal-The value of this field determines where the values of subtotals to be captured.
 Requirement-This function is used to assign a requirement to the condition type. This
requirement can be used to exclude the system from accessing the condition type and trying
to determine the value.
 Alternative Caltn Type-It is an alternative formula for the condition type that can be used
instead of standard formulas.
 Alternative Condtn for Base Value-It is used as a basis to calculate value of the condition
type instead of using it from the "FROM" column. or alternate calculation is used to modify the
final value.
 Accounting Key-Account Key is mainly used for Freights charges suppose When you add
freight related condition types, it will be added to separate.
 Accural Key-The accrual keys form part of account determination. These keys are used
here to define the posting of the revnue generated to respective accounts.
3.What is mean by PB00 and PBXX

 PB00: Time dependent
This Condition is determined via access sequence from info record or contract or Scheduling
agreement or RFQ, It means if any record for material and vendor is defined the system will
search that record first and fetch the price in PO.
 PBXX: Time independent

If price not defined any record system will suggest to PBXX condition type to enter the price
in PO.
4.T code to maintain condition table in pricing procedure

T- Code for condition table is M/03.
5.MEK1 and VK11 difference in CONDITION RECORDS

MEK1 is for maintaining the vendor condition record,
VK11 is for maintaining customer condition records.
6.What is the main indicator in pricing procedure in PO.

Ans: Manual: Conditions, that are given this indicator in the pricing procedure, are only
included in determination (price determination, output determination, batch determination)
either if they are entered manually, for example, on the condition overview screen in Pricing
or if they are transferred from an external process, such as costing.
Statistics: This indicator causes a surcharge or discount to be set in the document statistically
(that is, without altering the value).
7.How pricing procedure is determined.

Schema group of vendor and purchase organization

8. What is access sequence in pricing procedure?
An access sequence is a search strategy that the system uses to find valid data for a particular
condition type
9.Use of Accruals in pricing procedure?
The accrual keys form part of account determination. These keys are used here to define the
posting of the revenue generated to respective accounts

Consignment and Pipeline Process
1. What is the T Code for active consignment?

OMEV
2. How you will identify the consignment PO?

 Item Category-K
 Net price will be greyed out.
 Condition & Invoice tab will not be there in PO (Item detail)
3. What are the accounting entries in consignment process?

 At the time of consumption posting
 GBB and Account modifier Dr
 KON Cr
 At the time of MRKO
 Vendor A/c Cr
 KON (Document displays KBS for two entries) Dr
4. What is the movement type in pipeline process?

201P
 Goods Receipt against PO (mov type 101) MIGO
5. What is the configuration for consignment process?

 Activate consignment (OMEV)
 Configure Special procurement type (OMD9)
 Assign the special procurement type in the material master. The Master Data transaction
code for the same is MM02. This is done in MRP2 view of the material master
6. What is the movement type in consignment?

 Issue: To production 201k, (MB1A) to company's inventory(Own Stock) 411k (MB1A)
7. What is the type of material used in pipe line process?

Material type is PIPE.
8. What you mean by movement type in special procurement?

Movement type describes the type of stock posting in inventory

9. What is important of movement type?
SAP movement type is a three-character key which differentiates material movements, e.g.
Goods Receipt or Goods Issue.
10. Explain the types of special procurement?

 CONSIGNMENT-In consignment process, the vendor provides materials and
stores them in company premises. The vendor remains the legal owner of the material until
materials are withdrawn from the consignment stores.
 SUB-CONTRACTING PROCESS-In the Subcontracting process the Subcomponents are
shared
to vendor to get the final product.
 PIPELINE PROCESS- Pipe line process is a material that enters the production process
directly from a pipe line Eg: Petrol, Electricity
11. What purpose of 411K in consignment?

Goods Issue: To company's inventory 411k (MB1A)
12. What are the special stocks?

Special stocks are stocks that are managed separately as a result of their not belonging to your
company or being stored at a particular location.
13. How do I return consignment stock in SAP?

In consignment Return Order, Delivery, Invoices and Credit for return take place.
1) Enter T-code VA01 in command field. Enter order type CONR (Consignment Returns).
Enter Sales area data in Organizational Data block.
2) Enter Sold-to Party / Ship-to party. Enter Order reason. ...
3) Click on save. Button.
14.What is Diff b/w Contract & Subcontracting PO?

Contract PO Subcontracting PO
 Item category used is Standard  Item Category used is L
(Blank)  Components can be added in PO
 No Components are added in PO
15. What are the different types of STOCK how you identified the negative stock?
 Valuated Stock - Unrestricted stock, Quality inspection stock & Blocked stock
 Non-Valuated Stock – GR blocked stock
 Special Stock – Subcontracting stock, Consignment stock, Stock Transport Order stock
Third Party Processing stock, Returnable stock transport order stock & Pipeline stock.

You can use T-code: MB52 and select "Display Negative stock Only" option to find when
negative stocks have been created.
16. What is purpose of Bill of material in Sub Contracting process?

BOM helps to add the components in Subcontracting PO automatically by exploding it.
T-Code: CS01
17. Difference B/W consignment & Subcontracting process?

 CONSIGNMENT- In consignment processing, the vendor provides materials and stores
them on your premises. The vendor remains the legal owner of the material until you
withdraw materials from the consignment stores. Only then does the vendor require
payment.
 SUB-CONTRACTING PROCESS-In the Subcontracting process the Subcomponents are
shared to vendor to get the final product.
18. Explain sub-contracting process?

In the Subcontracting process the Sub components are shared to vendor to get the final
product.
1) Create Material - Raw materials (Sub component) – T-CODE MM01
2) Create Material - Finished product (Final product) – T-CODE MM01
3) Create PIR - Select Sub-Contract (Against Finished product) The price given here is service
charge to the vendor- – T-CODE ME11
4) Create PO with Item Category L.(Add Sub components) – T-CODE ME21N
Note: Components can be exploded through BOM (T Code CS01) or components can be given
manually also.
5) Create Transfer Posting with Movement Type 541 to issue the sub components to the
vendor
T-CODE MB1B
6) Goods Receipt against PO (movement type - 101) – T-CODE MIG0
Note: During goods receipt, final product will be received with movement type 101 and
components will be consumed automatically with 543 movement type
7) Create Invoice– T-CODE MIRO
19. What are the accounting entries for sub-contracting process?

Here Dr means Debit (+Ve) and Cr means Credit (-Ve)
 (BSX) Stock A/c of Assembly – Dr
 (BSV) Change in Subcontracting Stock –Cr
 (FRL) Subcontracting Charges – Dr
 (WRX) GR/IR Clearing A/c – Cr
 (BSX) Stock A/c of Components – Cr
 (GBB-VBO) Consumption A/c of Components – Dr
20. What is the movement type used to receive Scrap?
Movement type: 545 - To receive Scrap / also negative stock.
21. What is the movement type used to issue subcomponents to vendor?

Transfer Posting with Movement Type 541 to issue the sub components to the vendor
22. What is the Item category for sub contracting PO?

Item Category L. (Add Subcomponents)
23.What is difference between sub-contracting PO and standard PO?

Sub-Contracting PO Standard PO
 Item Category-L  Item Category-Blank
 Contains ordering information of the details  Contains information of
of a raw material & the vendor's materials and services with and
(subcontractor’s) price for assembling the without master record.
component.
24. What is the use of 543 movement type in sub-contracting?

During goods receipt, final product will be received with movement type 101 and components
will be consumed automatically with 543 movement type

Subcontracting Process
1. Explain sub-contracting process

In the Subcontracting process the Sub components are shared to vendor to get the final
product.
a) Create Material - Raw materials (Sub component) – T-CODE MM01
b) Create Material - Finished product (Final product) – T-CODE MM01
c) Create PIR - Select Sub-Contract (Against Finished product) The price given here is service
charge to the vendor- – T-CODE ME11
d) Stock posting for the Sub components (Movement type 561)-– T-CODE MB1C
e) Create PO with Item Category L.(Add Sub components) – T-CODE ME21N
Note: Components can be exploded through BOM (T Code CS01) or components can be given
manually also.
f) Create Transfer Posting with Movement Type 541 to issue the sub components to the
vendor– T-CODE MB1B
g) Goods Receipt against PO (movement type - 101) – T-CODE MIG0
Note: During goods receipt, final product will be received with movement type 101 and
components will be consumed automatically with 543 movement type
h) Create Invoice– T-CODE MIRO
2. What are the accounting entries for sub-contracting process?

Here Dr means Debit (+Ve) and Cr means Credit (-Ve)
 (BSX) Stock A/c of Assembly – Dr
 (BSV) Change in Subcontracting Stock -Cr
 (FRL) Subcontracting Charges – Dr
 (WRX) GR/IR Clearing A/c – Cr
 (BSX) Stock A/c of Components – Cr
 (GBB-VBO) Consumption A/c of Components – Dr
3. What is the movement type used for negative stock?

Movement type 545 to receive Scrap / also negative stock
4. What is the movement type used to issue subcomponents to vendor?

Movement type: 541

5. What is the Item category for sub contract?
Item category: L
6. What is difference between sub-contracting PO and standard PO?

Sub-Contracting PO Standard PO
1) Item Category-L 1) Item Category-Blank
2) Contains ordering information for 2) Contains information of standard PO &
subcontract PO. Like example; the can be created for materials and services
details of a raw material & the vendor's with and without master record.
(subcontractor’s) price for assembling
the component.
7. What do you mean by stock in sub-contracting and explain the different types of stocks?
SAP Stock Types
There are three overarching SAP stock types, and several additional sub-types. We will discuss
these stock types in the following sections:
 Valuated Stock
 Non-Valuated Stock
 Special Stock
 Valuated Stock
Valuated stocks are those which are stored on premises and which post values in the
company’s accounts. There are three types of valuated stock, amongst which materials can be
moved using particular movement types. We define each sub-type of valuated stock below.
Unrestricted Stock: Unrestricted stock refers to stock which can be used readily and which is
always available for use on premises.
Quality Inspection Stock: Quality inspection stock is delivered material that is retained for
quality inspection. It is not regarded as unrestricted and cannot be readily used.
Blocked Stock: If a material is rejected due to bad quality then it is moved to blocked stock in
SAP. This can also happen during production when some irregularities are found with the stock
and thus blocked for further use. Non-Valuated Stock
With the procurement of non-valuated stocks, no accounting entry takes place. These SAP
stock types are not yet owned by the company even though they may be on the premises. For
example, if a vendor sends goods that are visibly damaged at the time of receiving, they will be
returned to the vendor and should not be processed into inventory. In this case the goods are
received into blocked stock with no accounting entry. This is an example of a non-valuated
stock type, as the ownership is still not with the company. Special Stock

SAP special stock types differ in their procurement method compared to standard the procure
to pay process. We will enumerate the different special stock types below:
Subcontracting: Subcontracting is a special procurement method wherein the company

decides to outsource its work to a vendor. In this process, a company sends raw material to
the vendor for specific manufacturing processes and receives the finished material back.
Consignment: In the consignment process, the vendor provides goods and keeps them in a
company’s storage area. The owner of the goods is still the vendor and the company is the
owner only when it withdraws the goods from the consignment stores for its own use. The
company pays the vendor only when it consumes the goods kept in the company’s storage
area as needed.
Stock Transport Order: The stock transport order (STO) process refers to the special stock
process where plant stocks are transferred within the same company code amongst supplying
and receiving plants.
Third Party Processing: With third party processing, a customer places an order with a
company which is sent to a third party vendor for processing. The third party vendor delivers
the goods directly to the end customer, but passes invoicing through the intermediary
company.
Returnable Transport Packaging: Returnable transport packaging (RTP) is a special
procurement process in which goods can be interchanged repeatedly between vendors and
customers. It may be done with a packaging medium like pallets and containers. Returnable
transport packaging is managed as a special stock belonging to the vendor. It is received by a
company with movement type 501M which does not included the material in the customer’s
valuated stock.
Pipeline Handling: If a company procures materials like water, oil or electricity through a
pipeline, it is managed through pipeline handling. In this special stock process, there is no
requirement to store the material which is ordered. Whenever there is a demand, the material
is ordered and goods are received using movement type 201P. Subsequently, settlement with
the vendor is handled through transaction code MRK
8. What is the use of 543 movement type in sub-contracting Process ?

During goods receipt, final product will be received with movement type 101 and components
will be consumed automatically with 543 movement type.

Batch management
1. What is batch management and explain the steps?

A batch is a consistent unit of a material identified by an alphanumeric key that’s defined in your SAP
system with unique specification
Step 1: Create Characteristics
T -code: CT04
Step 2: Create Class
T -code: CL02
Take Class type as 032 for batch management
Step 3: Create Material
While creating Material, in classification view give the class
Tick the Batch Management in General/plant data and purchasing data
Step 4: Create Batch
T -code: MSC1N
Step 5: Stock Posting (Mov Type 561)
T -code: MB1C
Mov Type 561
Step 6: Create PO
T -code: ME21N
Step 7: GR (Mov Type 101)
T -code: MIGO
2. What is the T Code to create batch management?

MSC1N
3. What is the class type for the batch management?

Class type: 023
4. What is the configuration to be done in material master to create batch management?

 While creating Material, in classification view give the class
 Tick the Batch Management in General/plant data

Material requirement Planning (MRP)
1. What is MRP and types of MRP?

It is a planning and decision-making tool used in the production process which analyses current
inventory levels in manufacturing processes
Types of MRP
 ND - No planning
 PD - MRP planning
 R1 - Time phased planning
 VB - Manual recorder point planning
 VM - Automatic reorder point planning
 VV - Forecast Based planning
2. What are the tables used in MRP?

 MDKP - Header data
 MDMA - MRP area for material
 MDLG - MRP area storage location
 MDLW - MRP area of plants
3. What is processing key and what are the processing key used in MRP?
It is a setting of main indicator for which the MRP planning run will execute. There are 3 processing
keys to choose from are net change planning (NETCH), net change planning in the planning horizon
(NETPL), and online regenerative planning(NEUPL).
 NETCH- Net change in total horizon-IN this run system it considers those material which has
undergone some changes from the previous MRP run
 NETPL- NET change in the planning horizon- PRE defined planning horizon>IN this run, the system
considers only those materials which has undergone some changes from last MRP run
 NEUPL- Regenerative planning- IN this system it considers all the materials in irrespective ways. It is
time consuming and not common in production planning
4. What are the T Codes for MRP?

 MD01 - MRP run
 MD02 - MRP run for single level and multi-level
 MD03 - Only single level
 MD04 - MRP Stock requirement list

5. What are the uses of MRP?
 Better inventory control
 Improved scheduling
 Reduced costs
 Production planning

Outline Agreement
1. What is Outline agreement and what are the different types of Outline agreement?
It is long term agreement between vendors and company regarding the supply of materials or the
performance of services according to predefined conditions over a certain timeframe.
Contract
Scheduling Agreement
2. What are the different types of contracts.?

Quantity Contract − In this type of contract, the overall value is specified in terms of the total quantity of
material to be supplied by the vendor.
Value Contract − In this type of contract, the overall value is specified in terms of the total amount to be paid
for that material to the vendor.
3.What is the T code to release the contracts and scheduling agreements?

To release contracts - T Code – ME35K
To release Scheduling agreement is – T Code – ME35L
4.What is the T code to create contracts and scheduling agreements?

To create contracts - T Code – ME31K
To create Scheduling agreement is – T Code – ME31L
5.Define Schedule agreement?

A scheduling agreement outlines a fixed schedule that itemizes deliveries or services and the dates they will
occur.
6.How to maintain scheduling lines.?

T-Code – ME38
Go to Item tab. Select Delivery Schedule. Step 4 − Provide the delivery schedule date and the target quantity.
Click on Save.

7.Difference between contracts and scheduling?
8.What is consumption based planning goods?

The SAP Consumption-Based Planning (CBP) is a method to generate future product stock requirements
based upon various parameters such as past consumption patterns or by setting minimum-maximum stock
levels for a material.

Physical Inventory
1. What is Physical inventory and what are the different types of physical inventory?
Physical inventory is a process of determining that the inventory quantities are exact, or if there
are differences in quantity mentioned physically present and that mentioned in the SAP system
 Cyclic inventory -Materials are counted quarterly
 Periodic Inventory- In most cases, it is done once a year, and this kind of inventory is called
annual physical inventory.
 Sample Inventory - Only a number of randomly selected materials are counted on the
balance sheet key date,
 Continuous inventory - Throughout the year, when needed
2. What are the benefits or advantages of physical inventory?

 Physical inventory counts are an essential part of keeping inventory records accurate and
current
 Confirm the inventory value is in line with budget estimates
 stock audit filing by 3rd party.
 Comprehensive listing of all supplies in stock by location value.
3. What is the T Code for the correction of physical inventory?

T-code for Maintaining the inventory is MI07
4. What is the T Code to re-count the physical inventory?

T-code for Entering the inventory is MI0

THIRD PARTY PROCESS
1.Define the Third-party process?

Third party process is one of the special procurement processes. In third Party process company place a
sales order on behalf of customer and company gives purchase order to vendor and vendor directly
delivers the goods to customer. Company pays to vendor and company collects the payment from
customer.
2.What is sales area?

A sales order is a contract between a customer and a sales organization for supply of specified goods and
services over a specified time period. (T-Code VA01).
Combination of Sales Organization, Distribution Channel and Division
3.What is the material type used in 3rd party processing?

Material Type: HAWA (Trading Goods)
4.What is the T Code and tables for sales order?

Create Sales Order (T-Code VA01)
 VBAK - Header data
 VBAP – Item Detail data
5.What is the T Code and tables for Billing.?

Billing (T-Code VF01)
 VBRK – Header data
 VBRP – Item data
6.What are the Prerequisites to create Sales Order.?

Pre-Requisites
1. Order Type-OR(Standard)
2. Sales Organization
3. Distribution Channel
4. Division
5. Sales Office
6. Sales group
7. Create sales order by giving the customer number for sold to party ship to party
8. Enter material
9. Quantity
7.What is Item category used in 3rd party process?

Item Category (TAS)
The purchase requisition is automatically created when the sales order is saved. Each third-party item in
the sales order automatically generates the corresponding purchase requisition item. If a third-party order
item has more than one schedule line, the system will create a purchase requisition item for each
schedule line.
STO
1. What are the different types of STO?
There are 3 types of STO, they are
STO without delivery
STO with delivery without billing (Intra STO)
STO with delivery and with Billing (Inter STO)
2. What are the movement types used in One step stock transfer process?
Movement types used in one step STO are
Plant to Plant – 301
Storage location to storage location – 311
3. What are the movement types used in Two step stock transfer process ?
Movement types used in Two step STO are
Plant to Plant – 303 and 305
Storage location to storage location – 313 and 315
4. What are the difference between Inter and Intra STO?
INTRA STO INTER STO

Stock Transfer between Two Plants with Stock Transfer between Two Plants with
One Company code. Two Different Company Codes
PO Document Type : UB PO Document Type : NB
Item category : U Item category : Blank
Delivery type : NL Delivery type : NLCC
Movement Type : 641 Movement Type : 643
Billing not required Billing Required
5. What is difference between STO PO and standard PO?

There will be shipping tab in item level of STO PO which cannot be seen in Standard PO.
6. What is the item category for STO?

Item category for Intra STO is U.
Item category for Inter STO is blank.
7. What are the configurations to be done in STO?

Path- Spro-IMG-material management-Purchasing-Purchase order-Set up stock transport
order
 Define shipping data for plants
 for supplying plant assign sales org and dish channel and division
 For receiving plant assign customer number
 Create checking rule
 Define checking rule
 Assign delivery type and checking rule
 Here assign delivery type (NLCC), checking rule, document type (NB) and supplying
plant
 Assign document type, one step procedure and under delivery tolerance
 Here assigns document type, supplying plant, delivery type (nlcc)
8. What is the T Code for the shipping point determination?

OVL2
9. What is the difference between P2P and O2C?

When a business makes purchase from vendor and pays for it is often referred as P2P
cycle. The process of receiving payment for the goods or services rendered is called O2C
cycle.
10. What is the T Code for PGI, Delivery (Outbound Delivery) and Billing?
T codes PGI – VL02N
Delivery – VL10B & VL10D
Billing – VF01
11. What is the movement type used in Inter and Intra?

Movement Types used in Intra : PGI – 641, GR – 101.
Movement Types used in Inter : PGI – 643, GR – 101
12.T code to create customer master data?

XD01

Account Determination
1. How many valuation classes can be assigned to account category reference?

N number can assigned
2. What is Account category reference?

Account category reference is the link between the valuation classes and the material
types. The account category reference is a combination of valuation classes
3. What is the T code to configure the automatic posting?

OBYC
4. what is the T code to activate the valuation area?

Valuation control T Code: OMWM
Activate the valuation area TCode: OMWD
5. Define Valuation class with T Code.

Valuation class categorizes the G/L account on the basis of material type.
For example, raw material will have different G/L account than the finished material, as the
costs will be different in both the cases.
Account reference is also maintained along with the valuation class.
TCode: OMSK

Output Determination
1. Define Output determination.
Output determination is the process to determine the output types such as printouts, fax,
emails and EDI that are sent from one server to another server.
2. Which is the standard used in the message type to setup output for PO.
NACE
3. What is the T Code to maintain the condition record?

MN04
4. What is the SPRO path for configuring the output determination?

T Code: MN04
Output of Purchase Order customization
1. Condition Table
SPRO > material Management> Purchasing -> Message -> Output Control->Condition
Tables->Define Condition Table for Purchase Order
Select:
Purchasing Doc. Type,
Purchase Organization,
Vendor
2. Access Sequences
SPRO -> Material Management-> Purchasing -> Message -> Output Control->Access
Sequences->Define Condition Table for Purchase Order
3. Message Type
SPRO -> Material Management-> Purchasing -> Message -> Output Control->Message
Types->Define Message Type for Purchase Order
4. Message Determination Schemas

4.1. Message Determination Schemas
Schema->Define Message Schema for Purchase Order-> Maintain Message Determination
Schema
4.2. Assign Schema to Purchase Order
Schema->Define Message Schema for Purchase Order-> Assign Schema to Purchase Order

5. Partner Roles per Message Type
SPRO -> Material Management-> Purchasing -> Message -> Output Control-> Partner Roles
per Message Type ->Define Partner Role for Purchase Order
6. Condition Record
Navigation Path: SAP Menu-> Logistics -> Material Management -> Purchasing-> Master
data->Messages-> Purchase Order-> MN04-> Create
Now you create PO (ME21N) and save it. Go to ME22N and print the PO by giving output
type

Additional questions
1.What is WBS element?
A WBS Element is a term used in SAP to refer to a collection of activities and costs in
a work breakdown structure. There can be many WBS elements that can form a WBS
hierarchy that are made up of different types of accounts in the ERP.
2. What is GAP analysis?

A gap analysis is the process that companies use to compare their current performance
with their desired, expected performance. This analysis is used to determine whether a
company is meeting expectations and using its resources effectively.
3. What is direct Procurement process?
The process of procuring materials that are directly used for production purposes is
known as the direct material procurement process.
4.Without GR how to take stocks from vendors?

By using movement type 501
5. What is SAP MM and FI integration?

SAP MM FI integration is a good example of how different modules of SAP ERP systems are
integrated with each other. SAP ensures that data from one module automatically flows
to another module.
The Best Four of them are:
1. Chart of Accounts
2. Valuation Grouping Code
3. Transaction key
4. Valuation Class
6. What is movement type? T code to create movement type?

A movement type is a 3-digit movement identification key. Goods movements are
referred to as SAP movement types.
T-Code: OMJJ

7.What is Valuation class?
Group of material having same account determination is called valuation class. We can
group together different materials with similar properties by valuation class. Eg Raw
material, Finished Goods, Semi-Finished.
8.What is access sequence in pricing procedure?

Access sequence is a search strategy which searches for condition record in condition
table for a condition type.
9. What are transaction keys?

These are internal processing keys to determine account automatically to which posting
line is generated. Transaction keys internally linked to different movement types to
capture relevant business transaction.
10. What is cut over activity?

It is defined as data migration plans management & execution and activities that are
involved just before making your project live or on the new system. Exact timing and
successful execution of Cutover Plan Activities is crucial during the Cutover Phase Plan in
an SAP Implementation Project.
11. Use of Accruals in pricing procedure?

Accrual key is mainly used for Rebates. In pricing procedure , we use accrual key ERB AND
ERU .which is for discounts a/C key are used for posting the proper G/L accounts . where
as accrual keys are used for the Rebate settlement.
12. Accounting keys in GR and IR?

Accounting keys in GR
Acc. Entry for stock material
 Stock account – Material (BSX): Debit
 GR/IR clearing - Material (WRX): Credit
Acc. Entry for account assignment PO
 Consumption account/Asset account – Debit
 GR/IR clearing - Material (WRX): Credit
Accounting keys in IR

 GR/IR clearing account: Debit
 To vendor account
13. What is consumption based planning good?

Consumption-based planning procedures are simple materials planning procedures which
you can use to achieve set targets with relatively little effort.
14. What are Configurations you have done with respect to P2P Cycle?
 Purchasing document types
 Line item numbers
 Item categories
 No range for PR, RFQ and PO.
 PO outputs determination
 Release strategy for PO and PR

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SAP MM All Topics Interview Questions with Answers

1. What is Enterprise structure?

2. What are the elements for SAP MM Enterprise structure?

3. What is purchase org?

4. How many plants can be assigned to one purchase org?

5. Why plant is defined in logistic general?

6. Will you define storage location?

7. How many purchase org can be assigned to one company code?

8. Can two plants have a common storage location?

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Standard Purchase organization Reference Purchase organization

Standard Purchase organization

12. What are the Prerequisites for Creating a Plant?

13. What is the Purchasing Value Key?

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15. What data is stored in company code level?

16. What is Cross company code purchase org?

18. What are the Assignments you will do in Material management?

19. What is movement type? T code to create movement type?

Goods receipt for a purchase order – 101 Movement Type

20. What are transaction keys?

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22. Without GR how to take stocks from vendors?

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1. What are the Master data in SAP MM?

2. What is the use of material Types?

 Number Assignment (Internal or External)

3. Use of industry sector?

4. T code for the list of materials?

5. T code to create material group?

6. How to select the views for material types?

7. Difference between FERT and ROH material types?

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Material Type Description

9. What is Valuation class? And Use of valuation class?

Fields in purchasing view

General Plant view

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12. Pre- Requisites to create vendor master?

13. What is vendor Account group and what is the use?

It determines the following:

15. Difference between service master and material master

16. Can you create vendor without purchasing data centrally?

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 LFA1 General data

18. What is vendor partner functions?

19. Can you create vendor without partner functions?

20. Prerequisites to create purchase info record

22. What are the imp field in purchase info record?

23. Types of purchase info record?

24. Difference between quota arrangements and source list?

25. Why source list is important?

26. How to deactivate the vendor?

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28. Can we change the Industry sector

29. Table for Valuation class in material master?

30. How to extend the material views?

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