SAP MM interview questions

Here are some common SAP MM interview questions for candidates with experience, along with key points to consider for your answers:

1. Explain the procurement process in SAP MM.

- Key Points: Purchase requisition, RFQ (Request for Quotation), Purchase Order (PO), Goods Receipt (GR), Invoice Verification, Payment Process.

2. What are the types of procurement processes in SAP MM?

- Answer: Standard procurement, third-party procurement, subcontracting, consignment, stock transfer, and external service procurement.

3. What is a Purchase Requisition (PR) and how is it different from a Purchase Order (PO)?

- Key Points:

- PR: Internal document to request the purchase of goods or services.

- PO: Formal agreement with a vendor to supply the requested goods or services.

4. Explain the importance of Material Master and its key views.

- Key Points: Material master contains all information related to materials, used across modules (MM, SD, PP).

- Important views: Basic data, purchasing, accounting, MRP, storage, warehouse management.

5. What is the difference between a Contract and a Scheduling Agreement?

- Key Points:

- Contract: Outline agreement for a long-term supply of materials without specific delivery dates.

- Scheduling Agreement: Outline agreement with specific delivery dates and quantities over time.

6. What is the significance of the Source List in SAP MM?

- Key Points: Source list specifies the approved vendors for procurement of materials. It controls the vendor from which the material is procured.

7. Explain the concept of a ‘Release Strategy’ in SAP MM.

- Key Points:

- Approval process for purchase requisitions or purchase orders.

- Based on parameters like material type, value, plant, etc.

- Release codes and workflow are involved.

8. What is MRP (Material Requirements Planning)?

- Key Points:

- MRP ensures material availability, determines procurement proposals (purchase requisitions or planned orders) based on demand.

- Involves MRP types (e.g., PD, VB), lot sizing, and safety stock.

9. What is the movement type, and can you give examples?

- Answer: Movement types are codes that identify the type of material movement (e.g., receipt, issue, transfer).

- Common movement types:

- 101: Goods receipt for PO.

- 201: Goods issue for cost center.

- 301: Stock transfer between plants.

10. How is Invoice Verification handled in SAP MM?

- Key Points: The process of matching the vendor's invoice against the purchase order and goods receipt to ensure accurate payment. Tools like MIRO (Invoice verification) and MRBR (Blocked invoice release) are involved.

11. What is the difference between Goods Receipt and Invoice Receipt?

- Key Points:

- Goods Receipt (GR): Acknowledges that goods have been received from the vendor.

- Invoice Receipt (IR): Acknowledges receipt of the invoice from the vendor for goods delivered.

12. What is Consignment Stock in SAP MM?

- Key Points: Vendor-owned stock stored at the company’s premises. Payment to the vendor is made only when the stock is used or sold.

13. What is a Stock Transfer? How is it different from Transfer Posting?

- Key Points:

- Stock Transfer: Physical movement of stock between locations (plants or storage locations).

- Transfer Posting: Logical change in stock status (e.g., unrestricted to blocked stock).

14. What is a Blanket Purchase Order and when is it used?

- Key Points: A long-term agreement for procuring materials or services at unspecified times and quantities, often used for services or recurring purchases.

15. What are the different types of Stock in SAP MM?

- Key Points:

- Unrestricted stock.

- Quality inspection stock.

- Blocked stock.

- Reserved stock.

16. Can you explain what batch management is in SAP MM?

- Key Points: Batch management is used to manage and track inventory based on production lots (batches). Used for products that require traceability (e.g., pharmaceuticals, chemicals).

17. What is a Pricing Procedure in SAP MM, and what are its components?

- Key Points: Pricing procedure determines how the system calculates the price in purchasing documents.

- Components: Condition types, access sequence, condition tables, calculation schema.

18. What is the difference between a Reservation and a Planned Order?

- Key Points:

- Reservation: Ensures availability of stock for a specific purpose.

- Planned Order: Proposals created by MRP to initiate procurement or production.

19. What are the various info records in SAP MM, and why are they important?

- Key Points:

- Info records store information about materials and vendors.

- Types: Standard, Consignment, Subcontracting, Pipeline.

20. What are User Exits in SAP MM?

- Key Points: Custom enhancements to SAP standard functionality. Commonly used for customizing specific business requirements without modifying the core system.