Top SAP MM Interview Questions (2024)

1. What is SAP MM?

2. What are the key component in SAP MM?

3. What are the different phases in SAP MM?

4. What tasks are performed in the MM purchasing component of SAP MM?

5. What is Controlling (CO) in SAP MM?

6. What is Financial Accounting (FI) in SAP MM?

7. What is Sales and Distribution (SD) in SAP MM?

8. What steps are involved in the SAP MM procurement cycle for a service or material?

9. What is special stock in SAP MM?

10. What is RTP process in SAP MM?

11. What is consignment process in SAP MM?

12. What are SAP MM Purchase Order Types?

13. What is Subcontracting Purchase Order in SAP MM?

14. What is a Tcode in SAP MM?

15. How to create the Subcontracting purchase order in SAP MM?

16. How to create Consignment Purchase Order in SAP MM?

17. What is Stock Transfer Purchase Order in SAP MM?

18. How to create stock transfer buy order in SAP MM?

19. What is Service Purchase Order in SAP MM?

20. How to create service buy order in SAP MM?

21. What is Posting Period in SAP MM?

22. What is Outline Agreement in SAP MM?

23. What is the difference between Scheduling Agreement and Contract in SAP MM?

24. What is release creation profile in SAP MM?

Q: What is SAP MM?
Ans:

SAP MM (Materials Management) is a SAP ERP Central Component (ECC) module that allows businesses to manage materials, inventory, and warehouses.

Q: What are the key component in SAP MM?
Ans:

SAP MM is divided into five primary components. These are materials management, plant maintenance, quality management, production planning and control, and a project management system.

Q: What are the different phases in SAP MM?
Ans:

Phases of materials management (MM) are purchasing, materials planning and control, goods receiving, inventory management, and invoice verification.

Q: What tasks are performed in the MM purchasing component of SAP MM?
Ans:

The following are the MM Purchasing component's roles:

1. External material and service purchasing
2. Identification of potential supply sources for a requirement indicated by the materials planning and control system or arising directly inside a user department.
3. Monitoring of vendor delivery and payments.

Q: What is Controlling (CO) in SAP MM?
Ans:

The interface to the cost accounting system (Controlling) is most visible in the case of purchase orders for items meant for direct consumption and for services, as these can be assigned immediately to a cost center or a production order.

Q: What is Financial Accounting (FI) in SAP MM?
Ans:

Purchasing, in collaboration with Financial Accounting, manages data on the vendors defined in the system. Each vendor's information is recorded in a vendor master record, which includes both accounting and procurement information. In financial accounting, the vendor master record represents the creditor account.

Purchasing can also indicate which G/L accounts are to be charged in the financial accounting system using PO account assignment.

Q: What is Sales and Distribution (SD) in SAP MM?
Ans:

A requirement that has created in the Sales sector might be passed on to Purchasing within the context of materials planning and control. Furthermore, when a requisition is made, it can be assigned immediately to a sales order.

Q: What steps are involved in the SAP MM procurement cycle for a service or material?
Ans:

In SAP MM, a standard service or material procurement cycle includes the following stages:

1. Requirements Selection
2. Source Identification
3. Vendor Selection and Quotation Comparison
4. Processing Purchase Orders
5. Follow-up on Purchase Orders
6. Receiving Goods and Inventory Management
7. Verification of Invoices

Q: What is special stock in SAP MM?
Ans:

Special stocks are stocks that are maintained separately since they do not belong to your organization or are kept in a specific location.

Q: What is RTP process in SAP MM?
Ans:

Returnable transport packaging (RTP) is a multi-trip packaging method (such as pallets or containers) that allows items to be moved between vendors and customers more than once.

Q: What is consignment process in SAP MM?
Ans:

SAP's consignment process phases are quite easy. It require to make a purchase order, performing a good receipt, and withdrawing the stock from the Vendor's books. The settlement of a vendor's liability is the final stage in the consignment process.

Q: What are SAP MM Purchase Order Types?
Ans:

There are four types of purchase order for various procurement types:

1. Subcontracting Purchase Order
2. Consignment Purchase Order
3. Stock Transfer Purchase Order
4. Service Purchase Order

Q: What is Subcontracting Purchase Order in SAP MM?
Ans:

Subcontracting involves the seller (the subcontractor) receiving components from the ordering party and using them to create a product. A purchase order is used to order the product from your organization. The components needed by the vendor (seller) to make the ordered product are listed in the purchase order and delivered to the subcontractor.

Q: What is a Tcode in SAP MM?
Ans:

In SAP, transaction code is the entry point for entering and using a screen flow, that is ultimately part of a business process. A transaction is often one item that represents one activity in a business process and can be used to create new records, modify existing ones, view them, report on them, and so on.

Q: How to create the Subcontracting purchase order in SAP MM?
Ans:

Subcontracting purchase orders can be created by following the steps outlined below.

1. ME21N is the purchase order TCode.
2. L is the item category.
3. In the command field, enter the TCode.
4. It will lead you to the purchase order screen.
5. Provide all relevant information such as vendor call, object type, material name, plant for which material is procured, and delivery date Save the file.
6. A buy order for subcontracting can be created.

Q: How to create Consignment Purchase Order in SAP MM?
Ans:

The following steps can be used to create a consignment purchase order.

1. ME21N is the purchase order TCode.
2. Class of Provider items: ok
3. Enter the TCode in the command subject. This will bring you to the purchase order page.
4. Enter all relevant data such as the call of the dealer, the object category, the name of the material, the plant for which the item is obtained, and the date of shipment Save the data. It will create a consignment buy order.

Q: What is Stock Transfer Purchase Order in SAP MM?
Ans:

Procurement and supply of in-stock switch goods happens within a company. Internally, one plant orders products from another plant (receiving plant/issuing plant). The products are purchased via a special type of purchase order known as a stock transport order.

Q: How to create stock transfer buy order in SAP MM?
Ans:

The steps listed below can be used to create a stock transfer buy order.

1. ME21N is the TCode to create a purchase order.
2. Category for stock transfer items: U
3. In the command area, enter the TCode. It'll redirect to the screen for placing an order for purchases.
4. Provide all relevant information, including the vendor's name, the item type, the material call, the plant for which the material is sourced, and the transport date.
5. Click "Save." This will create the stock transfer buy order.

Q: What is Service Purchase Order in SAP MM?
Ans:

A third party will represent the offerings to the company as the provider. These services will include machine servicing and maintenance.

Q: How to create service purchase order in SAP MM?
Ans:

The steps listed below can be used to create a service purchase order.

1. ME21N is the TCode to create a purchase order.
2. Class of Provider Item : D
3. In the command area, enter the TCode. It'll redirect to the screen for placing an order for purchases.
4. Provide all relevant information, including the vendor's name, the item type, the material call, the plant for which the material is sourced, and the transport date.
5. Click "Save." This will create the service purchase order.

Q: What is Posting Period in SAP MM?
Ans:

It indicates that a posting period is maintained for a specific company code, and posting to that document is only permitted during that period. The following five fields can be used to create a posting period for a company:

1. Maintain Fiscal Year Variant
2. Assign Fiscal Year Variant to Company Code
3. Define Variants for Open Posting Periods
4. Assign Variant to Company Code
5. Open and Close Posting Periods

Q: What is Outline Agreement in SAP MM?
Ans:

An outline agreement is a longer-term agreement between a purchasing organization and a vendor for the supply of materials or the performance of services under predetermined criteria over a specified time period. Outline agreements are classified under the following categories:

1. Contracts
2. Scheduling agreements

Q: What is the difference between Scheduling Agreement and Contract in SAP MM?
Ans:

A schedule agreement comprises delivery schedule data, whereas a contract just has quantity and pricing information and no delivery date details.

Q: What is release creation profile in SAP MM?
Ans:

A release creation profile is used to set the time period during which releases (types of delivery schedule) are prepared and delivered to the vendor in accordance with a scheduling agreement.