SAP MM Interview Questions
Real time SAP MM Interview Questions with Answers
1. How to create a material master in SAP MM?
To create a material master record in SAP MM you have to run the Transaction Code MM01. After execution of this transaction brings us to the initial screen of MM01. On that screen, we need to provide basic two information for the material like
Enter Industry sector
and Material Type.
2. How to create a Purchase Info Record in SAP MM?
To create a Purchase Info Record you have to use Transaction Code ME11 and provide the below-mentioned details in the initial screen.
Purchasing Organization and
And then select Info Category as Standard Radio button.
On the next screen, you have to provide information about the Vendor Data.
3. What are the essential components in SAP MM?
Determine Business Requirements
Order follow up
4. How to create a Purchase Requisition in SAP MM?
Enter Transaction Code ME51N in the SAP command Bar and Press Enter Button.
Now Enter the following information as mentioned below.
Purchase Requisition Document Type: NB – standard.
Source Determination: ON or OFF.
Material: Material Number.
UoM (Unit of Measure).
Storage Location: Where material will be stored.
Vendor: Automatically determined by using source determination.
5. How to create RFQ(Request for Quotation) in SAP MM?
Execute Transaction code ME41 in SAP Command Bar and provide the details mentioned below.
and then enter the organizational Data
after that provide line Item details
Supplier Address details and then save it.
6. How to create Stock Transfer Order in SAP MM?
There are the following steps required to create a Stock Transfer Order in SAP MM.
Please follow the below-mentioned steps.
Create Material Master: MM01
Create Info Records for STO Process: ME11
Create Outbound Delivery: VL10B
Do the Post Goods Issue: VL02N
Create STO Billing: VF01
Do the Goods Receipts: MIGO
Do the FI Invoice Posting: J_1IG_INV
7. How to create Subcontracting Process in SAP MM?
The subcontracting process shows you how to record transactions related to subcontracting with chargeable components.
There are the following steps required to create Subcontracting Process in SAP MM.
Material Master: MM02
Create Vendor Master: BP
Create Subcontracting Purchase order: ME21N
Subcontracting PO release: ME29N
Transfer posting of material to Subcontracting Vendor: MIGO
Subcontracting Challan: J1IGSUBCON
Goods Receipts: MIGO
Quantity Reconciliation of Subcontracting Challan’s: J1IGRECON
Invoice Verification: MIRO
8. What is Consignment Process and How to create this in SAP MM?
The consignment Process in SAP for a vendor is used when a vendor provides the company materials on loan. The materials of the company are kept in the warehouse until you withdraw the said materials for processing. So then, liability is created for the vendor, and payment is done on agreed intervals, for example, weekly or monthly.
Create Consignment Process: The Transaction Code is ME11 which is used to create the Consignment Process in SAP MM.
The following information is required to do this.
Then Select the Consignment radio button from Info. Category and then press Enter.
9. What is Service Entry Sheet in SAP MM?
The Service Entry Sheet in SAP MM is used to store a record of all Services that are procured and it maintains a service entry sheet in the case of procurement of goods, we maintain a goods receipt document.
10. How to create a Service Entry Sheet in SAP MM?
Execute the Tcode ML81N and click on the “Other Purchase Order” icon and provide the Purchase Order number and then press the Enter button to create a new Service Entry Sheet.
Click on the “Service Sel.” button to adopt the service from PO.
Select the line item then click on the “Services” button to adopt the services.
Click on the “Accept” (Flag Icon) button and click on Save.
An accounting document will be generated and the Service will be accepted for PO.
11. What is Import Procurement Process in SAP MM?
Generally, we pay the customs duty to the Government when we procure products from outside the country. For this, we create Import Purchase Order against the Foreign Vendor with the foreign currency. And we maintain the condition type in the purchase order.
12. How to create Import Procurement Process in SAP MM?
There are the following steps that are required to do the Import Procurement Process in SAP MM.
Create Import Purchase order: ME21N
PO Release: ME28
Paid Custom Duty to Custom Vendor: MIRO
Goods Receipts: MIGO
Invoice Verification: MIRO
13. Explain different types of stocks in SAP MM.
There are three types of stocks
14. Explain different types of Info records.
15. What is Internal Procurement?
In big organizations, there are different types of separate businesses entity with an internal procurement process, the requirements of materials and services are gathered from an identical company. However, each identical company has to maintain a complete bookkeeping system along with separate Profit and Loss statements, Balance Sheets.
16. What is External Procurement?
When the procurement of products or services is done by external vendors, it is known as an external procurement. It has three primary forms, Example:
One-time orders: This term is used for those goods that are needed irregularly.
Longer-term contracts: This term is used for those materials that are ordered regularly in large quantities.
Longer-term scheduling agreements: This term is used for that material, which is ordered regularly and also in large quantities.
17. What are the main features of SAP material management?
Production and material control
18. What do you mean by material requirement planning (MRP)?
MRP: – Material requirement planning is a sub-module of SAP. It relates to module MM and PP. It is a sort of planning tool to assist procurement and production planning in establishing realistic and possible plans which help to initiate procurement and production procedures swiftly.
19. What steps are involved in Procurement Lifecycle?
Gathering information – The procurement process starts with gathering information about the goods and their quantity. Once gathered all the information, the necessary steps are taken to find out the suppliers to satisfy the requirements.
Contact suppliers: After gathering all the information, the next will be to look for suppliers to get the requirements. Then, quotation requests are sent to suppliers to get the best rates.
Review the background: Once you get to know about the suppliers, necessary steps are taken to investigate the suppliers like warranties, maintenance services, etc. that he can offer along with supply.
Negotiation: After reviewing the background, negotiation is done by the buyer. Whatever negotiation is made, it is finalized by an agreement along with other information like delivery date, the quantity of material, etc.
Fulfillment of Order: Finally, the order becomes delivered to the supplier accordingly ordered.
Lastly, necessary steps are initiated to consume, maintained, and dispose of the material.
20. What is MIRO?
MIRO: – It means movement in receipt out. It deals with invoice verification activities in terms of bills raised from the vendor’s end. MIRO is basically used by MIRO Transaction Code.
21. What is invoice processing?
This is used by a company’s account payable to manage supplier invoices. Invoice processing is initiated when an invoice is accepted and ends when it becomes clear, and it becomes shown in the general ledger.
22. What is MIGO?
MIGO: – It is used for those goods that are moving out like from plant to plant transfer, goods receipt, storage location to storage location transfer, etc. The term MIGO is used by the logistics departments. The Transaction Code is MIGO.