Interview Questions on SAP MM
1. What are the types of special stocks available?
Subcontracting, consignement, pipeline, project, sales order, RTP,
stock transfer ,third party.
2. What are the types of inforecords?
Standard, consignment,subcontracting & pipeline.
3. What is meant by consignment stock?
The stock supplied by the vendor is in the companies premises with
the company having no liability for the same. The liability for the
company will only be affected when the goods are issued from the consignment
stock for use.
4. What are the steps involved in consignment cycle?
Create consignment info record with proper tax code, create Po with
item category K, maintain output condition record for KONS, process GR,
no invoice verification done, but settlement is done through MRKO transaction.
5. Tell me about the subcontracting cycle.
The Po is created with item category L , the goods is transferred to
subcontractor by 541 movemet. for this movement note no accounting docs
take place. When GR is done automatically, 543 movemnt takes place
which take care of the consumption of components from stock.
6. How are the byproducts taken care of in subcontracting?
You can add these by products in the BOM for the header matl.
7. What is meant by scales?
Can scales be used in standard purchase order? You can
fix a price in the info record for a say qty from 1-100 price RS150 &
if the order qty is 101- 500- the prices is 140 . Scales cannot be used
directly in PO but can be pulled into the PO from various master data like
info record, quota arrangement.
8. What is the difference between a contract and a scheduling agreement?
With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can
maintain different pricing conditions for each and every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for
delivery schedule line via Transaction ME38 or MRP running (with the appropriate
setting of Source List).
3. Delivery Schedule line items are created subject to your specific
4. Can create both Scheduling Agreement with and without Release Documentation
(subject to the Document Type LP or LPA) with the selection of either FRC
or JIT delivery schedule.
5. Either time-dependent or time-independent conditions can be created
subject to the customizing in the Document Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used.
9. How does the system calculate taxes?
10. How does the system calculate nondeductible taxes?
11. What is meant by batches? How can the batches be searched?
A batch is a subdivision of your stock of a material having the same
- food production uses batches to indicate the day of production.
- paint production uses batches based on production date and the used
ingredients. It is very hard to reproduce the same color in exactly the
same way at two different moments.
- ore may be divided in batches based on their mineral content.
You can search batches using the standard search facility (match code,
key F4) based on the naming convention of the batches or, if you use batch
classification, based on the characteristics of the batches.
12. How is a shelf-life item managed in SAP? What is the full cycle?
13. What are the settings required for quota arrangement?
To set up a quota arrangement for the procurement of a material, proceed
Master data -> Quota arrangement -> Maintain, enter the material and
plant number, press ENTER to display the overview screen for the
quota arrangement periods, Enter a validity period for quota arrangement,
Enter date until which the quota arrangement is valid. The start date is
calculated by the system. Press ENTER .
Select the quota arrangement and choose Goto -> Item overview to display
the item overview screen of the quota arrangement. Enter a quota
arrangement item for each source of supply you want to include in the quota
You must enter the following data.
- Procurement type
- Special procurement type, Enter k in the S column, for example, if
a consignment arrangement for the material exists with the vendor.
- Vendor number
- Procurement plant (supplying plant):
- Quota column, enter the quota assigned to each item.
Press ENTER .
The percentage distribution of the quotas is calculated and displayed
automatically by the system.
Save the quota arrangement. The system assigns a number to the
quota arrangement item automatically
14. What is meant by MRP Type and lot sizing?
15. Can it be configured in such a way that the external requisitions
can also be taken into account while MRP runs in consumption-based
planning if VB is selected as MRP type?
16. How are free items managed in a PO? yu need to tick the tem as
free in the PO. The price will be zero for such PO's.
17. What are the differences between release procedure with classification
and release procedure without classification? When are they used?
Release procedure with classification means the Purchase requsition
can be released both at item level & at the header level. Release
procedure with out classification can also be used for PR which is used
for item level release only. all other external documents cannot be relesed
with classification. The two procedures are mutually exclusive (that is
to say, you must decide in favor of one of them only - you cannot use both).
18. Is it possible to have a release procedure without classification
for a PO?
19. What is the maximum number of levels available in SAP?
Did not get this question …pls clarify.
20. Is it possible to have scales in a quotation?
21. What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received,
you can put in GR blocked stock.
22. How are the variations in subcontracting taken care of in SAP?
23. How to give specifications for developments?
We normally prepare a business requirement document in which we specify
what is required. what field & tables have to be referred for the required
24. How to create PR or PO by MRP?
The PR is created according to the safety stock mentioned for
the material or can be triggered from a requirement . For creating a PO,
you need to have the scheduling agreement in place .After the MRP is run
the schedule lines are generated which are nothing but the PO.
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