SAP MM Interview Questions and Answers

SAP MM Interview Questions and Answers

 Our experts providing  SAP MM  interview questions & Answers/Faqs can develop your carrier & knowledge to find the right job in a good MNC’s, doesn’t matter what kind of company you’re hired.

1. What is SAP MM?


SAP MM (Material Management) is a functional module in SAP that deals with procurement handling and material management. The MM module contains master data, system configuration and transactions to complete the procure to pay process.

2.  What is SAP?  How is it used in industries?


  •     SAP is the most popular enterprise resource planning (ERP) software application used to provide enterprise business solutions. It was first introduced in 1972 in Mannheim, Germany. SAP stands for Systems, Applications, and Products in Data Processing.
  •     SAP provides complete business solutions by integrating various business tasks such as sales, purchase, and production. SAP takes information from one business process and incorporates it into another business process, thereby speeding up all business processes. For example, information about the raw material in stock is used by the production department to determine how to prepare products.
  •     SAP is widely used in various industries because as it updates and processes important data very quickly, it can automate business processes and provide real-time solutions for businesses.


3. What are the essential components in SAP MM?


  • Determine requirements
  • Source determination
  • Vendor Selection
  • Order Processing
  • Order follow up
  • Goods receipts and Inventory management
  • Invoice Verification


4. What is the organisational structure in the MM module?


The organizational structure in the MM module is a hierarchy in which various organizational units are arranged according to their tasks and functions. The different organizational units that constitute the organizational structure of the company are as follows:

Client— A self-contained unit in the SAP system with separate master records and its own set of tables.

Company code— The smallest organizational unit. You can create an independent set of accounts for this unit for the purpose of external reporting.

Plant— An organizational unit where materials are produced or goods and services are provided. You can divide an enterprise into various plants according to production, procurement, maintenance, and materials planning.

 Storage location— An organizational unit where the goods produced in the plant are stored.

Warehouse number— An alphanumeric key that represents a warehousing system, which is made up of different organizational and technical storage areas.

Storage type— An area such as a goods receipt area, goods issue area, or picking area. Also the physical or logical division of a complex warehouse.

Purchasing organization—An organizational unit that procures materials and services and negotiates with vendors to purchase materials or goods.

Purchasing group— An alphanumeric key for a buyer or a group of buyers who are involved in purchasing activities. The purchasing group is responsible for materials procurement and dealing with vendors.


5. What is Purchase Order?


Purchase order is the formal and final confirmation of the requirements which is sent to vendor to supply material or services. Purchase order will include important information like name of material with its corresponding plant, details of purchasing organization with its company code, name of vendor, and date for delivery of material.


6. What is the use of Purchase Info Record?


Purchasing info record stores information on material and vendor supplying that material. For Example: Vendors current price of a particular material is stored in info record.


7.  List out important field in purchasing view?


The critical fields in purchasing view are

  • Base unit of measure
  • Order unit
  • Purchasing group
  • Material group
  • Valid from
  • Tax indicator for material
  • Manufacturer part number
  • Manufacturer, etc.


8. What do you understand by Goods Receipt in SAP system?


After processing of purchase order by vendor, material is delivered to ordering party and this process is called as goods receipt. So, goods receipt is the phase in which the material is received by the ordering party and the condition and quality are verified. Once material is verified against quality then goods receipt is posted.


9.  Mention what is the transaction code used to extend the material view?


To extend the material view transaction, code MM50 is used.


10.  Mention what is the transaction code to delete a batch?


The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.

11. How do you post goods receipt?


Path to post Goods Receipt −

Logistics ⇒ Materials Management ⇒ Inventory management ⇒ Goods movement ⇒ Goods movement

T-Code: MIGO


12.  What is Source List and what is the transaction code for creating Source List?


To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.


13.  For creating a purchasing info record what are the pre-requisites?


The pre-requisites for creating a purchase info record are
Material Number
MPN ( Manufacturer Part Number )
Vendor Number
Organizational level code


14. Explain the terms Planned delivery and GR processing time?


Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.


15.  Explain what MRP (Material Requirement Planning) list is and what is the transaction code to access MRP list?


MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results information for the material. For an individual item, you can access the MRP list by using the transaction code MD05. You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material


16. What is Request for Quotation RFQ?


Request for quotation is a form of invitation that is sent to vendors to submit quotation indicating pricing and their terms and conditions.

RFQ contains details about goods or services, quantity, date of delivery and date of bid on which it is to be submitted.


17.  What do you mean by reservation?


Sometimes, stock need to be blocked in advance so that it can be available at a particular point of time. This is known as reservation. Reservation ensures that stock is available and it can be used when required. Reserved quantity can be viewed by tcode MMBE.


18.  Explain what is CBP? What is the difference between CBP and MRP?


CBP is the past consumption values of stock; it is used to forecast future requirements. On the basis of past consumption values, the net requirement of goods is calculated.

The difference between CBP and MRP is that when you plan materials using MRP, you have to predict the materials requirement based on sales and operations planning (SOP). While in CBP you have to predict the material requirement based on historical demand for materials.

19. What is the movement type for Goods issue reversal?


Movement type is 262 in Goods issue reversal.


20. How do you check Quota Rating?


Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota


21. What is the last step in Procurement cycle?


Invoice verification marks the end of procurement after purchase order and goods receipt.

Invoice posting will update all related documents in financial and accounting.

Blocked invoice that vary from actual invoice can be processed through invoice verification.


22. What are some of the movement types for stock transport order?


One step transfers of materials can be posted using movement type 301. Other movement types are 303, 351, 641, or 643 in the stock transport order.


23.  What is difference between purchase requisition and purchase order?


Purchase requisition is an internal document and it is a request that is made to purchasing organization to procure certain list of material while purchase order is formal document that is given to vendor containing list of items to be procured from vendor.


24.  How do you perform an Invoice Verification?


If the Invoice refers to an existing document
(PO, etc.), then the system pulls up all of the
relevant information like Vendor, Material, Quantity,
Terms of Delivery, and Payment Terms etc. When
the Invoice is entered, the system will find the
relevant account. Automatic posting for Sales Tax,
Cash Discount, Corrections etc. When the Invoice
is posted, certain data such as Average Price of
Material and Price History are updated. Use
Transaction MIRO.


25.  How do you display parked documents?


There are two possible transactions to use here.
They are FB03 and FBV3. The first shows all
posted document types. This is the best choice if
you think the document has been posted to you
actual balance. The later shows only parked
documents that have not yet posted to your
expenditure balance. These documents are still
encumbrances. It is the best choice if you are
trying to find which documents are still awaiting
completion or approval.
This transaction is very similar to the FBV2
transaction used with P-Card reconciliation and
marking parked documents complete.

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