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 requirement.
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 characteristics.
For instance:
- 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 as follows:
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 arrangement.
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?
No
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?
No
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 development.
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.







1. What is the difference between the stock transfer between two plants belonging to
same company code and those belonging to different company code?
2. What are the important fields in purchasing view?
3. What are the steps in automatic account assignment configuration?
4. How do you create movement types? What are the steps involved? When will you
recommend a new movement type?
5. What is meant by access sequence? When it is used?
6. How does the PO pick up the pricing schema?
7. What are the steps involved in creating a pricing procedure?
8. What are the types of special stocks available?
9. What are the types of info records?
10. What is meant by consignment stock?
11. What are the steps involved in consignment cycle?
12. Tell me about the subcontracting cycle.
13. How is scrap accounted in subcontracting?
14. How are the byproducts taken care of in subcontracting?
15. Tell me about the various movement types and usage.
16. What is meant by scales? Can scales be used in standard purchase order?
17. What is the difference between a contract and a scheduling agreement?
18. How does the system calculate taxes?
19. How does the system calculate nondeductible taxes?
20. What is meant by batches? How can the batches be searched?
21. How is a shelf-life item managed in SAP? What is the full cycle?
22. What are the settings required for quota arrangement?
23. What is meant by MRP Type and lot sizing?
24. 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?
25. What is a reference purchase organization? When can it be used?
26. Explain the concept of split valuation and when can it be used? What are the settings
required?
27. What are valuation area, valuation category and valuation class?
28. What is meant by a credit memo?
29. How are free items managed in a PO?
30. What is meant by a release strategy?
31. What are release groups and release codes?
32. What are the differences between release procedure with classification and release
procedure without classification? When are they used?
33. Is it possible to have a release procedure without classification for a PO?
34. What is the maximum number of levels available in SAP?
35. Is it possible to have scales in a quotation?
36. What is GR blocked stock? When it can be used?
37. What is the movement type for return to vendor? How to reverse it?
38. How are the variations in subcontracting taken care of in SAP?
39. What are the tools available for data migration in SAP?
40. What is LSMW?
41. What is the difference between LSMW and CATT?
42. How to give specifications for developments?
43. How do you plan for a vendor rating system and move about?
44. What is RTP?
45. What is the movement type used in receipt of RTP?
46. How is an item with serial no. managed?
47. How do you make variants?
48. What are the types of tables in SAP?
49. How to inventory excise duty in SAP?
50. What are the documents generated in the MIGO 101 movement type? What are the
accounts hit?
51. What is the difference between lot and batch?
52. What are the business benefits achieved by maintaining Source list and info record ?
53. How source determination works ?