SAP MM Course in Mumbai

1. What is a purchase requisition and how is it different from a purchase order?

Answer: A purchase requisition is an internal document requesting the procurement of materials or services. A purchase order, on the other hand, is an external document sent to a vendor to procure the requested items.

2. How do you perform invoice verification in SAP MM?

Answer: Invoice verification is performed in the SAP MM module to confirm that vendor invoices match the purchase orders and goods receipts. This process involves three-way matching and is executed using the MIRO transaction code.

3. What is the difference between a contract and a scheduling agreement?

Answer: A contract is a long-term agreement with a vendor to supply materials or services over a period. A scheduling agreement, however, includes specific delivery schedules within the validity period of the contract.

4. Can you explain the procurement process in SAP MM?

Answer: The procurement process in SAP MM includes requirement determination, source determination, vendor selection, purchase order processing, goods receipt, and invoice verification. It ensures that materials and services are acquired efficiently and cost-effectively.

5. What is a goods receipt and how is it processed?

Answer: A goods receipt is the process of receiving and recording goods delivered by a vendor. It is processed using the MIGO transaction code and updates inventory levels, material documents, and accounting documents.

6. What are the types of stock in inventory management?

Answer: Types of stock include unrestricted-use stock, quality inspection stock, blocked stock, and stock in transit. Each type represents different stages or conditions of the inventory.

7. How do you handle consignment stocks in SAP MM?

Answer: Consignment stocks are materials stored at the company’s premises but owned by the vendor. The company only pays for the materials when they are withdrawn from consignment stock. This is managed using special procurement type “Consignment.”

8. What is a source list and how is it maintained?

Answer: A source list specifies approved sources of supply for materials over a certain period. It is maintained using transaction code ME01, where you can create, update, and manage source records.

9. Can you describe the process of physical inventory in SAP MM?

Answer: Physical inventory involves counting and recording stock levels, comparing them with system records, and adjusting discrepancies. It is performed using transaction codes MI01 (create physical inventory document), MI04 (enter count results), and MI07 (post inventory

10. What is batch management and how is it used in SAP MM?

Answer: Batch management enables the tracking and management of materials in batches or lots. It is used for quality control, traceability, and managing materials with different production lots, particularly in industries like pharmaceuticals and food.

11. How do you configure automatic account determination in SAP MM?

Answer: Automatic account determination is configured using transaction code OBYC. It involves mapping valuation classes and transaction keys to General Ledger accounts, ensuring that material movements are recorded accurately in financial accounting.

12. What are movement types and why are they important in SAP MM?

Answer: Movement types in SAP MM define the type of stock movement, such as goods receipt, goods issue, stock transfer, etc. They are important because they determine how stock quantities and values are updated in the system.

13. How do you manage split valuation in SAP MM?

Answer: Split valuation allows the valuation of a material at different prices based on factors like origin, quality, or batch. It is managed by configuring valuation types and assigning them to materials, enabling differentiated inventory valuation.

14. What is the purpose of a release strategy in SAP MM?

Answer: A release strategy defines the approval process for purchasing documents like purchase requisitions and orders. It involves setting criteria for document approval and assigning approval responsibilities to different users.

15. How does SAP MM integrate with other modules like SD, PP, and FICO?

Answer: SAP MM integrates with SD (Sales and Distribution) for order fulfillment, PP (Production Planning) for material requirements planning, and FICO (Financial Accounting and Controlling) for financial and cost accounting. This integration ensures seamless data flow and process coordination across different business functions.