SAP MM/WM

INTERVIEW
Questions & ANSWERS
1. What are the various types of master data in MM
module?

MM Module contains the following manufacturing

master data,

 Material master

 Vendor Master

 Purchase info record

 Source List (not a mandatory)

2. What is purchasing group?

Purchasing group identifies the buyer responsible to

procure material.

One purchasing group can be maintained in many

material master records. I.e. A buyer can be
responsible for procuring many materials.

3. What is purchase value key?

Purchase value key contains the following information

 Reminder to sent

 Tolerance limits

 Shipping instruction

Purchase value key is maintained at material

master.
4. Where do we mention the lead-time required for
procurement of a material?

Lead time required can be maintained in the

 Material master

 Purchasing info record

In the MRP2 view of material master planned delivery

time indicates the procurement lead time

In the Purchasing view of material master GR

processing time indicates the time required to place
the material since the time it is received into the
factory premises.

Lead time in purchasing info record is specific to

the combination of Material and vendor.

5. What is source list?

Source list contains the list of supplier for a given

material. It contains the validity period for each
vendor to supply and also has got the indicator for
preferred vendor.

6. Is the source list mandatory?

In the material master purchasing view, if the source

list check box is ticked, then it become mandatory to
maintain source list before making PO.

7. Can source list be created without purchase

info record?

No. Purchase info record is mandatory to create

source list.
8. What is purchase order text in the material master?

Material specific purchasing information can be

maintained in the purchase text. It will be copied into
the PO for that material.

9. Can the purchase text be maintained in any

language?

Yes. It can be maintained in multiple language.

10. What is to be done if vendor is to be assigned in the

purchase request automatically?

Maintain source list. In the source list maintain MRP

indicator as 1.

11. What is purchase info record?

Purchase info record is maintained for the

combination of vendor, material and purchase
organization.

Purchase info record contains details of

 Contact details

 Ordering units

 Indicator for regular vendor

 Planned delivery time

 Standard ordering quantity

 Delivery tolerance

 Inco terms

 Net price
  Pricing conditions value

 Vendor specific text

12. What are the different types of info records?

 Standard info record for RM

 Subcontracting info record

 Pipeline material info record

 Consignment stock info record

13. How can we generate purchase info record?

 Manually

 Update through purchase order

14. What is the difference between standard and

subcontracting info record?

Subcontracting info record contains the production

version to pick up the desired BOM.

15. What is pipeline material?

Material which are always available to consume

without any restrictions are known as pipeline
material. E.g. distilled water.

Pipeline materials stocks are not displayed.

16. What is consignment stock?

 Consignment stock is vendor stock kept in the
factory premises for consumption. Payments are
made according to the consumption.

At any given point of time, stock can be displayed for

consignment material stock.

17. How the consumption is accounted for pipeline

material and consignment stock?

During goods issue for these materials, vendor code

is specified. Price is picked up from the info record.

18. What is purchase organization?

It represents the team or place or facility which is

responsible for procurement from identifying the
vendor to supply and payments to the vendor.

19. In the enterprise structure where is purchase

organization assigned?

Purchase organization can be assigned to Plant and

to company code.

If the vendor is going to be the central vendor for

many plants under a company code, then it can be
assigned to a company code.

20. What is regular vendor?

If at client level materials are to be procured from a

vendor, then that vendor can be identified as a
regular vendor.

21. What if PO is made on another vendor when there is

a regular vendor?
System issues a message according to the message
control, it can be preceded.
22. How many data areas are there in the vendor master?

Three data areas are there for vendor master. They

are

 General data

 Purchasing data

 Accounting data

23. What is an account group?

Account group control field layout for maintenance of

master data.

24. In which master data account group is used?

Vendor Master.

25. What does an account group determine?

 Account group defines the number range for a

master record.

 Uses a field status group to control the

field layout for the maintenance of master
records

 Determines one time accounts for accounts

payable and accounts receivable

 Is defined for every company code

26. What is client level data and plant level data?

Data which are common across the client is client

level data, and data which are specific to a plan is
plant level data.
 E.g. Classification view is common across the client.
There cannot be different class of same class type in
different plants.

27. Is the Basic data view of material master client

specific or plant specific?

Basic data 1 and Basic data 2 views of material

master are client specific.

28. Specify the SAP standard material types?

 ROH – Raw material

 HALB – Semi finished material

 FERT – Finished gods

29. What views are necessary in vendor master to create

PO?

 General view

 Purchasing view

30. What is onetime vendor?

You can create special master records for vendors

from whom you only procure a material once or very
rarely. These are called one-time vendor master
records and, in contrast to other master records, you
can use a vendor master record for several vendors.

No vendor-specific data is stored for one-time

vendors. You can control this using the relevant field
selection for account groups for one-time vendors.
 When creating a purchasing document or accounting
document with a one-time vendor, the system
automatically goes to an additional data screen. This
is where the specific data can be entered, such as
the vendor's name, address, or bank details.

31. What is quota arrangement?

It is used to distribute the requirement to the

different vendors according to the defined ratio
automatically by the system

32. What settings are to be done for quota arrangement?

In the material master purchasing view, quota

arrangement key has to be maintained.

Quota arrangement master data defining the

percentage of distribution has to be maintained.

Source list must be maintained.

33. At which level the source list requirement can

be maintained?

Plant level and at material master level

34. Specify the priority in source determination process?

 Quota arrangement

 Source List

 Info record

35. What are all the ways to assign a source to a

purchase requisition?
 Maintain source list and indicate preferred vendor

By fixed vendor

36. What is the purpose of assigning source to

a requisition?

It is required for automatic PO creation function.

37. What are the prerequisite for automatic PO?

 Indicator in material master must be set

 Indicator in vendor master must be set

 Unique source of supply must be assigned in the

PR

38. Can the delivery schedule be created automatically?

Yes. During MRP run it can be automatically

created. Precondition:-

 Scheduling agreement must exist for a material.

 MRP indicator 3 - create delivery schedule must

be maintained during MRP run.
39. Which rounding profile will have an effect on
% additions and subtractions?

Following three rounding profiles will have an effect.

 Static rounding profile

 Quantity addition and subtraction

 Dynamic rounding profile

40. Which MRP procedures are sued in consumption

based planning?

 Forecast based planning

 Reorder point planning

 Time phased material planning

41. What field in MRP view is responsible to group the

requirement according to specific periods?

Lot size key field in MRP1 view is used to group the

requirements.

E.g. EX is used to trigger PR for each requirement

MB is used to trigger PR for the whole month

requirements.

42. What item category is used for subcontract purchase

order?

Item category L is used for subcontracting PO.

43. How the excess or under consumption is accounted
in the subcontract purchasing?

Subsequent adjustments are made to account excess

or under consumption of components.

44. Can multiple account assignment be done at PO level?

Yes.

45. What is Release procedure?

It is the process of releasing a purchasing document

for further processing based on certain predefined
requirements.

46. Which are all the purchasing documents on which

release procedure can be applied?

 Purchase Request

 Purchase Order

 Contracts

 Scheduling agreement

47. What are the levels of release in Purchase request?

 Item level release

 Header level release

48. What are the different types of Release procedure?

There are two ways of using release procedure.

 Without classification

 Without classification

Only one of the above two can be used at any given

time.

49. Can the different classification for release procedure

be used for different plants?

No. Only one classification can be used for one

release procedure at client level.

50. What is the use of MIGO transaction code?

MIGO transaction can be used to perform many GR,

GI and transfer posting related transactions.

It contains header level, item level and item details

screen.

51. What is account assigned PO?

Items can be procured against any specific cost

centre.

Item category ‘K’ is to be maintained and the

relevant cost centre reference must be maintained in
the PO.

If you choose the account assignment object K (cost

center) in the purchase requisition when you procure
consumable materials, you have to enter the G/L
account number of the consumption account and the
 cost center for which the material is to be procured
on the account assignment data screen.

In Customizing, you can define that the system

automatically proposes the number of the G/L
account that is to be debited.

On making GR to those items, it will not be posted to

the stock; it will be consumed against that cost
centre.

52. What must you take into account or determine in the

case of multiple account assignment?

Consumable materials debit different account

assignment objects depending on the account
assignment category specified.

The account assignment category determines which

category of account assignment is to be debited and
which account assignment data you have to prepare.

53. What happens when setting the “Free of charge”

indicator in the PO at item level?

IR requirement is cancelled on the item over view.

54. Purchase orders can be outputted (printed or

transmitted) in different languages. Where does the
system obtain the information determining the
language in which a PO is to be printed?

You specify the language to be generally used for

communication purposes for each vendor in the
vendor master record

The language from the PO header is used

55. How is the outputting (printing/transmission)
of purchase orders controlled?

As a rule, the system attempts to determine a

message record for each message type in the
message schema by means of an access sequence.

56. What is the use of collective number in RFQ?

It is used to compare prices from different vendors.

57. Can RFQ be created for an one time vendor?

No.

58. What is calculation schema?

It is the pricing procedure in MM module. It is used to

determine the price in Purchase order.

59. Explain how the right calculation schema is

determined to a specific vendor?

Schema group for vendor and schema group for

purchase organization are created.

Calculation schema is attached to the schema group

for vendor and purchase organization.

Schema group is maintained in the vendor master

data.

60. Can access sequence be attached to calculation

schema?

No. It is assigned only to condition type.

61. It is required to send message when receiving GR for
PO to the person who raised PO?

Maintain the condition record for message related

condition type MCLH, MC.

Tick the check box in the PO to send message to the

person who raised the PO.

62. Explain the basic structure of purchasing documents?

The purchasing documents consist of Header and

Number of items. The control indicator allows you to
specify that a certain document type is used for
stock transfer processing.

63. Which control parameters are located at the item

level of purchasing documents?

Procurement type, Delivery schedules, Item

conditions, PO history, receiving Plant

64. What does the account assignment category U

(unknown) stand for? When can you use this account
assignment category?

Account assignment category U (unknown): If you do

not know the account assignment object for which
the material is being procured when the requirement
coverage request is created, you can use account
assignment category U in the purchase requisition.

You do not have to enter any further account

assignment details.
65. How can you assign different delivery dates to
a purchase order item?

Specific dates or quantities for individual deliveries

are not set out in the outline agreement. This
information is provided separately in release orders
or rolling delivery schedules (comprising a number of
individual schedule lines), depending on the type of
agreement.

66. Explain the procurement process using

outline purchase agreements.

In the R/3 System, an “outline agreement” is a

longer- term purchase arrangement with a vendor
concerning the supply of materials or the
performance of services according to predetermined
conditions. These are valid for a certain period of
time and cover a predefined total purchase quantity
or value.

67. What are the basic differences between a contract

and a scheduling agreement?

Specific dates or quantities for individual deliveries

are not set out in the outline agreement. This
information is provided separately in release orders
or rolling delivery schedules (comprising a number of
individual schedule lines), depending on the type of
agreement.

An outline agreement can be a contract or a

scheduling agreement.

68. With which functionality can you compare quotations

submitted by different vendors?

You can compare quotation data by using the

quotation price comparison list. The quotation price
 comparison list shows the most reasonable vendor for
each item individually and for all items.

69. At which level purchase order history kept?

Item level

70. What is MRP?

Materials Requirement Planning ensures the

right quantity of required material at right
time.

 MRP first calculate gross requirements,

 Considering stock and receipt

elements, calculates the net
requirements.

71. Will MRP consider the capacity?

In MRP, capacity is assumed as indefinite.

System can only calculate the capacity requirement.

72. What is consumption Based Planning?

Items are planned based on their consumption.

Once its stock reaches its reorder point, procurement

proposal will be triggered during MRP run.

73. What are the different planning strategies in SAP?

Important Planning strategies are

 Make To Stock and Make To Order.

  Make To Stock strategies are 10,11, 40

 Make To Order strategies are 20

74. What is the difference between strategy 10 and 11?

Strategy 10 Net Requirement Planning

 Reduction of PIR will be during Sales order

delivery according to the consumption mode
maintained in the MRP 3 view of material
master.

 Stock will be considered while

planning Strategy 11 Gross Requirement

Planning

 Reduction of PIR will be during posting GR for

production order according to the consumption
mode maintained in the MRP 3 view of material
master.

 Stock will not be considered during planning.

75. What is the use of Strategy 40?

It will consider both PIR requirement and Sales order

requirement.

76. Where will you suggest these strategies?

If the products are made irrespective of market

fluctuations and it is always a demanding product,
Make To stock strategy of 10 or 11 may be used.

If it is difficult to forecast and the demands are

always fluctuating, then strategy 40 may be used.
77. What is MRP list?

MRP will generate the exception message according to

the situation for each material.

This will be generated at the time of MRP run and it is

available in the system till the next MRP run.

It can be viewed through MD05 transaction.

78. What is stock requirement list and what is the

difference between stock requirement list and MRP
list?

Stock requirement list MD04 will show the present

situation of any given material.

It is a dynamic one, where as MD05, MRP list, which

will show the result after the MRP run.

79. What are exception messages?

When MRP run is over, according to the stock and

requirement situation for each material, system will
propose action through the message, which is known
as exception message.

There are eight major groups.

Message of group 8 is the termination message, which

needs to be attended immediately.
80. Specify few examples for exception message?

 10 Reschedule IN

 20 –cancel process

 30-Plan process according to schedule

 25 – excess stock

 96- stock below safety stock

 50 – No BOM exist

81. What is MRP group?

MRP group contains important settings of

 Planning strategy,

 Consumption mode

 Procurement proposal document type etc.,

All parameters are grouped together under one MRP

group and that can be assigned to materials.

82. What is Planned Order?

Planned order is the proposal to produce a product or

to purchase any items.

It is created by MRP run. It can be created manually

also.

83. What is user exit?

 User exit is provided by SAP in order to impart any
extra checking or control during the execution of SAP
program.

84. Do you recommend more user exit, why?

User exit will increase the system load, should be

minimal and should be used where it is essential.

85. There is a requirement to transfer the requirements

from one plant to another plant where the production
process is carried out, how it is done?

Through special procurement key maintained in the

material master in MRP 2 view.

86. What is withdrawn from alternate plant?

During goods issue, there may be a situation where

in materials are issued from one plant through
pipeline or as a continuous supply.

Component can be directly withdrawn and issued to

production order through special procurement key.

Material will not be put into the stock of receiving

plant.

87. What is stock transfer?

Getting material from another plant, In this case,

material will be put in the stock at the receiving
plant.
88. What is planning horizon?

Planning horizon is the period to which entire

requirements will be planned by the system.

E.g.90 days meaning, future requirement of up to 90

days will be planned.

89. MM is integrated with which modules?

MM is closely integrated with

 FI – Finance

 PP – Materials Management

 QM – Quality Management

 SD – Sales and Distribution Module

90. What is MRP type?

 MRP type defines the way of planning.

 PD refers to MRP type of planning,

 VB refers to lot size planning,

 ND refers to No planning

91. What is the significance of lot size?

Lot size is to determine how the requirements are to

be grouped, whether monthly, weekly or biweekly.

MB is to group the requirement monthly.

EX is lot for lot, i.e. no grouping.

92. An item is stored in base unit of measure of Liter, but
when issuing to production, it should be issued in
terms of Drums. Can it be mapped in SAP?

Yes.

In the storage view, maintain the issuing unit

of measure.

The relation between drum and Liter unit must be

maintained in the material master additional data.

93. A material is used in five plants. Only in one plant it

has to be blocked. Can it be done, how?

Yes, it can be done.

In MRP view, plant specific material status can be

used to block material in particular plant.

94. What is production version?

Production version is the combination of BOM and

Routing.

95. What is the usage of production version in

subcontract purchasing?

Production version is maintained in the subcontract

purchase info record to pickup the specific BOM for
subcontract processing.

96. How do you find Table in sap?

Normal way is

 Click cursor on the field where it is

required to find the table
  Click F1 key in the key board

 Click Technical info

97. What is planning time fence?

Planning time fence is the time during which existing

procurement proposals are not disturbed.

Any new proposals or requirement falling within the

planning time fence, either system will create that
proposal only after the planning time fence or it will
ignore that proposal.

Above point is depending on the MRP type. MRP type.

P1 to P4 MRP type are used to this purpose.

98. What is quality info record?

Quality info record is defined for the combination of

 Material,

 Vendor

 Plant.

It governs the vendor supply at plant level.

99. There is already a PO with a vendor, who has

completed supply of 30% the PO quantity.

It is required to stop the supply from that vendor. Is it

possible?

Yes,
 It is possible through blocking reason to be
maintained in the quality info record.

Further GR from a vendor can be blocked.

100. Where Vendor quality certificates are used?

While receiving the GR, certificate from vendor can be

monitored through quality certificate.

Lot can be skipped using QMINFO system.

101. Specify few frequently used movement types?

 101 – Goods Receipt

 261 – goods issue to production

 201 – goods issue to cost centre

 311 – transfer of material from sloc to sloc

 601 – PGI to delivery

102. What is the effect of “Delivery completed” indicator

in the goods receipt document?

The PO item is considered to be closed, even if the

total quantity is not delivered. However it is possible
to make further GR.

103. What movement type is used for initial stock entry?

561

104. It is required to restrict the minimum remaining shelf

life period when making GR. What setting is to be
done?
 In the material master storage 1 view, maintain the
minimum remaining shelf life data along with period
indicator and total shelf life.

105. Specify the warehouse structure?

Storage location attached to the warehouse.

Warehouse has got storage type, storage section and

picking area attached to it.

106. What is quant?

It indicates the stock of particular product in a

storage bin.

107. What is put away strategy?

It is the type of stock placement sequence to be

adopted by the system while searching bin for a
material.

108. Can Transfer orders be confirmed automatically?

Yes

What is interim storage area?

109. What are the preconditions for the missing part
check?

 It is active in the plant

 A check rule is defined for the transaction

 A checking group is defined for the availability

check in the MRP data of a material master.

110. Will there be any accounting entries for storage

location transfer posting within a plant?

No

111. What stock transfer / Transfer posting movements

are relevant for valuation?

Stock transfer from consignment stores of vendor XY

to unrestricted-use stock in storage location.

Stock transfer of a material from storage location

ABCD from plant 9100 to plant 9200. The plants
belong to the same company, however the valuation
areas are different (valuation level is plant).

112. In the GR based PO, purchase order price unit differs

from the purchase order unit. What is the
significance of this?

System establishes the relation between this two by

unit conversion in the PO.

At the time of goods receipt, both the quantity in the

purchase order unit and the quantity in the purchase
order price unit have to be entered, however, the
quantity in purchase order price unit is calculated by
the system. You have to change it, when the
calculated quantity differs from reality.
113. When performing Goods issue, what is the indication
of the message “W: on <current date> only 0.000
pieces are available”?

Material exists in the specified storage location on

the current day, however, it is unavailable, because
of other reservations

114. At what level Physical inventory is carried out?

Material/plant/storage location/stock type level

115. What is the way to make a delivery free of charge in

R/3’s Materials Management?

There are following two ways to handle this.

Enter a purchase order item, set its invoice indicator

to blank and its purchase order price to zero, and
then post the goods receipt.

Do not enter a purchase order, but post the delivery

free of charge using a specific movement type in
Inventory Management.

116. How can the storage location be created

automatically by the system?

Automatic storage location must be permitted for the

plant

In customization, automatic storage location must be

activated for required Movement types
117. What settings or controls are build with movement
type?

The movement type influences the update of

material stock account and consumption account.

The movement type used controls field selection for

the goods movement transaction.

If you use special stock indicators you can create

different stock and value updates of a material for
one and the same movement type.

118. What is valuation class?

The valuation class is maintained in the material

master record at valuation area level. With that,
different account determination is possible for the
materials of one material type.

The valuation classes will be tied to one or more

material types via an account category reference.

119. What is the different price types used in material

master?

Standard price – denoted by S

Moving Average price - denoted by

120. For externally procured item, which pricing type is

used?

Moving Average price

121. How can we obtain information on purchase orders
issued to a vendor that have not yet been invoiced?

Make use of a list that displays all the purchase

orders issued to a certain vendor. Limit the POs
shown on the list to those that have not yet been
invoiced by means of the selection parameters.

122. What does the purchasing document controls?

 Number assignment

 Permitted item categories

 The eligibility of scaled prices in scheduling

agreements

 Which header texts, appendix texts, and

item texts are printed

123. What must you take into account if you want to post
an invoice before the goods receipt? What are the
consequences of using this procedure?

The system cannot refer to the quantity to be settled

and the corresponding amount. You must enter this
information manually every time.

The system identifies a quantity variance and blocks

the invoice for payment (provided that the
appropriate tolerance limits are exceeded).