SAP MM/WM

INTERVIEW
Questions & ANSWERS
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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/ 3s 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 V
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).
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