Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

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Top 50 SAP MM Interview Questions And Answers For Freshers

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1. What are the essential components in SAP MM ?

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

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

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

Answer:

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.

3. Can you manually create purchase requisition with reference to documents such as purchase order or scheduling agreement ?

Answer:

No, purchase requisition cannot be created with either of these as it is an internal document which is controlled by purchase organization.

4. What unique insight into this upgrade does InfoTrellis have that other vendors don’t have ?

Answer:

Put quite simply, experience: we are already ahead of the game by being one of the first implementers in North America if not the world to be participating in upgrade and implementation efforts for MDM 11. We’re also able to leverage our volumes of experience with prior versions. InfoTrellis is involved in a number of MDM 11 projects already – both upgrades and new implementations – on a variety of Operating Systems (Linux, Solaris, AIX) and database (Oracle, DB2).

5. What about Standard Edition (Initiate) users ?

Answer:

– Organizations currently using Standard Edition (Initiate) will be majorly impacted by MDM version 11, because this upgrade means they will have an entirely new technology platform to migrate to, which includes the WebSphere Application Server.
– The biggest advantage this release provides to existing Standard Edition users is the ability to implement true hybrid scenarios. One scenario, for example, is being able to persist a composite view of a “virtual entity” to a “physical entity”. This can realize performance advantages if the virtual entities are made up of many member records. Also, there is then the ability to decorate the physical entity with additional attributes that come in the Advanced Edition platform such as Privacy Preferences, Campaign History, and Hierarchies to name a few. This scenario allows an organization to progress along their MDM journey if they have requirements to do so. This article doesn’t address any licensing impacts to leverage Advanced Edition features.
– The Advanced Edition (or “physical MDM”) capabilities are very featured rich and couples very well with Standard Edition (or “virtual MDM”). However, with that said it is very important for clients that want to transition from Standard to Advanced Edition to leverage partners that have expertise in both of those platforms.

Top 50 SAP MM Interview Questions And Answers For Freshers

6. How does this impact a business-end user ?

Answer:

Working with a more modern MDM means less need to upgrade in future, and future upgrades using OSGi are easier to implement. Version 11 comes with an increased feature set – Big Data, virtual/physical MDM, etc – that will allow much better creation of business value from the data that you already have. Increased or improved integration with other products, like InfoSphere Data Explorer or InfoSphere BigInsights, is another big plus for those already invested in IBM products.

Top 50 SAP SD Interview Questions And Answers For Experienced Pdf

7. How does this impact an IT user ?

Answer:

A number of things stand out:
1. Improved performance from MDM 11, WAS 8.5, newer versions of DB2/Oracle
2. OSGi
3. Improved MDM 11 workbench
4. Much smaller code base to track – just customized projects – the end result being a much smaller deployable artifact
5. Enforced security
6. Streamlined installation – basically same for workbench and server which helps to improve the experience for the developer who also performs installation
7. Batch processor improvements
8. Initiate users gain the benefits of
a) Event notification
b) Address standardization via QS

8. What is Request for Quotation RFQ ?

Answer:

Application for quotation is a sort of invitation that is given to merchants to present reference showing pricing and their terms and circumstances.

RFQ holds aspects regarding goods or assistance, date of delivery quantity and date of bid on which it is to be presented.

Top 50 SAP MM Interview Questions and Answers for Freshers Pdf

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

Answer:

MRP file is the primary working record of which the MRP controller begins accomplishing, and it consists of tracing results data for the material. For an exclusive item, you can obtain the MRP table by applying the business code MD05. You can further access the MRP list by a shipping route

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

10. What problems does this upgrade solve ?

Answer:

Version 11 promises to deliver improved efficiency by integrating the standard and advanced editions – basically combining the traditional MDM and the Initiate Master Data Service – which means a number of duplicated functions are removed. There have also been some batch processor improvements.

Security is now on by default, which of course helps to minimize potential future issues and ensure that only the people who need to see the data can see the data.
In general, though, this upgrade is less about solving “problems” than it is about moving forward and enhancing existing efficiencies and strengths. This upgrade is an evolution more than a revolution.

Top 50 SAP MM Interview Questions And Answers For Freshers

11. What big changes does this upgrade bring ?

Answer:

– IBM brought together Initiate Master Data Service (MDS), InfoSphere MDM Server (MDM) and InfoSphere MDM Server for PIM into a single market offering as InfoSphere MDM v10. The market offering contained four editions: standard, advanced, collaboration and enterprise.
– In InfoSphere MDM v11, IBM further unified the products from a technology perspective. Specifically, the legacy Initiate MDS and MDM Server products were combined together into a single technology platform.
– This is a significant achievement that positions IBM to address the “MDM Journey” that is much talked about. It allows clients to start with a Registry Style (or “Virtual Hub”, which is easier to start with and then transition to a Hybrid or Centralized Style (or “Physical Hub”). The key differentiator is the true implementation of the Hybrid Style.
– The whole product has been re-architected under the covers to use the OSGi framework, which is different from the old EAR-based process, and comes with a host of new technological features and promises.

Other changes & new features include:

Enhanced MDM & DataStage integration
Expanded Patient Hub feature for medical applications
Through IBM PureSystems, it should be easier than ever to get up and running with MDM 11
InfoSphere MDM v10 introduced the Probabilistic Match Engine (PME) in Advanced Edition. This was the embedding of Initiate MDS’s matching engine into MDM Server. This capability has now been surfaced up into a “Probabilistic Search Service”, an alternative to the deterministic search traditionally offered with MDM Server
For Weblogic Server clients, unfortunately Weblogic is no longer supported and a migration to WAS is required (due to the OSGi support)

12. How to create new transaction codes ?

Answer:

In transaction code SE93 you can create, Change & Display a Transaction Code.

13. How to delete a material completely ?

Answer:

Try MMDE transaction but be careful this will remove all material fraom Client.

14. Tell me what is *make to order ?

Answer:

Make-to-order generation is a method in which a stock is independently produced for a distinct customer. Indifference to mass production for an indefinite market wherever a stock is made several times, in make-to-order making a material is generated just once though the identical or a related production manner might recur at the succeeding time.

– In the global enterprise, you regularly require processing many various varieties of transactions at the same time. The Trading Execution Workbench (TEW) gives a central cockpit where dealers can treat trading settlements and their subcomponents, such as buying orders and sales orders and follow-on reports. In extension, TEW automates a huge part of the information entry, executing processing immediate, easier, and more error-free.

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

15. Tell me what is *make to order ?

Answer:

You specify the possession float in the scheduling edge key, The scheduling margin key is drawn from the substantial master. The float before making or float later production and the liberation period are determined in the scheduling edge key

– To Customizing to Shop Floor Control, through collecting Services –> Scheduling –> Set Scheduling Margin Key.

The scheduling edge index is designated to the matter ( MRP field in the substantial master) and is shifted while the stock order is made. Certain conditions can be changed in the stock order.

16. Where the schedule margin key is customized ?

Answer:

You define the order float in the scheduling margin key, The scheduling margin key is copied from the material master. The float before production or float after production and the release period are defined in the scheduling margin key
– For Customizing for Shop Floor Control, by choosing Operations –> Scheduling –> Define Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material master) and is transferred when the production order is created. These values can be changed in the production order.

17. I have created a new vendor. Later I found that there were some mistakes and that I want that the system should not allow me to make any PO or post any entries to this vendor. How to deactivate this vendor ?

Answer:

You can block a vendor at the following levels:

All company code
Single company code
All Purchase org
Single Purchase org

18. Give some example of master data in material management (MM) ?

Answer:

Material master, material master general data (MARA), tax Classification material (MLAN), info records, source list, and vendor master are examples of master data in MM.

19. What are the main master files used in MM ?

Answer:

The following are the main master files used in MM:

· Material master file
· Inventory master file
· Vendor master file

20. Is material and vendor data available at all organizational levels ?

Answer:

Yes, material and vendor data is available at all levels as it is normally created for the company and it is valid for the levels below company.

21. What is a source list ?

Answer:

Source list include list of possible sources of supply for a material over a given framework of time. A particular material can be ordered from different vendors in different time intervals. This information can be maintained in a source list.

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

22. What do you mean by outline agreement ?

Answer:

Answer:A framework deal is a long-term buying agreement with businessperson accommodating terms and conditions concerning the stock that is provided by a merchant. Outline agreement is accurate up to a definite period of time and covers a specific predefined quantity or cost.

23. What is difference between contract and scheduling agreement ?

Answer:

Contract is a long term outline agreement between vendor and ordering party over predefined material or services over certain framework of time whereas scheduling agreement is a long term outline agreement between vendor and ordering party over a predefined material or service which are procured on predetermined dates over a framework of time.

24. What is difference between planned and unplanned services ?

Answer:

In proposed services, at the moment of appropriation specifications, alike volume and cost are known in advance. It involves characteristics and range of assistance is apparent before appropriation whereas in unplanned assistance at the moment of appropriation specifications like volume and cost are not known in advance. It involves character and range of service is not clear before appropriation. Certain assistance can be prolonged as per the necessary.requirement.

25. Problem is that after goods receipt and AFTER invoice verification, reversal of goods receipt is being done. Client wants this more controlled as the GRIR account is being affected. So no reversals to be done after Invoice verification. How to approach this?

Answer:

Make this setting: SPRO > Materials Management > Inventory Management and Physical Inventory > Goods Receipt > For GR-Based IV, Reversal of GR Despite Invoice
– Here remove the tick against Mvt 102 & 122.
– Now the system will not allow returning the Good in any case.Top 50 SAP MM Interview Questions And Answers For Freshers

26. What is an ABC indicator ?

Answer:

An ABC indicator is an indicator assigned by the ABC analysis procedure. An ABC indicator provides details of the consumption value of the material involved in the ABC analysis. The ABC analysis is performed by multiplying the current price of the materials by their quantity. The different consumption values are given as follows:
· A materials—Important parts, high usage/consumption value
· B materials—Less important parts, medium usage/consumption value
· C materials—Relatively unimportant parts, low usage/consumption value

27. Where to Get the Goods Movement Type List ?

Answer:
Step 1) Run spro command/TC

Step 2) Then move to “SAP Reference IMG” screen

Step 3) Then navigate the following path:

IMG –> Stuff Management –> Physical Inventory  and Inventory Management –> Drive Types –> Copy, Change Movement kinds

Here with “Copy, Change Movement types” option a help tutorial is available (rectangular blue color icon). While that goes to “Additional data” segment wherever you can get a great record of drive models with some short description.

28. What’s the real value of this upgrade from a technology perspective?

Answer:

To an implementer, the OSGi framework is such a different way of looking at the MDM product as opposed to the old EAR-based system that it’s worth it to start working with this upgrade just for the advantage of getting an early start on familiarizing yourself with this new technology. While still maturing in the IBM MDM product, it promises faster and more dependable deployments, dependency management, and a modular code structure. It comes with the ability to start and stop individual modules, or upgrade them without shutting down the whole application. This can lead to much improved uptime for the MDM instance(s).

It’s also worth noting that for a company on the IBM stack, the improved integration with products like DataStage can really increase the value of this product to the enterprise.

29. How much effort is it going to take to implement ?

Answer:

IBM has held strong to their “Backwards Compatibility” statements, which is key in upgrade projects. However, given the technology change with OSGi, effort-wise this upgrade will take a little more than if going up to say, 10.1. We’ve seen a number of PMRs, etc to be expected from a new release, particularly one on new technology. Fortunately InfoTrellis has been involved in a good number of installation and product-related PMRs and has experience both working with IBM and clients to resolve them quickly.

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

30. What if I’m running a much older version ?

Answer:

MDM 8.5 Goes out of service on 30 April 2014 and 9.0.2 goes out of service 30 April 2015. As far as any prior versions, it has value to move to more current versions of DB & WAS, not just MDM. OSGi looks well positioned to be used across the board in the near future considering all of the advantages it provides; so again, it’s good to get your hands on it and start learning to work with it sooner rather than later.Top 50 SAP MM Interview Questions And Answers For Freshers

31. If I implemented MDM very recently, should I upgrade ?

Answer:

If you’re currently using MDM 10.x, it might not turn out to be worth the effort to upgrade immediately if implementation just took place. It is worth reiterating that v11 is the way of the future from an implementation standpoint, and the OSGi framework will likely be the way of the future.

32. What is Master data in MM module ?

Answer:

The master data in the MM module acts as reference data, defining various business entities and playing a key role in the core operation of the business.

33. How did different versions of SAP evolve?

Answer:

Since its inception, SAP has continued to support changing business processes and to adapt itself to the needs of organizations. In order to support the most current business strategies, SAP has evolved over time and progressed through the following versions:
1. SAP R/1—This was the first version of SAP and was developed for financial accounting systems. This version is no longer available.
2. SAP R/2—This was the second version of SAP. It replaced the R/1 version in the 1970s and was a mainframe-based business application. SAP R/2 supported multiple currencies and languages to help internationalize business management. This version is also no longer available.
3. SAP R/3—This version replaced SAP R/2, adding support for client-server-based distributed systems. This new version of SAP is multi-platformed, meaning it can be installed and used on multiple platforms, such as Windows or UNIX.

34. How is master data important in MM module ?

Answer:

The original data in the sap MM module includes the whole of the basic data required to control material. The data is saved and classified on this base of various measures, so as the descriptive character of the material (size, dimension, and weight) and the control functions of the material (material type and industry sector). Disassociated from data maintained by the user, the master information further reserves information that is automatically refreshed by the system (such as stock levels).

35. What are the various types of master data in MM module ?

Answer:

The different types of master data in the MM module are as follows:

· Material master
· Vendor master
· Purchasing information record
· Source list
· Quota arrangement

36. What are the data in material master that are maintained at the company code level ?

Answer:

The data that is specific to a particular company and the plant and storage areas assigned to that company is maintained at the company code level.

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

37. What are the plant-specific data in material ?

Answer:

The MRP data and forecast data are the plant-specific data in the material master.

38. What is the lot size attribute of a material ?

Answer:

The lot size characteristic expresses the reorder amount as a material. A material can have a periodical, selective, or inactive (fixed) lot size.

39. How is material information structured in material master records ?

Answer:

Stock information is structured in substantial master reports on the evidence of various standards, so as the material’s master-detail (including its name, volume, dimension, and mass), which confers its characteristic nature, and the material’s detail related to managing roles  Material master reports also save data concerning the data that can be automatically refreshed by the method. For example, the stock level can be automatically regenerated by the system on the principle of the material data update.

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

Answer:

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

41. What is quota arrangement ?

Answer:

A particular material can be procured from different vendors depending upon the requirement. So, total requirement of a material is distributed to different vendor’s i.e. quota is assigned to each source of supply. This is known as quota arrangement.

42. What do you understand by posting period ?

Answer:

Different documents like purchase order, request for quotation, goods receipt are essential documents in a business. These documents need security i.e. if any of records is posted wrongly later trade can be altered at different concern levels. Therefore, to achieve certain records we have a thought of posting period. Posting period indicates it will enable you to post and perform modifications in the records only in a specific time period.

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

Answer:

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

44. What is a batch ?

Answer:

A batch is a group of materials combined into one quantity for various reasons. Very often, materials with the same characteristics and values are grouped into a batch. For example, in the chemical industry, a specified number of containers of a specific product may be considered a batch if they were produced at the same time and have the same physical and chemical characteristics.

Top 50 SAP MM Interview Questions And Answers For Freshers Pdf

45. How to delete a batch ?

Answer:

You can delete a batch by using the MSC2N transaction code. You can alternately delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.Top 50 SAP MM Interview Questions And Answers For Freshers

46. What is Batch Information Cockpit ?

Answer:

The Batch Information Cockpit (BIC) is the main switching point, having a wide range of options for scrutiny and control of batches. It stores at a single location all the information related to the analysis of a particular batch.

47. What are the main components of the MM module? How are these components used in SAP ?

Answer:

The MM module of SAP R/3 is used for materials procurement and management. This is the largest of all the SAP modules and is divided into the following subcomponents:
– Purchasing—Allows users to control the entire purchasing process.
– Inventory management—Allows users to keep track of the materials in stock. It also helps users to perform operations, such as goods receipts, goods issues, and physical stock transfers.
– Invoice verification—Allows users to verify invoices from vendors. The invoices are compared with the purchase order and the goods receipts in the following three ways:

Content
Price
Quantity
Physical inventory—Allows users to keep track of the materials stored in an organization. Inventory is taken on the basis of measurement units, such as number or weight of items, at a given storage location at a specific time.
– Valuation—Allows users to calculate the value of all fixed and current assets, along with all payables, at a certain time and with the appropriate legal requirements.
– Materials requirements planning—Helps users to create a materials procurement plan for a plant or company.
– Materials master—Helps users to manage all of the materials-related data.
– Service master—Helps an organization keep records of the services that it procures.
– Foreign trade/customs—Allows users to manage the export and import of merchandise among different customs territories.

48. What is the organizational structure in the materials management (MM) module ?

Answer:

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.

49. What are the levels at which a batch number can be configured ?

Answer:

A batch number can be configured at several different levels: client level, plant level, and material level. You can select a batch number at any of the following levels:
· Client level— When you configure a batch at the client level, you need to assign the batch number only once throughout the whole client. Only one batch number exists for each material assigned at this level.
· Plant level —In SAP, the plant level is the default level for the batch number. At plant level, a batch number is unique for a plant and material. This means that you can have a batch of the same number at a different plant within the same company.
· Material level —At this level, material numbers are assigned to the products. The material number helps to differentiate between two products in case their batch numbers are the same. The materials are identified by the combination of the material number and batch number.

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

Answer:

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.