SAP MM Interview Questions

SAP MM is a module of the SAP ERP (enterprise resource planning) system that helps manage an organization’s procurement, inventory, material planning, and vendor management.

According to Grand View Research, the global supply chain management market size is expected to hit USD 48.59 billion by 2030. As organizations continue to invest in supply chain modernization, SAP MM professionals remain in demand

These SAP MM interview questions and answers will help you succeed in your interviews and build a career as an SAP MM professional. 

Table of Contents

• SAP MM Interview Questions For
  • Freshers
  • Experienced
  • Scenario-based Questions
• Frequently asked Questions

Top Frequently Asked SAP MM Interview Questions

• What is the difference between CBP and MRP?
• What do you know about SAP MM?
• What do you mean by purchase order?
• What are the important criteria for purchasing?
• What is the code for deleting a particular batch?
• How is a receipt posted?
• What is known as RFQ?
• What is CBP?
• What are some popular ERP systems?
• What is NetWeaver?

SAP MM Interview Questions For Freshers

1) What is the difference between CBP and MRP?

The main differences between CBP and MRP:

2) What do you know about SAP MM?

SAP MM is a functional module in SAP. It manages procurement, inventory, and material management processes. The module consists mainly of master data, system configuration, and transactions to complete the procurement-to-pay process.

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3) Can you elaborate on SAP and how it is useful in Industries?

SAP stands for Systems, Applications, and Products in data processing. It is the most popular software application for enterprise business solutions. This ERP software was first introduced in Mannheim, Germany, in 1972.

It integrates various business functions, such as sales, purchasing, and production. SAP extracts details from one business process and integrates them into another, thereby speeding up the latter. 

It is widely used across industries because it quickly processes and updates critical data, supports departmental decision-making during product preparation, and can program business processes and provide real-time solutions.

4) Can you explain the essential components in SAP MM?

• Activities
  • Define the requirements
  • Determine sources
  • Select vendors
  • Process orders
  • Follow up with vendors/suppliers
  • Receive goods
  • Manage inventory
  • Verify invoices
  • Support invoice verification 
  • Payment processing
• Components
  • Purchasing
  • Inventory management
  • Material master
  • Valuation and account determination
  • Invoice verification
  • MRP

5) Explain the organizational structure in the MM module?

The structure in the MM module is a ladder, with organizational units arranged by function and responsibility.    

The units that make up the organization's structure are as follows.

• Client – This unit is independent, has a separate record system, and has its own set of tables. 
• Company code – It is the smallest organizational unit for financial accounting purposes. To meet the need for external reports, you can set up a self-reliant account for the company code unit. 
• Plant – This is where supplies are produced, and goods and services are provided. The enterprise can be divided into multiple plants based on maintenance, supplies, production, procurement, and related functions. 
• Storage location – The produced goods are kept in this unit. 
• Warehouse number – This indicates the warehouse's system. It varies by area of storage and organization. 
• Storage type  – It indicates different areas, such as the issuing area and the goods-picking area. 
• Purchasing group  – It negotiates with suppliers and obtains services and materials. It refers to an individual buyer or a group that purchases materials. This unit is also partially involved in negotiating and obtaining the goods.

6) What do you mean by purchase order?

A purchase order is a formal document issued to a vendor for the procurement of materials or services.

This will include the names of all essential materials and their receiving plants. The purchase details would include the company code, the vendor’s name, and the delivery date of the materials. 

7) Why is the record of the information of purchase useful?

It is essential because it collects various information about the vendor and the materials they supply. For instance, the current price at which the vendor is selling the material is recorded in the purchase record. 

8) What are the important criteria in purchasing?

The important criteria in purchasing include the following: the order unit, the material group, the base unit, the purchasing group, validity, the tax indicator for that material, the manufacturer's part number, and the manufacturer. 

9) Explain the Goods Receipt in the SAP System?

The vendor delivers the ordered materials to the party that ordered them; this process is known as receipt of the goods. During delivery, the party receiving the goods checks the quality and condition of the materials and goods. After the verification, the Goods Receipt is posted in SAP. 

[Related Article: SAP ISU Interview Questions]

10) What is the code used for the extension of the view of material?

The transaction code used to extend material master views is either MM01 or MM02. Here, MM01 can be used to create a material master, and MM02 can be used to change a material master.

11) What is the code for deleting a particular batch?

The code for deleting a batch is MSC2N. Alternatively, if one flags the batch of the master record then the batch record can be deleted completely. 

12) What is the code for changing a batch master data?

The code for changing a batch master data is MSC2N.

13) How is a receipt posted?

The Goods Receipt can be posted by going to logistics, then materials management, then inventory management, then choosing goods movement, and then selecting the T code MIGO. 

14) What is the transaction code used to develop a source list?

The transaction code for creating a source list is ME01. 

15) What is essential for creating a record of purchase information?

The essential information for recording purchase information is as follows.

The material number, the manufacturer's part number, the vendor number, and the organization's level code.

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16) What is the planned delivery and GR processing time?

The meaning of planned delivery is the number of business days in which the person is expected to receive the materials and goods. The GR processing time is the number of business days required to inspect the goods and materials and place them in storage after obtaining them.

17) What is Material Requirement Planning (MRP), and what is the code to access this list?

Material Requirement Planning is a static snapshot of planning results generated after an MRP run. It includes planning information for goods and materials.

If you want to access a single item in MRP, you must use the code MD05. 

18) What is known as RFQ?

RFQ is an abbreviation for Request for Quotation. It is a form used by vendors to submit quotations specifying the terms and conditions and the price of the goods and materials. It includes the quantity and details of the goods, as well as the delivery date by which the form is to be submitted. 

19) What is a reservation?

A reservation is the advance blocking of stock to ensure its availability later. It ensures that the stock is available and can be used as required.

20) What transaction code is used to create a reservation?

The transaction code used for the reservation is MB21.

21) What is the T-code used for a stock overview?

The T-code used for a stock overview is MMBE.

22) What is CBP?

CBP stands for consumption-based planning. It is an MRP procedure that plans materials based on historical consumption patterns. 

23)  What is the type of reversal of the issue of the goods?

The transaction type for reversing the goods issue is 262.  

24) How is the SAP quota rating checked?

Below is the formula for the SAP quota rating.

Quota rating = (Quota-allocated quantity + Quota base quantity) / quota.

25) Mention the last stage in the cycle of procurement?

The last stage of the procurement cycle is payment processing. Invoice verification comes before this stage.

The following is the procure-to-pay cycle:

Purchase requisition → RFQ → PO → Goods Receipt → invoice verification → payment

26) Mention, for the stock transport order, some movement types. 

Some of the movement types for the stock order are 351, 641, and 643. Another one is 301, which can be used as an easy way to transfer materials.  

27) What is the point of difference between the purchase order and the purchase requisition?

A purchase requisition is an internal form that requests that the organization purchasing the services send the list of goods. But the purchase order is the formal document sent to the vendor that lists the essential items to be obtained from them. 

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28) How do you verify an invoice?

When the invoice is related to an existing sheet, the system extracts the relevant information. This includes material, vendor, delivery, and its terms, payment, etc. You have to enter the invoice, and the system determines the account assignments, tax, discount, and relevant corrections. When the invoice is posted, relevant accounting and material valuation data are updated. 

29) How are parked documents shown?

Parked documents are shown with the codes FBV3 and FB03. FBV3 displays parked documents, whereas FB03 displays all posted documents. It is useful to use FBV3 to determine whether any documents still need approval or completion. 

30)What are some popular ERP systems?

The famous ERP systems are SAP S/4HANA, Microsoft Dynamics 365, Oracle ERP Cloud, Infor, Epicor, and Sage. 

31)What is NetWeaver?

SAP NetWeaver is SAP’s technology platform that enables integration, application development, process orchestration, and communication between SAP and non-SAP systems. 

32) Explain metadata, transaction data, and master data. 

• Metadata: Metadata is the information about the data. This provides a person with in-depth information about the hierarchy of meta-objects. There are many types of metadata. Some metadata are structural, descriptive, reference, statistical, and administrative. Each of these types serves a different function in a system.
• Transaction data: This is just information about the day-to-day transactions; after that comes the master data. 
• Master Data: Master Data provides essential information about materials, employees, vendors, and customers. You can also refer to it as the reference data.

33) Can SAP be called a type of database?

SAP cannot be called a database. Since it is an application, it uses databases provided by other retailers. Database platforms include MS SQL Server, Oracle database, IBM Db2, SAP HANA, and others.

For instance, the person orders a product in a quantity of 20 units. So instead of asking the customer for their address 20 times, the same information can be retrieved from the customer's master data.

SAP MM Scenario-based Questions

1) How do you configure automatic account determination in SAP MM?

Below is the step-by-step procedure for this configuration.

2) While creating a contract in SAP MM, the output is not automatically determined. Also, I cannot find the print or print view/preview option on the contract screen. How can this issue be resolved?

Solution

1. You need to check the determination analysis to see the exact reason the output is not triggered. You can find the determination analysis option from the contract output screen menu.
2. You must verify if you have created condition records for the printer to find the print view option.

3) When I process inbound deliveries using VL60, the transaction takes more than two minutes to complete. How to resolve this issue?

Cause for the issue:

VL60 may process a large number of inbound deliveries in your system. This issue occurs for a specific Goods Receipt, resulting in an unnecessarily large selection size.

Solution:

• Reduce the number of inbound deliveries by archiving older deliveries and POs.
• Change the standard customization.
• Create a custom transaction and IMG setting.

Frequently asked Questions

1) Can beginners learn SAP MM easily?

Anyone can learn SAP MM without a technical background. If you have a basic understanding of purchasing, inventory management, and supply chain operations, it will greatly help you learn the platform quickly.

2) How long will it take to learn SAP MM?

You can learn SAP MM in 3 – 4  weeks. You can become a skilled SAP MM consultant by continuing hands-on practice even after the training.

3) Is a career in SAP MM a good choice?

Yes, building your career with SAP MM is a wise choice. SAP MM is one of the most versatile modules, offering capabilities across procurement, inventory, logistics, and supply chain management. So learners with SAP MM skills can apply for multiple roles across industries.

4) What is the salary package for SAP MM consultants?

According to Glassdoor, SAP MM consultants in India can earn between ₹4 LPA and ₹9 LPA. They can earn between 25,000 USD and 218,000 USD in the USA, according to ZipRecruiter.

Conclusion

We hope these interview questions have provided you with basic and advanced knowledge of SAP MM. By learning these questions, you will be better prepared to design, configure, and troubleshoot SAP MM solutions effectively.

If you want to learn more about SAP MM, you can register for an SAP MM course in MindMajix. By the end of the training, you will gain the expertise to perform confidently in SAP MM interviews.