SAP MM Interview Questions Experience

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What are your roles and responsibilities in the implementation & rollout?

Develop proof of concept and conduct a Design and Build CRP (conference room pilot).
Design configuration and customization to meet the business process design and
application requirements.
Configure the system to match the design solution.
Translate Business requirements into Design solutions
Identify all RICEFW objects
Participate in testing in all RICEFW and Portal Objects.
Complete all appropriate documentation (Example – Configuration Rationale)

Have you done any customization in the Implementation?

Yes, Give examples

Have you been involved in Go-live phase?

Yes, Explain like how do you managed Go-Live phase and what are all challenges faced
during this phase and what is your contribution, role etc.;

Have you worked in the LSMW?

Yes, during rollout project time.

Do you have been involved in the stock upload in the Go-live phase?

Yes, in different Mock – Dev, Quality and Production using LSMW or LTMC tool.

Explain the process of new Material type creation?

Copying the standard Material type and creating new material. Understanding about
whether to define Internal or external number range, field selection etc.

What is a sub-contracting PO, can we able to create a PO without the entry of components?

In subcontracting process, raw materials are provided to subcontracting vendor. It’s
being processed by subcontracting vendor, convert it to semi-finish material and deliver
back. Entering Component is mandatory in Subcontracting PO or else it’s meaningless.

What is the Item category for Sub-contracting PO?

Which price rate will come in the Sub-contracting PO?

In Subcontract PO whatever amount is given in Purchase order line item is service charge
i.e. Subcontracting Process Charge.
As we are going to get the issued component from the subcontractor after completing
service only service (subcontracting) charge is included in PO

Do you know tables for Material, Vendor and PO?

yes , MARA, MARC, MARD, MBEW for Material Master , Vendor – LFA1, LFB1, LFM1 and
for PO – EKKO, EKKN, EKPO, EKBE

Do you know about the consignment business process?

yes, Vendor Consignment is a process wherein the supplier provides materials and stocks
them in the purchaser’s premises. The material remains in the books of the supplier
(vendor) until the same is withdrawn from the stock of the consignment and put to use. The
inventory gets transferred to the books of the purchaser only when the same is removed
from the consignment stock. The supplier (vendor) would not invoice the purchaser initially
when they come into the premises of the purchaser. The purchaser is liable to pay the
supplier (Vendor) only when the stock is withdrawn (consumed).

Will account entry trigger in GR creation for consignment?

Different movement types 101,261,541?

Goods receipt against Purchase order, Goods issue against Order, Goods issue to the
subcontractor respectively

GR IV check box in the PO screen, what is the difference between unchecking and
checking the Check box?

Indicator: GR-Based Invoice Verification – Indicator specifying that provision has been
made for goods-receipt-based invoice verification for a purchase order item.

What kind of business operations & how do they handle, the P2P cycle

This is purely based which client you are dealing with and what type of business process
you have seen and mapped into SAP.

What is the manufacturing process how they are dealing with?

Manufacturing is the process of turning raw materials or parts into finished goods
through the use of tools, human labor, machinery, and chemical processing

Why do they want to rollout the company to different locations?

If any new business or expansion of their business in new cities/state or relocating the
plant to different city based on the warehouse space required etc;

Pricing procedure rollout project how they are handling, where it will trigger.

Whether they are using two pricing procedure?

This is again if any customized procedure, if anything domestic or import pricing.

There will be a price difference in Bangalore and Hyderabad, How the pricing will
trigging in this price difference?

This can be achieved by different pricing procedure.

Can you list the transaction entry keys for Sub-contracting and explain one scenario?

Accounting entries for subcontracting:
Example: Components cost is 100 INR, Subcontracting Charges are 40 INR
Accounting entries at the time of Goods Receipt 101 &543: Finished goods will be received
With 101 and the Components will be consumed with Movement type 543.
Here Dr means Debit (+Ve) and Cr means Credit (-Ve)
(BSX) Stock A/c of Assembly – 140 Dr
(BSV) Change in Subcontracting Stock -140 Cr
During subcontracting, when we receipt the goods, system post the amount from stock
Account to stock in change account.
(FRL) Subcontracting Charges – 40 Dr
(WRX) GR/IR Clearing A/c – 40 Cr

(BSX) Stock A/c of Components – 100 Cr
(GBB-VBO) Consumption A/c of Components – 100 Dr

Types of purchase organization?

Centralized, Plant Specific, Cross company code, Standard and reference.

What is info record?

Purchasing info record stores information on material and vendor, supplying that
material. For example, a vendor’s current price of a particular material is stored in info
record. Purchase info record can be maintained at the plant level or at the purchasing
organization level

What is a source list?

Source list includes a list of possible sources of supply for a material over a given
framework of time. Source list specifies the time period of ordering a particular material
from a given vendor. Source list can be copied from one plant to another plant.

Physical Inventory process?

Physical inventory is a process of determining that the inventory quantities are exact, or
if there are differences in quantity mentioned physically present and that mentioned in the
SAP system. Basically, after you are finished with physical inventory, your system and
physical stock levels must be the same.

Handling of Invoice taxes?

Indirect Taxes: Indirect taxes are taxes levied on goods or services, paid by the buyer to
the supplier who in turn pays them to the tax authorities. Examples of indirect taxes are
Value Added Tax (VAT), sales tax, and excise duty. Indirect taxes are added to the invoice
amount.
Withholding Taxes: In certain countries/regions, withholding tax is required for self-
employed suppliers and is generally paid by the buying organization to the state or federal
government tax authorities on behalf of the supplier. The tax percentage rate or tax amount
must be entered as a negative number on invoices and a positive number on credit memos.

Types of procurement?

Direct and Indirect Procurement

Types of stocks?

Valuated Stock.
Non-Valuated Stock.
Special Stock.

Difference between blocked and GR blocked stock?

GR block stock – conditional acceptance of material e.g. vendor supply excess material
earlier to delivery date or material damaged in transport and you wanted to take decision
after some time
Block stock – material rejected by quality or in production

What is Stock Transfer Process and what are the different types of STO?

Stock transfer is nothing but transferring of materials from one plant to another storage
location, from plant to plant, plant of company code to plant of another company code.
When the stock transfer happens between plants, then the quantity changes in both plants.

Stock Transfer between Plants in One Step.
Stock Transfer between Plants in Two Steps.
Stock Transport Order without Delivery.
Stock Transport Order with Delivery via Shipping.
Stock Transport Order with Delivery and Billing Document/Invoice.

Any experience in handling of foreign clients?

Yes/No – Give few lines of experience if any

Release Strategy process

The release strategy defines the approval process for purchase requisitions or external
purchasing documents. The strategy specifies the release codes necessary and the sequence
in which releases have to be effected. You can define a maximum of eight release codes

How do you Create Characteristics and is it a configuration data?

We can do this in CT04 transaction.
Create characteristics based on the client requirement.
Its master data and can be directly maintained in Production Environment

What is Batch Management?

If the material is managed in batches, both the batch number and the material number
serve to identify the product. The system uses this identification scheme to manage these
types of stocks. When a material in a plant is identified as a batch material, each quantity of
the material must be assigned a batch number

What is Schedule Agreement?

A scheduling agreement is a long-term outline agreement between the vendor and the
ordering party over a predefined material or service, which are procured on predetermined
dates over a framework of time

What is Contracts?

A contract is a longer-term agreement with a vendor to supply a material or provide a
service for a certain period of time

What is Service procurement and types?

Services are meant for direct consumption instead of keeping them in inventory.
Service description along with its unit of measure is stored as master data in a record that is
known as the service master record.
The system stores the services that have been procured as a record in a sheet that is called as
the service entry sheet.
Service procurement can be of the following two types:
Planned Services: At the time of procurement specifications like quantity
And price are known in advance. It means nature and scope of service is clear before
Procurement.
Unplanned Services: At the time of procurement specifications like
quantity and price are not known in advance. It means nature and scope of service is not clear
before procurement. These services can be extended as per the requirement

Inter and Intra Company process handling?

Stock transfer between two plants which is from different company codes then it’s called
Inter STO
If the company code is single and the stock is transferring between plants then it’s called
Intra Company STO.

What are all the movement Types in STO Process?

601, 641,643,645,647,101

Max level of Release we can we?

8 Levels

Should the price of the components (In condition) described be equal to the net price
of the finished product?

In Subcontract PO whatever amount is given in PO line item is service charge i.e.
Subcontracting Process Charge.
The price in the PO should be the processing charges that you pay to the subcontractor. The
material value on GR will be the processing charges plus the cost of the components
provided.