In this post, we put together best SAP MM interview questions with answers. The interview questions for SAP MM beginners, intermediate and experienced candidates. The questions are filterable by different topics for easier navigation.
How can you create a Purchase Order from Purchase Requisition?
Purchase Order from purchase requisition can be created by following below steps −
What is meant by scales?
You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140. Scales cannot be used directly in PO but can be pulled into the PO from various master data like info records, quota arrangements.
What are the Main Master Files used in Mm?
- Material master file
- Inventory master file
- Vendor master file
What do you mean by goods receipt and post goods receipt?
Goods receipt is the physical inbound transfer for goods or material into the warehouse. It is the transfer of goods which is used to post goods received from external vendors or from in-plant production. All goods receipts result in an increase in stock in the warehouse.
Post-Goods Receipt is used to post the receipt of goods with reference to the purchase order with which the goods were ordered. If the material is delivered for some purchase order, it is important for all of the departments involved that the goods receipt entry in the system references this purchase order.
Can you Release the Po Item by Item When you have a Multiline-item Po?
No, you cannot release the PO item by item. PO can be released at the header level by using the with classification release procedure.
Is it possible that you can use scales in Quotation?
How to Release Purchase Order? Which Transaction Code is used to display as well as reset the Release of Po?
You can release a purchase order at header level. You cannot release a single item in purchase order. You need to release all the items at a time. The ME29N transaction code is used to display as well as reset the release of purchase order.
ERS stands for Evaluated Receipts Settlement. It refers to the process of settling down receipts of the goods in an automatic manner. In this process, an agreement is made between the vendor and the user that vendors do not prepare any invoice for the goods ordered. Rather, the system would automatically generate and post the invoice document on the basis of purchase order and receipts of goods.
Why is record of the information of purchase useful?
It is essential because it collects various information on the vendor and the materials supplied by them. For instance the current price at which the vendor is selling the material is recorded in the purchase record.
Define purchase requisition.
A purchase requisition is a primary document which is used as part of the accounting method to launch a merchandise or supply purchase. By processing a purchase order, suitable controls can monitor the legitimacy of purchase, as well as identify the business requirement for the products.
What Is Stochastic Block?
Stochastic Blocking is the process of checking the incoming invoices. In this process, blocking of the invoices is done randomly. Invoices with high value have the highest probability to get blocked. It is set for the whole invoice instead at the item level. When posting of the invoice is done, an R is set in the Payment Block field in the document header data.
How can Batch Records be changed?
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP Menu -> Logistics -> Materials Management -> Material Master -> Batch -» Change.You can change the batch record, but you should note that these changes are also available for review.
What is Internal Procurement?
Large corporate organizations may own multiple separate businesses or companies. Internal Procurement is process of getting material and services from among identical company. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when trade occurs between them it will be recorded.
Give the Names of the Tables where the Material Master Data is Stored.
The MARA and MARC are the two tables where the master data is stored.
What are the components of the Master Data that details a companys Procurement used by, Vendor Evaluation for example?
The key components of Master Data are: Info Record (ME11), Source List (ME01), Quota Arrangement (MEQ1), Vendor (MK01), Vendor Evaluation (ME61), and Condition Type (MEKA).
What is the code used for extension of the view of material?
The code used for the transaction of the material view is MM50.
A Purchase requisition is an internal document or external document?
Internal document, it is the phase in which purchasing department is informed about the requirement of items or services required for business purpose.
What are the different accounts used in Invoicing?
- Vendor accounts
- Stock accounts
- GR/IR clearing accounts
- Tax account
- Price differences accountCash difference clearing accountFreight clearing account
How many Company Codes can be assigned to a Company?
You can assign one or more company codes to a company.
Reservation is the blocking of the stock beforehand so that its availability is ensured later in time. It ensures that the stock is made available and can be used as per requirement.
Can a Company Code be assigned to many Plants?
Yes, you can assign a company code to many plants.
What is a Material Master File?
the complete information related to managing a material is stored and maintained in a data record in the material master, which is sorted on the basis of different criteria.
What is External Procurement?
It is the process of procuring goods or services from external vendors. There are 3 basic forms of external procurement generally supported by the Purchasing component of IT system.
List out the essential components of material management.
- Determine requirements
- Source determination
- Vendor Selection
- Order Processing
- Order follow up
- Goods receipts and Inventory management
- Invoice Verification
What is a request for quotation (RFQ) document?
RFQ or Request for Quotation also known as Invitation for Bid is a document which an organization submits to one or more potential suppliers to invite them for the bidding process for a product or service.
What do you mean by the Lot Size?
The lot size is the quantity of materials used for re-ordering. It can be static, periodic, optimum, or fixed in attributes.
Give the Names of the Tables where the Header Level and Item Data are Stored in a Purchase Order.
The EKKO and EKPO are the two tables where the header and item level data are stored, respectively.
What is the Menu Path to define Material Type Attributes?
The following is the menu path to define material type attributes:Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.
What Is Release Strategy? How many Release Points can be involved in a Release Process?
The release strategy specifies the release codes with which a purchase document must be released and the sequence in which the release must be used. you can define a maximum of eight release codes with their respective release strategies. you can involve 8 release points in a release process.
What are the Plant-specific Data in Material?
The MRP data and forecast data are the plant-specific data in material.
What Is Goods Issue Reversal?
The process of issuing the material back to the stock of material is known as a goods issue reversal. For example, if goods issued to the production order are 500 kg of material and only 300 kg is consumed, then the rest 200 kg is returned to stock.
List the Movement Types for Unplanned Goods received.
How do you flag a material for deletion?
A deletion flag can be set at client level, plant level or storage location level. Transaction MM06 is used to mark a material for deletion.
What Is the Transaction Code to Set Price Control for Receipts (goods/invoice)?
The transaction code OMW1 is used to set price control for receipts (goods/invoice).
What is the use of ‘Split Valuation’?
Within a valuation area, sometimes, we need to valuate various stocks of a material separately. It can be because of different origin, quality, status, etc. We use split valuation in such cases. In this case, material is managed at several partial stocks which are sub-stocks of main material stock. Any transaction, relevant for valuation, is carried at this partial stock level. In accounting view, we define if we need split valuation for any material.
How are parked documents showed?
Parked documents are showed with the codes FBV3 and FB03. FBV3 displays the parked sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs to know if any documents still need approval or if they still need completion.
What is movement in receipt out (MIRO)?
MIRO or Movement in Receipt Out deals with invoice verification activities for bills raised from the vendors end. So, basically, MIRO is booked by the finance department.
Can a Company Code be assigned to many Plants?
You can assign many company codes in a chart of accounts.
What do you mean by Release Group?
The transaction codes ME54 and ME29N are used to define the release procedures for PR and PO, respectively.
What is returnable transport packaging (RTP)?
Returnable transport packaging (RTP) is a multi-trip packaging medium in which goods can be transported more than once between retailers and customers.
How is quota rating checked?
he formula for checking the quota rating is addition of the base quantity of the quota and the allocated quantity quota and divides it by the overall quota.
How can you create a Purchasing Information Record?
You can create a purchasing information record either manually or automatically by setting the Info update indicator when maintaining a quotation, a purchase order, or an agreement.
What is a Cost Center?
Cost Center accounting is used for controlling purposes. It is an organizational unit within a controlling area which represents a defined location of cost incurrence. For example, any department can be a cost center for recording all expenses incurred for that department.
What Transaction Code is used to extend the Material View?
The MM50 transaction code is used to extend the material view.
What is a planned order in material management?
A planned order is sent to an industry and is a material requirement planning request for the procurement of a particular material at a determined time. It specifies when the internal material movement needs to be made and the amount of material that is demanded.
What Is the Purpose of Material Valuation?
Material valuation in SAP MM module is necessary to determine the stock value of materials.
What is a Material Ledger?
A material ledger retains all transactions that relate to the purchase and use of materials for producing goods. Material ledger data is valuation and control data for a material in a plant for a specific posting period. Material ledger contains data for material movements that are relevant to the valuation of the material.
What is the Role of the Confirmation Control Key?
The confirmation control key is used to specify whether or not a notification for shipping is expected PO item.
What is Batch Information Cockpit?
The Batch Information Cockpit (BIC) is the main switching point having a wide range of options for scrutiny and control. It stores all the information related to the analysis of a particular batch at a single location.
How is the list of all Reservations in the Systems Displayed?
The reservation list can be displayed by running the RM07RESL report.
Define Storage Location in SAP.
In SAP system, a storage location is the place where you can store your stock of goods, within the premises of a plant. Each plant has at least one storage location assigned to it.
What do you mean by Release Group?
Release group is a two-digit code that is assigned with a class and contains one or more release strategies. For example, release group 01 is defined for purchase requisitions and release group 02 is defined for purchase order.
What is meant by master data?
Master Data is basically created centrally and is valid for almost all the applications. It remains constant over time but it is required to update it on a regular basis. For example, the Vendor is a type of master data and he is used for creating purchase orders.
How Material Valuation is associated with Financial Accounting?
Material valuation in MM module is associated with Financial Accounting as any change in the stock value also updates the G/L account in Financial Accounting.
What is a transaction code in material management?
A transaction code (or t–code) consists of letters, numbers, or both, and is entered in the command field at the top of any SAP GUI screen. Each function in SAP ERP has an SAP transaction code associated with it. You can directly access any function in SAP using t-codes.
What is the code used for reservation?
The Transactional code used for reservation is MB21.
What is a Scheduling agreement?
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.
What are Purchasing Information Records?
The purchasing information records, also known as info record, contain information related to the material and vendor who is supplying the material. It also contains details about the material, such as the current price of the material.
Where is Material Master Data saved?
Tables MARA and MARC.
What is the use of BOM usage type 1 in SAP system?
It is used for Production.
What is EAN?
An article can be carried in different units of measure. An European article number (EAN) is created as a unique indicator for each of these units of measure. The most important use of EANs within a company is to identify articles at the point of sale (POS) using the barcode.
What is the Source of Error "not Allowed" in case of Custom Movement Type Creation?
You need to check the allowed transaction for the customized movement types and use the OMJJ transaction code.
How do you access the Materials Management Configuration Menu?
Transaction Code OLMS has a host of options that are not accessible through the IMG.
What is Master Data nn MM Module?
Master data in MM module acts as a reference data defining various business entities and plays a key role in the core operation of a business.
Can you add Custom Fields to Purchase Order(s) and Request for Quotation(s)?
Yes, you can add custom fields to a Purchase Order and Request for Quotation.
What are the features of material management?
- Production and material control
- Non-production stores
- Material handling
What is a Profit Center?
Profit Center Accounting evaluates the profit or loss of individual, independent areas within an organization. Profit center is an organizational unit in controlling to recognize your profit. Profit center is attached to material master at plant level.
Mention, for the stock transport order, some movement types.
Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which can be used an easy way for transferring materials.
How do you define a Release Procedure for Prs and Pos?
Use Transaction ME54 and ME28 respectively.
How is scrap material taken care of in sub-contracting?
Scrap can be maintained in BOM as operational scrap, component scrap, By-Product or Co-Product. Common practice is to maintain scrap as by-product and receive it back along with processed material.
What are quotations in SAP material management?
Quotations in SAP MM are certain requests for vendors which provides us with some information about their best prices, terms and conditions, schedules of deliveries and other information in order to select the best source for our procurement needs.
Can Forecast Model be selected automatically?
The forecast model can be selected automatically by entering the value J in the Forecast Model field in the Material Master record where the value J is used for Automatic Model Selection.
What are the Benefits of document Parking?
The benefit of document parking is that you can modify the invoice in a parked status whereas the invoice that is placed on hold cannot be modified.
What is Intra plant stock transfer type in SAP MM?
Storage Location to Storage Location.
What is the Lot Size Attribute of a Material?
The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or a static or fixed lot size.
What is the Transaction Code to convert Planned Order into Purchase Requisition (pr)?
MD14 is the transaction code to convert planned order into PR.
What do you understand by GR Blocked stock?
This is conditionally accepted stock and not the unrestricted stock.
What is the type for the reversal of the issue of the goods?
The transactional type for the reversal of the issue of the goods is the number 262.
Mention t-code to create Purchase Requisition in MM.
Transaction code ME51N can be used to create Purchase Requisition in MM.
How is the value of the Cross-company-code Stock Displayed?
You need to perform the following steps to display the value of the cross-company-code stock in transit:Select Environment-> Stock-> Stock in transit.
What is the Transaction Code to display Material of Sap MM?
MM03 is the transaction code to display material of SAP MM.
What Is a Standard Service Catalog (ssc)?
A Standard Service Catalog (SSC) is a general standardized catalog that contains the detailed explanation of services. The descriptions of these services are stored as master records and help to remove data duplication.
What is Special Procurement?
Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location.
Can we change the Industry Sector of an existing Material?
No, once assigned you cannot change the industry sector of an existing material.
Where do We define Payment Terms in PO?
The payment terms in PO represent the agreements of customers and vendors. you can define the payment terms in PO in the master records of customers and vendors.
What are the benefits or uses of material management?
- Material valuation
- Multi-location inventory
- Bin management
- The lot and serial traceability
- Product life cycle management
- Inventory replenishment
- Scheduling and resourcing
What is Price Comparison?
Price comparison is used to compare quotations from different vendors. You can use transaction code ME49 to perform a price comparison between different vendors.
What Is the Release Procedure?
The release procedure allows you to create condition records for the planning process. It is used to creating Purchase Requisitions (PR), Purchase Orders (PO), Request for Quotation (RFQ), Outline Agreements, and Service Entry Sheets.
What do you mean by Material Numbers In SAP?
Material numbers are unique numbers used to identify a material.
Tcode for Stock overview?
What is the Creation Indicator?
The creation indicator defines whether or not the planned orders, purchase requisitions, or schedule lines must be created for materials that are procured externally. It also defines whether or not MRP lists need to be created.
How is a receipt posted?
The goods receipt can be posted by going to the option of logistics and then to the materials management and then the inventory management and the choosing the goods movement and then choosing the T code which is MIGO.
What is a request for information (RFI)?
A request for information or RFI is a basic business process which collects written information about the capabilities of suppliers. It generally follows a format which can be used for comparative purposes.
What Is Release Code?
The release code is a two-character field or ID that represents the person responsible for the approval of the release procedure.
How many Company Codes can be assigned to a Plant?
You can assign only one company code to a plant.
What are the different types of ERPs?
Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles, Siebel, BAAN. These are some of the different types of Enterprise Resource Planning.
Can you include An Roh (raw Material) Type In the Sales View?
Usually, the raw materials cannot be included in the sales view. However, the raw materials can be included in the sales view only when they are sold to procure finished products in return.
What is Material Status?
It is 2 digit code and is used to determine the material usability.
What is NetWeaver?
NetWeaver is an incorporated technology in which every product in the MySAP group can be used in a single go of a server which is known as SAP Web Application Server. This technology is very useful and helps the user efficiently. One of the advantages of using this is that the data related to SAP can be accessed by the enterprise through or even through mobile. This is not only cost effective but also time effective. If one uses this a lot of money is saved which could otherwise go in training a new user in the SAPclient.
What is consumption-based planning (CBP)?
It is based on past consumption values which makes use of the forecast or other statistical procedures to determine future requirements. It is triggered when the stock level falls below a predefined reorder point or by forecast requirements calculated using past consumption values.
What is SAP MM and what do you know about it?
It is one of the modules in SAP that deals with the management of materials and procurement process. It also includes master data, account determination, material valuation, inventory management, invoice verification, material requirement planning, etc.
What are the different type of Basic Procurement?
- Procurement for Stock vs Consumption
- External vs Internal Procurement
Name the T Code for Invoice Verification.
An invoice is verified by using the OLMR T code.
How many Charts of Accounts can be assigned In a Company?
In a company, only one chart of accounts can be assigned.
What is the movement type for Goods issue reversal?
Movement type is 262 in Goods issue reversal.
What is invoice processing?
Invoice processing is a process a company’s account payable uses to manage supplier invoices. It begins when you accept an invoice and ends when payment has been made and reported in the general ledger.
Why would an Organization need to allow Negative Stocks?
Negative Stocks are necessary when Goods issues are entered necessarily (business process reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.
Define Valuation Class.
Valuation class is a group of different materials that share some common properties. This group is defined so that you do not have to manage a separate account for each material.
Can we change the Material Type of a Material?
Yes, we can change the material type of a material.
How do you configure the Release Procedure?
Use Transaction OMGQ.
What is master data management?
Master data management is a comprehensive method of enabling an enterprise to link all of its critical data to a common point of reference. When properly done, MDM improves data quality, while streamlining data sharing across personnel and departments. In addition, MDM can facilitate computing in multiple system architectures, platforms, and applications.
What is material requirement planning (MRP)?
It is a module in SAP enterprise resource planning. It is a type of planning tool to help production and procurement planners to create feasible and realistic plans which helps to quickly initiate procurement and production process.
How to create a Batch?
You can create a batch record manually by using the transaction code MSC1N. The navigation path of creating a batch is: SAP Menu -> Logistics -> Materials Management -> Material Master -> Batch -> Create.
What is the Menu Path to create a document/e-mail Notification for your Supplier?
The following is the menu path to create a document/e-mail notification for your supplier:Select Material Management-> Logistics Invoice Verification -> Message Determination.
What do you mean by Forecast-based Planning?
Forecast-based planning is a process used in consumption-based planning which depends on predictions of future requirements calculated on the basis of forecast.
What is 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 day in which the person has to inspect and place the material in the storage, after obtaining the goods and materials.
What is Vendor Sub-range?
The vendor sub-range is defined as a subdivision of the total range of products provided by a vendor. Vendor sub-ranges are required when you create or maintain Material Master data.
What is the Transaction Code to create Movement Types?
OMJJ is the transaction code to create movement types.
Can you generate packing/picking lists for goods issue in SAP MM?
In SAP EWM you can generate packing list.
How to make a Dummy Reservation?
The user can try to create a new movement type with reference to 201 movement type.
Why does the Invoices get blocked?
- Variance in the invoice item
- Amount of an invoice item
- Stochastic block
- Manual block
Mention the last stage in the cycle of procurement?
The last stage of the procurement cycle is the verification of the invoice. This also updates the documents which are related in the accounts and finances. There is a difference between the real invoice and the blocked one the real invoice can be handled by verification of the invoice.
How can you disable a reservation In MRP?
Use Transaction Code OPPI to check “block stock”.
What do you mean source list and what is the code of the source list?
The source list is to identify the home of the supply from where the materials come. The code for creating the source list: ME01.
What Transaction Codes are used With Reservations?
- The MB21 transaction code: Creates a reservation.
- The MB22 transaction code: Changes a reservation.
- The MB23 transaction code: Displays a reservation.
- The MB25 transaction code: Displays lists of reservations.
How can the Logical Value for the Stock Items be found?
You need to use the MC49 transaction code to find the logical value of the stock items by date.
What Is Valuation area?
Valuation area is the organizational level at which the material valuation is carried out.
Mention the code to access the Material Requirement Planning list.
For accessing a single item one can use the code MD05.
What is free item in SAP system?
The Price will be marked zero for free item. We can tick the item as free item while creating PO in system.
How do you create a Vendor?
Use Transaction Code XK01. Add the Vendor name, Company Code, Purchasing Organization, Account Group, and the Vendor address. Next add the country, Bank Key, Bank Account, Account Holder (an actual name), and then save the data.
What is the Transaction Code to access the Materials Management Configuration Menu?
The OLMS transaction code is used to access the Materials Management Configuration menu.
What are contracts in material management?
A contract is a long-term agreement with a vendor to supply a material or provide a service for a certain period of time. These are specified consequently in release orders issued against the contract when the customer requires them.
Define stock population.
Stock population is the total of all stock management units included in an inventory sampling. These stock management units are uniquely defined through the allocation of the stock management levels to a given inventory sampling. As a result, the stock population is also defined when you allocate stock management levels.
How is GR/IR account related to Inventory?
If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted. If you are not involved about inventory, then the system does not need the GR/IR account when the IR is posted; the system needs a G/L instead of the GR/IR account.
What is a special stock in material management?
Special Stocks are the stocks which belong to a company code. These are not placed in any storage location & no physical inventory is performed.
What is a One-time Vendor?
A one-time vendor is the vendor who rarely or only once supplies the materials or articles to your company. For such vendors, you do not need to create a separate master record because the master records have no use after the business transaction is completed. Therefore, you can collectively create a master record for all the one-time vendors.
What Is Lifo Valuation?
LIFO is a balance sheet valuation technique. It stands for last in-first out principle, i.e. the material added to the stock in last is valuated first. In this technique, the pricing of old material in stock is not affected by the pricing of new material. In this technique, a layer of stock increased or decreased is created for a fiscal year, on the basis of which the valuation is done.
How to Determine Stock Value?
The stock value of the materials is calculated using the following formula:Stock value = Stock quantity * Material price.
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.
What is production order and purchase order?
A production order determines which material is to be prepared, at which location, and at what time and how much quantity is required. It also defines which components and sequence of operations are to be used and how the order costs are to be resolved.
A purchase order is a formal request or guidance from a purchasing organization to a vendor or a factory to supply or provide a certain quantity of goods or services at or by a certain point in time.
How can a Stock Transfer be monitored in Purchasing?
A storage location is a unique four-character alphanumeric key; therefore, it cannot be common for two plants.
How are User Defaults Set for Views?
You can set user defaults for views by selecting Defaults->Views.
What is a Price Comparison?
Perform a price comparison using ME49 and one may compare quotations from different vendors.
What is movement in goods out (MIGO)?
MIGO or Movement in Goods Out is used for goods movement such as goods issue, goods receipt, plant to plant transfer, storage location to storage location transfer, etc. Basically, MIGO is booked by the logistics department where the goods are actually received.
What is inventory management?
Inventory management is used to manage the inventory for the goods. It is based on several key processes. Definition of movement types, reservations, goods issue, and goods receipt.
What do you mean by Physical Inventory?
Physical inventory is the recording of actual stock levels (quantities) of materials by counting, weighing, or measuring at a given storage location at a specific time.
How do you check Stock Requirement List in SAP system?
This is used to see current stock and planned receipts. Use T-code: MD04.Enter Material and Plant to see list.
What is MRP run in SAP system?
MRP run or planning run is an engine which is used to fill demand and supply gap. Issues & Receipts are called MRP Elements. Issues include PIRs, Dependent Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, etc. and receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule lines, etc.
What Is Movement Type?
While implementing the goods movement in an organization, the movement type is required to be entered. It is a three-digit identification key that is entered as per the movement type. The following are the common movement types that are used in SAP:
- 102: Goods that are receipt against a purchase order
- 201: Goods that are issued
- 321: Goods released from quality inspection stock
What is a request for proposal (RFP)?
RFP or Request for Proposal is a document which requests a proposal, which is generally made through a bidding process by an agency or a company for the acquisition of some commodity, asset, or service to any potential suppliers to submit business proposals.
What is essential for creating a record of purchase information?
The essential information for making a record of purchase information is as followsThe number of the material, the part number of the manufacturer, the number of the vendor, the level code of the organization.
Define consignment stock.
During the consignment process, when a vendor provides material or goods, the company stores it in their stores. The vendor remains the owner of the material until a customer takes it. The liability arises as soon as the material is removed from the stores.
Can we receive the goods before the scheduled delivery date in scheduling agreement?
No, we cannot receive the goods before scheduled delivery date. GR can be posted on or after the scheduled dates. Though, SAP has provided some OSS notes to resolve this. (708973, 741385)
What is Quota Arrangement in SAP system?
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.
What is a Batch?
A batch is a group of materials combined together quantity-wise for various reasons. Very often, the materials with the same characteristics and values are grouped into a batch. For example, in a chemical industry, a certain number of containers of a specific product may be considered a batch as these products were produced at the same time and have the same physical and chemical characteristics.
What is movement type and mention a few standard movement types?
Movement types are used as indicators of what is the purpose of the goods movement (e.g. from the storage location to a storage location, receipt from the purchase order, issue for the delivery, receipt from production).
What is the Transaction Code to create a Material Type?
MOS2 is the transaction code to create a material type.
How to delete a Batch?
You can delete a batch by using the MSC2N transaction code.You can delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
What is Master production schedule (MSP)?
It is a plan for individual commodities to be produced in each time period such as staffing, production, etc. It is mostly linked with manufacturing in which the plan denotes when and how much of each product will be demanded.
What is the process order?
Process Orders (PP-PI-POR) are the central component used for the accurate planning and execution of process manufacturing. A process order represents the production of batches (materials) in a production run or the rendering of services.
How can a Stock Transfer be monitored in Purchasing?
A stock transfer can be monitored in Purchasing by using the following stock documents:
- Purchase requisition
- Stock transport order (STO)
- Stock transport scheduling agreement
How is a Class created?
A class is a collection of the group of the characteristics for a particular object. You need to enter the class name and a description for it and then select the group. After saving the details, the class is created. Alternatively, you can use CL01 T-code for this purpose.
How do you check Quota Rating?
Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
What are the different Stock transfer types in SAP system?
- Inter Company
- Intra Company
- Intra Plant
What is the difference between MRP and CBP?
In material requirement planning, the prediction of material requirement is based on sales and operations planning while in, consumption-based planning the prediction of material requirement is made, based on historical demand for materials.