Preparing for a Sap MM interview can be extremely difficult. The interviewer will try to bring out your original qualities and skills through several questions. So, this article provides Sap MM interview questions along with sample answers to help you better understand the flow of answering during interviews.
Sap MM interview questions are either theoretical or behavioral. For theoretical questions, you need to understand how the software works so, you will need to have a strong basis of the software. Behavioral questions focus on trying to bring out your interactive skills to test whether you are the right person for the job position or not.
Sap MM interview questions with sample answers
What is SAP MM, and how does it work?
The abbreviation MM stands for Material Management. It is an SAP functional module; it manages material management and procurement processes. Master data, material value, invoice verification, material need planning, and so on are all included.
State some advantages of using SAP for material management?
The following are some important benefits of using SAP:
- Inventory with several locations
- Restocking inventory
- Management of the product life cycle
- Valuation of materials
- Traceability by lot and serial number
- Management of bins in the software
- Resourcing and scheduling
What is Consignment Stock, and how does it work?
Materials that remain in the store but are under the owner or seller’s name are known as consignment stocks. The buyer must pay for the consignment stocks when he utilizes them.
How is Special Procurement in regards to SAP?
In SAP MM, Special Procurement refers to stocks that do not belong to a firm and are stored in various locations.
What are some of the most frequent SAP Material Management assignment types?
- Company code to purchasing organization
- To plant a standard purchasing organization
- Company to Plant code
- Plant Purchasing Organization
Explain what a Purchase Order is.
A buyer sends a purchase order to his sender to finalize the requirements. In addition to the names and quantities of goods, the buy order contains essential information such as the purchasing firm’s data, a company code, the name of the material and its related factory, and the date for material delivery.
What is the definition of internal procurement?
There are several discrete companies in huge corporations. The requirements for material and services are obtained from a single business using an internal procurement procedure. Each identical firm, on the other hand, must maintain a more comprehensive bookkeeping system, as well as separate Profit and Loss statements and Balance Sheets.
What is a Request for Quotation (RFQ)?
A request for a quotation is referred to as an RFQ. The request needs to include terms and conditions along with the correct prices submitted by vendors. The RFQ also includes information about the delivery date, products and services, quantity, and submission date.
What are the various procurement types that you may use in SAP MM to create Purchase requisitions?
For the following procurement kinds, a buy request is created:
- Stock transfer talks about transferring materials only inside a company.
- Subcontracting entails sending raw materials to a seller and receiving completed goods in return.
- Getting finished material back from the vendor is standard.
- External service: Obtaining maintenance services from third-party vendors.
- Consignment: Purchasing items from a seller even though those products are already within the company’s premises.
What exactly does material requirement planning (MRP) imply?
MRP (material requirement planning) is an SAP ERP module (Enterprise Resource Planning). It is a tool used to precisely plan out the procurement and production to create realistic and feasible plans for operations to smoothly begin.
State some differences between production and purchase orders.
Order of production: It determines which materials must be prepared when and where, as well as the quantity necessary. It also initiates the order of operations that need to be followed along with the components. Furthermore, there are issues regarding the order expenses that must be addressed.
Purchase Order: A vendor or a manufacturer issues a purchase order to supply a certain number of items and services at a specific time and location.
What is the difference between MRP and CBP?
The major distinction between CBP and MRP is that we utilize MRP to estimate material requirements based on SOP when planning material (sales and operations planning). Furthermore, we must anticipate the MM (material management) based on past demand for materials in CBP.
How can you tell the difference between stock procurement and consumption procurement?
Stock procurement entails several steps. It refers to the stockpiling of materials. Once the material is received from the seller, it is stored there. A master record keeps all the data safe including the stock information. The quantity of any stock relies on how well it sells along with how large its demand is.
Procurement for Direct Consumption: Procurement for direct consumption refers to the use or consumption of material once it has been obtained. The master record remains in the system before consumption materials’ orders start coming up.
Explain what invoice processing is?
It is used to monitor supplier invoices by a company’s account payable department. When an invoice is accepted, invoice processing begins, and it concludes when the invoice is cleared and entered into the general ledger.
In MM, what do you mean by contracts?
In terms of MM, a contract is a document of authorization that is used to make long-term agreements. This document is provided to a vendor so they can provide their services for as long as the contract states. If the purchaser requests it, these contacts can be used to direct orders as well.
What is the difference between a buy order and a purchase requisition?
It’s the most important document to have when launching a product or making a supplier buy. It’s an element of the accounting process. The buyer can obtain an idea of the purchases and identify the business requirements with this document.
What is the difference between a goods receipt and a post-goods receipt?
The term “goods receipt” refers to the physical inbound transfer of materials and goods into the warehouse. It also includes the transfer of goods received from in-plant production or outside vendors. The issuance of a goods receipt always increases warehouse stock.
When a receipt of goods is posted regarding a purchase order with which items or goods were ordered, it is known as a post-goods receipt. All departments must make a reference record in the system when the material is supplied in conjunction with a purchase order.
What exactly do you mean when you say “outline agreement”?
A long-term purchase agreement is referred to as an outline agreement. It is made according to the seller’s agreements and conditions regarding the goods the seller needs to send. This agreement is for a specific amount of time and covers a specific quantity or value.
In SAP, what is a Material Master? What is the best way to keep it in the SAP system?
The material master contains data on many types of materials, such as raw materials and completed goods. It is used to identify a product, as well as to issue products, receive goods, acquire materials, certify manufacturing, and track MRP.
Material master data should be entered using T-code. To get started, go to logistics, then production, master data, material master, material, generate, and then instantly.
In SAP MM, what is the difference between RFQ, RFI, and RFP?
When an invoice is handled, RFI gathers information from sellers, RFQ obtains the best pricing for the entire project, and RFP generates the best project.
RFI does not explain anything in terms of the solution’s state, RFQ fully specifies the specifics and project, and RFP comprehends the complete scenario.
Furthermore, RFI gives information on the sellers, RFQ provides a project’s statement of work, and RFP specifies price specifics.
What does the batch record have to do with anything?
A batch is used to determine the quality of a certain product that must be processed or manufactured at the same time. The materials made in these particular batches should have proportional values and properties. Furthermore, the batch record guarantees that information about a given batch product is available. It also aids in determining whether the product has undergone Good Manufacturing Practices (GMP).
Bottom Line
This article focuses on helping you prepare for an interview regarding SAP MM. Each question follows a sample answer to help you figure out the right way to answer all questions. Overall, answering the questions are important but do so in the right way so you show the interviewer that you are the right person for the job.
FAQs
Is there a future for SAP MM?
SAP MM has a bright future ahead of it. The MM module is used in the majority of SAP projects since the material is one of the most fundamental demands of most SAP users. To increase your market value, you may study a variety of functional and technological modules such as sd, QM, and SAP ABAP, Basis, and so on.
Which SAP module pays the most?
SAP SCM (Supply Chain Management) SCM Certified experts are among the highest paid in any firm, with pay varying according to their abilities, experience levels, and the working techniques of individual companies. The average salary for an SAP SCM Professional is $109,089 per year.
Why is SAP so well compensated?
SAP consultants are well compensated by firms to boost their Return on Investment over time and reduce costs with improved performance. The demanding job:… As a result, a career as an SAP consultant is extremely rewarding.
