SAP Material Management Interview Questions and Answers
Last updated on 05th Oct 2020, Blog, Interview Question
Experienced in SAP MM? SAP MM is the Materials Management which is handled under logistics area and managing the procurement activities. The activities that comes under this are planning, controlling and shipping and many more. MM Consultants in this role are responsible to handle process consulting. Wisdomjobs has interview questions which are exclusively designed for employees to assist them in clearing interviews. SAP MM interview questions and answers are useful for employees who are good at SAP technology.
1.What Mrp Procedures Are Available In Mm-cbp (consumption Based Planning)?
Various material planning methods are used in MRP (Material Requirements Planning).
- Reorder point procedure (VM)
- Forecast-based planning (VV)
- Time-Phased materials planning (PD)
- These are specified in material creation (MM01) under the MRP 1 tab.
2.Under What Conditions Are Planned Orders Created? What May Planned Orders Be Converted To And How Is That Conversion Accomplished?
Planned orders are always created when the system creates an internal procurement proposal. In the case of vendor procurement, the MRP Controller may create a planned order or directly create a PR. The next step for a planned order is to be converted to a PR so it goes to purchasing and is to eventually become a PO. A planned order can be converted to a PR using transaction code MD14.
3.What Are The Organizational Levels Of The Enterprise Structure In R/3?
The top level of the organizational plan is the Client, followed by Company Code, which represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next level down is Plant, an operational unit within a company (HQ, Assembly Plant, Call Center, etc.). The Purchasing Organization is the legally responsibly group for external transactions. This group is further subdivided into Purchasing Groups.
4.What Are The Different Ways To Organize Purchasing Organizations?
A Purchasing Organization may be responsible for multiple plants and this is referred to as “Distributed Purchasing”. On the other hand, “Centralized Purchasing” features one Purchasing Organization per Plant.
A Purchasing Organization doesn’t necessarily need to be assigned to a Company Code. This would enable procurement for every company code as long as buyers are acting for an individual Plant, and that Plant is assigned to the Purchasing Organization. Hence, a plant may be assigned to more than one Purchasing Organization.
5.What Are Special Stocks?
Special Stocks are stocks that are accounted for but are not owned by the client, are not stored at a regular facility. Consignment, sales order, and project stock are examples.
6.What Are Some Of The Options Available To Transfer Materials From One Plant To Another?
Although it is possible to transfer materials from one plant to another without a Stock Transport Order, many advantages are lost including entering a vendor number, planning a goods receipt in the receiving plant, monitoring process from PO history, and the ability to create STO directly from a MRP PR.
7.What Are Some Of The Common Stock Transport Order Movement Types?
One step transfers of materials can be posted using MT 301. Other various transport scenarios differ in the MTs by the Goods Issues and Good Receipts. Common Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.
8.What Is The Difference Between A Purchase Order And A Purchase Requisition?
A Purchase Requisition is a document type that gives notification of a need for materials or services. A Purchase Order is a document type that is a formal request for materials or services from an outside vendor or plant. Procurement types may be defined at the line item and can be standard, subcontracting, consignment, stock transfer, or an external service.
9.What Is An Indirectly Created Purchase Requisition?
An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service Management, or PP Production Planning and Control. The “directly created” Purchase Requisition, on the other hand, is created by a person manually in the requesting department specifying what materials/services, units, and a delivery date.
10.What Is An Rfq And How Is It Different From The Quotation Form?
A RFQ is a purchasing document and an invitation to a vendor(s) for quotation regarding needed materials or services. If multiple an RFQ is sent to multiple vendors, the system can automatically determine the best quote and send rejection letters in response to all others. The RFQ and the Quotation Form are one in the same in the system as vendor’s quotes are entered directly in the RFQ.
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11.What Are The Transactions That Will Result In A Change Of Stock?
A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which results in an increase in warehouse stock, a Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location to another.
12.When Would It Be Prudent To Post Goods Movements Via The Shipping Application?
If picking, packing, and transportation operations need to be planned in detail. Also, in shipping, you can manage movements like returns from customers, vendors, and returns to stock. Movement Types in shipping start with a 6.
13.What Is A Reservation?
A Reservation is a document used to make sure that the warehouse keeps a certain amount of a material or materials ready for transfer at a later date. It contains information on what, quantity, when, where from and to. Reservations help effective procurement by utilizing the MRP system to avoid out of/lack of stock situations.
14.Can You Manually Generate A Purchase Requisition Referencing A Purchase Order Or A Scheduling Agreement?
A Purchase Requisition cannot be created with reference to either of these, as they are documents controlled by the purchasing organizations.
Requirements can be automatically generated with MRP that reference a Scheduling Agreement if the source list is maintained for item-vendor combination.
15.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.
16.How Do Planned And Unplanned Consumption Affect Movement Types?
In a customized Movement Type, you have defined which consumption value gets posted in the movement. Many will always be planned or unplanned, but for some there is a dependency on if the movement references a reservation. This would be planned consumption.
17.What Are Departmental Views?
All functional areas of the system use the same material master data. The material master data is defined in individual screens (departmental views) that can be added as needed. Thus a material can be created with only basic data and other departments can add other information later as it becomes available.
18.Is Material Data Valid For All Organizational Levels?
Control of master data depends largely on how each company sets up its Organizational levels – centralized or decentralized. Some material data is valid for all organizational levels while other data is valid only at certain levels. (I.e.: client, plant, sales org., etc.).
19.Why Would You Want To Create Physical Inventory Sheets To Perform An Inventory Cycle-count On A Material Or Materials?
For a cycle counting procedure, physical inventory documents need to be created. These are used to record inventory levels of the material being cycle counted.
Use transaction MICN. Click on the Execute button. On screen “Batch Input: Create Physical Inventory Documents for Cycle Counting”, perform the following, Click on the Generate Session button and Click on the Process Session button. This procedure details how to create the physical inventory documents for cycle counting in a batch, rather than one at a time, based on certain criteria. This would print physical inventory documents for all material/batches that meet those requirements.
20.What Is The Difference Between A Blanket Purchase Order And The Framework Order?
In general, the Blanket POs are used for consumable materials such as office paper with a short text, with item category B. There need not be a corresponding master record, for the simplicity of the procurement. The FO, Framework Order, document type is used. Here, the PO validity period as well as the limits are to be mentioned. The GR, or Service Entry for the PO are not necessary in the case of Blanket POs. One need not mention the account assignment category during creation of the PO. It can be U, or unknown and be changed at the time of IR.
21.What Is Release Procedure?
Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to define separate release procedures for different groups of materials for which different departments are responsible, and to define separate procedures for investment goods and consumption goods.
22.How Do You Display Parked Documents?
There are two possible transactions to use here. They are FB03 and FBV3. The first shows all posted document types. This is the best choice if you think the document has been posted to you actual balance. The later shows only parked documents that have not yet posted to your expenditure balance. These documents are still encumbrances. It is the best choice if you are trying to find which documents are still awaiting completion or approval. This transaction is very similar to the FBV2 transaction used with P-Card reconciliation and marking parked documents complete.
23.How Do You Perform An Invoice Verification?
If the Invoice refers to an existing document (PO, etc.), then the system pulls up all of the relevant information like Vendor, Material, Quantity, Terms of Delivery, and Payment Terms etc. When the Invoice is entered, the system will find the relevant account. Automatic posting for Sales Tax, Cash Discount, Corrections etc. When the Invoice is posted, certain data such as Average Price of Material and Price History are updated. Use Transaction MIRO.
24.How Do You Perform A Goods Issue?
Use Transaction MIGO. On the initial screen, enter the header data (you need not enter the Movement Type or the Plant as these are automatically copied from the order). Choose Goods Issue ,Create with Reference, To Order. If you know the order number, enter it directly. Using the By-products Indicator, you can simultaneously post the Goods Receipt of planned by-products. Using the Choose transaction/events indicator, you can display all transactions/events for an order and choose the transaction/events for which you want to post a Goods Issue. Copy the desired item(s). Check data on the overview screen. Post the document.
25.Where Do You Perform A Goods Issue?
Use Transaction MIGO.
It is possible that when MIGO is accessed that a different document screen appears than the one required. This occurs because SAP remembers the last Goods Movement transaction accessed per user login. To reach the Goods Issue Purchase Order screen, click the Dropdown Icon in the transaction field and select “Goods Issue”.
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26.How Will Items Be Returned To The Vendor?
When you are posting a Goods Receipt for a PO, you can also enter items that you want to return to the vendor. To do this, you no longer have to reference the purchase order with which the goods were originally delivered. From the item overview, choose 161 (Return for PO) as the default value for the Movement Type. Enter the data for the return item(s) and post the document.
27.How Do You Create A Source List?
Use Transaction ME01. Enter the Material Number and the Plant Data. Enter source list records, validity period, period of time material is procurable, Vendor Number, responsible Purchasing Organization (or number of the Agreement or Contract), PPL (if the material can be procured from another plant), Fixed Source (?), MRP control.
Also, a check should be done to see whether any source list records overlap. To do so, choose Source List Check.
28.How Do We Get A Proper List Of Vendors To Send An Rfq?
Either use the Information Record to see who has sold a particular material to the organization in the past, or go through the Source List.
29.What Is Vendor Evaluation And How Do You Maintain It?
Vendor Evaluation helps you select the Source of Supply by a score assigned to a particular vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use Transaction ME61 and enter the Purchasing Organization and Vendor Number.
30.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).
31.How Do We Create Consignment Stocks?
Everything is the same as a normal PR or PO, except: Enter the item category “K” for the consignment item. This ensures that the Goods Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price.
32.Can You Change A Purchase Requisition After It Has Been Created?
Yes. Use Transaction ME52N. Check to see if the PR has already had a PO issued against it. If so, you must inform the Purchasing Group. Check if the PR has been approved. If so, you may only make changes to a limited extent and may be subject of approval. Check if the PR was created by MRP. In this case, you don’t have much control over the modification process.
All changes to items are logged and stored. Information stored includes when the information was changed, who changed it, what the changes were, etc. Select the desired item in the item overview and choose Go To Statistics Changes.
33.What Is The Difference Between A Pr With A Master Record And Without A Master Record For The Material Being Ordered?
If the master record exists, then all of the information about the Source List, Information Record, and Vendor Evaluation already exist in the system. If we don’t have a Master record for the material we are ordering, the material is generally being ordered for direct usage or consumption. You can specify which consumption account is to be charged which is also known as Account Assignment. For example, we assign the purchase costs associated with a requisition to our sales order or cost center.
If the first situation exists, many times purchasing enters into a longer-term purchasing agreement with a Vendor, which is called an “Outline Agreement”. If the Outline Agreement is done, then Purchasing cannot issue a purchase order against a PR. It can only set up such an agreement (either a “Contract” or a “Scheduling Agreement”).
34.How Do We Know If A Po Has Been Issued?
Bring the Requisition up by using Material Management, Purchasing, Purchase Requisition, Display. Where the requisition overview screen is displayed, select an item by clicking on the selection box to the left of the item. Click on the General Statistics icon on the application tool bar. Select item. General Statistics icon. The screen appears, in the middle, under Order Statistics, in the field Purchase Order, if there is no number the PO has not been issued.
35.Where Is Material Master Data Saved?
Tables MARA and MARC.
36.Where Is The Header Level And Item Level Data Saved In A Po?
In SE11, we can see this information in table EKKO and EKP0 respectively.
37.How Do You Generate An Automatic Po After Creating A Pr Using A Particular Material?
In MMR and VMR check Auto PO (MM02/XK02).
Maintain the Source List and select the indicator for the source list record as MRP relevant (ME01). If more than one source list record is generated, make one of them fixed. Run MRP and the PRs generated will be pre-assigned with the source of supply (MD01). Enter ME59 for automatically creating POs from PRs.
38.How Can You Disable A Reservation In Mrp?
Use Transaction Code OPPI to check “block stock”.
39.How Do You Find The Logical Value For Stock Item By Date?
Use Transaction MC49.
40.If You Have Created A Custom Movement Type And You Get A Not Allowed Error, Where Should You First Look For The Cause?
Using Transaction Code OMJJ, check “Allowed Transactions” for the customized Movement Types.
41.How Do You Display A List Of All Reservations In The System?
Run report RM07RESL.
42.How Can You Post A Goods Receipt If The Po Number Is Not Known?
If you selected PO Number Not Known in Transaction MIGO, you can specify search criteria for the POs on the initial screen. The system then displays a list of purchase orders. Select and copy the required PO items.
43.How Do You Perform A Goods Receipt?
Use Transaction MIGO. Enter the Header Data, select the Movement Type, Enter the PO Number, select the PO items to be copied, and then post the document.
44.How Can An Invoice Be Verified?
Transaction Code OLMR may be utilized.
45.How Can You Process Vendor Returns Without A Purchase Order Reference?
Use Transaction Code ME21N.
Look for the Return columns and click it at the item details, MIGO_GR, Goods Receipt for Return Purchase Order Movement type will be 161 to deduct the stock and 162 for reversal. Before saving, check if there is a check in the Return Column to ensure that it is a return Purchase Order.
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46.What Are Some Of The Initial Configuration Steps For Physical Inventory?
Define Default Values for Physical Inventory Document, Batch Input Reports, Tolerances for Physical Inventory Differences, and Inventory Sampling. Cycle Counting should be configured as well.
47.What Are Some Of The Initial Configuration Steps For Inventory Management?
Plant Parameters, Define System Message Attributes, Number Assignment (Allocate document type FI to transactions), Goods Issues, Transfer Postings, Define Screen Layout, Maintain Copy Rules for Reference Documents, Setup Dynamic Availability Check, Allow Negative Stocks ().
48.When, In Initial Configuration, Why Would You Have To Setup Stock Transport Order?
If it is required to carry out an inter-plant Stock Transfer through SD, then this configuration is required and must be carried out.
49.What Are Some Of The Initial Configuration Steps For Purchase Requisitions?
Define Document Types, Processing Time, Release Procedure (with and without classification), Setup Authorization Check for G/L Accounts, Define Number Range.
50.What Data Does The Information Record Contain?
The Information Records has data on Units of Measure, Vendor price changes after a certain level, what materials have been procured by a specific vendor, price and conditions for relevant Purchase Organization, Tolerance limits for over/under delivery, Vendor evaluation data, planned delivery time, and availability time the vendor can supply the material.
51.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.
52.What Are The Lot Size Attributes A Material Can Posses?
Lot Sizing dictates the reorder quantity for a material. A material can have a static, periodic, optimum, or fixed lot size.
53.What Are Some Of The Data Points Provided By Purchasing For A Material?
Some of the key inputs when creating a material are Base Unit of Measure, Purchasing Group, Reminder days, tolerance levels, shipping instructions, GR processing time, JIT schedule indicator, Critical part (), etc.
54.How Do You Create A Material?
Use Transaction Code MM01. Name the material, choose an industry sector, choose a material type, create or copy the views, add a basic description, give it’s attributes/values, MRP information, reorder point, accounting valuation, warehouse management information and then save the data.
55.What Are The Main Purchasing Tables?
- EKBN Purchase Requisition
- EBKN Purchase Requisition Account Assignment
- EKAB Release Documentation
- EKBE History of Purchase Document
56.What Are The Key Fields For The Material Master?
Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units or Measure Groups.
57.Will Roh Have A Sales View? Will Fert Have A Purchasing View?
They shouldn’t because ROH type materials are procured from the outside not sold and FERT type materials are created inside and aren’t procured.
In some special cases, we have to sell raw materials (ROH) and buy finished goods (FERT) from outside sources. The views must be extended in these cases using transactions OMS2 and MM50.
58.How Do You Configure The Release Procedure?
Use Transaction OMGQ.
59.How Do You Create A Class?
Class is defined as the group of characteristics, which can be attributed to a product. Use Transaction CL01. Enter the value for the Class name and a small description. Select the group from it. The values on the different tabs are not mandatory, so you can skip the values if you wish or you can go to any extent needed. Save, and the Class is created.
60.How Do You Change Characteristic?
Use Transaction Code CT04. Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, Required Entry, Intervals as Values (?), descriptions for texts for characteristics and characteristic values, display options for characteristics on the value assignment screen, Allowed Values, Default Values that are set automatically on the Value Assignment Screen.
61.How Do You Define A Release Procedure For Prs And Pos?
Use Transaction ME54 and ME28 respectively.
62.How Can One Keep Users From Using Standard Mm Movement Types?
Standard Movement Types should not be deleted from the system. The account assignments, however, may be deleted for a particular Movement Type in table T030 using transaction OBYC.
Another way to achieve the same result is to enter Movement Type in transaction OMJJ. Remove MBXX from allowed transactions.
63.What Needs To Be Present In Order For Material Type To Be Automatically Copied From One View To Another?
When creating any view, the Industry Sector and Material type will be automatically copied from an existing view, so long as at least one view exists.
64.How Do You Determine Which Views Of A Material Need To Be Added Or To See Which Plants A Material Has Been Extended To?
You can use transaction MM50.
To extend a material to a different plant requires selecting the new plant on the organizational level screen. Note that all views of a material are not extended unless they were selected on the initial screen. In addition, each plant may have a different system configuration requiring additional inputs on each of the departmental screens. Material changes made in one plant do not change that material in other plants.
65.When Creating A New Material, What May Prompt Some Of The Possible Material Types?
Pressing F4 gives a list of choices. Select the material type for the material you are creating. For example, FHMI for Prod. Resources/tools, ROH for Raw Materials, FERT for Finished Products, etc.
66.When Can A Production Resource/tool Be Defined As A Material?
A Production Resource / Tool can be defined as a material if purchasing and inventory functions are to be carried out for that PRT.
The information required to be input is dependent upon which department views are being created. Thus, material master information is typically entered at different times by numerous system users. Note that to add a view, the “Create Material” transaction is used rather than the “Change Material” transaction.
67.What Views Are Possible For A Material?
The material type selected controls the views possible for material.
For a material to be used in the system it needs to be created for each plant. Multiple views of a material are possible but at a minimum, the material needs to have a description and a base unit of measure assigned on the basic data view. Additional department views (i.e. Accounting, Sales, Purchasing, MRP, Warehouse) can be added at a later time by extending the material. As additional plants are added, a material will need to be extended to the plants before it can be used there.
68.What Sap Program Is Used To Update Or Create Material Master Records?
RMDATIND is used to update Material Master Records and can be used for such assignments as extending all materials to a new plant.
69.Where Can You Dictate How Planned Orders Are Converted Into Requisitions In Mrp?
Look at the Transaction Code OPPR indicator. Assign proper indicator.
70.What Are Some Of The More Important Materials Management Tables?
EINA contains general data of the (Purchasing) Information Record; EINE includes Purchasing Organization of the same. MAKT is the Materials Description table, MARA-General Materials data, MARC-Plant Data for Materials, MARD-Storage Location Data for Material, MAST-Material to BOM Link, MBEW-Material Valuation, and MKPF-Header Material Document.
Some of the tables that directly pertain to the document types are T156 Movement Type and T023/T024 Groups Material and Purchasing.
71.How Are The Various Mm Configuration Transactions Accessed?
Transaction Codes OLMD accesses MM-CBP, OLMB accesses MM-IM, OLME accesses MM-PUR, OLML accesses MM-Warehouse Management, OLMS accesses Material Master Data, and OLMW is the proper transaction for valuation and account assignment.
72.How Do You Access The Materials Management Configuration Menu?
Transaction Code OLMS has a host of options that are not accessible through the IMG.
73.How Do You Set Price Control For Receipts (goods/invoice) Telling The System How To Value Stocks?
Transaction Code OMW1 allows you to set price control to S (Standard Price) or V (Moving Average Price).
Under Standard Price (S), the materials and accounting documents are both valid. The one with the lower value will be posted with a price variance entry.
74.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.
75.What Is An Invoice Verification?
The Invoice Verification component completes the material procurement process and allows credit memos to be processed. Invoice Verification includes entering invoices and credit memos that have been received, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which differ too much from the original PO).
76.What Is The Source List?
The Source List identifies preferred sources of supply for certain materials. If the Source List has been properly maintained, it will identify both the source of a material and the period of time in which you can order the material from the source.
77.What Is A Quotation?
Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens.
78.Give Some Examples Of The Information Relating To A Materials Storage/warehousing?
Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also, there are various Storage Strategies information and options.
79.What Are The Various Steps In The Mm Cycle From Material Creation Through Invoice?
The following creates a rough picture of the MM Cycle. Create material, create vendor, assign material to vendor, procure raw material through PR, locate vendor for certain material, processing GR, goods issue, and invoice verification.
80.What Is A Source List?
The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, both the source of supply and the time period. The Source List facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to select the priffered source during the source determination process.
81.What Is A Price Comparison?
Perform a price comparison using ME49 and one may compare quotations from different vendors.
82.What Is A Material Type?
A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house.
83.If You Have A Multi-lineitem Po, Can You Release The Po Item By Item?
No, a PO is released at the header level meaning a total release or “With Classification”.
PRs, on the other hand, have two release procedures possible. “With Classification” as described above, and “Without Classification” where it is only possible to release the PR item by item.
84.What Is Sap? How Is It Used In Industries?
SAP is the most popular Enterprise Resource Planning (ERP) software application used to provide enterprise business solutions. It was first introduced in 1972 in Mannheim, Germany. SAP stands for Systems Applications and Products in Data Processing.
SAP provides complete business solutions by integrating various business tasks, such as sales, purchase, and production. It takes information from one business process and incorporates the same into another business process, thereby speeding up business processes. For example, the information about the raw material in stock is used by the production department to prepare products.
It is most widely used in industries, because it automates business processes and provides real-time solutions for them, that is, it updates and processes the data very quickly.
85.What Is Sap R/3?
The three-tiers in client-server computing are: Presentation (Client), Application (Business logic), and Database (Stores the actual business data).
SAP R/3 integrates the various business areas, such as sales, purchase, and procurement, by using its different functional modules, such as Material Management (MM), Sales and Distribution (SD), Financial and Controlling (FICO), and Human Resource (HR).
Different versions of SAP R/3 are 3.1i, 4.0b, 4.5b, 4.6b, and 4.6c with the latest version 4.70.
86.What Are The Core Functionalities Of The Sap System?
The core functionalities of the SAP system consists of Sales and Distribution (SD), Materials Management (MM), Financial Accounting (FI), and Production Planning (PP). In the first phase, the companies implement the SAP software with these core functionalities and later in the second and third phase, they may also introduce other functionalities, such as Controlling (CO), Warehouse Management (WM), Human Resource (HR). However the type of modules and the phasing of implementation solely depends on the type of industry the client works as well as the organization’s readiness and urgency for the need to adopt integrated enterprise system such as SAP.
87.How Can You Define An Mm Module? What Is Its Importance In Sap R/3?
MM stands for Material Management and is a part of the Logistic functional area of SAP R/3. It is an important SAP R/3 module, because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch management and material storage. Since the materials are the most precious resource of an organization, extreme care needs to be taken in all the processes related to materials management. Efficient material management is the essence of the MM module of SAP R/3.
88.How Is The Mm Module Integrated With Other Modules Of Sap?
- The MM module deals with material procurement on the basis of the production required; therefore, it is linked with the Purchasing Planning (PP) module.
- The Sales and Distribution (SD) module is proportionally related to the MM module, because it uses information about the quantity of material sent for production.
- The MM module is related to the Warehouse Management (WM) module, because the MM module maintains information about the material storage and material transfer inside an organization.
- The MM module is also related with the Financial Accounting (FI) module, because every operation performed in the MM module directly impacts the financial process of the organization.
89.What Are The Levels Of Organizational Units Of Enterprise Structure In R/3?
The client is the top level of the organizational units of Enterprise Structure in R/3. The client is followed by the company code, which represents a unit with its own accounting, balance, and P&L The next level of organizational units of Enterprise Structure is plant, representing an operational unit of a company.
90.Define Client.What Is Its Importance In Sap?
A client can be defined as a person, company, or an organization that purchases goods from another person, company, or organization and pays for that. In terms of SAP, a client can be defined as a unit that has its own master records and a set of tables. It is important in SAP because it stores and maintains data about the organization where SAP is implemented.
91.How To Create A Client In Mm Module?
You can create a client in MM module either by using the transaction code SCC4 or by performing the following steps:
- 1.Click SAP menu–>Tools–>Administration–>Client Administration.
- 2.Double-click SCC4 Client Maintenance. The display View “Clients”: Overview screen appears.
- 3.Click the Display -> Change button. The Information dialog box appears.
- 4.Click the Continue button. The Change View “Clients”: Overview screen appears where you can create a new client.
92.How To Create A Company Code In Sap?
In SAP, the company code is created using the transaction OX02. The company code field is defined as a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
- 1.Open the SAP Customizing Implementation guide.
- 2.Click Enterprise Structured–>Definition–>Financial Accounting–>Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
- 3.Double-click Edit Company Code Data. The Change View “Company Code”: Overview screen appears where you can create a company code.
93.How Can You Assign A Company Code To A Company In Sap?
You can assign a company code to a company by performing the following steps:
- 1.Open the SAP Customizing Implementation guide.
- 2.Click Enterprise Structured Assignments Financial Accounting -> Assign company code to company. The Change View “Assign Company Code – Company”: Overview screen appears where you can assign a company code to a company
94.How Many Charts Of Accounts Can Be Assigned In A Company?
In a company, only one chart of accounts can be assigned.
95.How Many Company Codes Can Be Assigned In One Chart Of Accounts?
You can assign many company codes in a chart of accounts.
96.How Many Company Codes Can Be Assigned To A Company?
You can assign one or more company codes to a company.
97.What Is A Plant In Mm?
A plant is an organizational unit, where materials are produced or goods and services are provided. In SAP, it is represented by a unique four-digit alphanumeric number. A plant is allocated to one company code and a company can have many plants. In an organizational unit, a plant can be at one of the following locations:
- Corporate headquarters
- Central delivery warehouse
- Manufacturing facility
- Regional sales office
98.How Many Company Codes Can Be Assigned To A Plant?
You can assign only one company code to a plant.
99.Can A Company Code Be Assigned To Many Plants?
Yes, you can assign a company code to many plants.
100.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.
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