1. What is SAP MM?
SAP MM (Material Management) is a module in SAP ERP that is used to manage procurement activities and streamline inventory management. It covers a wide range of tasks including material planning, purchasing, inventory management, and invoice verification.

2. What are the key components of SAP MM?
The key components of SAP MM are:
– Master data: Material master, vendor master, and purchasing info records.
– Purchasing: Purchase requisitions, purchase orders, and RFQs (Request for Quotation).
– Inventory management: Goods receipts, goods issue, stock transfers, reservations, and physical inventory.
– Invoice verification: Verification and processing of vendor invoices.

3. What is a Purchase Requisition?
A purchase requisition is a document used to request materials or services from the purchasing department. It contains information such as material description, quantity required, delivery date, and account assignment details.

4. What is a Material Master?
The material master is a central repository of all materials-related data. It contains information about materials’ attributes, such as material type, description, unit of measure, inventory data, and sales-specific data.

5. What is a Purchase Order?
A purchase order is a legal document generated by a company to procure materials or services from vendors. It contains details such as material description, quantity, price, delivery date, and terms of payment.

6. What is a Goods Receipt?
A goods receipt is a document used to record the receipt of goods or services into the warehouse or inventory. It is generated when materials are physically received, and it updates the inventory quantity.

7. What is a Goods Issue?
A goods issue is a document used to record the removal of materials from the warehouse or inventory. It is generated when materials are consumed for production, transferred to another location, or sold, and it updates the inventory quantity.

8. What is a Stock Transfer Order?
A stock transfer order is a document used to transfer materials from one storage location to another within the same company code. It ensures proper tracking and accounting of materials during the transfer process.

9. What is a Reservation?
A reservation is a document used to reserve materials for a specific purpose or requirement. It ensures that the materials are available when needed and prevents them from being used for other purposes.

10. What is Invoice Verification?
Invoice verification is the process of verifying vendor invoices against purchase orders and goods receipts. It ensures accurate payment to vendors and helps in identifying any discrepancies or errors in invoices.

11. What is MRP (Material Requirements Planning)?
MRP is a planning process in SAP MM that helps in determining the materials required for production or replenishment based on demand and existing inventory levels. It ensures the availability of materials in the right quantity at the right time.

12. What is a Source List?
A source list is a list of approved vendors or sources from which materials can be procured. It helps in ensuring that materials are procured from reliable sources and allows for better control over the procurement process.

13. What is a Quota Arrangement?
A quota arrangement is used to allocate procurement quantities among different sources in a predetermined proportion. It helps in distributing the procurement workload among multiple vendors or sources.

14. What is Goods Issue Reservation?
A goods issue reservation is a reservation used to allocate materials for a specific production order. It ensures that the materials are reserved for the production order and cannot be used for other purposes.

15. What is a Release Strategy?
A release strategy is a predefined approval process that determines the release of purchase requisitions or purchase orders based on certain criteria, such as the value of the purchase or the department requesting the purchase.

16. What is a Consignment Stock?
Consignment stock is inventory that is owned by the supplier but stored and managed by the customer. The customer only pays for the stock when it is consumed, providing better control over inventory and reducing carrying costs.

17. What is a Material Valuation?
Material valuation is the process of assigning a value to materials in the inventory. It takes into account factors such as purchase price, stock quantity, and valuation method to determine the value of materials on hand.

18. What is a Service Entry Sheet?
A service entry sheet is a document used to record services performed by a vendor. It includes details such as service description, quantity, price, and approval status. It serves as a basis for vendor invoice verification.

19. What is a Release Procedure?
A release procedure is a set of predefined steps and criteria that determine the release or approval of documents, such as purchase requisitions or purchase orders. It helps in ensuring proper control and authorization of procurement activities.

20. What is a Vendor Evaluation?
Vendor evaluation is the process of assessing and rating vendors based on performance criteria such as price, quality, delivery, and service. It helps in identifying reliable and efficient vendors for future procurement activities.

1. What is the difference between GR (Goods Receipt) and IR (Invoice Receipt)?
GR is related to the receipt of goods physically in the warehouse, while IR reflects the receipt of an invoice from the vendor.

2. What is the purpose of splitting valuation in SAP MM?
The purpose of splitting valuation is to differentiate the same material based on different characteristics like size, color, or batch.

3. How can you define an MRV (Material Reconciliation) document?
MRV is a material document used to show the physical reconciliation of stocks in the storage location.

4. Explain the purpose of the “Valuation Class” field in SAP MM.
The Valuation Class field in SAP MM is used to determine how a material is valued and the corresponding general ledger accounts used for valuation.

5. Define the significance of the “Update Group” field in release procedure configuration.
The Update Group field is used to define the sequence in which release status is to be updated in purchase orders.

6. What are the steps involved in performing material ledger closing in SAP MM?
The steps for material ledger closing include activation of quantity and price updates, valuated stock determination, closing cockpit updating, result analysis, and releasing the material ledger closing.

7. Explain how you can restrict specific material from being procured for a specific plant?
You can restrict the procurement of a specific material for a particular plant by maintaining a material status and assigning it to the plant.

8. What is the significance of the “Procurement Type” field in purchasing view of material master?
The Procurement Type field determines how the material will be procured and is used to control the procurement process.

9. What is the purpose of the “Condition Supplement” field in SAP MM pricing?
The Condition Supplement field helps to add additional conditions to an existing condition type in pricing.

10. How can you configure automatic assignment of stock transport orders in SAP MM?
Automatic assignment of stock transport orders can be configured by setting the “Assign Automatically” indicator in the SAP MM configuration for stock transport orders.

11. What is the significance of the “Blocking Reason” field in the purchasing document header?
The Blocking Reason allows users to block certain purchasing documents for a specific reason, preventing further processing until the block is removed.

12. Explain the purpose of the “Conditions Technique” in SAP MM pricing?
The Conditions Technique allows for the determination of pricing conditions according to various criteria, such as vendor, material group, or purchasing group.

13. How can you configure automatic PO generation from requisition?
Automatic PO generation from requisition can be achieved by setting up a source list and maintaining the relevant purchase info record.

14. What is the significance of the “Volume Calculation Profile” field in the shipping point?
The Volume Calculation Profile defines how the system calculates the volume and weight of the goods during shipment processing.

15. Explain the process of consignment settlement in SAP MM.
Consignment settlement involves transferring the ownership of goods from a consignment stock to the company’s own stock and generating a consignment settlement document.

16. What is the significance of the “Release Strategy” in purchase requisitions?
Release Strategy is used to define the approval process for purchase requisitions based on criteria such as material group or value.

17. How can you maintain a batch as non-valuated in SAP MM?
You can mark a batch as non-valuated by selecting the “Non-valuated” indicator while creating or changing the batch in SAP MM.

18. Explain the purpose of “Splitting Indicator” in purchasing documents.
The Splitting Indicator determines whether an item in a purchasing document should be split or not and how the splitting should be done.

19. What is the purpose of “Dummy Account” in SAP MM?
Dummy Account is used in SAP MM to record account assignments for non-valuated items when the account assignment is not important for the process.

20. Explain the significance of the “GR-Based IV” indicator in SAP MM.
The GR-Based IV indicator determines whether the invoice verification process should be based on goods receipt or not in SAP MM.