- What is SAP MM? Answer: SAP MM is a module in SAP ERP (Enterprise Resource Planning) that focuses on materials management, including procurement, inventory management, and material valuation.
- What are the key components of SAP MM? Answer: The key components of SAP MM include procurement, inventory management, materials planning, and invoice verification.
- What is a purchase requisition in SAP MM? Answer: A purchase requisition is a document created to request the procurement of materials or services. It initiates the procurement process in SAP MM.
- How does SAP MM handle vendor master data? Answer: SAP MM manages vendor master data, which includes information about vendors, such as contact details, payment terms, and purchasing organization data.
- What is a purchase order in SAP MM? Answer: A purchase order is a formal document issued by a buyer to a vendor to request the delivery of materials or services at specified conditions, such as quantity, price, and delivery date.
- How does SAP MM handle goods receipt? Answer: SAP MM handles goods receipt by allowing users to receive materials into inventory when they physically arrive at the organization’s premises. It updates inventory quantities and triggers the payment process.
- What is a material master in SAP MM? Answer: A material master is a central repository of information about materials used in an organization. It contains details such as material description, storage location, unit of measure, and pricing information.
- How does SAP MM handle invoice verification? Answer: SAP MM handles invoice verification by allowing users to verify vendor invoices against purchase orders and goods receipts. It ensures that invoices are accurate before processing payment.
- What is a source list in SAP MM? Answer: A source list in SAP MM is a list of preferred vendors for specific materials. It helps in determining the appropriate vendor for procurement based on predefined criteria.
- How does SAP MM handle material valuation? Answer: SAP MM handles material valuation by providing various valuation methods, such as standard price, moving average price, and actual cost. It calculates the value of materials in inventory based on the selected valuation method.
- What is a stock transport order in SAP MM? Answer: A stock transport order is used in SAP MM to facilitate the transfer of materials between different storage locations or plants within an organization.
- How does SAP MM handle consignment stock? Answer: SAP MM handles consignment stock by allowing organizations to store materials owned by a vendor on their premises until they are consumed. The vendor retains ownership until the materials are used.
- What is a quota arrangement in SAP MM? Answer: A quota arrangement in SAP MM is used to distribute planned or scheduled quantities of materials among multiple sources of supply. It helps in maintaining a balance among different vendors.
- How does SAP MM handle subcontracting processes? Answer: SAP MM handles subcontracting processes by allowing organizations to outsource certain manufacturing operations to external subcontractors. It includes functionalities for issuing subcontracting orders and tracking subcontracting materials.
- What is the role of the Material Requirements Planning (MRP) module in SAP MM? Answer: The MRP module in SAP MM helps in planning and managing material requirements. It calculates the quantities and timings of materials needed for production or procurement based on demand and supply information.
- How does SAP MM handle vendor evaluation? Answer: SAP MM handles vendor evaluation by allowing organizations to assess and rate vendors based on predefined criteria such as delivery performance, quality, and price. It helps in selecting reliable and efficient vendors.
- What is a valuation class in SAP MM? Answer: A valuation class in SAP MM is used to determine the G/L accounts to which the value of a material is posted duringmaterial movements. It helps in determining the correct accounting entries for inventory transactions.
- How does SAP MM handle reservation of materials? Answer: SAP MM handles the reservation of materials by allowing users to reserve specific quantities of materials for specific purposes, such as production orders or maintenance activities. It ensures the availability of materials when needed.
- What is a release strategy in SAP MM? Answer: A release strategy in SAP MM is a predefined set of rules that determine the approval process for purchase requisitions, purchase orders, and other procurement documents. It helps in ensuring proper authorization and control.
- How does SAP MM integrate with other modules in SAP ERP? Answer: SAP MM integrates with other modules in SAP ERP, such as Finance and Controlling (FI/CO), Production Planning (PP), and Sales and Distribution (SD). It ensures seamless data flow and process integration across different functional areas.
- What is a consignment fill-up in SAP MM? Answer: A consignment fill-up is a process in SAP MM where materials are transferred from the organization’s inventory to the consignment stock of a vendor. The organization retains ownership until the materials are used or sold.
- How does SAP MM handle subcontracting usage decisions? Answer: SAP MM handles subcontracting usage decisions by allowing organizations to record the consumption of materials provided to subcontractors for manufacturing processes. It helps in tracking the usage of materials and updating inventory records.
- What is the purpose of the Forecasting and Replenishment (F&R) module in SAP MM? Answer: The Forecasting and Replenishment module in SAP MM is used for demand forecasting and automated replenishment of materials. It helps in optimizing inventory levels and ensuring timely availability of materials.
- How does SAP MM handle external services procurement? Answer: SAP MM handles external services procurement by allowing organizations to procure services from external vendors. It includes functionalities for service entry, service confirmation, and invoicing.
- What is a material group in SAP MM? Answer: A material group in SAP MM is a classification assigned to materials based on their characteristics, such as material type, industry, or function. It helps in grouping similar materials for easier management and analysis.
- How does SAP MM handle purchase order releases? Answer: SAP MM handles purchase order releases by allowing organizations to release purchase orders in multiple stages or based on predefined criteria, such as quantity or value. It helps in controlling procurement processes.
- What is a consignment issue in SAP MM? Answer: A consignment issue is a process in SAP MM where materials are issued from consignment stock to the organization’s inventory for consumption or sale. Ownership is transferred from the vendor to the organization.
- How does SAP MM handle batch management? Answer: SAP MM handles batch management by providing functionalities to manage materials produced or processed in batches. It allows for tracking and tracing materials by batch number and ensures adherence to quality and regulatory requirements.
- What is a release strategy in SAP MM? Answer: A release strategy in SAP MM is a predefined set of rules that determine the approval process for purchasing documents, such as purchase requisitions and purchase orders. It helps in enforcing authorization and control over procurement processes.
- How does SAP MM handle consignment settlements? Answer: SAP MM handles consignment settlements by allowing organizations to settle the value of consignment stock with the vendor based on consumption or sales. It ensures accurate accounting and financial reconciliation.
- What is a service entry sheet in SAP MM? Answer: A service entry sheet is a document used to record the receipt and acceptance of services performed by a vendor. It serves as a basis for processing vendor invoices in SAP MM.
- How does SAP MM handle intercompany stock transfer? Answer: SAP MM handles intercompany stock transfer by allowing organizations to transfer materials between differentcompany codes or plants within the same organization. It ensures proper tracking and accounting of stock movements between entities.
- What is a central contract in SAP MM? Answer: A central contract in SAP MM is a long-term agreement between a buyer and a vendor for the procurement of materials or services. It helps in streamlining and standardizing purchasing processes.
- How does SAP MM handle vendor consignment? Answer: SAP MM handles vendor consignment by allowing organizations to store materials owned by a vendor on their premises until they are consumed or sold. Ownership of the materials remains with the vendor until they are used.
- What is a release procedure in SAP MM? Answer: A release procedure in SAP MM is a set of predefined steps and criteria that determine the approval process for procurement documents, such as purchase requisitions and purchase orders. It ensures proper authorization and control.
- How does SAP MM handle invoice verification for services? Answer: SAP MM handles invoice verification for services by allowing users to verify vendor invoices based on service entry sheets. It ensures accurate and timely payment for services rendered.
- What is a purchasing group in SAP MM? Answer: A purchasing group in SAP MM is a group or department responsible for the procurement of materials or services. It helps in defining and managing purchasing responsibilities within an organization.
- How does SAP MM handle material classification? Answer: SAP MM handles material classification by allowing organizations to assign specific characteristics or attributes to materials. It helps in categorizing and searching for materials based on predefined criteria.
- What is a source determination in SAP MM? Answer: Source determination in SAP MM is the process of determining the appropriate source or vendor for procuring materials. It considers factors such as price, availability, and vendor performance.
- How does SAP MM handle consignment pick-up? Answer: SAP MM handles consignment pick-up by allowing organizations to transfer materials from their inventory to the consignment stock of a vendor. Ownership remains with the organization until the materials are used or sold.
- What is a release indicator in SAP MM? Answer: A release indicator in SAP MM is a status that determines whether a purchasing document, such as a purchase requisition or purchase order, requires approval before further processing. It helps in controlling procurement processes.
- How does SAP MM handle pricing conditions? Answer: SAP MM handles pricing conditions by allowing organizations to define and maintain pricing conditions for materials or services. It helps in determining the price of materials during procurement processes.
- What is a goods issue in SAP MM? Answer: A goods issue is a process in SAP MM where materials are issued from inventory for consumption, transfer, or external processing. It updates inventory records and triggers the necessary accounting entries.
- How does SAP MM handle external purchasing information records? Answer: SAP MM handles external purchasing information records by allowing organizations to maintain information about external sources of supply, such as catalog suppliers. It helps in streamlining procurement processes.
- What is a service master record in SAP MM? Answer: A service master record in SAP MM is a central repository of information about services used in an organization. It contains details such as service description, pricing, and related information.
- How does SAP MM handle consignment returns? Answer: SAP MM handles consignment returns by allowing organizations to return materials from their inventory to the consignment stock of a vendor. It helps in managing and reconciling consignment stock levels.
- What is the purpose of the Vendor Evaluation module in SAP MM? Answer: The Vendor Evaluation module in SAP MM is used to assess and rate vendors based on predefined criteria such as delivery performance, quality, and price. It helps in selecting reliable and efficient vendors.
- How does SAP MM handle purchase requisition release strategy? Answer: SAP MM handles purchase requisition release strategy byallowing organizations to define a release strategy for purchase requisitions based on predefined criteria, such as the value or the requesting department. It helps in ensuring proper authorization and control over the procurement process.
- What is the purpose of the Info Record in SAP MM? Answer: The Info Record in SAP MM is used to store information about a specific material and its associated vendor. It includes details such as pricing conditions, delivery terms, and source list information, helping in the determination of the vendor during the procurement process.
- How does SAP MM handle consignment settlements? Answer: SAP MM handles consignment settlements by allowing organizations to settle the value of consignment stock with the vendor based on consumption or sales. It ensures accurate accounting and financial reconciliation.
