SAP MM INTERVIEW QUESTION ANSWER

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.

An invoice is verified by using the OLMR T code.

In a company, only one chart of accounts can be assigned.

Movement type is 262 in Goods issue reversal.

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.

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.

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.

Yes, we can change the material type of a material.

Use Transaction OMGQ.

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.

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.

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.

The following is the menu path to create a document/e-mail notification for your supplier:

Select Material Management-> Logistics Invoice Verification -> Message Determination.

Forecast-based planning is a process used in consumption-based planning which depends on predictions of future requirements calculated on the basis of forecast.

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.

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.

OMJJ is the transaction code to create movement types.

In SAP EWM you can generate packing list.

The user can try to create a new movement type with reference to 201 movement type.

Variance in the invoice item
Amount of an invoice item
Stochastic block
Manual block

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.

Use Transaction Code OPPI to check “block stock”.

The source list is to identify the home of the supply from where the materials come. The code for creating the source list: ME01.

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.

You need to use the MC49 transaction code to find the logical value of the stock items by date.

Valuation area is the organizational level at which the material valuation is carried out.

For accessing a single item one can use the code MD05.

The Price will be marked zero for free item. We can tick the item as free item while creating PO in system.

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.

The OLMS transaction code is used to access the Materials Management Configuration menu.

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.

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.

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.

Special Stocks are the stocks which belong to a company code. These are not placed in any storage location & no physical inventory is performed.

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.

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.

The stock value of the materials is calculated using the following formula:

Stock value = Stock quantity * Material price.

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.

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.

A storage location is a unique four-character alphanumeric key; therefore, it cannot be common for two plants.

You can set user defaults for views by selecting Defaults->Views.

Perform a price comparison using ME49 and one may compare quotations from different vendors.

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.

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.

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.

This is used to see current stock and planned receipts. Use T-code: MD04. Enter Material and Plant to see list.

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.

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

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.

The essential information for making a record of purchase information is as follows The number of the material, the part number of the manufacturer, the number of the vendor, the level code of the organization.

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.

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)

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.

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.

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).

MOS2 is the transaction code to create a material type.

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.

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.

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.

A stock transfer can be monitored in Purchasing by using the following stock documents:

Purchase requisition
Stock transport order (STO)
Stock transport scheduling agreement

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.

Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota

Inter Company
Intra Company
Intra Plant

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.

Parked documents are shown 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.

SAP MM (Material Management) is a functional module in SAP that deals with procurement handling and material management. The MM module contains master data, system configuration and transactions to complete the procure to pay process.

• Determine requirements
• Source determination
• Vendor Selection
• Order Processing
• Order follow up
• Goods receipts and Inventory management
• Invoice Verification

The types of special stock available are subcontracting, consignment, project, pipeline, sales order, stock transfer, returnable packaging with customer, etc.

The critical fields in purchasing view are

• Base unit of measure
• Order unit
• Purchasing group
• Material group
• Valid from
• Tax indicator for material
• Manufacturer part number
• Manufacturer, etc.

A batch tells about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While, the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process).

To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path

• SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XK01- Create.

• Purchase requisition > EKBN
• Purchase requisition account assignment > EBKN
• Release documentation > EKAB
• History of purchase documents > EKBE

The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.

The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.

To extend the material view transaction, code MM50 is used.

The standard price for the material data cannot be updated or changed directly. However, to change the standard price you can perform the following steps

• Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-ZKDAT) for the materials
• Select Logistics > Material Management > Valuation > Valuation Price Determination > Future Price

To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.

The pre-requisites for creating a purchase info record are

• Material Number
• MPN ( Manufacturer Part Number )
• Vendor Number
• Organizational level code

Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.

Purchase requisition in SAP determines both stock and non-stock items to the purchasing department. It can be done either manually or automatically, the document types used in purchase requisition are

• RFO ( Request For Quotation )
• Outline Agreement
• PO ( Purchasing Order )

In the normal purchase order or requisition, consignment stocks are created. While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated.

First you have to observe the return column and then select — Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the document is a return purchase order, and then the document is saved.

You can also use transaction code M21N for this purpose

To create vendor account group in SAP

• Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout

Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things

• Account assignment type
• Account that will be charged when you post the invoice or goods receipt
• Account assignment data that you should provide

MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results information for the material. For an individual item, you can access the MRP list by using the transaction code MD05. You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material

CBP is the past consumption values of stock; it is used to forecast future requirements. On the basis of past consumption values, the net requirement of goods is calculated.

The difference between CBP and MRP is that when you plan materials using MRP, you have to predict the materials requirement based on sales and operations planning (SOP). While in CBP you have to predict the material requirement based on historical demand for materials.

AP has a functional module which is known as SAP MM. It looks after the management of the material and obtaining handling. The module consists mainly of master data, the configuration of the system, and transactions to complete the procurement to pay process.

SAP stands for Systems, Applications, and Processing the Data. It is the most popular software application used to provide enterprise business solutions. This ERP software application was first introduced in Germany (Mannheim) in the year 1972. ERP stands for Enterprise Resource Planning.

It provides solutions by incorporating various business tasks like sales, purchase, and production. SAP obtains details from one business process and integrates them into another business process, thus speeding up the business process.

It is broadly used in industries since it updates and processess important data very quickly and is used by the department to determine how to prepare the products and also it can program business process and provide real-time solutions for business.

To define the requirements, determination sources, selection of vendors, order processing, follow up with the clients, receipts of goods and inventory management, verification of bills, payment systems, etc.

The structure in the MM module is a ladder in which various organizational units are arranged designed according to the functions and tasks of each of them. The units that make the structure of the organization are as given below.

The first is the client and this unit is independent. This unit has a different record system and well as its own table sets. The second is the company code. This is one of the smaller units of the organization. For the need for external reports, one can make a self-reliant account set for the unit of company code. The third is the plan.

This is where the supplies are formed and the services and goods are given. The industry can be broken down into different plants based on maintenance, supplies, production, procurement, etc. The next is the location of the storage. The produced goods are kept in this unit. The next is the number of the warehouse this shows the system of the warehouse.

It is different for every area of storage and organization. After that is the storage type which tells one the different areas such as issuing area, area for picking up the goods, etc. The next is the organization of the purchasing which is the unit that negotiates with others for purchasing and also obtains the services and the material.

The next is group purchasing which is a code for an individual buyer or a group who actually purchases the materials. This unit is also partially involved in negotiating and obtaining the goods.

This is a final and formal confirmation of the essential materials to be supplied by the vendor to the industry. This will involve all the names of the essential materials with the equivalent plant. The details of the purchase would include the code of the company, the vendor’s name, the delivery date of the materials.

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.

The important criteria in purchasing include the following the unit of the order, the group of material, the base unit, the group of purchasing, the validity, the indicator of tax for that material, the part number of the manufacturer, and the manufacturer.

Once the purchase is processed by the vendor the material and goods are delivered to the party that ordered it and this process is known as the receipt of the goods. During this time when the material is delivered the party that acquires checks for the quality and the condition of the materials and goods. After the verification, the receipt is finally poster.

The code used for the transaction of the material view is MM50.

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.

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.

The source list is to identify the home of the supply from where the materials come. The code for creating the source list: ME01.

The essential information for making a record of purchase information is as follows
The number of the material, the part number of the manufacturer, the number of the vendor, the level code of the organization.

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 days in which the person has to inspect and place the material in the storage, after obtaining the goods and materials.

Material Requirement Planning is the first working manuscript from where the controller of MRP starts the work and it includes the planning of the information of the goods and materials. For accessing a single item one can use the code MD05.

RFQ is an abbreviation for Request For Quotation. It is a kind of a form that is given to the vendors for them to submit any quotation which is indicative of the terms and conditions and the price of the goods and materials. It has details of the quantity of the goods, information about the goods, the delivery date of when the form is to be submitted.

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.

The Transactional code used for reservation is MB21.

MMBE.

CBP essentially means the consumption value of the materials in the past. It is used to know about the requirements in the future. Based on the consumption of the services in the past, the average requirement of the goods can be calculated.

The transactional type for the reversal of the issue of the goods is the number 262.

The formula for checking the quota rating is the addition of the base quantity of the quota and the allocated quantity quota and divides it by the overall quota.

The last stage of the procurement cycle is the verification of the invoice. This also updates the documents which are related to 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.

Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which can be used as an easy way for transferring materials.

A purchase requisition is said to an internal sheet and it is an appeal that is done to the organization which is going to purchase the services and send the list of the goods. But purchase order is the formal sheet that is sent to the vendor which has the list of the essential items that need to be taken from the vendor.

Parked documents are shown 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.

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.

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 into training a new user in the SAPclient.

Metadata: Metadata informs a person about the information of a data. This gives a person in-depth information about the hierarchy of the information or it is also called Meta Objects. There are many types of metadata. Some of the metadata are structural metadata, descriptive metadata, reference metadata, statistical metadata, and administrative metadata. Each of these types has a different kind of function in a system.

Next is the transaction data. This is nothing but the information pertaining to the transactions which happen on the day to day basis. After that comes the master data. Data provides essential information about the materials, the employees, and even information related to the customer of that service. One can also call it the data of reference.

For instance: the person orders a product which is 20 units. So instead of asking for the customer’s address 20 times, the same information can be used from the master data of the customer.

SAP cannot be called a database. Since it is an application it uses the databases which are provided by other retailers. These retailers include Server, Oracle, SOL, and many other retailers.

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.

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.

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.

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.

The Transactional code used for reservation is MB21.

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.

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.

Tables MARA and MARC.

It is used for Production.

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.

You need to check the allowed transaction for the customized movement types and use the OMJJ transaction code.

Transaction Code OLMS has a host of options that are not accessible through the IMG.

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.

Yes, you can add custom fields to a Purchase Order and Request for Quotation.

• Purchasing
• Production and material control
• Non-production stores
• Transportation
• Material handling
• Receiving

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.

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.

Use Transaction ME54 and ME28 respectively.

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.

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.

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.

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.

Storage Location to Storage Location.

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.

MD14 is the transaction code to convert planned order into PR.

This is conditionally accepted stock and not the unrestricted stock.

The transactional type for the reversal of the issue of the goods is the number 262.

Transaction code ME51N can be used to create Purchase Requisition in MM.

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.

MM03 is the transaction code to display material of SAP MM.

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.

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.

No, once assigned you cannot change the industry sector of an existing material.

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.

• Material valuation
• Multi-location inventory
• Bin management
• The lot and serial traceability
• Product life cycle management
• Inventory replenishment
• Scheduling and resourcing

Price comparison is used to compare quotations from different vendors. You can use transaction code ME49 to perform a price comparison between different vendors.

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.

Material numbers are unique numbers used to identify a material.

When the invoice is related to an existing sheet then every information which is relevant is taken out by the system. This includes material, vendor, delivery, and its terms, payment, etc. One has to enter the invoice and the system takes out the account, tax, discount, and corrections that are relevant. If the invoice is been posted data like the average of the price are reorganized.

MMBE.

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.

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.

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.

The release code is a two-character field or ID that represents the person responsible for the approval of the release procedure.

You can assign only one company code to a plant.

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.

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.

It is 2 digit code and is used to determine the material usability.

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.

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.

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.

• Procurement for Stock vs Consumption
• External vs Internal Procurement

• Material master file
• Inventory master file
• Vendor master file

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.

No, you cannot release the PO item by item. PO can be released at the header level by using the with classification release procedure.

No

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.

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.

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.

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.

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.

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.

The MARA and MARC are the two tables where the master data is stored.

The key components of Master Data are:

• Info Record (ME11)
• Source List (ME01)
• Quota Arrangement (MEQ1)
• Vendor (MK01)
• Vendor Evaluation (ME61)
• Condition Type (MEKA).

The code used for the transaction of the material view is MM50.

Internal document, it is the phase in which purchasing department is informed about the requirement of items or services required for business purpose.

• Vendor accounts
• Stock accounts
• GR/IR clearing accounts
• Tax account
• Price differences account Cash difference clearing account Freight clearing account

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.

Yes, you can assign a company code to many plants.

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.

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.

• Determine requirements
• Source determination
• Vendor Selection
• Order Processing
• Order follow up
• Goods receipts and Inventory management
• Invoice Verification

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.

The lot size is the quantity of materials used for re-ordering. It can be static, periodic, optimum, or fixed in attributes.

The EKKO and EKPO are the two tables where the header and item level data are stored, respectively.

The following is the menu path to define material type attributes:

Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.

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.

The MRP data and forecast data are the plant-specific data in material.

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.

• 501
• 561
• 531

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.

The transaction code OMW1 is used to set price control for receipts (goods/invoice).

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.

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.

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.

You can assign many company codes in a chart of accounts.

The transaction codes ME54 and ME29N are used to define the release procedures for PR and PO, respectively.

Returnable transport packaging (RTP) is a multi-trip packaging medium in which goods can be transported more than once between retailers and customers.

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.

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.

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.

The MM50 transaction code is used to extend the material view.

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.

Material valuation in SAP MM module is necessary to determine the stock value of materials.

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.

The confirmation control key is used to specify whether or not a notification for shipping is expected PO item.

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.

The reservation list can be displayed by running the RM07RESL report.

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.

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.

When the invoice is related to an existing sheet then every information which is relevant is taken out by the system. This includes material, vendor, delivery, and its terms, payment, etc. One has to enter the invoice and the system takes out the account, tax, discount, and corrections that are relevant. If the invoice is been posted data like the average of the price are reorganized.

The formula for checking the quota rating is the addition of the base quantity of the quota and the allocated quantity quota and divides it by the overall quota.

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.

Some of the movement types are 351, 641, 643 for the stock order. Another one is 301 which can be used as an easy way for transferring materials.

The last stage of the procurement cycle is the verification of the invoice. This also updates the documents which are related to 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.

SAP stands for Systems, Applications, and Processing the Data. It is the most popular software application used to provide enterprise business solutions. This ERP software application was first introduced in Germany (Mannheim) in the year 1972. ERP stands for Enterprise Resource Planning.

It provides solutions by incorporating various business tasks like sales, purchase, and production. SAP obtains details from one business process and integrates them into another business process, thus speeding up the business process.

It is broadly used in industries since it updates and processess important data very quickly and is used by the department to determine how to prepare the products and also it can program business process and provide real-time solutions for business.

To define the requirements, determination sources, selection of vendors, order processing, follow up with the clients, receipts of goods and inventory management, verification of bills, payment systems, etc.

The structure in the MM module is a ladder in which various organizational units are arranged designed according to the functions and tasks of each of them. The units that make the structure of the organization are as given below.

The first is the client and this unit is independent. This unit has a different record system and well as its own table sets. The second is the company code. This is one of the smaller units of the organization. For the need for external reports, one can make a self-reliant account set for the unit of company code. The third is the plan.

This is where the supplies are formed and the services and goods are given. The industry can be broken down into different plants based on maintenance, supplies, production, procurement, etc. The next is the location of the storage. The produced goods are kept in this unit. The next is the number of the warehouse this shows the system of the warehouse.

It is different for every area of storage and organization. After that is the storage type which tells one the different areas such as issuing area, area for picking up the goods, etc. The next is the organization of the purchasing which is the unit that negotiates with others for purchasing and also obtains the services and the material.

The next is group purchasing which is a code for an individual buyer or a group who actually purchases the materials. This unit is also partially involved in negotiating and obtaining the goods.

This is a final and formal confirmation of the essential materials to be supplied by the vendor to the industry. This will involve all the names of the essential materials with the equivalent plant. The details of the purchase would include the code of the company, the vendor’s name, the delivery date of the materials.

Once the purchase is processed by the vendor the material and goods are delivered to the party that ordered it and this process is known as the receipt of the goods. During this time when the material is delivered the party that acquires checks for the quality and the condition of the materials and goods. After the verification, the receipt is finally poster.

Metadata: Metadata informs a person about the information of a data. This gives a person in-depth information about the hierarchy of the information or it is also called Meta Objects. There are many types of metadata. Some of the metadata are structural metadata, descriptive metadata, reference metadata, statistical metadata, and administrative metadata. Each of these types has a different kind of function in a system.

Next is the transaction data. This is nothing but the information pertaining to the transactions which happen on the day to day basis. After that comes the master data. Data provides essential information about the materials, the employees, and even information related to the customer of that service. One can also call it the data of reference.

For instance: the person orders a product which is 20 units. So instead of asking for the customer’s address 20 times, the same information can be used from the master data of the customer.

SAP cannot be called a database. Since it is an application it uses the databases which are provided by other retailers. These retailers include Server, Oracle, SOL, and many other retailers.

RFQ is an abbreviation for Request For Quotation. It is a kind of a form that is given to the vendors for them to submit any quotation which is indicative of the terms and conditions and the price of the goods and materials. It has details of the quantity of the goods, information about the goods, the delivery date of when the form is to be submitted.

The essential information for making a record of purchase information is as follows
The number of the material, the part number of the manufacturer, the number of the vendor, the level code of the organization.

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.

he Transactional code used for reservation is MB21.

MMBE.

The code used for the transaction of the material view is MM50.

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.

The important criteria in purchasing include the following the unit of the order, the group of material, the base unit, the group of purchasing, the validity, the indicator of tax for that material, the part number of the manufacturer, and the manufacturer.

SAP has a functional module which is known as SAP MM. It looks after the management of the material and obtaining handling. The module consists mainly of master data, the configuration of the system, and transactions to complete the procurement to pay process.

The source list is to identify the home of the supply from where the materials come. The code for creating the source list: ME01.

CBP essentially means the consumption value of the materials in the past. It is used to know about the requirements in the future. Based on the consumption of the services in the past, the average requirement of the goods can be calculated.

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 days in which the person has to inspect and place the material in the storage, after obtaining the goods and materials.

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.

A purchase requisition is said to an internal sheet and it is an appeal that is done to the organization which is going to purchase the services and send the list of the goods. But purchase order is the formal sheet that is sent to the vendor which has the list of the essential items that need to be taken from the vendor.

The transactional type for the reversal of the issue of the goods is the number 262.