ME2L - By Vendor

ME2M - By Material
( to See the Open Purchase orders go to ME2M go to 'Selection parameters' field -by using
F4 (help )select WE 101 and then press execute orF8 button)
ME2C - By Material Group
ME2N - By PO Number
ME80FN - General Analyses
ME20 - SC Stocks per Vendor
Stock
MMBE - for Stock Over View MM60 .~. List Of materials Available Plant wise.
MB53 - Plant Stock Availability
MB52 - Warehouse Stock
MB5B - Stock for Posting Date
MB5T - Stock in Transit
MBLB - Stock with Subcontractor
MB5S - List of GR/IR Balances
Purchasing Info Record
MEIL Co By Vendor
MEIM - By Material
ME 1 W - By Material Group
Vendor Evaluation
ME65 - Ranking lists
MB51 - Material Documents
MR51· - Accounting Document for Material
MBSM - Cancelled Material Documents
Vendor
MKVZ - List of Vendor Purchase Org. wise
ME6B - Evaluations per Material (Material Group)
ME64 - Compare Evaluations

 Explain about your project experience and what kind of projects

you have worked?
 What was your roles in your project?
 Have you worked on implementation? If yes, which phase did you
work?
 Explain Procurement cycle P2P?
P2P connects procurement through to payment of goods. The purchase
to payprocess, also known as the P2P process, connects
the procurement and entire supply chain processes within a company
through the goods receipt process, and finally to the payment issued to
the vendor

 What are the different types of purchase organization available in

SAP?

 Plant specific or local purchase organization.

 Cross plant purchase organization.
 Cross company code purchase organization.
 Central purchase organization at company code level.
 Reference Purchase organization.
 Standard purchase organization.

 What is difference between standard & reference purchase

organization?
 Standard Purchase Organisation:
 1) Normal Purchase organization is to procure either for the
plant/entire company code/cross company level based upon
assignment settings in SPRO.
 2) Regarding Standard Purchase organization, it is to handle
procurement of special stocks like Pipe Line, Consignment.
 3) For Reference Purchase organization, it will be simply assigned to
other normal Purchase organizations only but neither assigned to
any plant or company code. This is useful to enjoy the corporate
contracts and their price benefits.
 In your case you need to use the Reference Purchase Organisation
for this

 Once you define purchase org, to which org structure you assign ?
 The purchase organization can be assigned to one company
code, this iscompany specific purchasing. SPRO > IMG >
Enterprise Structure > Assignment > Material Management
> Assign purchase organization to company code. Step 1 : –
 Execute t-code “SPRO” in command field from SAP easy access
screen.

 Purchase org assignment should be assigned mandatorily to plant or

company code
And which assignment is optional?
Plant assignment is mandatory and company code is optional
 What is the use of material type?
We can use material type to
1) Control views
2) Assign number ranges
3) Define if material is updated based on qty or value
 What is material type for services?
DIEN
 How material master will determine G/L account?
Material type is assigned to Account category reference
And account category reference is assigned to valuation class
And in OBYC against this valuation class,we maintain G/L account

 How to determine G/L account without material master?

We can do configuration based on material group
 How to identify is PO is created for consumption or stock?
If account is assigned in PO it is for consumption, else it will be for
stocking

 What are different types of release strategy available for PR?

SAP Standard system allows only 8 levels of release codes.
Release procedure is of two types

 Release Procedure without classification

             This procedure is applicable only for Purchase Requisitions.

             Here PR is released Item by Item only.

 Release Procedure with classification

            This procedure is applicable to PR,RFQ,Service Entry

sheet,RFQ,PO,Contract  and scheduling agreements.
            Item by Item and Header level releases can be configured
            For PR - both item by item and Header level release can be
configured
            For external purchasing documents - Release is possible only at
Header level. 

 Explain steps to configure release strategy?

1) Create Characteristics
In this step we need to create characteristics - conditions to be
satisfied for triggering Release startegy.For example client has
asked to set release strategy based on 3 inputs.Combination of
value, Plant and Purchasing group
2) Define class in transaction code CL02
Here we assign all the above created Characteristics to a CLASS so
that a release strategy to be triggered when all the conditions are
met.
3) After the class is ready, the next is to configure the elements
required in release strategy. Following elements are required.

 Release Groups
 Release Codes
 Release Indicator
 Release Strategies

 I have a vendor A & Purchase org 1000 & purchase org 2000?
Can I have different pricing procedure for each purchase org /vendor
combination
VENDORA& 1000== pricing 1
VendorA&2000==Pricing 2

Yes,
 Explain Account determination steps in SAP?
Read https://blogs.sap.com/2013/11/21/automatic-account-determination/
for understanding

 Can we create PO with zero net price?

Yes, when we create PO for free goods, we can set free goods
indicator at po line item
Or
To receive the goods as free of charge and to set the net price as zero use the "free goods"
check box in the item overview of the PO.
Pl. tick it and see for the line item which you want to be free goods.

 What is difference between contract & SA?

Contract & SA are long term agreements with vendor

 1) Contract
 Contract has validity start and end date
 We need to create release orders(PO) with reference to
contract
 Receive goods against this release order

2) SA
 SA has validity start and end date
 We will maintain delivery schedule in SA
 No need to create PO, and vendor will delivery goods as
per schedule lines

20)explain subcontracting process> movement types in sub contracting?

Movement type for by product in subcontracting?
Subcontracting materials are sent to vendors for processing finished products.
Asubcontracting purchase order is placed by converting the subcontractingrequisition into
a purchase order.
GI to subcontracting vendor: through movement type 541. Movement type 543 is
displayed to cancel the material cost account. If the subcontracting order has to be
generated through materials planning,the special procurement key has to be set in MRP 2
screen.
To transfer the by-products quantities from the "stock of material provided to vendor"
(or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting
using movement type 542 (reversal of the provision of the components).

 Explain consignment process? Item category in consignment?

Movement type to transfer consignment stock to own warehouse
stock?
Consignment. Consignment is when a shop sells goods for an owner. The owner
keeps ownership of his item until it sells, if it sells. As the owner, you'd pay a small
fee to the shop as compensation for them selling your item.

 Consignment Fill-Up (Stock Fill up at warehouse).

 Consignment Issue (Stock issue from warehouse).
 Consignment Return (Stock return from customer).
 Consignment Pickup (Stock return to manufacture).

 Is inforecord mandatory for consignment? How consignment is

settled in SAP?
We wish to use the vendor consignment process as per the client requirement. As per my
knowledge the consignment info record is mandatory for using this. Is there any way other than
using the info record? Can we maintain condition record instead of info record?

Consignment Process Steps in SAP. The consignment process steps in SAP are fairly

simple. It involves creating a purchase order, doing a good receipt and a withdrawal of the
stock from Vendor's books. The last step in the consignmentprocess for a vendor is
the settlement of the vendor's liability.

 What is difference between mvt type 122 & 161

122 - return to vendor -total consignment - return total received gr qty

Migo - return delivery with 122- j1is - credit memo
161 - here you have to crate the return po. return to vendor for partial
qty.
after po- gr - j1is-credit memo

 What is two step goods receipt?

Yes you can do this in MIGO by 103 and 105 movement type.
103 – to block stock
105- block to unrestricted
 What is difference between credit memo and subsequent credit?

 ubsequent debit or credit is applicable when the quantity affected is

the same but change is there in value where as credit memo is used
where quantity varies.
 Subsequent debit/ credit is used when the price changes from a
particular date or for some items and the quantity remains the
same.
 Credit memo is used in the case of items returned to vendor or
where quantity changes.

 What kind of issues you received during support project

 Explain one of the tough incident you received and how you
resolved
 Which tool you used for incident management
 Did you work on RICEF objects
 Did you write and Functional design? Explain one example
1) Explain what is SAP MM
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.
2) What are the essential components in SAP MM?
Determine requirements, Source determination, Vendor Selection
Order Processing, Order follow up, Goods receipts and Inventory management
Invoice Verification
3) Mention what are the types of special stock available?
The types of special stock available are subcontracting, consignment, project, pipeline, sales
order, stock transfer, returnable packaging with customer, etc.
4) List out important field in purchasing view?
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.
5) Explain the importance of the batch record?
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).
6) Explain how you can link a document to a vendor master record?
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.
7) Mention what are the major purchasing tables? List the transaction codes for them?
Purchase requisition > EKBN
Purchase requisition account assignment > EBKN
Release documentation > EKAB
History of purchase documents > EKBE
8) Mention what are the data contained in the information record?
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.
9) Mention what is the transaction code to delete a batch?
The transaction code MSC2N is used to delete a batch. By flagging the batch master record,
you can delete a batch record alternatively.
10) Mention what is the transaction code used to extend the material view?
To extend the material view transaction, code MM50 is used.
11) Explain how you can change the standard price in the master material?
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
12) What is Source List and what is the transaction code for creating Source List?
To identify sources of supply for materials a source list is used. To create a source list the
transaction code used is ME01.
13) For creating a purchasing info record what are the pre-requisites?
The pre-requisites for creating a purchase info record are
Material Number
MPN (Manufacturer Part Number)
Vendor Number
Organizational level code
14) Explain the terms Planned delivery and GR processing time?
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.
15) What is purchase requisition as related to SAP? Mention the document types that are used
in purchase requisition?
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)
16) Explain how consignment stocks are created?
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.
17) Explain how is the vendor return processed without a purchase order reference?
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
18) Explain how you can create a vendor account group in SAP?
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
19) Explain what are the accounts created in SAP MM?
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
20) Explain what MRP (Material Requirement Planning) list is and what is the transaction
code to access MRP list?
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
21) Explain what is CBP? What is the difference between CBP and MRP?
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.
What is the difference between stock transfer order and stock transport order?
Stock Transport order from ME21N is from MM point. ... Stock Transport Order is from
One Company to Another company, Plant to Plant , Sloc to Sloc. Stock Transfer Order is
after GR you want to keep goods in Warehouse, then you create transfer order within the
Sloc.

Question Answer
1) Transaction code for creation of material master record in SAP MM. MM01 (MM01)
2) Transaction code for mass creation of material master. MM17 (MM17)
3) Transaction code for change material master. MM02 (MM02)
4) Select INVALID group in Sales organization data 2 view of SAP MM. Account
assignment group (Local item group)
5) Transaction code for transferring a quantity from one storage location to another.
MB1B (MB1B)
6) Select INVALID physical inventory procedures can be used in SAP system. Cycle
counting (Code inventory)
7) Transaction code for creating physical inventory document. MI01 (MI01)
8) Transaction code for entering the inventory counting results MI04 (MI04)
9) Select INVALID procurement type in logistic process. Consignment (Data Processing)
10) Transaction code to cancel a goods posting. MIGO (MIGO)
11) Transaction for reservation of inventory in SAP MM. MB24 (MB21)
12) Transaction code for defining a release strategy for purchasing CT04 (CT04)
13) Transaction code for to release an invoice MRBS (MRBR)
14) Transaction code for displaying of purchase orders. ME23N (ME23N)
15) Select trasaction code to create a Purchase order referencing a previous document
ME58 (ME23N)
16) Transacation code to create a source list ME02 (ME05)
17) Transaction code to select or reject a quotation. ME45 (ME47)
18) Transaction code to compare price for different quotations. ME47 (ME49)
19) Transaction code to create RFQ ME41 (ME41)
20) Transaction code to create a purchase requisition ME51N (ME51N)
2. What do you know about SAP MM?
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 about master data,
configuration of system and transactions to complete the procurement to pay process
3. Can you elaborate about SAP and how it is useful in Industries ?
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 as
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 it into another
business process, thus speeding up the business process. It is broadly used in industries, since
it updates and process important data very quickly and 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.
4.Can you explain the essential components in SAP MM?
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.
5. Do you know about organizational structure in the MM module?
The structure in the MM module is a ladder in which various organizational unis 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 of external report one can make a self-reliant account sets 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 the group purchasing which a code for an individual buyer or a group who actually
purchase the materials. This unit is also partially involved in negotiating and obtaining the
goods.
6. Explain in detail about order of purchase?
This is a final and formal confirmation of the essential materials to be supplied by the vendor
to the industry. This will involve the all the names of the essential materials with the
equivalent plant. The details of the purchase which would include the code of the company,
vendor’s name, the delivery date of the materials.
7. Why is record of the information of purchase useful?
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.
8. What are the important criteria in purchasing?
The important criteria in purchasing includes 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.
9. Elaborate on the goods receipt in the SAP System?
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 goods receipt. During this time when the
material is delivered the party that acquires it checks for the quality and the condition of the
materials and goods. After the verification the receipt is finally poster.
10. What is the code used for extension of the view of material?
The code used for the transaction of the material view is MM50.
11. What is the code for deleting a particular batch?
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.
12. How is a receipt posted?
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.
13. What do you mean source list and what is the code of the source list?
The source list is to identify the home of the supply from where the materials come. The code
for
Creating the source list: ME01.
14. What is essential for creating a record of purchase information?
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.
15. What is planned delivery and GR processing time?
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.
16. What is the Material Requirement Panning and mention the code to access this list?
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.
17. What is known as RFQ?
RFQ is an abbreviation for Request For Quotation. It is a kind of a form which 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.
18. Explain what is reservation?
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.
19. What is the code used for reservation?
The transactional code used for reservation is MMBE.
21. What is the type for the reversal of the issue of the goods?
The transactional type for the reversal of the issue of the goods is the number 262.
22. How is quota rating checked?
The 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.
23. Mention the last stage in the cycle of procurement?
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.

24. Mention, for the stock transport order, some movement types.
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.
25. What are the point of differences between the purchase order and the purchase
requisition?
Purchase requisition is said to an internal sheet and it is a 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 send to the vendor which has the list of the essential
items that needs to be taken from the vendor.
26. How does one do a verification of the invoice?
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 which are relevant. If the invoice is been posted data like the average of the price
are reorganized.
27. How are parked documents showed?
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.
28. What are the different types of ERPs?
Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles,
Siebel, and BAAN. These are some of the different types of Enterprise Resource Planning.
29. What is Net Weaver?
Net Weaver is an incorporated technology in which every product in the My SAP 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 SAP client.
30. Explain about Meta data, Transaction data and master data? Can SAP be called a type of
database?
Meta data: Meta data 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 as Meta
Objects. There are many types of meta data. Some of the meta datas are structural meta data,
descriptive metadata, reference metadata, statistical metadata and administrative metadata.
Each of these type have 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 today 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 for 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 as a database. Since it is an application it uses the databases which is
provided by other retailers. These retailers include Server, Oracle, SOL and many other
retailers.

1. What are the uses of SAP Material Management Module? 

SAP Materials Management belongs to the logistics aspect of ERP. It mainly manages the
procurement activities of an organization. 

It supports all material aspects of management like planning, controlling and so on. 

It also incorporates key modules such as Sales, Distribution, Plant Maintenance, Production
Planning, Project and Warehouse Management. 

2. What does the Procurement Process in ERP comprise of? 

All activities involved in buying of materials and procuring services from various dealers and
vendors constitutes the Procurement Process. 

3. Explain the Procurement Lifecycle.

• Information and requirements gathering collecting information about a product and its
quantity is the first step of Procurement. Then suppliers for that particular product who can
cater to the requirements must be then tracked down. 

• Contacting suppliers 

Once the suitable suppliers are chosen, they must be contacted for a quotation request. 

• Background Check 

The supplier’s history, quality of his previous products, terms of warranty, service and
maintenance must be investigated. Some samples may also be investigated if needed. 

• Negotiation and Contract 

Negotiations regarding price, delivery schedule and availability are done. After this, the
contract is signed that becomes a legally binding document between the supplier and the
company. 

• Completing Order 

The order is shipped and delivered to the concerned party and supplier is paid accordingly.
Any training for installation and use is undertaken. 

• Maintenance 
Once the product is in use, continuous evaluation and feedback are given. 

4. What are the types of Basic Procurement? 

There are two categories of basic procurement. They are: 

- External and Internal Procurement 

- Procurement for stock and Procurement for consumption 

5. What are Consignment Stocks? 

Consignment stocks are those materials that are in the store premises but still belong to the
vendor. If you use material from this stock, you have to pay to the vendor.
6. What are the different info record types? 

The different info record types are Standard, Sub-contracting, Consignment and Pipeline. 

7. What is the purpose of Purchase Info Record? 

Purchase Info Record is used to store the information about a vendor and the product
purchased from him. 

8. Explain a Purchase Order. 

The purchase order is the final draft of the document sent to the supplier to supply material or
services. It will contain information like details of material, purchasing company, company
code, vendor name and date of material delivery. 

9. What is meant by Goods Receipt in SAP? 

Once the purchase order is processed by the vendor, the delivery of materials is done. This is
called a Goods Receipt. In the goods receipt phase, the condition and quality of the material
received is verified. 

10. What is meant by Request for Quotation (RFQ)? 

Request for quotation is the invitation sent to vendors to send quotation stating pricing, terms
and conditions. 

An RFQ has details about goods, services, date of delivery, quantity and date to be
submitted. 

11. What is Material Type in SAP? 

Material Type in SAP is the property used to group materials with similar properties under
one category. 

12. Name the different stock types in the SAP system. 

 The different stock types in SAP system are restricted stock, unrestricted stock, quality
inspection stock, blocked stock and unblocked stock. 

13. What do you mean by Outline Agreement? 

This is an agreement made with the vendor that has all the terms and conditions of the items
purchased. This agreement has a date until it is valid. 

14. What is meant by Material Master and how is it maintained? 

Material Master consists of information regarding the raw material, finished product and so
on. This is used to identify purchase material, product, issue of goods, receipt of goods, and
other product information. 

15. What is a Production Order? 

A Production Order is used to define the material that is produced, the location of the plant,
time of production and quantity of goods needed. 

16. What is a Contract? 

A Contract is a long-term agreement between the customer and the vendor with regards to
material or services provided over a period of time. The two types of Contract are Quantity
Contract and Value Contract. 
2. List out the essential components of material management.

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

3. What are the benefits or uses of material management?

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

4. What are the features of material management?

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

5. What is material requirement planning (MRP)?

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.
7. What is the difference between MRP and CBP?

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.
8. What is Master production schedule (MSP)?

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.
9. What is a planned order in material management?

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.
10. What is production order and purchase order?

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.
11. What is the process order?

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.
12. What is a transaction code in material management?

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.
13. What are contracts in material management?

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.
14. Define purchase requisition.

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.
15. How do you create and release purchase requisition in SAP material management?

Purchase requisition creation can be done in T-code ME51N and is a straightforward process:

1. Execute ME51N transaction.

2. Purchase requisition document type: NB – standard.
3. Source determination: ON or OFF.
4. Header note.
5. Material: material number.
6. Quantity and UoM.
7. Storage location: in which the material is stored.
8. Vendor: automatically determined by using source determination – field number
9. Tracking number: covered in previous topics, a desired value can be entered manually
10. Valuation price: copied from material master data if maintained there, if not must be
entered manually (if this field is not set as optional).
11. After entering the desired information in the fields, we can save transaction data.

16. What is a special stock in material management?

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

A. Valuated Stock

1. Unrestricted Stock
2. Quality Inspection Stock
3. Blocked Stock

B. Non-Valuated Stock

C. Special Stock

1. Subcontracting
 2. Consignment
3. Stock Transport Order
4. Third Party Processing
5. Returnable Transport Packaging
6. Pipeline Handling

18. Define consignment stock.

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.
19. What is meant by master data?

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.
20. What is master data management?

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.
21. What is inventory management?

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.
22. What is movement type and mention a few standard movement types?

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).
23. Define stock population.

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.
24. What is returnable transport packaging (RTP)?

Returnable transport packaging (RTP) is a multi-trip packaging medium in which goods can
be transported more than once between retailers and customers.
25. What are quotations in SAP material management?
 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.
26. What is a request for quotation (RFQ) document?

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.
27. Mention the RFQ process.

For creating a request for quotation RFQ :

 Enter the transaction code or t-code as ME41 (This will lead you to ‘create RFQ’
screen)
 Enter RFQ type as ‘AN’
 Enter the quotation deadline i.e the last date by which a vendor must submit their
quotation.
 Enter Purch organization and purchasing group
 Enter the delivery date and Plant
 Click on Enter
 Next, you’ll see a new screen wherein you need to fill the item codes.
 After entering the item codes, enter the vendor details

You can create more requests with different vendor details.

28. What is a request for proposal (RFP)?

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.
29. What is a request for information (RFI)?

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.
30. What is the difference between RFQ, RFP, and RFI?

RFI RFP RFQ

What is invoice Gathers vendors Creates the best project Gets the best price
processing? information for a project

Status of Not clearly defined The overview is Project and details

Solution understood, yet the details are clearly
need to be defined identified
 Key deliverables Provides Statement of work for a Pricing details
information about project
the vendors
31. What is invoice processing?

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.
32. What is movement in goods out (MIGO)?

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.
33. What is movement in receipt out (MIRO)?

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.
34. What do you mean by goods receipt and post goods receipt?

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.

26) How to create movement type?

Assume we are creating movement type 281 Goods issue for a network

Please follow the steps below:

 First, navigate to Transaction OMJJ

 Now the standard movement type 201
 Then click on copy and overwrite the 201 with 281
 Now click the Enter button, then click on Copy all
 Please select the new movement type 281
 Now On the left-hand column screen, click on Reversal/follow-on movement
 At last fill in the reversal movement type

28) How can the user post returnable Transport Packaging (RTP) Quantities at Goods
Receipt for Purchase Order?
A quantity of returnable transport packaging can be entered at goods receipt for a purchase
order, as listed below:

 In Inventory Management menu, navigate to Select -> Goods movement -> Goods
receipt  -> For purchase order  -> PO number known  -> or  path PO number
unknown.
 On the initial screen please enters the movement type (101) and also the order number
(or the selection criteria for the purchase order).
 Now please select and copy the required items.
 Now in the overview screen, choose Edit -> W/o purchase order -> Enter.
 A popup window will appear, Please enter the movement type and the special stock
indicator (e.g. 501 M ) for the quantity of returnable transport packaging.
 Now please enters the returnable transport packaging items.
 At last, post the goods movement.

How can you transfer Posting of RTP stock between Storage Locations?

A transfer posting of RTP stock between two storage locations is entered as listed
below:

 In Inventory Management menu, navigate to Goods movement -> Transfer posting -.  

 Now enter data to the initial screen:
 Now nvigate to Movement type Transfer posting  -> RTP stock  -> SLoc to SLoc  ->
( -> 311 M ->).  
 Now give the plant and the issuing storage location.
 Give vendor and the receiving storage location on the next screen.
 Please enter all the items.
 At last, post the goods movement.

What is the difference between the stock transfer between two plants belonging to same
company code and those belonging to different company code?

Stock Transfer Order (STO) for Intra Company

 The stock transfer between two plants are done with one Company code
 Purchase Order Type 'UB' is used in this case
 Delivery Type 'NL' is used
 Goods Movement type is 641 for Intra Company
 Item Category in delivery is NLN

Stock Transfer Purchase Order (STPO) for Intra Company

 Two Different Company Codes are required for Stock Transfer Purchase Orders
between two plants
 Purchase Order Type 'NB' is used in this case
 Delivery Type 'NLCC' is used
 Goods Movement type is 643 for Inter-Company
 Item Category in delivery is NLC
 
 The real time errors can be anything, it is based on the your system config and
bussiness process.
 the general errors
 e.g PO is not allowing to do GR,
 The source list is required to create the PO
 The price is not determined
 etc.
. ME00          SAP Easy Access Purchasing
2. ME01          Maintain Source List
3. ME03          Display Source List
4. ME04          Changes to Source List
5. ME05          Generate Source List
6. ME06          Analyze Source List
7. ME07          Reorganize Source List
8. ME08          Send Source List
9. ME0M         Source List for Material
10. ME11          Create Info Record
11. ME12          Change Info Record
12. ME13          Display Info Record
13. ME14          Changes to Purchasing Info Record
14. ME15          Flag Info Record for Deletion
15. ME16          Deletion Proposals for Info Records
16. ME17          Archive Administration (Purchasing Info Records)
17. ME18          Send Purchasing Info Record
18. ME1A         Archived Purchasing Info Records
19. ME1B         Define Background Job
20. ME1E         Quotation Price History
21. ME1L          Info Records per Vendor
22. ME1M         Info Records per Material
23. ME1P         Purchase Order Price History
24. ME1W        Info Records Per Material Group
26. ME1X         Print Buyer's Negotiation Sheet for Vendor
27. ME1Y         Print Buyer's Negotiation Sheet for Material
28. ME21N       Create Purchase Order
29. ME22N       Change Purchase Order
30. ME23N       Display Purchase Order
31. ME24          Maintain PO Supplement
32. ME25          Create PO (with Source Determination)
33. ME26          Display PO Supplement
34. ME27          Create Purchase Order (Stock Transfer)
35. ME28          Release (Approve) Purchasing Documents
36. ME29N       Display Purchase Order (Individual Release)
37. ME2A         Monitor Vendor Confirmations
38. ME2B         Purchasing Documents per Requirement Tracking Number
39. ME2C         Purchasing Documents for Material Group
40. ME2J          Purchasing Documents per Project
41. ME2K         Purchasing Documents per Account Assignment
42. ME2L          Purchasing Documents per Vendor
43. ME2M         Purchasing Documents for Material
44. ME2N         Purchasing Documents per Document Number
45. ME2O         SC Stock Monitoring for Vendor
46. ME2S         PO Reporting with Services
47. ME2V         Expected Goods Receipts
48. ME2W        Purchasing Documents per Supplying Plant
49. ME308        Send Contracts (with Conditions)
50. ME31          Create Outline Agreement
51. ME31K       Create Contract
52. ME31L        Create Scheduling Agreement
53. ME32          Change Outline Agreement
54. ME32K       Change Contract
55. ME32L        Change Scheduling Agreement
56. ME33          Display Outline Agreement
57. ME33K       Display Contract
58. ME33L        Display Scheduling Agreement
59. ME34          Maintain Outline Agreement Supplement
60. ME34K       Maintain Contract Supplement
61. ME34L        Maintain Sched. Agmt. Suppl.
62. ME35          Release (Approve) Purchasing Documents
63. ME35K       Release (Approve) Purchasing Documents (Outline Agreement)
64. ME35L        Release (Approve) Purchasing Documents (Scheduling Agreement)
65. ME36          Display Outline Agreement Supplement
66. ME37          Create Scheduling Agreement
67. ME38          Maintain Sch. Agmt Schedule
68. ME39          Display Sch. Agmt Schedule
69. ME3A         Send Release Document
70. ME3B         Purchasing Documents per Requirement Tracking Number
71. ME3C         Purchasing Documents for Material Group
72. ME3J          Outline Agreements per Project
73. ME3K         Purchasing Documents per Account Assignment
74. ME3L          Purchasing Documents per Vendor
75. ME3M         Purchasing Documents for Material
76. ME3N         Purchasing Documents per Document Number
77. ME3P         Define Background Job
78. ME3R         Define Background Job
79. ME3S         Contract Reporting with Services
80. ME41          Create RFQ
81. ME42          Change RFQ
82. ME43          Display RFQ
83. ME44          Maintain RFQ Supplement
84. ME45          Release (Approve) Purchasing Documents (RFQ)
85. ME47          Maintain Quotation
86. ME48          Display Quotation
87. ME49          Price Comparison List
88. ME4B         Purchasing Documents per Requirement Tracking Number (RFQ)
89. ME4C         Purchasing Documents for Material Group (RFQ)
90. ME4L          Purchasing Documents per Vendor (RFQ)
91. ME4M         Purchasing Documents for Material (RFQ)
92. ME4N         Purchasing Documents per Document Number (RFQ)
93. ME4S         RFQs per Collective Number
94. ME51N       Create Purchase Requisition
95. ME52N       Change Purchase Requisition
96. ME53N       Display Purchase Requisition
97. ME54N       Release Purchase Requisition (Individual Release)
98. ME55          Collective Release of Purchase Requisitions
99. ME56          Assign Source to Supply to Requisitions
100. ME57          Assign and Process Purchase Requisitions
101. ME58          Ordering: Assigned Purchase Requisitions
102. ME59N       Automatic Creation of Purchase Orders from Requisitions
103. ME5A         List Display of Purchase Requisitions
104. ME5F         Release (Approval) Reminder: Purchase Requisitions
105. ME5J          List Display of Purchase Requisitions for Project
106. ME5K         List Display of Purchase Requisitions (by Account Assignment)
107. ME5W        Resubmission of Purchase Requisitions
108. ME61          Maintain Vendor Evaluation
109. ME62          Display Vendor Evaluation
110. ME63          Calculate Scores for Semi-Automatic and Automatic Subcriteria
111. ME64          Evaluation Comparison
112. ME65          Ranking List of Vendors
113. ME6A         Display Change Documents
114. ME6B         Ranking List of Vendor Evaluations Based on Material/Material Group
115. ME6C         Vendors Without Evaluation
116. ME6D         Vendors Not Evaluated Since...
117. ME6E         Evaluation Records Without Weighting Key
118. ME6F         Print Vendor Evaluation Sheet
119. ME6G         Define Background Job
120. ME6H         Vendor Evaluation Analysis
121. ME80          Purchasing Documents (General Analysis)
123. ME80          A Purchasing Documents (RFQs)
124. ME80          AN General Evaluations (RFQs)
125. ME80F        Purchasing Documents (Purchase Orders)
126. ME80FN     General Evaluations (Purchase Orders)
127. ME80R       Purchasing Documents (Outline Agreements)
128. ME80RN     General Evaluations (Outline Agreement)
129. ME81N       Analysis of Purchase Order Values
130. ME82          Archived Purchasing Documents
131. ME84          Create Releases
132. ME84A       Individual Display of Scheduling Agreement Release
133. ME85          Renumber SA Delivery Schedule Lines
134. ME86          Aggregation/Disaggregation of Scheduling Agreement Schedule Lines
135. ME87          Summarization and Removal of PO History Records
136. ME88          Set/Reset Agreed Cumulative Quantity and Reconciliation Date
137. ME91          Purchasing Documents.: Reminders/Expediters
138. ME91A       Purchasing Documents.: Reminders/Expediters
139. ME91E       Purchasing Documents.: Reminders/Expediters (Scheduling Agreement)
140. ME91F        Purchasing Documents.: Reminders/Expediters (Purchase Orders)
141. ME92          Monitor Receipt of Order Acknowledgments
142. ME92F        Monitor Receipt of Order Acknowledgments (Purchase Order)
143. ME92K       Monitor Receipt of Order Acknowledgments (Contract)
144. ME92L        Monitor Receipt of Order Acknowledgments (Scheduling Agreement)
145. ME98          Archive Administration (Purchasing Documents)
146. ME99          Output from Purchase Orders
147. ME9A         Message Output (Request for Quotation)
148. ME9E         Message Output (Scheduling Agreement)
149. ME9F         Message Output (Purchase Order)
150. ME9K         Message Output (Contract)
151. ME9L          Message Output (Scheduling Agreement)
152. MEAN         "Address maintanance: Initial screen ""Delivery addresses (master data)""
153. MEB0         Cancel Settlement Runs
154. MEB1         Create Agreement (Rebate Arrangement)
155. MEB2         Change Agreement (Rebate Arrangement)
156. MEB3         Display Agreement (Rebate Arrangement)
157. MEB4         Settlement: Vendor Rebate Arrangements, Purchasing
158. MEB5         List of Vendor Rebate Arrangements: Purchasing
159. MEB8         Detailed Statement; Vendor Busn. Vols.: Reb. Arrangements, Purchasing
160. MEDL         Price Change Involving Vendor's Contracts
161. MEI1           Changes to Purchasing Documents Due to Changes in Conditions
162. MEI2           Mass Adjustment of Documents Due to Changes in Documentss
163. MEI3           Recompilation of Doc. Index (Auto. Document Adj., Subseq Settlement)
164. MEI4           Automatic Document Adjustment: Create Worklist
165. MEI5           Automatic document adjustment: delete worklist
166. MEI6           Delete document index (Auto. Doc. Adjustment, Subsequent Settlement)
167. MEI7           Make Price Change in Open Purchase Orders
168. MEI8           Recompilation of document index (doc. adjustment) for payment docs
169. MEI9           Recompilation of Doc. Index (Doc. Adjustment) for Vend. Billing Docs
170. MEK1         Create Condition Records
171. MEK2         Change Condition Records
172. MEK3         Display Condition Records
173. MEK31       Change Condition Records
174. MEK32       Change Condition Records
175. MEK33       Display Condition Records
176. MEK4         Create Condition Records with Reference
177. MEKA         Purchasing Conditions
178. MEKB         Conditions by Contract
179. MEKC         Conditions by Info Record
180. MEKD        Conditions for Material Group
181. MEKE         Conditions by Vendor
182. MEKF         Conditions for Material Type
183. MEKG        Conditions by Condition Group of Vendor
184. MEKH         Market Price
185. MEKI          Conditions by Incoterms
186. MEKJ         Conditions for Invoicing Party
187. MEKK         Conditions by Vendor Subrange
188. MEKL         Price Change Involving Vendor's Scheduling Agreements
189. MEKLE       Currency Change for Scheduling Agreement Conditions of Vendor
190. MEKP         Price Change Involving Vendor's Info Records
191. MEKPE      Currency Change for Info Record Conditions of Vendor
192. MEKR         Price Change Involving Vendor's Contracts
193. MEKRE      Currency Change for Contract Conditions of Vendor
194. MELB         Purchasing Transactions per Requirement Tracking Number
195. MEPA         Order Price Simulation/Price Information
196. MEPB         Price Information/Vendor Negotiation Sheet
197. MEPO        Display Purchase Order
198. MEQ1         Maintain Quota Arrangement
199. MEQ3         Display Quota Arrangement
200. MEQ4         Changes to Quota Arrangement
2001. MEQ6         Analyze Quota Arrangement
201. MEQ8         Quota Arrangement for Material
202. MEQB        Define Background Job
203. MEQM        Quota Arrangement for Material
204. MEU2         Perform Comparison of Business Volumes
205. MEW6        Assign Purchase Orders WEB
206. MEW7        Release of Service Entry Sheets
207. MEW8        Release of Service Entry Sheet
208. MK01          Create Vendor (Purchasing)
209. MK02          Change Vendor (Purchasing)
210. MK03          Display Vendor (Purchasing)
211. MK04          Vendor Account Changes (Purchasing)
212. MK05          Block/Unblock Vendor (Purchasing)
213. MK06          Flag for Deletion Vendor (Purchasing)
214. MK12          Plan Vendor
215. MK14          Planned Vendor Account Changes
216. MK19          Display in future Vendor
217. MKVG        Vendor's Settlement and Condition Groups
218. MKVZ         List of Vendors: Purchasing
219. MM00         SAP Easy Access Material Master
220. MM01         Create Material
221. MM02         Change Material
223. MM03         Display Material
224. MM04         Display Changes
225. MM06         Flag Material for Deletion
226. MM11         Schedule Creation of Material
227. MM12         Schedule Changing of Material
228. MM16         Schedule Material for Deletion
229. MM19         Display Material at Key Date
230. MM50         Extend Material View(s)
231. MM60         Materials List
232. MMAM        Change Material Type
233. MMH1         Create Trading Goods
234. MMI1          Create Operating Supplies
235. MMN1         Create Non-Stock Material
236. MMPI          Initialize Period for Material Master Records
237. MMPV        Close Period for Material Master Records
238. MMR1         Create Raw Material
239. MMRV        Allow Posting to Previous Period
240. MMS1         Create Service
241. MMSC        Enter storage locations collectivel
242. MMU1         Create Non-Valuated Material
243. MMV1         Create Packaging
244. MMVD        Change Material
245. MMVH        Create Material
246. MMVV        Change Material
247. MMZ2         Change Material
248. MN01          Create Output - Condition Records: Purchasing RFQ
249. MN02          Change Output - Condition Records: Purchasing RFQ
250. MN03          Display Output - Condition Records: Purchasing RFQ
251. MN04          Create Output - Condition Records: Purchase Order
252. MN05          Change Output - Condition Records: Purchase Order
253. MN06          Display Output - Condition Records: Purchase Order
254. MN07          Create Output - Condition Records: Purch. Outline Agr.
255. MN08          Change Output - Condition Records: Purch. Outline Agr.
256. MN09          Display Output - Condition Records: Purch. Outline Agr.
257. MN10          Create Output - Condition Records: Purch. Sch Agr Release
258. MN11          Change Output - Condition Records: Purch. Sch Agr Release
259. MN12          Display Output - Condition Records: Purch. Sch Agr Release
260. MN13          Create Output - Condition Records: Entry Sheet
261. MN14          Change Output - Condition Records: Entry Sheet
262. MN15          Display Output - Condition Records: Entry Sheet
263. MN21          Create Output - Condition Records: Inventory Management
264. MN22          Change Output - Condition Records: Inventory Management
265. MN23          Display Output - Condition Records: Inventory Management
266. MN24          Create Output - Condition Records: Inbound Delivery
267. MN25          Change Output - Condition Records: Inbound Delivery
268. MN26          Display Output - Condition Records: Inbound Delivery
269. MP01          Maintain Approved Manufacturer Parts List
270. MP02          Display Approved Manufacturer Parts List
271. MR00          SAP Easy Access Invoice
272. MR02          Invoice Items Release
273. MR03          Display Original Document
274. MR08          Cancel Invoice Document
275. MR11          Maintain GR/IR Clearing Account
276. MR21          Price Change - Overview Screen
277. MR42          Change Parked Document
278. MR43          Display Parked Document
279. MR44          Post Parked Document
280. MR90          Output Messages in Logistics Invoice Verification
281. MR91          Messages for Invoice Verification
282. MRA1         Archive Administration: Create Archive Files
283. MRA2         Archive Administration: Execute Delete Program
284. MRA3         Analysis of Invoice Document Archive
285. MRM0         SAP Easy Access Logistics Invoice Verification
286. MRM1         Create Message: Invoice Verificatio
287. MRM2         Change Output - Condition Records: Invoice Verification
288. MRM3         Display Output - Condition Records: Invoice Verification
289. MRNB         Revaluation with Logistics Invoice Verification
290. MSRV2       Reporting on Services (Purchase Requisition)

3. What do you understand from Procurement process in SAP MM?

Every organization acquires material or services to complete its business needs. The process
of buying materials and obtaining services from vendors or dealers is procurement.
 5. What is External Procurement?
External procurement − 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.
One time orders are generally used for material and services that are ordered irregularly.

Longer-term contracts with the subsequent issue of release orders – For materials that are
being ordered regularly and in large quantities, we can negotiate deal with the vendor (seller)
for pricing or conditions & record then in a contract. In a contract you also specify the
validity date.

Longer-term scheduling agreements and delivery schedules – If a material is ordered on an

everyday basis and is to be delivered according to an exact time schedule, then you set up a
scheduling agreement.
6. What is Internal Procurement?
Internal Procurement − 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.
7. What is Special Procurement?
Special Procurement
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.
8. What is Consignment Stock?
Consignment Stocks
Material that is available at our store premises, however it still belongs to the vendor
(seller)/Owner of the material. If you utilize the material from consignment stocks, then you
have to pay to the vendor.
9. What are the common assignment types in SAP MM system?
 Plant to Company code
 Purchasing organization to company code
 Purchasing organization to Plant
 Standard purchasing organization to plant
11. How do you flag a material for deletion?
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.
12. What is the use of Purchase Info Record?
Purchasing info record stores information on material and vendor supplying that material. For
Example: Vendors current price of a particular material is stored in info record.
13. Where do you maintain Purchase Info Records in SAP MM?
Purchase info record can be maintained at plant level or at purchasing organization level.
14. What is Purchase Order?
Purchase order is the formal and final confirmation of the requirements which is sent to
vendor to supply material or services. Purchase order will include important information like
name of material with its corresponding plant, details of purchasing organization with its
company code, name of vendor, and date for delivery of material.
15. What do you understand by Goods Receipt in SAP system?
 After processing of purchase order by vendor, material is delivered to ordering party and this
process is called as goods receipt. So, goods receipt is the phase in which the material is
received by the ordering party and the condition and quality are verified. Once material is
verified against quality then goods receipt is posted.
16. How do you post goods receipt?
Path to post Goods Receipt −

Logistics ⇒ Materials Management ⇒ Inventory management ⇒ Goods movement ⇒ Goods

movement

T-Code: MIGO
17. How can you create a Purchase Order from Purchase Requisition?
Purchase Order from purchase requisition can be created by following below steps −

T-Code: ME21N
18. What is Request for Quotation RFQ?
Request for quotation is a form of invitation that is sent to vendors to submit quotation
indicating pricing and their terms and conditions.

RFQ contains details about goods or services, quantity, date of delivery and date of bid on
which it is to be submitted.
19. What is the use of document type in SAP system?
In SAP system, you use Document Type to define different methods or procedures for a
transaction.
20. What is free item in SAP system?
The Price will be marked zero for free item. We can tick the item as free item while creating
PO in system.
21. Why do you use Material type?
Material type in SAP system is used to group various materials based on some common
properties.
22. What is Material Status?
It is 2 digit code and is used to determine the material usability.
23. What are the different stock types in SAP system?
 Restricted Stock
 Unrestricted Stock
 Quality Inspection Stock
 Blocked Stock
 GR Blocked Stock
24. What do you understand by GR Blocked stock?
This is conditionally accepted stock and not the unrestricted stock.
25. What are the different Stock transfer types in SAP system?
Inter Company

Intra Company

Intra Plant
26. What is Intra plant stock transfer type in SAP MM?
Storage Location to Storage Location
27. What is an Outline agreement?
Outline agreement is a long term purchasing agreement with vendor containing terms and
conditions regarding the material that is supplied by vendor.

Outline agreement are valid up to certain period of time and cover a certain predefined
quantity or value.
28. Is it possible that you can use scales in Quotation?
No
29. What do you understand by Material Master? How Material master is maintained
in SAP system?
Material master contains information related to different material types like finished product,
raw material. Material master can be used for identifying a product, purchase material, goods
issue or good receipt, MRP and production confirmation.

For Material master data, use T-code: MM01 or go to Logistics → Production → Master
Data → Material Master → Material → Create (General) → immediately
30. What is the use of BOM usage type 1 in SAP system?
It is used for Production
31. How do you create Purchase Order or Purchase Requisition from Material
Requirement Planning?
The PR is created according to the safety stock mentioned for the material or can be triggered
from a requirement. For creating a PO, you need to have the scheduling agreement in place.
After the MRP is run the schedule lines are generated which are nothing but the PO.
32. What is MRP run in SAP system?
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.
33. How do you check Stock Requirement List in SAP system?
This is used to see current stock and planned receipts. Use T-code: MD04

Enter Material and Plant to see list.

34. What is the use of MRP list?
MRP List is used to generate static report that contains planning run material wise and it
displays time of MRP run at the top.

Use T-Code: MD05

35. What is the Production Order?
A Production order is used to define the material to be produced, plant location where
production has to be done, date and time of production, quantity of goods required. A
Production Order also defines which components and sequence of operations are to be used
and how the order costs are to be settled.
36. How do you check the available stock at any point of time?
You can use Stock overview to check the available stock at any point of time. Stock overview
can be checked using T-Code: MMBE
37. What is a Contract?
 Contract is a long term outline agreement between vendor and ordering party over predefined
material or services over certain framework of time. There are two types of contract −

Quantity Contract −
In this type of contract overall value is specified in terms of total quantity of material to be
supplied by vendor.

Value Contract −
In this type of contract overall value is specified in terms of total amount to be paid for that
material to the vendor.
38. What is the movement type for Goods issue reversal?
Movement type is 262 in Goods issue reversal.
39. What is the use of Material Document List?
Material document list is used to generate any goods movement such as goods receipt, goods
issue for a production order, etc.
40. Can you generate packing/picking lists for goods issue in SAP MM?
In SAP EWM you can generate packing list.
41. What is a Scheduling agreement?
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.
42. What is Quota Arrangement in SAP system?
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.
43. How do you check Quota Rating?
Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
44. What is the use of Posting Period in SAP system?
SAP ERP systems were designed so that business can be conducted in an efficient way.
Various documents like purchase order, request for quotation, goods receipt are essential
documents in a business. These documents need security i.e. if any of documents is posted
incorrectly then business can be affected at various concern levels. So, to secure these
documents we have a concept of posting period. Posting period means it will allow you to
post and make changes in the documents only in a specific time period.
45. How do you define Posting Period in a company?
Posting period for a company can be defined using five fields which are as follows −

 Maintain Fiscal Year Variant

 Assign Fiscal Year Variant to Company Code
 Define Variants for Open Posting Periods
 Assign Variant to Company Code
 Open and Close Posting Periods
47. What is the last step in Procurement cycle?

 Invoice verification marks the end of procurement after purchase order and goods
receipt.
 Invoice posting will update all related documents in financial and accounting.
 Blocked invoice that vary from actual invoice can be processed through invoice
verification.
48. What are the different Procurement types that you can create Purchase requisition?
Purchase requisition can be created for the following procurement types −

Standard − Getting finished material from vendor.

Subcontracting − providing raw material to vendor and getting finished material.
Consignment − Procuring material that is kept in company’s premises and paying to vendor
for that.
Stock transfer − Getting material from within the organization.
External service − Getting services like maintenance from third party vendor.
48. A Purchase requisition is an internal document or external document?
Internal document, it is the phase in which purchasing department is informed about the
requirement of items or services required for business purpose.
49. What are the different type of Basic Procurement?
There are 2 types of Basic procurement which are shown below −

 Procurement for Stock vs Consumption

 External vs Internal Procurement
50. What is the difference between Procurement for stock vs consumption?
Procurement for Stock − A stock material is a material that is kept in stock. These materials
are kept in stock once received from the vendor. The stock of this material keeps on
increasing or decreasing based on amount of the quantity received or issued. To order a
material for stock, the material must have a master record within the system.
Procurement for Direct Consumption − When procurement is for direct consumption i.e. it
will be consumed as soon as it is received, the user should specify the consumption purpose.
To order a material for consumption, the material may have a master record within the
system.

 Here are the six phases of a SAP implementation project:

1. Project Preparation
2. Business Blueprint
3. Realization
4. Final Preparation
5. Go Live
6. Post-Production Support
 Explain about your project experience and what kind of projects
you have worked?
 What was your roles in your project?
 Have you worked on implementation? If yes, which phase did you
work?
  Explain Procurement cycle P2P?
P2P connects procurement through to payment of goods. The purchase
to payprocess, also known as the P2P process, connects
the procurement and entire supply chain processes within a company
through the goods receipt process, and finally to the payment issued to
the vendor

 What are the different types of purchase organization available in

SAP?

 Plant specific or local purchase organization.

 Cross plant purchase organization.
 Cross company code purchase organization.
 Central purchase organization at company code level.
 Reference Purchase organization.
 Standard purchase organization.

 What is difference between standard & reference purchase

organization?
 Standard Purchase Organisation:
 1) Normal Purchase organization is to procure either for the
plant/entire company code/cross company level based upon
assignment settings in SPRO.
 2) Regarding Standard Purchase organization, it is to handle
procurement of special stocks like Pipe Line, Consignment.
 3) For Reference Purchase organization, it will be simply assigned to
other normal Purchase organizations only but neither assigned to
any plant or company code. This is useful to enjoy the corporate
contracts and their price benefits.
 In your case you need to use the Reference Purchase Organisation
for this

 Once you define purchase org, to which org structure you assign ?
 The purchase organization can be assigned to one company
code, this iscompany specific purchasing. SPRO > IMG >
Enterprise Structure > Assignment > Material Management
> Assign purchase organization to company code. Step 1 : –
Execute t-code “SPRO” in command field from SAP easy access
screen.

 Purchase org assignment should be assigned mandatorily to plant or

company code
And which assignment is optional?
Plant assignment is mandatory and company code is optional
 What is the use of material type?
 We can use material type to
4) Control views
5) Assign number ranges
6) Define if material is updated based on qty or value
 What is material type for services?
DIEN
 How material master will determine G/L account?
Material type is assigned to Account category reference
And account category reference is assigned to valuation class
And in OBYC against this valuation class,we maintain G/L account

 How to determine G/L account without material master?

We can do configuration based on material group
 How to identify is PO is created for consumption or stock?
If account is assigned in PO it is for consumption, else it will be for
stocking

 What are different types of release strategy available for PR?

SAP Standard system allows only 8 levels of release codes.
Release procedure is of two types

 Release Procedure without classification

             This procedure is applicable only for Purchase Requisitions.

             Here PR is released Item by Item only.

 Release Procedure with classification

            This procedure is applicable to PR,RFQ,Service Entry

sheet,RFQ,PO,Contract  and scheduling agreements.
            Item by Item and Header level releases can be configured
            For PR - both item by item and Header level release can be
configured
            For external purchasing documents - Release is possible only at
Header level. 

 Explain steps to configure release strategy?

4) Create Characteristics
In this step we need to create characteristics - conditions to be
satisfied for triggering Release startegy.For example client has
asked to set release strategy based on 3 inputs.Combination of
value, Plant and Purchasing group
 5) Define class in transaction code CL02
Here we assign all the above created Characteristics to a CLASS so
that a release strategy to be triggered when all the conditions are
met.
6) After the class is ready, the next is to configure the elements
required in release strategy. Following elements are required.

 Release Groups
 Release Codes
 Release Indicator
 Release Strategies

 I have a vendor A & Purchase org 1000 & purchase org 2000?
Can I have different pricing procedure for each purchase org /vendor
combination
VENDORA& 1000== pricing 1
VendorA&2000==Pricing 2

Yes,
 Explain Account determination steps in SAP?
Read https://blogs.sap.com/2013/11/21/automatic-account-determination/
for understanding

 Can we create PO with zero net price?

Yes, when we create PO for free goods, we can set free goods
indicator at po line item
Or
To receive the goods as free of charge and to set the net price as zero use the "free goods"
check box in the item overview of the PO.
Pl. tick it and see for the line item which you want to be free goods.

 What is difference between contract & SA?

Contract & SA are long term agreements with vendor

1) Contract
 Contract has validity start and end date
 We need to create release orders(PO) with reference to
contract
 Receive goods against this release order

2) SA
 SA has validity start and end date
  We will maintain delivery schedule in SA
 No need to create PO, and vendor will delivery goods as
per schedule lines

20)explain subcontracting process> movement types in sub contracting?

Movement type for by product in subcontracting?
Subcontracting materials are sent to vendors for processing finished products.
Asubcontracting purchase order is placed by converting the subcontractingrequisition into
a purchase order.
GI to subcontracting vendor: through movement type 541. Movement type 543 is
displayed to cancel the material cost account. If the subcontracting order has to be
generated through materials planning,the special procurement key has to be set in MRP 2
screen.
To transfer the by-products quantities from the "stock of material provided to vendor"
(or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting
using movement type 542 (reversal of the provision of the components).

 Explain consignment process? Item category in consignment?

Movement type to transfer consignment stock to own warehouse
stock?
Consignment. Consignment is when a shop sells goods for an owner. The owner
keeps ownership of his item until it sells, if it sells. As the owner, you'd pay a small
fee to the shop as compensation for them selling your item.

 Consignment Fill-Up (Stock Fill up at warehouse).

 Consignment Issue (Stock issue from warehouse).
 Consignment Return (Stock return from customer).
 Consignment Pickup (Stock return to manufacture).

 Is inforecord mandatory for consignment? How consignment is

settled in SAP?
We wish to use the vendor consignment process as per the client requirement. As per my
knowledge the consignment info record is mandatory for using this. Is there any way other than
using the info record? Can we maintain condition record instead of info record?

Consignment Process Steps in SAP. The consignment process steps in SAP are fairly

simple. It involves creating a purchase order, doing a good receipt and a withdrawal of the
stock from Vendor's books. The last step in the consignmentprocess for a vendor is
the settlement of the vendor's liability.

 What is difference between mvt type 122 & 161

122 - return to vendor -total consignment - return total received gr qty
Migo - return delivery with 122- j1is - credit memo
161 - here you have to crate the return po. return to vendor for partial
qty.
after po- gr - j1is-credit memo

 What is two step goods receipt?

Yes you can do this in MIGO by 103 and 105 movement type.
103 – to block stock
105- block to unrestricted
 What is difference between credit memo and subsequent credit?

 ubsequent debit or credit is applicable when the quantity affected is

the same but change is there in value where as credit memo is used
where quantity varies.
 Subsequent debit/ credit is used when the price changes from a
particular date or for some items and the quantity remains the
same.
 Credit memo is used in the case of items returned to vendor or
where quantity changes.

 What kind of issues you received during support project

 Explain one of the tough incident you received and how you
resolved
 Which tool you used for incident management
 Did you work on RICEF objects
 Did you write and Functional design? Explain one example