Question in SAP MM

The following are some sample interviewquestions I have taken the internet, sample certification questions, my ownexperience.
1. What is the difference between thestock transfer between two plants belonging to same company code thosebelonging to different company code?

Forsame Company Code: Stock transfer from plant to plant

affects both accounting and MaterialsPlanning, as follows:

Accounting

Accounting is affected if both plants areassigned to different valuation areas. This means that a stock transfer leadsnot only to a quantity update but also to a value update (stock value, G/Laccounts). Thus, parallel to the material document for stock transfer, anaccounting document is created.

Fordifferent Company codes:

During the stock transfer, two accountingdocuments are created in addition to the material document:An accountingdocument for the removal from storage at the issuing company code.

An accounting document for the placementinto storage at the receiving company code.The stock posting is offset againsta company code clearing account 
2. What are the fields inPurchasing view?

Base Unit of Measure

Order Unit

Var. OUn

Purchasing Group

Material Group

Plant-Specific MaterialStatus

Valid from

Tax Indicator forMaterial

Material Qualifies forDiscount in Kind

Material Freight Group

Automatic PO

Indicator for OriginalBatch Management

Batch Management

Original Batch referencematerial

Purchasing Value Key

3.What are the steps in automatic ac__ assignment config.

=>Account Determination Wizard

=>Account Assignment without Wizard.

OMWM Define Valuation Control

OMWD Group together Valuation Areas

OMSK Define Valuation Classes

=>Account Category Reference

=>Valuation Class

=>Material Type / Account Category

Reference.

OMWN Define Account grouping for movementtypes

OMWB Configure Automatic Postings

OBYC Account Assignment 

4.How do you create movement types? What are the steps involved? When will yourecommend a new movement type?

transection code is omjj you can copy newmovement type which is near-by old one. when we will go to new movement type,if there is no possibility to done transaction with old movement type.

Steps:1)entry control data 2)short text3)allowed

Transactions 4)help text 5)up date controldata 6)account

Grouping 7) reasons for movement

Copy,OMJJ

copy新的MVT，分配移动类型，创建新的AcctModif（按照不同的库存类型，数量或数值更新，不同的单据，不同的耗用过账，不同的TEkey等），在auto acctdetermination里GBB对应AcctModif分配科目（还有Rules，Valuationmodif评估分组，物料评估类）。
5. What is meant by access sequence?When it is used?

Access sequence is search strategy whichsearches valid condition records from condition table for condition types. Ifwe want to make the condition type independent then we assign access sequenceto it so that it will fetch the value from condition tables . But we dontassign access sequence to dependent condition types because they take valuefrom the independent codtion type on which it is dependent . For example PBOOis a independent condition type so it will fetch value from the condition tablerelated to info record. Then other dependent condition types related tosurcharge , discount will take the value from PBOO. 

6. How doesthe PO pick up the pricing schema?

Schema grp vendor and schema determination.Because Schema grp vendor assign to procedure, procedure assign to conditiontypes, con.ty assign to acc. seq and cond. table. Finally system searchcondition records in mek1. Price pick up from condition records to po. 

8.What are the types of special stocks available?

Special stocks are stocks that are managedseparately as a result of their not belonging to your company or being storedat a particular location.

Example:

Consignment

Subcontracting

Stock transfer

Third-party processing

Returnable transport packaging

Pipeline handling

Sales order stock

Project stock

In consignment processing, the vendorprovides materials and stores them on your premises. The vendor remins owner ofthe material until you with draw material from consignment stock. Insubcontract processing the vendor recieves child materials with which itproduces parent material. In stock transfer, transfer of material from oneplant to another plant with stock transport order. In Third party processingyou place an order on vendor to deliver goods to customer. In Retrunabletransport packaging in which goods can be tranported more than once beetweenvendors. Pipeline material is a material that flows directly into theproduction process from a pipeline (for example, oil), from a pipe (forexample, tap water), or from another similar source (for example, electricity).Stock that is used for a sales order. It is directly allocated to a sales orderQuantity of a material which is held in stock for the completion of a project.The project stock is allocated to a work breakdown structure (WBS) element.Components can only be withdrawn for the WBS element. 

9.What are the types of info records?

Standard subcontracting consignment pipeline 

10.What is meant by consignment stock?

Vendors Stock at our Premises or ourcustody At the time of Goods Receipts, stock is updated but stock value is notupdated. Vendor liability is not generated At the time of goods issue,accounting document is generated 

11.What are the steps involved in consignment cycle?

Consignment Info Record

Consignment Purchase Order

Goods Receipt with movement type 101K

Consignment Stock to Own Stock,Transferposting with

movement type 411

Goods Issue to direct consuption 201K

12.Tell me about the subcontracting cycle.

actually , in subcontracting , customer hasto send raw materials or halb's to vendor and then customer has to back theprocessed good. in this cycle ,

1) Customer has to create po. with itemcategory 'L'.

2) customer has to move material to vedor withmoment type 541.

3) and get's back the processed good fromvendor with moment type 101.

13. Howis scrap accounted in subcontracting?

The Following Accounting Entry will appearin Scrap ;

(BSX) Stock A/c of Scrap - Dr

(GBB-VBO) Consumption from Subcon Stock /Inv. Change A/c - Cr

During Sale of Scrap The Following Entrieswill be made :

Customer Debit

Sale Of Scrap Credit

Excise Duty payable Credit

Accounting Entries Normal SubcontractingProcess without Scrap are :

FG BSX acc. Debit Acc.

GR/IR Cle.acc. WRX acc. Credit Acc.

FRL Acc. Debit Acc.

BSV acc. Credit Acc.

BSX acc. of components Credit Acc.

GBB - VBO Acc. Debit acc.

PRD acc. Some time Credit &

Some time Debit

For more check the link:

http://www.sap-basis-abap.com/sapmo005.htm

http://www.sap-img.com/sap-sd/process-flow-for-3rd-party-sales.htm

1. Say i am providing three components A, B& C to get ASSEMBLY from sub contractor vendor.

2. Create a Material master for Scrapmaterial say D.

3. In BOM, maintain the Material D innegative quantity, Say A - 1 off, B - 2 off , C - 2 off, D - 1 kg.

4. Now follow the regular process ofsubcontrating.

5. When you want to inward the scrapmaterial from the subcontractor end, first receive the material D with themovement type 545 ( This will make the material available in material providedto vendor stock ).

6. Then do a GR with 542 movement type toget the scrap material in to plant stock ( ie reversal of 541- Goods issuemovement type) 

14.How are the byproducts taken care of in subcontracting?

# 3 You can use subcontract orders to planthe receipt of by-products from subcontracting: Similiar to production orderprocessing, by-products are entered in the subcontract order as components withnegative quantity. In the provision of the components (with reference to thepurchase order, for example), the system ignores the negative component items.In the goods receipt for the purchase order, the system automatically posts thereceipt of the by-products. In the material document, you can identify theby-product items from their movement type 544. Note that the by-products areposted to the "stock of material provided to vendor" (also referredto as "subcontracting stock"). The receipt can still be correctedusing the Subsequent Adjustment function. Due to the receipt of theby-products, the value of the manufactured material is reduced. To transfer theby-products quantities from the "stock of material provided to vendor"(or subcontracting stock) to the unrestricted-use stock, you enter a transferposting using movement type 542 (reversal of the provision of thecomponents).  

15. Tell me about the various movement types’ usage.

You can see in T code OMJJ you will get a betteridea Movement types are defined in order to track the movement of Inventory inMaterial Management. A classification key indicating the type of materialmovement (for example, goods receipt, goods issue, physical stock transfer).The movement type enables the system to find out what are the predefinedposting rules Determining how the accounts of the financial accounting system(stockand consumption accounts) are to be posted and how the stock fields inthematerial master record are to be updated.

16. Whatis meant by scales? Can scales be used in standard purchase Oder?

You can fix a price in the info record fora say qty from 1-100 price RS150 & if the order qty is 101- 500- the pricesis 140 . Scales cannot be used directly in PO but can be pulled into the POfrom various master data like info record, quota arrangement

17.What is the difference between a contracts a scheduling agreement?

1. You can create the centrally contract(cross-plant) where you can maintain different pricing conditions for each and everyplant

2. You have to create the Release Order withreference to Outline Agreement.

3. No detailed delivery schedule can be made in theRelease Order.

4. No Release documentation is created.

5. Only time-dependent conditions can be created.

6. Some Item Category 'M' and 'W' can be used.

With regard to Scheduling Agreement:

1. The Plant Location must be entered in theScheduling Agreement.

2. We do not have to create any other purchasingdocument except for delivery schedule line via Transaction ME38 or MRP running(with the appropriate setting of Source List).

3. Delivery Schedule line items are created subjectto your specific requirement.

4. Can create both Scheduling Agreement with andwithout Release Documentation (subject to the Document Type LP or LPA) with theselection of either FRC or JIT delivery schedule.

5. Either time-dependent or time-independentconditions can be created subject to the customizing in the Document Type ofthe Scheduling Agreement.

6. Item Category 'M' and 'W' can not be used. 

18.How does the system calculate taxes?

System identifies the net value of the itemthrough the pricing procedure defined ( based on the condition types ) , andwill be stored in EKPO-NETWR ( but not from the subtotal defined as net valuein ur pricing ).this net value is transferred as base amount .

Through schema Pricing procedure. In excisethrough tax procedure 

19.How does the system calculate nondeductible taxes?

The sytem calculates the Taxes based on theTax rates maintained in a tx code, the Caluctaion is based on the taxingprocedure assigned to the Country.

Non deductible tax is identified based onthe Account key assigned to the Condition type in the Taxing procedure.

The Non deductible tax Account keys are

NAV - Non-deduct.input tax ( This willdistribute the tax into a new line item)

NVV - Non-d.input tax dist ( this willDistribute to relevant expense/revenue items )
20. What is meant by batches? How canthe batches be searched?

A batch is a subdivision of your stock of amaterial having the same characteristics. 

For instance: 

- food production uses batches to indicatethe day of production. 

- paint production uses batches based onproduction date and the used ingredients. It is very hard to reproduce the samecolor in exactly the same way at two different moments. 

- ore may be divided in batches based ontheir mineral content. 

21.How is a shelf-life item managed in SAP? What is the fullcycle?

Two types of shelf life...

1) Total shelf life - For this case theminimum shelf life and date of manufacturing also entered while taking GR. Fromthis system will calculate the expiry date.

2) Minimum remaining shelf life - For thiswhile GR it asks the user to enter the date of GR date so that it checkswhether the days entered in material master has been satisfied.If the conditionis not satisfied then it will not allow to take receipt for that item.

In spro- sap img- materialmanagement-inventory management and physical inventory- Goods receipt- setexpiry date check.

22.What are the settings required for quota arrangement?

Do the following steps for quotaarrangement,

1.mm02-select field 1.

2.me11-create info record

3.me01-source list

4.meq1-maintain quota

5.me51n-create PR.

6.ME54N-release PR

7.me57-assign and process requisitions

23.What is meant by MRP Type lot sizing?

MRP type is used to control which procedureis to be used to plan a material and which MRP parameters can be entered whenmaintaining a material master record

VB is for reorder pt planning.

PD is for MRP.

Lot sizing

Uses within materials planning to calculatethe quantity to be procured or produced. 24. Can it be configured in such a waythat the external requisitions can also be taken into ac__ while MRP runs inconsumption-based planning if VB is ed as MRP type?
25. What is a reference purchase organization?When can it be used?

Ref. Pur Organization is used when there isno centralized pur. organization. You have to define 1 pur. organsation asrefernce pur. organisation and link other pur orgnisations to this ref. pur.orgaisation. When you create a contract using this pur. organisation and this contractcan be used by other pur orgasations which are linked to this ref. puroganisation.

Ref. Pur Organisation is basically used forbetter negotiation.

Eg- You are having 2 plants (A & B) of 2 different company code(A &B).

1. Pur org A is assigned to company code A& plant A

2. Pur Orga B is assigned to company code B& plant B.

3. Ref pur organization C is created andlinked to Pur organization A and B.

Scenario -

Vendor A can supply Material A 1000 qty atRs. 100 whereas more than 1000 qty at Rs. 90.

But your requirement for Plant A is Rs. 800and Plant B is Rs.700

If you create a contract on plant basis tothe Vendor A then you have to pay Rs. 100.

But if you create a contract with ref purorganisation C for total requirement of Rs.1500 without plant basis then ratewill be only Rs.90.

Then this contract can referred by both theplant and can be converted to P.O at Rs.90.

It is reference for all the other existingPurchase Orgns. It is not assigned to either to plant or comp code. Thecontracts, terms and conditions can be utilized by otherPut Organs.

26.Explain the concept of split valuation when can it be used? What are thesettings required?

SAP Split Valuation for Materials

The SAP R/3 System allows you to valuatestocks of a material either together or separately, that is, according todifferent valuation criteria. Split valuation is necessary if, for example:

1. Stock from in-house production has adifferent valuation price than externally procured stock.

2. Stock obtained from one manufacturer isvaluated at a different price than stock obtained from another manufacturer.

. Different batch stocks of a material havedifferent valuation prices.

4. Value damaged and repair partdifferently from a new part.

To used split valuation, you have toactivate it using 'OMW0'.

To change split material valuation once ithas been set, you must

1. first post out all stocks (for example, to a cost center or withmovement type 562)

2. then change the control parameters

3. if necessary, change the automatic account determination

4. finally post the stocks back in again

In split valuation, you can distinguishbetween partial stocks of a material according to certain criteria and valuatethem separately.

The material stock is divided according tovaluation category and valuation type.

The valuation category determines how thepartial stocks are divided, that is, according to which criteria. 

27.What is valuation area, valuation category valuation class?

1) Valuation class is a group where itholds G/L Accounts.

2) Valuation area - where u valuate youmaterials & transactions may be at plant

   Or co. code, most of the cases it is plant.

3) Account Key - whenever a transactionhappens in SAP like GR/GI it gets updated to G/L Account through this accountkey

4) Valuation modifier - Within same Chartof accounts & valuation class you can further classify G/L accounts.

T-CODE: OMSK

PATH: SPRO -> MM->VALUATION &ACCT ASSIGNMENT->ACCT DETERMINATION ->ACCOUNT DETERMINATION WITHOUTWIZARD->

In the above path you can the settings.

28.What is meant by a credit memo?

A credit memo is simply the opposite of anInvoice.

It is used when you want to obtain creditfrom the vendor for items that have been returned or rejected. The processingof a credit memo uses MIRO the same as for an invoice but all of the values arenegative instead of positive and the system will take the credit memo intoconsideration when payments to the vendor are due.

29. Howare free items managed in a PO?

There are multiple ways to handle Freegoods

1) you can take free goods as normalpo  by unticking the IV-Receipt andtaking zero value of the material

2) you can also do GR not valuated for freegoods there would not be any valuation of free materials after this

3) you can also use the way as Rahul said 30.What is meant by a release strategy?

31. What are release groupsrelease codes?

Release groups and Release codes are usedin setting up release procedures & strategies in an organization. Rel Grp -Group of users who are responsible for the release of a purchasing document.Set o release codes. Rel Code - Means each individual user level in that particularrelease group. In a organization we can have more than one person at each code(Designation of the User). Let me know if you need some more details.

32. What are the differences between release procedure withclassification release procedure without classification? When are theyused?

Release procedure with classification meansthe Purchase requsition can be released both at item level &  at the header level. Release procedure without classification can also be used for PR which is used   for item level release only. all otherexternal documents cannot be relesed with classification. The two procedures are mutually exclusive (that isto say, you must decide in favor of one of them only - you cannot useboth). 

32.Is it possible to have a release procedurewithout classification f a PO?

No,we have tis procedure only for requisitions

33.What is the maximum number of levels available in SAP?

Your question is not clear, pls elaborateit.

I you intend to ask @ no of sessions: 6

@ number range: It varies for differentthings.

@release strategy : 8

35. Is it possible to havescales in a quotation?

NO

36. Whatis GR blocked stock? When it can be used?

When we have some issues in the receivedstock and we do not want the quantity to be considered in the inventory the wecan maintain the stock as GR Blocked stock. It is only recorded in the purchaseorder history. This stock is NOT valuated. You can display goods receiptblocked stock from two viewpoints:

1. Goods receipt blocked stock for amaterial (at plant

Level)

2. Goods receipt blocked stock for apurchase order item

37.What is the movement type for return to vendor? How to reverse it?

122 is to return goods from UnrestrictedStock to vendor

123 is reversal of 122

124 is to return goods from GR Blocked tovendor

125 is reversal of 124

161 is to return from PO to vendor 

38. Howare the variations in subcontracting taken care of in SAP?

in business process for making HALF OR FERTsome times we will do subcontracting outside the vendor for several reasons.

1.first we have to check the raw material.if not sufficient we have to make the po for raw material

2. once we received the goods (GR) we haveto make the po for sub contracting with item category L. in this po you haveexplore the BOM or manually enter the raw material.

2.stock transfer to vendor (541) for makingHALF AND FERT.

3. check the stock at contractor place (MBLB)

4. THEN GOODS RECEIPT (GR) MOV TYPE 101WITH PO ITEM

CATEGORY L.

Then check the stock with MMBE. 

39.What are the tools available for data migration in SAP?

LSMW legacy system migration work bench

BDC

CATT

BAPI

40. What is LSMW?

41. What is the difference between LSMWCATT?
42. How to give specifications fdevelopments?

In SAP for any kind for Z developmentfunction consultant need to give the functional specification in which he haveto give the purpose of the developlement as well as logic for the selection. Healso needs to give the field and table which are required for the same? He alsoneeds to prepare one or two test cases to test output the report/development. 

43.How do you plan for a vend rating system move about?

44. What is RTP?

RTP:

Returnable transport packaging (RTP) is amulti-trip packaging medium (for example, pallets or containers) in which goodscan be transported more than once by vendors. Returnable transport packagingfrom a vendor that is stored at a location on your premises is managed asspecial stock and clearly assigned as belonging to the vendor. It is theproperty of the vendor and is therefore not included in the valuated stock inur company.

45.What is the movement type used in receipt of RTP?

When a receipt is not for a purchase order,choose Movement type? Receipt? W/o purchase order? To RTP unrestr. (Movementtype 501 M)? When stock balances are entered for the first time, chooseMovement type? Receipt? Init.stck entry (ext)? To RTP unrestr (Movement type561 M) you post a return with reversal movement types 502 M and 562 M. 

46. How is an item with serial no. managed?

You need to maintain settings in IMGrelated to serial number management. You have to create serial number profileand assign the same in the material master for a material to which you want toget the serial number. Please refer the documentation in SAPdocumentation. 

47.How do you make variants?

Go to any reports, Select save variant(Ctrl+F10), create the layout as you want then save the variant in yourname. 

48.What are the types of tables in SAP?

There are 3 types of table in SAP .

1- Transperent Table

2- Cluster Table

3-Pool Table 

49.How to inventy excise duty in SAP?

Inventorying Excise duty there areCondition types are available in Tax procedure. We have to use that conditiontype only.

Example in Taxinn JMIP is Inventories BED.

50. What are the documentsgenerated in the MIGO 101 movement type? What are the acs hit?

Goods receipt with ref. to po in 101 mov.Type Material Doc, Accounting Doc. BSX (inventory Posting) Stock account -Debit, WRX (GR/IR account) - Credit