SAP MM Questions

How to configure the system for automatic conversion of Purchase Requisition to Purchase Order? Ensure automatic purchase order field in Material Master (purchasing view) and Vendor Master is ticked,Maintain the source list for respective materials and vendor.  Also maintain correct data at the MRP views. On the MRP run system will generate purchase requisitions for the following materials.  Using T-code ME59 conversion of purchase requisition to Purchase orders is possible.     What are the configuration for automatic creation and selection of storage locations in Inventory Management? Auto creation of storage location in inventory management can be created with respect to the movement type and plant.Using t-code OBM2/OBM3.     For automatic storage location selection, storage location data can be specified in procurement storage location field of MRP view in Material master and Issue storage location field in Bill Of Material.     How to maintain automatic determination of G/L accounts during GR/GI/Transfer posting? Automatic account determination of GL account can be maintained using T-code OBYC by specifying GL code for specific valuation class within the posting key(TE-KEY) maintained for respective movement types. What is the difference between selection parameter WE101 and WE103? To optimize internal processes, you regularly create list displays to inform yourself about the status of your purchase orders, info records, and other documents in the system. You are checking the purchase orders issued over the past 24 months. you are primarily interested in POs against which no goods receipts have been entered. Choose the scope of list BEST_ALV, so that the list of selected purchase orders is displayed with ALV Grid Control. Choose Logistics --> Materials Management --> Purchasing --> Purchase Order --> List Displays --> For Vendor (ME2L). Selection parameter : WE101 (open goods receipt) WE103 means then that SAP considers the GR blocked stock as well as already received quantity while with WE101 the GR blocked stock is not considered as received. What is the diffrence between XD01, XK01 & MK01? Knowing that all the above tx codes are used to create vendor. There are 3 t-codes by which you can create vendor: XK01 is for centrally creating vendor where all data are included. MK01 is for purchasing vendor.  FK01 is for accounting vendor or vendor with accounting details.  What is the procedure to delete materials permanently from Material Master? Ans: The process for deleting the materials permanently from material master is by using transactioncode MM70 and the navigation is  Material Master>Other>Reorganization>Material>Choose. Then build variant with selection range of material master records to be selected for deletion and maintain run parameters and then execute. Using Transaction Code MM71 navigate as follows Material Master>Other>Reorganization and then build the second variant, maintain run parameters and execute. It is also important to remove the records manually form info records, PO, PR reservation etc for successful deletion of the material. 2 Is it possible to have specific customer material information entered in SAP? Ans: Yes, it is possible to have specific customer material information entered in SAP since VD51 is the transaction or inside VA02 also you can add customer material information records. 3 Give the transaction code for creating a customer in SAP SD? Ans: The transaction codes for creating a customer in SAP SD are VD01, VA01 and XD01. 4 What are inter-company customers? Ans: This customer represents the sales customers within the same client but between different company codes. 5 Briefly explain any three organizational elements make up a sales area and their function? Ans: An organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions is known as Sales organization. Channel through which the salable materials or services reach the customers, typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations are known as Distribution channel.  Product groups can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing is known as Division. 6 What happens when the exclusive field was ticked in the access sequence?  Ans: When the exclusive field of all access sequences is ticked, it will try to get available data from the first. Only in case, data is not available, will it move on to the next one. 7 In SAP SD what is a sales office? Ans: According to SAP SD, a sales office is a geographically located unit of a sales organization. 8 What is the purpose of partner determination? Ans: Partner determination is used to find out who is responsible for A/R process and where the products are going. 9 What is the purpose of partner determination? Ans: Partner determination is used to find out who is responsible for A/R process and where the products are going.

Explain about batches and how are they searched? Ans: The batches are the subdivisions of stock of material having the same characteristics and for example food production uses batches to indicate the day of production, paint production uses batches based on production date and the used ingredients and it’s very hard to reproduce the same color in exactly the same way at two different moments. In the process to search batches using the standard search facility a match code F4, based on the naming convention of the batches or, for the batch classification, based on the characteristics of the batches.

12 Explain the function OBYC? Ans: The Function OBYC stands for Configure Automatic Postings. When the system settings are entered for the Inventory Management and Invoice Verification transactions the automatic posting to G/L accounts. Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management where the transactions are relevant to Financial and Cost Accounting.

13 What is the procedure to make the period indicator in the MRP2 view as “P”? Ans: To make the period indicator in the MRP2 view as “P” the transaction variant SHD0 and then SE93 is used.

14 What is the procedure to make the Source List automatically appear in Material Master as default if maintained at plant level using OME5? Ans: The maintained source list requirement in OME5 was not maintained the source list for the material, Po can’t be released. So it is required to maintain source list for all materials in the plant where the indicator is set if maintain source list at plant level is maintained or it can make use of info record to do so automatically.

15 Compared to PO and Stock Transfer Order which is the better option in case one company with a plant and another company with a sales organization? Ans: In order to select one company with a plant and another company with a sales organization it has to considered the following conditions it has to configure using transaction OMGN, depending upon the sending and receiving plants, maintain sales organization and customer data in customizing, maintain the supplying plant as a vendor and attach the plant to the vendor in the Vendor Master, Material type has to be HALB or HAWA, Ensure that the company with sales organization has a plant to take care of stocking, The PO used in NB and not Stock Transfer PO, Configure SD for inter company billing to enable picking up the pricing procedure for billing, and Carry out delivery through process delivery due list and billing through process billing due list.

16 What is the purpose of configurable material? Ans: The purpose of configurable material is useful to have a large number of combinations of parts that go into a product. It means different permutations and combinations of the parts for same material. If it was maintained a unique material code for each combination, it requires a large number of material numbers. KMAT may be used in such a case where it maintains just one generic product code. A super BOM is maintained for such a material consisting of all possible alternatives. A routing is also maintained consisting of all possible operations that could be used. Typically configurable material is used in Made to Order (MTO) environment. However frequently ordered configurations may be planned with a material variant which needs to have a material master record. Thus Material variants may have stock and value. Depending upon characteristic values chosen at sales order entry Sales Order BOM is created. Routing operations are also chosen depending upon which BOM components are assigned to them.

17 List some info records types? Ans: The lists of Info Records Types are Standard, Consignment, Subcontracting and Pipeline.

18 Explain what is consignment stock? Ans: The Consignment stock is a stock that is supplied by the vendor is in the companies premises with the company having no liability for the same.  The liability for the company will only be affected when the goods are issued from the consignment stock for use.

19 What is the procedure to restrict the posting of PO or any entries to a vendor which has some errors in configuration? Ans: It’s better to block the Vendor at the following stages so that it would not allow posting the entries.  All Company Code, Single Company Code, All Purchase Organizations and Single Purchase Organizations are to be blocked.

20 When GR blocked stock used?  Ans: When it is not sure about the quality of the product received, then it is kept in GR blocked stock What is the subcontracting cycle? Ans: The Subcontracting Cycle is that when Po is created with item category L, the goods is transferred to subcontractor by 541 movements. For this movement note no accounting documents take place.  When GR is done automatically, 543 movements’ takes place which take care of the consumption of components from stock. 22 Explain the procedure to create PR or PO by MRP?  Ans: The procedure to create PR is 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 is nothing but the PO. 23 What types of special stocks are available?  Ans: Special Stocks that are available are Subcontracting, consignments, pipeline, project, sales order, RTP, stock transfer, and the third party. 24 Is it possible to have scales in a quotation?  Ans: No, it is not possible to have scales in a quotation 25 Explain the steps that are involved in consignment cycle?  Ans: The steps that are involved in consignment cycle is by creating consignment info record with proper tax code, maintain output condition record for KONS, no invoice verification done, create Po with item category K, process GR, but settlement is done through MRKO transaction. 26 What are scales?  Ans: Scales are to fix a price in the info record for a quantity from 1-100 price Rs.150 and if the order quantity is 101- 500 the prices is 140. Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement. 27 Explain the difference between a contract and a scheduling agreement?  Ans: The Contract agreement or the Outline Agreement is that create the centrally contract (cross-plant) where it can maintain different pricing conditions for each and every plant. It creates the Release Order with reference to Outline Agreement. No detailed delivery schedule can be made in the Release Order. No Release documentation is created. Only time-dependent conditions can be created, Some Item Category 'M' and 'W' can be used.  Whereas the Scheduling Agreement is the Plant Location what must be entered in the Scheduling Agreement. Its no need to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List). Delivery Schedule line items are created subject to your specific requirement. It can create both Scheduling Agreement with or without release of Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement. Item Category 'M' and 'W' can not be used. 28 What is the difference between release procedure with classification and without classification and when are they used? Ans: The release procedure with classification deals with the purchase requisition it can be released both at item level and at the header level. Coming to release procedure without classification can also be used for purchase requisition which is used for item level release only. All other external documents cannot be released with classification. These two procedures are mutually exclusive to say, it has to be decided in favor of one of them only. 29 In what way does the Subcontracting was cared by the byproducts? Ans: The Byproducts take care of subcontracting in BOM for the header. 30 What is the procedure to give specifications for developments? Ans: The procedure to give specifications are normally prepared for the business requirement document in which we specify what is required, what field and tables have to be referred for the required development.