SAP MM Interviews Series – Part 3

Do checkout this commonly asked SAP MM Interview Series and prepare for your interviews easily. This is Part 3 of 10 Part Series.

SAP MM Interviews Series

1. How is a receipt posted in SAP MM?

If you want to post a goods receipt in SAP MM system, then certain steps we have to follow:

The transaction needs to be accesses first – MB01, MIGO, MB1C Then, we have to select the ‘goods receipt’ and add appropriate document type to it.
Also, we need to enter the PO Number for reference document details.
Edit Item Details along with batch and serial number, if applicable.
Make sure to add storage location & movement type as required. T
hen, we save the goods receipt and verify the document for posting.

This way we can efficiently post the goods receipt in SAP MM.

2. Explain the concept behind consignment inventory?

Ans: Consignment inventory is basically a strategy when the goods are available & is stored in the buyer’s location but it is the formal property of the vendor or the supplier for. The supplier or vendor remains the owner of the goods, until they are formally used. Goods are stored at buyer’s place, so supplier have no responsibility of managing the inventory levels. Buyers can have reduced capital investments, lower storage costs and improved inventory turnover.

How consignment inventory works: Basically there will be an agreement between buyer and supplier on various terms including payment and timelines. Supplier then sends the delivery to buyers location. Usage was measured & billing I done. Ex automobile industry.

3. What are the common assignment types in SAP MM?

Ans: Assignment types are basically various ways in which the organizational elements and the data is being linked. The relationships between various entities such as storage locations, vendors etc are being defined using the assignments. Some of the common assignments includes: PO to Plant assignment PO to Purchasing Groups assignment PO to Company Code assignment Plant to Company Code assignment Plant to Storage Location assignment PO to Vendor assignment etc

4. What are the different stock types available in SAP MM?

Ans: Stock Types are mainly the classifications of inventory available, within the system. Stock details are helpful in managing the inventory details accurately and to make sure, if the materials required will be available on time. Stock types helps in keeping track of various different stages of the procurement process. Here are the type of stocks:

Blocked Stock are the ones which are not available for use because of the bad quality.
Quality Inspection Stock are the one which is under inspection & cannot be used until it passes the quality check.
Unrestricted Stock are the ones which can be used without any issues.
Pipeline Stock which are available directly from the vendor’s pipeline.
Subcontracting Stock which is being assigned to a subcontracted for manufacturing purpose.
Restricted Use Stocks which are restricted due to any specific business rules.
Scrap Stock which is no longer in use and mention as scrap or waste.
RTP Stock which are returnable to the supplier- Returnable Transport Packaging Project Stock assigned to particular project.
Sales Order stock assigned to particular sales order.
Vendor stock returned to the vendor but physically moving back is still there.
Consignment stock which are owned by the supplier but is stored at the location of the buyer. Reserved Stock which are reserved for some specific purpose. I
n-Transit stock which are transferring from one location to another within company.