SAP MM Interviews Series – Part 4

Do checkout this commonly asked SAP MM Interview Series and prepare for your interviews easily. This is Part 4 of 10 Part Series.

SAP MM Interviews Questions With Answers

1. What do you understand by procurement for stock vs consignment?

Procurement for Stock VS Consignment both plays vital role in providing strategy for acquiring materials. Procurement For Stock mainly involves buying of those materials which are made to be added to company’s inventory. They always belongs to the company, once they enter to the company.

Consignment deals with the materials which are stored at buyer’s place but they remain the property of the supplier until and unless they are used. Only the materials that are used, the payment has to be done for that only.

2. How do you assign a purchasing organization to a company code?

Ans: The purchasing organization can be assigned to the company code via transaction SPRO. Here, in the assignment transaction, you have to select the ‘Assign PO to CC’, which will take you to the assignment screen. Click on the company code you want to assign. Enter the relevant PO. Save. We just have to access the customizing menu and proceed with the correct navigation.

3. What is the concept behind ‘Material Type’?

Ans: How different kinds of materials are being managed within SAP System is the concept behind Material Type in SAP MM. It defines the characteristics and the category of the material. Material type helps in classifying the material in different category based on the uses and the attributes. It also helps in determining the type of procurement and whether it is quantity based or value based. Common material type includes finished product, semi finished or raw material based products, non stock materials etc. Material type is defined on the tcode OMS2 basically. They are very critical component in SAP as they help in determining material type, so that it can be handled efficiently in organization.

4. What data does Purchase Info Records Contains?

Ans: The relationship between the material and the supplier is being hold here, in purchase info record. The data from material master details and the vendor master details are stored in this PIR, where they provide a consolidated view of purchasing related details. The conditions to be included in this are net price, conditions and scales. Organizations can easily streamline their purchasing activities and ensures consistency across the complete procurement lifecycle. It also contains delivery information, control data and last purchase data in it.

5. What role does SAP Posting Period plays in SAP MM?

Ans: All the financial transactions are being controlled and managed using the concept of posting period. It also ensures that all the financial and accounting entries are being added in the record, via correct fiscal periods. In which time frame, a transaction can be posted in the system can be defined using the concept of posting period. By defining open & closing period, all the unauthorized postings can be tackled. It also ensures compliance, and also helps in smooth functioning of SAP MM & overall management of financial process.

Hope you like SAP MM Interviews Series PART – 4

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