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SAP MM Interviews Series – Part 10

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

Top SAP MM Interview Questions

1. Explain the type on Invoice Postings in SAP MM?

Ans: When the invoice received from the vendors are being recorded in the system, than that process is known as invoice posting.  There are multiple types of invoice postings available in SAP MM which are:

  • Standard Invoice Posting is where a vendor invoice is being recorded wrt to relevant purchase order. MIRO Tcode is being used to post standard invoice posting.
  • Credit Memo is used when the invoice that has been posted, is being reversed, due to any of the reason including returning goods or overcharging.
  • Subsequent Debit/Credit which is been created when the invoice has already been created and adjustments has to be done to that invoice, without reversing the original invoice.
  • ERS – Evaluated Receipt Settlement which is an automated process where the invoice is being generated by the PO based on the GR, by eliminating the need for invoices based on vendor.
  • Invoice for Plan Driven Procurement which is used when procurement is driven by the plan and invoices are received against the planned order.
  • Invoice verification without purchase order reference is done when the invoice is received but without the corresponding PO and than it needs to be posted either manually with or without the GR reference.

2. Tell us the concept behind credit memo and debit memo in SAP MM?

Ans: These two credit memo and debit memo are the tools which are used to adjust the amounts which are invoiced by the vendors, after the initial posting of the invoice. Credit memo is basically a document which is used to reduce/decreased the amount previously invoiced, & is issued by the vendor.

Errors in the original invoice is being corrected using this document. Credit memo is being created when goods are returned, additional discounts are being given, pricing errors are being checked, or service reductions happened.   Debit memo is used to increase the amount which was invoiced previously.

It takes into account the invoice for additional goods and services provided to, after original invoice. Debit memo helps in increasing the vendor’s outstanding balance. MIRO is the tcode used to manage appropriate credit & debit memo. Both these processes are important for maintain correct financial records & proper vendor management.

3. Mention the type of Purchase Orders available in SAP?

Ans: Different procurement list has different type of PO’s. Each cater different needs. Here are few main important type of PO’s.

  • Standard PO – Based on standard terms such as quality, delivery date, pricing etc, the procurement is done for both materials & services.
  • Subcontracting PO – When the vendor manufactures the finished products using the raw materials/components send by the company, then its subcontract one.
  • Consignment PO – The goods which remains the property of the supplier until they are being consumed, those goods when purchased then consignment Pos are created.
  • Stock Transfer PO – When stock is being transferred from one plant to another or within different storage locations, but within same company, then STO.
  • Service PO – They are used for procuring services rather than materials.
  • Blanket PO – They the one which are purchased again and again in a given period of time but with the specific limit.
  • Third Party PO – When the goods are directly delivered to the third party but ordered from the same vendor. Return PO – They are used for the returning of goods.
  • Scheduling Agreement – Used to scheduling the deliveries of the materials which in a specific time period or date, as per written in the agreement. Every PO in SAP MM is important and they help in maintaining accurate records & streamline the procurement operations. 

4. How the prices are being calculated in SAP MM?

Ans: In SAP MM, prices are being calculated using various conditions. It is a systematic approach & uses various components such as base price, surcharge, tax, discount etc. Here are the major steps: 

  • First we have to determine the pricing procedure based on multiple factors like vendor schema group, PO, doc type etc.
  • Then we access the conditions, like system uses access sequence to search for the condition records for each condition type mentioned during the pricing procedure.
  • Then the system calculates the values for each condition type including price, discount etc.
  • After going through all the conditions & calculations, final price is being calculated. 

In short, practical steps includes define condition types, create condition records, assign pricing procedures & maintain the access sequences.

5. How does a purchasing document is being linked to vendor master data?

Ans: This linking helps in making sure that all the vendor master data is being available to the system, for all its procurement process. Vendor master data contains all the relevant information about the vendor such as name, contact details, payment terms etc. Vendor master data is being stored in unique vendor number. Purchasing doc info contains PR’s PO’s contracts & scheduling agreements. 

They are very important to carry out all the important procurement steps. If we have to link a Purchasing Doc to a Vendor Master Doc, then here are the steps: Vendor master record creation is being done.  Purchasing info record is being created, which helps in linking a material and a vendor. A PO is then being created using ME21N Tcode.  The PO is now being assigned to Vendor schema group, after ensuring correct pricing procedure & other configurations. 

Hope you like SAP MM Interviews Series PART – 10

Check Out :

  1. SAP MM Interview Series – Part 01
  2. SAP MM Interview Series – Part 02
  3. SAP MM Interview Series – Part 03
  4. SAP MM Interview Series – Part 04
  5. SAP MM Interview Series – Part 05
  6. SAP MM Interview Series – Part 06
  7. SAP MM Interview Series – Part 07
  8. SAP MM Interview Series – Part 08
  9. SAP MM Interview Series – Part 09

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