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SAP MM Interviews Series – Part 6

Do checkout this commonly asked SAP MM Interview Series and prepare for your interviews easily. This is Part 6 of 10 Part Series.

Common SAP MM Interview Questions and Answers

1. Explain the full process of release strategy from scratch till end?

Ans: The release strategy in SAP MM is basically the process through which all the PR’s and PO’s are being approved before getting processed further. This is important because it make sure all the procurement actions are been verified by the designated persons from the organizations, as per company policy. To setup a release strategy, we will first define a release code in SPRO Tcode. After defining release code, we will define release group & release indicator.

Afterwards release strategy is being determined with the sequences 7 conditions under which a document should get released.  After multiple steps, we can trigger the release strategy from ME54N Tcode (Release Purchase Requisition) tcode.  Once the conditions are being met, the system will automatically triggers the release strategy based on multiple defined conditions.  Release strategy also helps in managing the budgets and prevent unauthorized purchases. 

2. How is the integration happen for SAP MM with other SAP Modules?

Ans: SAP MM is related to most of the other modules to enable seamless data flow across all the modules of the organizations. For ex: with SAP SD, When a sales order is being created, they first check the availability of the stock in SAP MM.

The billing details which are generated in SAP SD are then moved to SAP MM as well. With SAP PP, SAP MM is related as it provides procurement data to SAP PP for multiple production planning activities.  Finished goods in SAP PP are received to SAP MM on the basis of goods receipt. SAP QM is also connected to SAP MM as SAP MM triggers the quality inspection process in SAP QM.

In SAP QM only the quality is being checked before it get accepted to SAP MM. SAP Plant Maintenance is also taken care by SAP MM as all the materials which are required for maintenance are being saved in SAP MM itself. As SAP MM takes care of issuing the goods and handling the receipts, the physical movement for this added information of the materials is being in SAP WM – Warehouse Management. All the goods receipts and invoices details are being updated in SAP FI itself and the management of procurement and inventory cost is done in SPA COPA.

3. Why Quota Arrangement is required in SAP MM?

Ans: A Quota Arrangement is a process in which multiple purchasing requirements are being distributed among various multiple vendors. This is done to make sure all the procurement activity is being done in a balanced way, so that optimized supplier relationships are being maintained. We can easily evaluate supplier performance through this mechanism.

The quality of the materials received are being checked and improved in case if any discrepancy occurs. This mechanism also helps in optimizing the procurement costs and risk mitigations. SPRO is the tcode where we can define the quota arrangement usage and MEQ1 is the tcode to maintain quota arrangement.  In short, it leads to supply chain stability. 

4. How will you evaluate a potential vendor for your firm in SAP MM?

Ans: Evaluating a potential vendor in SAP MM is very important for company’s quality, cost and compliance. Evaluation involves certain steps which are as follows: First Vendor Evaluation Criteria is been defined and evaluated on the bases of multiple conditions such as quality, delivery, weightage, service, etc. Then creation and maintenance of vendor master data is being done. Scores to the vendors are being assigned in ME61 Tcode, on the basis of various vendor evaluation configuration. Afterwards evaluation results are being analyzed & site visits and audits are being conducted, only if applicable. After various checks and trials, vendors are being finalized and approved vendor list is being maintained in SAP MM System. This way not only helpful in selecting the best vendors but also helps in improving the performance of the current vendors.

5. How does SAP MM utilize its main master files?

Ans: SAP MM use to manage various procurement processes and other inventory processes. These files are important as they store very critical dataset for the function modules. Material Master is one the main master file which contains information about all the materials and their in and out in SAP MM. Basic and purchasing dataset, MRP dataset, accounting & storage dataset included in it. Next, it includes vendor master dataset which includes all the details from the vendor like purchasing data and accounting data. It also contains purchasing info records which includes PO Details and other conditions. Source list, quota arrangement and vendor evaluation data also included in the same. By managing comprehensive master dataset, companies can easily streamline the process and improves the efficiency by ensuring consistent data across the organization. 

Hope you like SAP MM Interviews Series PART – 6

Please check other parts of SAP MM Interview Series:

 𝐃𝐨 𝐜𝐡𝐞𝐜𝐤𝐨𝐮𝐭 𝐭𝐡𝐞 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐪𝐮𝐢𝐜𝐤 𝐫𝐞𝐯𝐢𝐬𝐢𝐨𝐧𝐬 & 𝐇𝐚𝐩𝐩𝐲 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠𝐬.

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