Do checkout this commonly asked SAP MM Interview Series and prepare for your interviews easily. This is Part 9 of 10 Part Series.
SAP MM Interviews Q& A Series
1. How material valuation is done?
Ans: This process determines the value of the materials, mainly for the financial reporting & accounting purposes. Various methods are being involved to calculate the valuation of the material. Key concept used are valuation area which is the level at which the material is being defined.
Valuation class which categorizes the group materials with the same account. valuation category which determines how a material is being used. price control indicator which is a specific method used to valuate the material. The prices are being calculated using various ways: Standard Price which is fixed and does not change or modified with any GR or IR.
Moving average price which is recalculated after each GR and IR. This ensures the inventory values to reflect variance and reflect actual costs effectively.
2. Tell me the concept behind ERS in SAP MM?
ERS is evaluated receipt settlement which is basically an automated invoice settlement process. It automatically generates the invoices based on GR’s, this way eliminating the requirement of the vendor to send any kind of invoice. Concept behind ERS involves the system to generate the invoice using the Pos and the GRs. Companies can easily reduce the manual data entry which helps in minimizes the error loads. It helps in easy agreement with the vendors. Apart from improved vendor relationships, it also involves cost savings and faster processing of the payment of vendors. In short, ERS helps in streamlining the invoicing processes by automatically generating the invoices based on GRs and POs.
3. How does the verification of the invoice is being done?
Ans: Invoice verification is a complex process which involves ensuring that the invoices which are received from the vendors are completely correct & accurate. It also matches the PO’s and GR’s details. Invoice verification is very much important for maintaining correct financial records & ensuring all the payments are made correctly & on time. The steps in the invoice verification process are as given:
- Vendor sends an invoice for services/goods given.
- Invoice is then entered into SAP system using MIRO tcode.
- The system than matches the invoice details with relevant PO and GR.
- Post that, verification of invoice details are being done.
- If any discrepancies are found, they are resolved before the invoice is being posted.
- Once verified, the invoice is being posted to the system.
- The invoice is then processed for payment according to the agreed terms.
Benefits of invoice verification includes accuracy & efficiency of accounts, financial control of records and expenses and endurance to the procurement policies.
4. What is a release strategy in SAP MM?
It is a method to control and approve the purchasing documents before the are processed further for any action. On what conditions and processes, these purchasing documents are approved is included in this release strategy. It also ensures that all the authorized persons can do the approval & release of the documents for all the further processing.
Key components of the release strategy includes release codes which explains the authorization levels.
Release indicators which includes current status of the documents. Release strategy which includes list of approvals required for purchasing document. Release conditions includes the criteria which are defined to determine if a particular release strategy is being applied or not. Release procedure includes all the processes which involves release codes, indicators and strategies for the approval of purchasing documents. Benefits of release strategy includes compliance with the procurement policies, transparency, and accountability.
5. What is this service master record?
Ans: A service master record is basically the master data records which contains the details about the services like how to company procures. It contains master data which is used to manage the services within the procurement process. The service master record helps in the management of services by providing a complex way to how to describe them and price them.
A service master record contains service number, service description, units of measures, service categories, pricing, purchasing data, valuation class etc. Benefits of using service master records includes: It ensures standard pricing across all the organization. Manual entries are being reduced, thus simplifying the procurement process. Predefined data for service procurement is being there. It helps in integrate multiple service procurement processes with various other business processes.
Hope you like SAP Security Interviews Series PART – 9
Check out other parts of this series at SAP MM Interview Questions Series.
๐๐จ ๐๐ก๐๐๐ค๐จ๐ฎ๐ญ ๐ญ๐ก๐ ๐ช๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง๐ฌ ๐๐จ๐ซ ๐ช๐ฎ๐ข๐๐ค ๐ซ๐๐ฏ๐ข๐ฌ๐ข๐จ๐ง๐ฌ & ๐๐๐ฉ๐ฉ๐ฒ ๐๐๐๐ซ๐ง๐ข๐ง๐ ๐ฌ.
- ๐จ๐๐๐, ๐๐๐ ๐บ๐จ๐ท ๐ฉ๐พ/๐ฏ๐จ๐ต๐จ ๐ธ๐๐๐๐ ๐น๐๐๐๐๐๐๐ ๐ธ๐จ’๐บ, ๐๐๐๐๐๐๐๐
- ๐จ๐๐๐, ๐๐๐ ๐บ๐จ๐ท ๐บ๐ฌ๐ช๐ผ๐น๐ฐ๐ป๐ ๐ธ๐๐๐๐ ๐น๐๐๐๐๐๐๐ ๐ธ๐จ’๐บ, ๐๐๐๐๐๐๐๐
- ๐จ๐๐๐, ๐๐๐ ๐บ๐จ๐ท ๐ฉ๐จ๐บ๐ฐ๐บ ๐ธ๐๐๐๐ ๐น๐๐๐๐๐๐๐ ๐ธ๐จ’๐บ, ๐๐๐๐๐๐๐๐
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