s4 hana mm interview questions

Dear readers, these SAP MM Interview Questions have been designed specially to get you acquainted with the nature of questions you may encounter during your interview for the subject of SAP MM. As per my experience good interviewers hardly plan to ask any particular question during your interview, normally questions start with some basic concept of the subject and later they continue based on further discussion and what you answer − What is the use of SAP Material Management module?

Every organization acquires material or services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement. Explain steps in Procurement Lifecycle?

Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements.

After gathering requirements one will look for the suppliers who can fulfill the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them.

Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.

Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc.

Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included.

As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analyzed. A Purchase requisition is an internal document or external document?

Internal document, it is the phase in which purchasing department is informed about the requirement of items or services required for business purpose. What are the different type of Basic Procurement?

Procurement for Stock − A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this material keeps on increasing or decreasing based on amount of the quantity received or issued. To order a material for stock, the material must have a master record within the system.

Procurement for Direct Consumption − When procurement is for direct consumption i.e. it will be consumed as soon as it is received, the user should specify the consumption purpose. To order a material for consumption, the material may have a master record within the system. What is External Procurement?

External procurement − It is the process of procuring goods or services from external vendors. There are 3 basic forms of external procurement generally supported by the Purchasing component of IT system.

Longer-term contracts with the subsequent issue of release orders – For materials that are being ordered regularly and in large quantities, we can negotiate deal with the vendor (seller) for pricing or conditions & record then in a contract. In a contract you also specify the validity date.

Longer-term scheduling agreements and delivery schedules – If a material is ordered on an everyday basis and is to be delivered according to an exact time schedule, then you set up a scheduling agreement. What is Internal Procurement?

Internal Procurement − Large corporate organizations may own multiple separate businesses or companies. Internal Procurement is process of getting material and services from among identical company. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when trade occurs between them it will be recorded. What is Special Procurement?

Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location. What is Consignment Stock?

Material that is available at our store premises, however it still belongs to the vendor (seller)/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor. What are the common assignment types in SAP MM system?

A deletion flag can be set at client level, plant level or storage location level. Transaction MM06 is used to mark a material for deletion. What is the use of Purchase Info Record?

Purchasing info record stores information on material and vendor supplying that material. For Example: Vendors current price of a particular material is stored in info record. Where do you maintain Purchase Info Records in SAP MM?

Purchase info record can be maintained at plant level or at purchasing organization level. What is Purchase Order?

Purchase order is the formal and final confirmation of the requirements which is sent to vendor to supply material or services. Purchase order will include important information like name of material with its corresponding plant, details of purchasing organization with its company code, name of vendor, and date for delivery of material. What do you understand by Goods Receipt in SAP system?

After processing of purchase order by vendor, material is delivered to ordering party and this process is called as goods receipt. So, goods receipt is the phase in which the material is received by the ordering party and the condition and quality are verified. Once material is verified against quality then goods receipt is posted. How do you post goods receipt?

Consignment − Procuring material that is kept in company’s premises and paying to vendor for that.

External service − Getting services like maintenance from third party vendor. How can you create a Purchase Order from Purchase Requisition?

Request for quotation is a form of invitation that is sent to vendors to submit quotation indicating pricing and their terms and conditions.

RFQ contains details about goods or services, quantity, date of delivery and date of bid on which it is to be submitted. What is the use of document type in SAP system?

In SAP system, you use Document Type to define different methods or procedures for a transaction. What is free item in SAP system?

The Price will be marked zero for free item. We can tick the item as free item while creating PO in system. Why do you use Material type?

Material type in SAP system is used to group various materials based on some common properties. What is Material Status?

It is 2 digit code and is used to determine the material usability. What are the different stock types in SAP system?

This is conditionally accepted stock and not the unrestricted stock. What are the different Stock transfer types in SAP system?

Outline agreement is a long term purchasing agreement with vendor containing terms and conditions regarding the material that is supplied by vendor.

Outline agreement are valid up to certain period of time and cover a certain predefined quantity or value. Is it possible that you can use scales in Quotation?

No What do you understand by Material Master? How Material master is maintained in SAP system?

Material master contains information related to different material types like finished product, raw material. Material master can be used for identifying a product, purchase material, goods issue or good receipt, MRP and production confirmation.

For Material master data, use T-code: MM01 or go to Logistics → Production → Master Data → Material Master → Material → Create (General) → immediately What is the use of BOM usage type 1 in SAP system?

It is used for Production How do you create Purchase Order or Purchase Requisition from Material Requirement Planning?

The PR is created according to the safety stock mentioned for the material or can be triggered from a requirement. For creating a PO, you need to have the scheduling agreement in place. After the MRP is run the schedule lines are generated which are nothing but the PO. What is MRP run in SAP system?

MRP run or planning run is an engine which is used to fill demand and supply gap. Issues & Receipts are called MRP Elements. Issues include PIRs, Dependent Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, etc. and receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule lines, etc. How do you check Stock Requirement List in SAP system?

MRP List is used to generate static report that contains planning run material wise and it displays time of MRP run at the top.

A Production order is used to define the material to be produced, plant location where production has to be done, date and time of production, quantity of goods required. A Production Order also defines which components and sequence of operations are to be used and how the order costs are to be settled. How do you check the available stock at any point of time?

You can use Stock overview to check the available stock at any point of time. Stock overview can be checked using T-Code: MMBE What is a Contract?

Contract is a long term outline agreement between vendor and ordering party over predefined material or services over certain framework of time. There are two types of contract −

In this type of contract overall value is specified in terms of total quantity of material to be supplied by vendor.

In this type of contract overall value is specified in terms of total amount to be paid for that material to the vendor. What is the movement type for Goods issue reversal?

Movement type is 262 in Goods issue reversal. What is the use of Material Document List?

Material document list is used to generate any goods movement such as goods receipt, goods issue for a production order, etc. Can you generate packing/picking lists for goods issue in SAP MM?

Scheduling agreement is a long term outline agreement between vendor and ordering party over a predefined material or service which are procured on predetermined dates over a framework of time. What is Quota Arrangement in SAP system?

A particular material can be procured from different vendors depending upon the requirement. So, total requirement of a material is distributed to different vendor’s i.e. quota is assigned to each source of supply. This is known as quota arrangement. How do you check Quota Rating?

Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota What is the use of Posting Period in SAP system?

SAP ERP systems were designed so that business can be conducted in an efficient way. Various documents like purchase order, request for quotation, goods receipt are essential documents in a business. These documents need security i.e. if any of documents is posted incorrectly then business can be affected at various concern levels. So, to secure these documents we have a concept of posting period. Posting period means it will allow you to post and make changes in the documents only in a specific time period. How do you define Posting Period in a company?

Posting period for a company can be defined using five fields which are as follows −

Further you can go through your past assignments you have done with the subject and make sure you are able to speak confidently on them. If you are fresher then interviewer does not expect you will answer very complex questions, rather you have to make your basics concepts very strong.

Second it really doesnt matter much if you could not answer few questions but it matters that whatever you answered, you must have answered with confidence. So just feel confident during your interview. We at tutorialspoint wish you best luck to have a good interviewer and all the very best for your future endeavor. Cheers 🙂 sap_mm_questions_answers.htm

SAP S/4 HANA Interview Questions and Answers
  • What is SAP S/4HANA? …
  • Can you explain inventory management in SAP S/4? …
  • Can you define Lean Manufacturing? …
  • What are the SAP S/4 HANA current versions? …
  • Can you define Rebate processing? …
  • Can you define the master data in SAP? …
  • Can you explain PPDS in SAP? …
  • Why use SAP S/4HANA?

SAP S4 HANA Interview Questions and Answers

These interview questions are targeted for SAP HANA and S/4HANA. All mid level experienced professionals and freshers must know the answer of these frequently asked SAP S/4HANA questions to clear an interview. We have a separate document for questions of different modules like SD, MM, FICO, ABAP, Logistics etc.

1. What is SAP HANA?

SAP HANA, a SAP Product is a high performance, column oriented, in-memory relational database management system. As a database server its main function is to store and retrieve the data requested by applications. SAP HANA provides fast and advanced analytical and transactional processing on multi-model data, in cloud and on premise. For more visit What is SAP HANA?

2. What is the SAP S/4HANA?

S/4HANA or SAP S/4HANA is a future ready enterprise resource planning (ERP) solution which is a collection of different things and comes with built-in technologies, including machine learning, AI and analytics. “SAP Business Suite 4 SAP HANA” is abbreviated as SAP S/4HANA in short. S/4HANA runs on HANA platform or HANA database – A very popular in-memory database that offers real time processing speeds. To understand SAP S/4HANA origin visit SAP HANA and S/4HANA and to know more about S/4HANA visit What is SAP S/4HANA?.

3. What are the main building blocks of S/4HANA?

S/4HANA has three main building blocks.

  • HANA Platform or HANA Database SAP S/4HANA ERP systems runs on this in-memory HANA database. It solves many problems faced by ERP.
  • S/4HANA (Business suite) an updated version of SAP business suite 7 and has built-in technologies, including AI, machine learning and analytics.
  • Fiori UI a modern user interface built into SAP S/4HANA that provides consistent look and feel across all devices and ERP systems. It helps in both employee satisfaction and productivity.
  • 4. What is an in-memory database?

    In-Memory databases rely primarily on main memory instead of SSDs or disks for data storage and to perform operations. In-memory databases provide minimal response time by eliminating the need of accessing the data from SSDs. In-Memory databases perform all the operations on main memory. For more visit In-Memory Database.

    5. What is SAP HANA? Explain the key benefits of an in-memory database

    SAP HANA is an in-memory high performance, column oriented relational database management system. It processes the transactions with advanced analytics on multi-model data, cloud and on-premise. For more visit SAP HANA.

    6. What are the features of SAP HANA?

  • Database Services – It offers various database services to reduce data management burdens. These services include Database Management, Database Administration and Database Security.
  • Multi-Model Processing – SAP HANA provides the capabilities to process complex multiple data types such as documents, graphs etc. It processes transactions with advanced analytics and provides hybrid transactional and analytical processing.
  • Application Development – You can develop real-time, intelligent applications with built-in development and run-time capabilities. It offers simplified application architecture, can use existing skills and programming languages, support of various tools like Eclipse, ABAP development tools etc.
  • Data Virtualisation – It improves the data quality with built-in data quality capabilities, offers data federation, data replication and integration capabilities. SAP HANA offers a real-time gateway to all your data across applications, cloud and storage.
  • For more visit

    7. Explain SAP HANA architecture.

    8. Explain about the Columnar database.

    11. What is the decision table in SAP HANA?

    12. What is native SAP HANA?

    13. Explain SAP HANA Performance Optimization Techniques.

    14. How to delete duplicate records?

    15. What is a referential join in SAP HANA?

    16. Explain Table Functions in SAP HANA.

    17. What is Open ODS view

    18. What is a row based and column based approach in SAP HANA?

    19. Explain advantages and disadvantages of row based tables in SAP HANA?

    20. Explain advantages and disadvantages of column based tables in SAP HANA?

    21. Why is SAP HANA so fast? How does it improve performance?

    22. What is the use of DSO and ADSO?

    Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.

    15) What is purchase requisition as related to SAP? Mention the document types that are used in purchase requisition?

    To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path

    The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.

    First you have to observe the return column and then select — Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the document is a return purchase order, and then the document is saved.

    1: Why do we use SAP HANA?

    The interviewer asked this question to check your knowledge and understanding of the SAP HANA. So, candidates should have to answer this question wisely by explaining the numerous benefits of SAP HANA and its application.

    SAP FICO Course: Ranked Amongst Top 3 Courses | Recognized by Govt of India | Award Winning Institute | ISO 29990:2010 Certified | Live Online Instructor-led Certified SAP FICO Training & Certification

    s4 hana mm interview questions

    SAP MM Interview Questions for Freshers

    The main difference between CBP and MRP

    CBP MRP
    When the materials are planned using this, the prediction for the required materials is done by past demand of the same materials. When the materials are planned using this, the prediction for the required materials is done by SOP which is sales & operation planning
    Forecasting, planning which is time-phased and reorders point are used here Since this is used for the planning of the future everything depends on the size of the lot that was previously given.

    FAQ

    How do I prepare for SAP MM interview?

    Frequently Asked SAP MM Interview Questions
    1. What is the difference between CBP and MRP?
    2. What do you know about SAP MM?
    3. Explain in detail the order of purchase?
    4. What are the important criteria in purchasing?
    5. What is the code for deleting a particular batch?
    6. How is a receipt posted?
    7. What is known as RFQ?
    8. What is CBP?

    What are the changes in S4 HANA mm?

    In S/4 HANA, the Material Ledger function is mandatory to support flexible valuation methods in multiple currencies. Post Goods Receipt against the Inbound Delivery – An additional feature of the SAP Fiori app is the ability to search by Inbound Delivery and other attributes.

    What is S4 HANA interview questions?

    SAP S4 HANA Interview Questions and Answers
    • What is SAP HANA? …
    • What is the SAP S/4HANA? …
    • What are the main building blocks of S/4HANA? …
    • What is an in-memory database? …
    • What is SAP HANA? …
    • What are the features of SAP HANA? …
    • Explain SAP HANA architecture.
    • Explain about the Columnar database.

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