Top SAP MM Interview Questions and Answers
With the surge in the demand for SAP-certified candidates, the competition for all those positions is skyrocketing, irrespective of the organisation’s size and the candidate’s experience. In this scenario, learning the skill and mastering it play a major role; apart from that, having a deep understanding of the interview process also becomes key to success.
Specifically, SAP MM tops the list of most demanding positions in leading organizations like Amazon. This takes us to the hunt for the most asked interview questions for SAP MM. Worry not, that’s exactly what we’ll be covering in this article.
Your experience in SAP could be anywhere from a fresher to a highly experienced professional. Today, you’ll know some of the frequently asked interview questions in SAP interviews.
Let’s get straight into it.
SAP interview questions for freshers:
1. Explain in detail about MRP?
Since MRP is used for future planning, it highly depends on the size of the previous lot, and the predictions for the materials required are made by Sales & Operations Planning(SOP).
2. What is SAP MM, and its real-world usage?
SAP MM generally consists of master data, configuration of the system, and transactions to complete the procurement-to-pay process.
It is a software-based application for business solutions that can incorporate various business tasks, like purchase, sales, and production.
3. Explain the organizational structure in MM.
In the SAP MM module, the organizational structure is similar to a ladder, with each level serving a specific role.
- Client: The highest, independent unit with its data and settings.
- Company Code: A small unit used for financial reporting with its accounting setup.
- Plant: Where materials are produced or services are provided—can vary by function, like production or procurement.
- Storage Location: Where finished goods are stored.
- Warehouse Number: Represents the warehouse system, which varies by storage needs.
- Storage Type: Divides the warehouse into areas like picking or issuing zones.
- Purchasing Organization: Handles buying activities and supplier negotiations.
- Purchasing Group: A person or team responsible for ordering materials and handling some purchasing tasks.
4. What are the basic components of SAP MM?
Key steps involved in the procurement process include:
- Define the requirements
- Determine sources of supply
- Select vendors
- Process orders
- Follow up with clients
- Receive goods and manage inventory
- Verify bills
- Handle payment systems
5. What are T-codes, and list out the T-codes in MM used for Invoice verification and payment.
In SAP’s MM module, various transaction codes are used to perform specific tasks related to procurement, inventory, and material management.
T-codes used for Invoice verification and payment in MM are as follows:
- MIRO – Enter Incoming Invoice
- MIR7 – Park Invoice
- MRBR – Release Blocked Invoices
SAP interview questions for experienced:
1. Explain RFQ. and CBP. What's the relationship between the two?
RFQ is Request For Quotation, a form provided to vendors to submit their quotation.
CBP is the consumption value of the materials in the past, used to calculate the future requirement.
Generally, after issuing an RFQ, the purchased goods may be imported, making it necessary to comply with CBP regulations.
CBP may review or inspect shipments related to RFQ-based procurement to ensure proper documentation, declared value, and compliance with trade laws.
2. What’s the T-code to compare price quotations?
ME47
3. Explain the process of posting a receipt.
To post a goods receipt, start by going to the Logistics section. Then, navigate from there to Materials Management, then select Inventory Management. Next, choose the Goods Movement option. Use the T-code MIGO to finish the process.
4. What is the last stage in the procurement cycle?
Verification is the last stage in the cycle of procurement. The documents related to the accounts and finance are also updated in this stage.
5. Explain the invoice verification process.
When an invoice is linked to an existing document, the system automatically retrieves the relevant information, such as the material, vendor, delivery details, and payment terms.
Then, enter the invoice, and the system calculates the necessary accounting entries, taxes, discounts, and any corrections.
Data like average pricing is updated once after the invoice is posted.
Frequently asked SAP MM interview questions:
- Difference between goods receipt from a goods issue in SAP MM?
- What distinguishes a stock transfer order from a transfer posting in SAP MM?
- How is a material master record different from a vendor master record in SAP MM?
- What are the key differences between a purchase order and a scheduling agreement in SAP MM?
- In what ways does a purchase contract differ from a blanket purchase order in SAP MM?
- How is a purchase order different from a contract in SAP MM?
- Distinguish between a quota arrangement and a source list in SAP MM?
- How do consignment and subcontracting processes vary in SAP MM?
- Differentiate between stock and non-stock items.
- Explain the process of managing inventory in SAP MM.
Knowing what will be asked is the last step before attending an interview, but mastering the skill is what makes you successful in the chosen career. Consider learning SAP MM from an authorised partner to acquire SAP Global Certification in Material Management.
