SAP MM Interview Questions
1. What is SAP MM?
MM is a functional module in SAP. MM means Material Management, which deals with
procurement and materials management. It has master data, material valuation, invoice
verification, material requirement planning, etc.
2. What are some common assignment types in the SAP Material Management system?
Purchasing organization to company code
Standard purchasing organization to plant
Plant to Company code
Purchasing organization to Plant
3. What is internal procurement?
Different businesses exist within large organizations. An internal procurement process
gathers material and service requirements from a single company. However, each identical
company must keep a more comprehensive bookkeeping system, as well as separate Profit
and Loss statements and Balance Sheets.
4. Explain in detail the order of purchase?
A purchase order (PO) is a legal document that a buyer creates and sends to a seller to
confirm their intention to purchase goods and/or services.It specifies the number and type
of things needed, as well as payment terms and delivery information.
5. What is CBP?
CBP stands for Cross-Border Planning and refers to the entire international procurement
and logistics administration. It entails navigating customs procedures, dealing with duties
and taxes, and meeting cross-border trade obligations. CBP that effectively
supports seamless operations and reduces risks in global supply chain activities.
6. Describe the various types of stocks.
There are three different kinds of stocks;
Valuated stock, Non-valuated stock and Special stock
7. What is consignment stock?
Consignment stocks are materials that are still available in the store but belong to the owner
or seller. The buyer must pay for the consignment stocks when he uses them.
8. What is a Purchase Order?
A buyer sends a purchase order to his sender to finalize the requirements. Instead of the
names and quantities of materials, the purchase order includes valuable information such as
the purchasing company's details with a company code, the name of the material, the
corresponding Plant, and the date for material delivery.
9. What is an RFQ?
The acronym RFQ stands for Request for Quotation. RGQ is an invitation sent to sellers to
submit quotes that include pricing and terms and conditions. The RFQ also includes the
delivery date, goods and services, quantity, and submission date.
10. What is invoice processing?
A company's account payable department uses it to manage supplier invoices. Invoice
processing begins when an invoice is accepted and ends when it is cleared and is recorded in
the general ledger.
11. What is RTP?
RTP stands for returnable transport packaging. It is a multi-trip packaging medium in which
goods or products are transported between customers and retailers more than once.
