SAP MM (Material Management) is one of the most useful modules available in most of the SAP. ERP (Enterprise Resource Planning) systems for companies to provide usability for their procurement and inventory processes. For somewhat an SAP MM job interview, you are expected to have knowledge of both the technical and functional parts of this module. Some important SAP MM interview questions and answers are provided below to help you prepare well for the interview.
Frequently Asked SAP MM Interview Questions
1. What is the significance of SAP MM?
Most asked SAP MM interview questions
SAP MM (Materials Management) is one of the basic modules of the SAP ERP system. It is designed to address the entire gold-weighted process which includes procurement, inventory management, material requirements planning, and the entire vendor limiting process. It enables the attainment of materials for the execution of processes of production and sales. While at the same time ensuring that there are no surplus stocks in the inventory.
SAP MM works together with other functional modules such as SD-sales and distribution PP- production planning and FI-financial accounting. Its significance in other systems emanates from its ability to enhance. The Manage Materials process reduces costs and makes it possible for an organization to maintain an optimum level of stocks for smooth continuous operations.
2. What are the major components or sub-modules of SAP MM?
In all the submodules of SAP MM, many are submodules or components that have specific functions dedicated to material management. The primary sub-modules include:
- Purchasing (MM-PUR): Handles the entire procurement process from purchase requisitions to purchase orders and vendor contracts.
- Inventory Management (MM-IM): Manages onhand stock levels, incoming goods, outbound goods, and the transfer of stocks.
- Material Master Data (MM-MD): The data essential to materials such as name, unit, category, etc. are treated in this component.
- Invoice Verification (MM-IV): Deals with the verification when there are vendor invoices related to the purchase order and the receipt of the goods.
- Material Requirements Planning (MM-MRP): Helps determine what materials are required and when.
- Vendor Master Data (MM-VD): Consists of personal details and information concerning the vendor such as ownership, banking, etc.
These components together help manage the end-to-end procurement cycle, from material requirements to vendor payment.
3. Describe the procurement process in SAP MM.
The SAP material management module procurement process is straightforward containing specific steps to ensure, that the materials are procured and delivered most efficiently. The key steps include weight-wise:
- Purchase Requisition (PR): The activity starts with the generation of a purchase requisition also, referred to as pr which is an internal document raised by the user department. When they want to acquire a material of some specific kind.
- Tendering: After the approval of the PR, the purchasing department identifies an appropriate vendor. In this stage, vendor master data, if available, or past procurement history may be employed.
- Request for Quotation (RFQ): The buyer can issue RFQs to multiple vendors requesting that they provide quotes for the materials required.
- Purchase Order (PO): A purchase order is usually created after the purchase offers the buyer with the vendor. The purchase order is treated as an official document on the names of the buyer and the vendor stating the quantities, delivery periods, and prices.
- Goods Receipt (GR): After the materials are brought into the organization. The warehouse performs a good receipt in the system to account for the delivered items and increase the existing stock for availability.
- Invoice Verification (IV): After the vendor’s submission of the invoice. The purchasing department performs an invoice verification process by checking the invoice against the purchase order and goods receipt.
- Payment to Vendor: After carrying out an invoice verification, the vendor will receive payments on the specified terms.
4. What is Material Master Data, and what relevance does it have?
Material master data is a document management application in SAP MM. Which is a centralized warehouse accumulating all the data on material used by the organization. This data is very important for the effective implementation of different business processes for instance procurement, production, inventory management, and sales.
The material master contains data such as
- Material number
- Material description
- The base unit of measure
- Weight and dimensions
- Purchasing Group
- Standard price.
What is even more fundamental is the fact that this type of material master. ‘Primary’ or ‘Mother’ reference for all the transactions concerning the material and its attributes. As long as there is good material master data, materials flow correctly in all the business processes of the supply chain. Inappropriate or poor material master data may lead various processes to failure: for example, there is stock in hand, but products can’t be delivered because there is no more material for production.
Here are the most asked SAP MM interview questions.
Conclusion
SAP MM is an essential module in today’s organizations focusing on materials procurement and stock management. If you prepare thoroughly with these SAP MM interview questions and answers, you will be able to amplify your skills and showcase them during your interview. If you grasp the basic features of SAP MM which cover procurement processes as well as inventory management. You will be able to sell yourself to potential employers.
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