Mastering SAP MM: A Comprehensive Guide to Common Interview Questions

Introduction: SAP MM Interview Questions

SAP MM Interview Questions: SAP Material Management (MM) is a critical module within the SAP ecosystem, ensuring efficient management of procurement processes, inventory, and logistics. If you’re preparing for a SAP MM interview, it’s essential to be well-versed in both theoretical concepts and practical application. In this blog post, we’ll explore some common SAP MM interview questions to help you confidently navigate your interview and showcase your expertise in SAP MM.

1. Basic Concepts and Overview:

Question 1: What is SAP MM, and what are its key components?

• Answer: SAP MM is a module in SAP ERP that manages materials, procurement, and inventory. Key components include Master Data (Material Master, Vendor Master), Procurement (Purchase Requisition, Purchase Order), Inventory Management, and Invoice Verification.

Question 2: Explain the role of Material Master in SAP MM.

• Answer: The Material Master in SAP MM is a central repository for material-specific information. It includes data such as material type, description, unit of measure, valuation, and more. It acts as a foundation for various SAP MM processes.

2. Procurement Process:

Question 3: Differentiate between a Purchase Requisition and a Purchase Order.

• Answer: A Purchase Requisition is an internal document that initiates the procurement process, indicating the need for materials or services. A Purchase Order is a formal document sent to a vendor, specifying the quantity, price, and delivery details for the requested items.

Question 4: What is the difference between a Goods Receipt and a Goods Issue?

• Answer: A Goods Receipt is the acknowledgment of receipt of goods or services into inventory. A Goods Issue, on the other hand, is the reduction of stock due to consumption or outgoing shipments.

3. Inventory Management:

Question 5: How is the movement type determined in a Goods Movement?

• Answer: The movement type in a Goods Movement is determined based on the type of transaction, such as goods receipt, goods issue, transfer posting, etc. It is a three-digit code that defines the nature of the movement.

Question 6: Explain the concept of ABC Analysis in Inventory Management.

• Answer: ABC Analysis classifies items into categories (A, B, and C) based on their importance. Category A items are the most critical, and C items are less critical. This classification helps in prioritizing inventory management efforts.

4. Vendor Management:

Question 7: What is a Source List in SAP MM, and why is it used?

• Answer: A Source List in SAP MM is a list of approved vendors for specific materials. It helps in maintaining a list of preferred suppliers, ensuring that procurement is done from approved sources.

Question 8: How does the Vendor Evaluation functionality work in SAP MM?

• Answer: Vendor Evaluation in SAP MM assesses and rates vendors based on criteria such as delivery performance, quality, and service. The evaluation results help in making informed decisions about vendor selection and improvement.

5. Pricing Procedure and Conditions:

Question 9: What is a Pricing Procedure in SAP MM?

• Answer: A Pricing Procedure in SAP MM defines the sequence and conditions for determining the final price during procurement. It includes various conditions like gross price, discounts, taxes, etc.

Question 10: Explain the concept of Condition Types in SAP MM.

• Answer: Condition Types in SAP MM are used to define the various pricing elements in a procurement document. Examples include basic price, freight, taxes, etc. Each condition type represents a specific element contributing to the total price.

6. Integration with Other Modules:

Question 11: How is SAP MM integrated with SAP SD (Sales and Distribution)?

• Answer: SAP MM and SAP SD integration occurs through the delivery process. The materials procured in SAP MM are used to fulfill sales orders in SAP SD, ensuring a seamless flow from procurement to order fulfillment.

Question 12: Explain the integration points between SAP MM and SAP WM (Warehouse Management).

• Answer: Integration between SAP MM and SAP WM involves the transfer of goods information. SAP MM manages procurement, while SAP WM handles the physical movement and storage of goods within the warehouse.

Conclusion:

Mastering SAP MM interview questions requires a deep understanding of the module’s functionalities, processes, and integration points. By preparing for these common questions, you’ll be well-equipped to showcase your expertise in SAP MM and demonstrate your ability to contribute effectively to the procurement and inventory management processes within an organization. Good luck with your SAP MM interview!