Interview Questions on SAP MM 1. What are the types of special stocks available? Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third party. 2. What are the types of inforecords? Standard, consignment,subcontracting & pipeline. 3. What is meant by consignment stock? The stock supplied by the vendor is in the companies premises with the company having no liability for the same. The liability for the company will only be affected when the goods are issued from the consignment stock for use. 4. What are the steps involved in consignment cycle? Create consignment info record with proper tax code, create Po with item category K, maintain output condition record for KONS, process GR, no invoice verification done, but settlement is done through MRKO transaction. 5. Tell me about the subcontracting cycle. The Po is created with item category L , the goods is transferred to subcontractor by 541 movemet. for this movement note no accounting docs take place. When GR is done automatically, 543 movemnt takes place which take care of the consumption of components from stock. 6. How are the byproducts taken care of in subcontracting? You can add these by products in the BOM for the header matl. 7. What is meant by scales? Can scales be used in standard purchase order? You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement. 8. What is the difference between a contract and a scheduling agreement? With regard to Outline Agreement: 1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and every plant 2. You have to create the Release Order with reference to Outline Agreement. 3. No detailed delivery schedule can be made in the Release Order. 4. No Release documentation is created. 5. Only time-dependent conditions can be created. 6. Some Item Category 'M' and 'W' can be used. With regard to Scheduling Agreement: 1. The Plant Location must be entered in the Scheduling Agreement. 2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List). 3. Delivery Schedule line items are created subject to your specific requirement. 4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule. 5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement. 6. Item Category 'M' and 'W' can not be used. 9. How does the system calculate taxes? 10. How does the system calculate nondeductible taxes? 11. What is meant by batches? How can the batches be searched? A batch is a subdivision of your stock of a material having the same characteristics. For instance: - food production uses batches to indicate the day of production. - paint production uses batches based on production date and the used ingredients. It is very hard to reproduce the same color in exactly the same way at two different moments. - ore may be divided in batches based on their mineral content. You can search batches using the standard search facility (match code, key F4) based on the naming convention of the batches or, if you use batch classification, based on the characteristics of the batches. 12. How is a shelf-life item managed in SAP? What is the full cycle? 13. What are the settings required for quota arrangement? To set up a quota arrangement for the procurement of a material, proceed as follows: Master data -> Quota arrangement -> Maintain, enter the material and plant number, press ENTER to display the overview screen for the quota arrangement periods, Enter a validity period for quota arrangement, Enter date until which the quota arrangement is valid. The start date is calculated by the system. Press ENTER . Select the quota arrangement and choose Goto -> Item overview to display the item overview screen of the quota arrangement. Enter a quota arrangement item for each source of supply you want to include in the quota arrangement. You must enter the following data. - Procurement type - Special procurement type, Enter k in the S column, for example, if a consignment arrangement for the material exists with the vendor. - Vendor number - Procurement plant (supplying plant): - Quota column, enter the quota assigned to each item. Press ENTER . The percentage distribution of the quotas is calculated and displayed automatically by the system. Save the quota arrangement. The system assigns a number to the quota arrangement item automatically 14. What is meant by MRP Type and lot sizing? 15. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in consumption-based planning if VB is selected as MRP type? 16. How are free items managed in a PO? yu need to tick the tem as free in the PO. The price will be zero for such PO's. 17. What are the differences between release procedure with classification and release procedure without classification? When are they used? Release procedure with classification means the Purchase requsition can be released both at item level & at the header level. Release procedure with out classification can also be used for PR which is used for item level release only. all other external documents cannot be relesed with classification. The two procedures are mutually exclusive (that is to say, you must decide in favor of one of them only - you cannot use both). 18. Is it possible to have a release procedure without classification for a PO? No 19. What is the maximum number of levels available in SAP? Did not get this question pls clarify. 20. Is it possible to have scales in a quotation? No 21. What is GR blocked stock? When it can be used? Whenever you are not sure about the quality of the product received, you can put in GR blocked stock. 22. How are the variations in subcontracting taken care of in SAP? 23. How to give specifications for developments? We normally prepare a business requirement document in which we specify what is required. what field & tables have to be referred for the required development. 24. How to create PR or PO by MRP? 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. SAP MM Tips by : Bijoy Feel free to share a SAP MM Questions with the MM community by Submitting a SAP MM Tips. Get help for your SAP MM problems Do you have a SAP MM Question? SAP Books SAP Certification, Functional, Basis Administration and ABAP Programming Reference Books SAP Material Management Tips SAP MM Configuration Tips and Materials Management Discussion Forum .

Question 1: What MRP procedures are available in MM-CBP (Consumption Based Planning)?A: Various material planning methods are used in MRP (Material Requirements Planning).Reorder point procedure (VM)Forecast-based planning (VV)Time-Phased materials planning (PD)These are specified in material creation (MM01)Under the MRP 1 tab.Question 2: Under what conditions are planned orders created? What may planned orders be converted to and how is that conversion accomplished?A: Planned orders are always created when the system creates an internal procurement proposal.In the case of vendor procurement, the MRP Controller may create a planned order or directly create a PR. The next step for a planned order is to be converted to a PR so it goes to purchasing and is to eventually become a PO. A planned order can be converted to a PR using transaction code MD14.Question 3: What are the organizational levels of the Enterprise Structure in R/3?A: The top level of the organizational plan is the Client, followed by Company Code, which represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next level down is plant, an operational unit within a company (HQ, assembly Plant, call center, etc.).The purchasing organization is the legally responsibly group for external transactions. This group is further subdivided into purchasing groups.Question 4: What are the different ways to organize purchasing organizations?A: A Purchasing Organization may be responsible for multiple plants and this is referred to as Distributed Purchasing. On the other hand, Centralized Purchasing features one purchasing Organization per plant. A Purchasing Organization doesnt necessarily need to be assigned to a Company Code. This would enable procurement for every company code as long as buyers are acting for an individual Plant, and that Plant is assigned to the Purchasing Organization. Hence, a plant may be assigned to more than one purchasing Organization.Question 5: What are Special Stocks?A: Special Stocks are stocks that are accounted for but are not owned by the client, or are not stored at a regular facility. Consignment, sales order, and project stock are examples.Question 6: What are some of the options available to transfer materials from one plant to another?A: Although it is possible to transfer materials from one plant to another without a Stock Transport Order, many advantages are lost including entering a vendor number, planning a goods receipt in the receiving plant, monitoring process from PO history, and the ability to create STO directly from a MRP PR.Question 7: What are some of the common Stock Transport Order Movement Types? A: One step transfers of materials can be posted using MT 301. Other various transport scenarios differ in the MTs by the Goods Issues and Good Receipts. Common Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.Question 8: What is the difference between a Purchase Order and a Purchase Requisition?A: A Purchase Requisition is a document type thatgives notification of a need for materials or services.A Purchase Order is a document type that is aformal request for materials or services from anoutside vendor or plant. Procurement types maybe defined at the line item and can be standard,subcontracting, consignment, stock transfer, or anexternal service.

Question 9: What is an indirectlycreated Purchase Requisition?A: An indirectly created Purchase Requisition hasbeen initiated by CBP, the PS Project System, PMMaintenance, and Service Management, or PPProduction Planning and Control. The directlycreated Purchase Requisition, on the other hand,is created by a person manually in the requestingdepartment specifying what materials/services,units, and a delivery date.

Question 10: What is an RFQ and how isit different from the Quotation Form?A: A RFQ is a purchasing document and aninvitation to a vender(s) for quotation regardingneeded materials or services. If multiple an RFQ issent to multiple vendors, the system canautomatically determine the best quote and sendrejection letters in response to all others. The RFQand the Quotation Form are one in the same in thesystem as vendors quotes are entered directly inthe RFQ.

Question 11: What are the transactionsthat will result in a change of stock?A: A Goods Receipt is a posting acknowledgingthe arrival of materials from a vendor or production,which results in an increase in warehouse stock, aGoods Issue which results in a reduction in stock,or a Stock Transfer moving materials from onelocation to another.

Question 12: When would it be prudentto post goods movements via the ShippingApplication?A: If picking, packing, and transportationoperations need to be planned in detail. Also, inshipping, you can manage movements like returnsfrom customers, vendors, and returns to stock.Movement Types in shipping start with a 6.

Question 13: What is a Reservation?A: A Reservation is a document used to make surethat the warehouse keeps a certain amount of amaterial or materials ready for transfer at a laterdate. It contains information on what, quantity,when, where from and to. Reservations helpeffective procurement by utilizing the MRP systemto avoid out of/lack of stock situations.Requirements can be automatically generated withMRP that reference a Scheduling Agreement if thesource list is maintained for item-vendorcombination.

Question 15: How is GR/IR accountrelated to Inventory? A: If you are involved with inventory, then youneed the GR/IR account (Inventory Account) whenthe IR is posted. If you are not involved aboutinventory, then the system does not need theGR/IR account when the IR is posted; the systemneeds a G/L instead of the GR/IR account.

Question 16: How do planned andunplanned consumption affect MovementTypes?A: In a customized Movement Type, you havedefined which consumption value gets posted inthe movement. Many will always be planned orunplanned, but for some there is a dependency onif the movement references a reservation. Thiswould be planned consumption.

Question 17: What are DepartmentalViews?A: All functional areas of the system use the samematerial master data. The material master data isdefined in individual screens (departmental views)that can be added as needed. Thus a material canbe created with only basic data and otherdepartments can add other information later as itbecomes available.

Question 18: Is Material Data valid forall organizational levels?A: Control of master data depends largely on howeach company sets up its Organizational levels -centralized or decentralized. Some material data isvalid for all organizational levels while other data isvalid only at certain levels. (I.e.: client, plant, salesorg., etc.).

Question 19: Why would you want tocreate physical inventory sheets to performan inventory cycle-count on a material ormaterials?A: For a cycle counting procedure, physicalinventory documents need to be created. Theseare used to record inventory levels of the materialbeing cycle counted.

Use transaction MICN. Click on the Execute button.On screen Batch Input: Create Physical InventoryDocuments for Cycle Counting, perform thefollowing, Click on the Generate Session buttonand Click on the Process Session button. Thisprocedure details how to create the physicalinventory documents for cycle counting in a batch,rather than one at a time, based on certain criteria.This would print physical inventory documents forall material/batches that meet those requirements.

Question 20: What is the differencebetween a Blanket Purchase Order and theFramework Order?A: In general, the Blanket POs are used forconsumable materials such as office paper with ashort text, with item category B. There need notbe a corresponding master record, for thesimplicity of the procurement. The FO, FrameworkOrder, document type is used. Here, the POvalidity period as well as the limits are to bementioned.The GR, or Service Entry for the PO are notnecessary in the case of Blanket POs. One neednot mention the account assignment categoryduring creation of the PO. It can be U, orunknown and be changed at the time of IR.

Question 21: What is ReleaseProcedure?A: Release Procedure is approving certaindocuments like PRs or POs by criteria defined inthe configuration. It is sensible to define separaterelease procedures for different groups of materialsfor which different departments are responsible,and to define separate procedures for investmentgoods and consumption goods.

Question 22: If you have a multi-lineitemPO, can you release the PO item byitem?A: No, a PO is released at the header levelmeaning a total release or With Classification.

PRs, on the other hand, have two releaseprocedures possible. With Classification asdescribed above, and Without Classificationwhere it is only possible to release the PR item byitem.

Question 23: What is a Material Type?A: A Material Type describes the characteristics ofa material that are important in regards toAccounting and Inventory Management. A materialis assigned a type when you create the materialmaster record. Raw Materials, FinishedProducts, and Semi-Finished Products areexamples. In the standard MM module, theMaterial Type of ROH denotes an externallyprocured material, and FERT indicates that therelevant material is produced in-house.

Question 24: What is a pricecomparison?A: Perform a price comparison using ME49 andone may compare quotations from differentvendors.

Question 25: What is a Source List?A: The Source List identifies preferred sources ofsupply for certain materials. If its beenmaintained, it will ID both the source of supply andthe time period. The Source List facilitates gaininga fixed source of supply, blocked source of supply,and/or helps us to select the proffered sourceduring the source determination process.

Question 26: What are the varioussteps in the MM Cycle from materialcreation through invoice?A: The following creates a rough picture of theMM Cycle. Create material, create vendor, assignmaterial to vendor, procure raw material throughPR, locate vendor for certain material, processingGR, goods issue, and invoice verification.

Question 27: Give some examples of theinformation relating to a materialsstorage/warehousing?A: Some examples are Unit of Issue, StorageConditions, Packaging Dimensions, Gross Weight,Volume, and Hazardous Materials Number. Also,there are various Storage Strategies informationand options.Question 28: What are the variousfeatures of Consignment Stocks?A: Consignment Stocks remain the legal propertyof the Vendor until the organization withdraws thematerial from the consignment stores. The invoicecan be due at set periods of time, for examplemonthly, and it is also a configuration possibilitythat the organization will take ownership of thestock after a certain period of time. ConsignmentStock is allocated to the available stock becausethe Consignment Stock is managed under thesame material number as your companys stock.The most important characteristic of ConsignmentStock is that it isnt valuated. When the material iswithdrawn, it is valuated at the price of therespective vendor. Before procuring the stock,consideration should be given if one consignmentis coming from multiple vendors. If so, we canmanage all of them independently at the price ofthe individual vendors. In the Info Record, we will maintain three different prices for the samematerial for three different vendors.

Question 29: What is a Quotation?A: Once a vendor has received an RFQ, the vendorwill send back a quote that will be legally bindingfor a certain period of time. Specifically, aQuotation is an offer by a vendor to a purchasingorganization regarding the supply of material(s) orperformance of service(s) subject to specifiedconditions. The Quotation then need to bemaintained in the Maintain Quotation: XXXXscreens.

Question 30: What is the Source List?A: The Source List identifies preferred sources ofsupply for certain materials. If the Source List hasbeen properly maintained, it will identify both thesource of a material and the period of time inwhich you can order the material from the source.

Question 31: What is an InvoiceVerification?A: The Invoice Verification component completesthe material procurement process and allows creditmemos to be processed. Invoice Verificationincludes entering invoices and credit memos thathave been received, checking accuracy of invoiceswith respect to price and arithmetic, and checkingblock invoices (these are the ones which differ toomuch from the original PO).

Question 32: What are the differenttypes of Invoice Verification?A: Invoices based on Purchase Orders. Withpurchase-order-based Invoice Verification, all ofthe items of a purchase order can be settledtogether, regardless of whether or not an item hasbeen received in several partial deliveries. All ofthe deliveries are totaled and posted as one item.Invoices based on Goods Receipts. With goodsreceipt-based Invoice Verification, each individualgoods receipt is invoiced separately.Invoices without an order reference. When thereis no reference to a PO, it is possible to post thetransaction directly to a Material Account, a G/LAccount, or an Asset Account. You can park Invoices that reference POs and GRsas well as Invoices with no reference in the system.When you park a document or change a parkeddocument, neither substitution nor validation issupported. The system only carries out these functions after you actually post a parkeddocument.

Question 33: Why would an organizationneed to allow Negative Stocks?A: Negative Stocks are necessary when GoodsIssues are entered necessarily (business processreasons) prior to the corresponding Goods Receiptsand the material is already located physically in thewarehouse.

Question 34: How do you create amovement type? When will movement typenumbers be odd?A: When prompted by a dialog box after anactivity, you copy a movement type. Select thefield Movement Type and Continue. In theDefine Work area, enter the movement type to becopied in From: and the name your new movementtype in the To: field. Now choose Continue.Choose the desired movement type you want thenchoose Edit Copy as and re-type the selectedmovement type with the new type copy alldependent entries and make sure to begin with aproper prefix (9,X,Z). All control indicators arecopied to the new movement type. Review thenew movement type changing any necessarycontrols. Reversal movement types are numberedas the number type plus one. The reversal formovement type 451 (Returns From Customer) is 452. As a last step before saving your settings,add a copy the reversal movement type and enterit in Reversal/follow-on movement types.

Question 35: How do you adopt standardsettings for the Message DeterminationFacility In MM-PUR?A: The Message Determination Facility is bydefault active and message determination schemais supplied for all purchasing documents includingPOs, PRs, RFQs etc. All of the desired message types must bemaintained. Choose Master data Messages Purchasing document Create or Change fromthe Purchasing menu. Add the message type andpick the key combination. The key combinationdecides the condition table where the conditionrecord is stored. Enter all needed items. Nextscreen, create the individual conditionrecords. Using the menu options Goto Means ofCommunication, enter the proper peripheral, oroutput for each message record. Save.

Question 36: How do you set pricecontrol for receipts (goods/invoice) tellingthe system how to value stocks?A: Transaction Code OMW1 allows you to set pricecontrol to S (Standard Price) or V (Moving AveragePrice). Under Standard Price (S), the materials andaccounting documents are both valid. The onewith the lower value will be posted with a pricevariance entry.

Question 37: How do you access theMaterials Management Configuration Menu?A: Transaction Code OLMS has a host of optionsthat are not accessible through the IMG.

Question 38: How are the various MMconfiguration Transactions accessed?A: Transaction Codes OLMD accesses MM-CBP,OLMB accesses MM-IM, OLME accesses MM-PUR,OLML accesses MM-Warehouse Management,OLMS accesses Material Master Data, and OLMW isthe proper transaction for valuation and accountassignment.

Question 39: What are some of the moreimportant Materials Management Tables?A: EINA contains general data of the (Purchasing)Information Record; EINE includes PurchasingOrganization of the same. MAKT is the MaterialsDescription table, MARA-General Materials data,MARC-Plant Data for Materials, MARD-StorageLocation Data for Material, MAST-Material to BOMLink, MBEW-Material Valuation, and MKPF-HeaderMaterial Document. Some of the tables that directly pertain to thedocument types are T156 Movement Type andT023/T024 Groups Material and Purchasing.

Question 40: Can you add custom fieldsto POs and RFQs?A: Yes. You must add custom fields to thecustomer including structures I_EKKODB andI_EKPODB. Create a project via CMOD for enhancementMM06E005. Follow the documentation forMM06E005, and create the sub-screens forfunction group XM06 using transaction SE80. Addfields to the appropriate screen. It is recommendedthat you call the screen fields EKPO_CI-name orEKKO_CI-name. This simplifies transferring datato/from the screen. Put code inEXIT_SAPMM06E_018 to transfer data from subscreento structure E_CI_EKPO. Put code inEXIT_SAPMM06E_016 to transfer data fromdatabase to sub-screen using structure I_CI_EKPO.In the PBO of the sub-screen, do any processing tomake fields display only, or hide them. If you needvalues from the main screen to make decisions in the sub-screen, define variables in the global datapart of the function module, and fill the variables inEXIT_SAPMM06E_016 (PBO of main screen) Makesure everything has been activated like user exists,screens, etc.

Question 41: Where can you dictate howPlanned Orders are converted intoRequisitions in MRP?A: Look at the Transaction Code OPPR indicator.Assign proper indicator.

Question 42: What SAP program is usedto update or create Material Master Records?A: RMDATIND is used to update Material MasterRecords and can be used for such assignments asextending all materials to a new plant.

Question 43: What Views are possiblefor a material?A: The material type selected controls the viewspossible for material.For a material to be used in the system it needs tobe created for each plant. Multiple views of amaterial are possible but at a minimum, thematerial needs to have a description and a baseunit of measure assigned on the basic data view.Additional department views (i.e. Accounting, Sales,Purchasing, MRP, Warehouse) can be added at alater time by extending the material. As additionalplants are added, a material will need to beextended to the plants before it can be used there.

Question 44: When can a ProductionResource/Tool be defined as a material?A: A Production Resource / Tool can be definedas a material if purchasing and inventoryfunctions are to be carried out for that PRT.The information required to be input is dependentupon which department views are being created.Thus, material master information is typicallyentered at different times by numerous systemusers. Note that to add a view, the CreateMaterial transaction is used rather than theChange Material transaction.

Question 45: When creating a newMaterial, what may prompt some of thepossible Material Types?A: Pressing F4 gives a list of choices. Select thematerial type for the material you are creating. Forexample, FHMI for Prod. Resources/tools, ROH forRaw Materials, FERT for Finished Products, etc.

Question 46: How do you determinewhich views of a material need to be addedor to see which plants a material has beenextended to?A: You can use transaction MM50

To extend a material to a different plant requiresselecting the new plant on the organizational levelscreen. Note that all views of a material are notextended unless they were selected on the initialscreen. In addition, each plant may have adifferent system configuration requiring additionalinputs on each of the departmental screens.Material changes made in one plant do not changethat material in other plants.

Question 47: How can you set userdefaults for views and organizational levels?A: The user defaults for views can be set underMenus: Defaults Views. Select those views tobe checked on by default when generating a newmaterial. Select View selection only on requestwhen the select view pop-up is to be by-passedunless selected.For organizational levels, Menus: Defaults organizational levels. Enter those organizationallevels to be defaulted when generating a newmaterial. Select Org. levels/profiles only onrequest when the select view pop-up is to be bypassedunless selected.

Question 48: What needs to be presentin order for Material Type to be automaticallycopied from one view to another?A: When creating any view, the Industry Sectorand Material type will be automatically copied froman existing view, so long as at least one view exists.

Question 49: How do you create adocument/e-mail notifying your supplier orinternal personnel when an invoice plan issettled?A: The IMG setting is Material Management Logistics Invoice Verification MessageDetermination. If these settings are not made, the messageInvoicing Plan: No Message Was Found forPartner XXX, Company Code XXX. If the notifyingdocuments are not required, simply turn off themessage by changing the message from error toinformation using Material Management Logistic Invoice Verification Define Attributes ofSystem Messages.

Question 50: How can one keep usersfrom using standard MM Movement Types?A: Standard Movement Types should not bedeleted from the system. The accountassignments, however, may be deleted for aparticular Movement Type in table T030 usingtransaction OBYC. Another way to achieve the same result is to enterMovement Type in transaction OMJJ. RemoveMBXX from allowed transactions.

Question 51: How do you define aRelease Procedure for PRs and POs?A: Use Transaction ME54 and ME28 respectively.

Question 52: How do you ChangeCharacteristic?A: Use Transaction Code CT04. Follow thesesteps: Format (numeric, character, etc.), Unit ofMeasure, Templates, Required Entry, Intervals asValues (?), descriptions for texts for characteristicsand characteristic values, display options forcharacteristics on the value assignment screen,Allowed Values, Default Values that are setautomatically on the Value Assignment Screen.

Question 53: How do you create a Class?A: Class is defined as the group of characteristics,which can be attributed to a product. UseTransaction CL01. Enter the value for the Classname and a small description. Select the groupfrom it. The values on the different tabs are notmandatory, so you can skip the values if you wishor you can go to any extent needed. Save, andthe Class is created.

Question 54: How do you configure theRelease Procedure?A: Use Transaction OMGQ.

Question 55: Will ROH have a salesview? Will FERT have a purchasing view?A: They shouldnt because ROH type materials areprocured from the outside not sold and FERT typematerials are created inside and arent procured.In some special cases, we have to sell rawmaterials (ROH) and buy finished goods (FERT)from outside sources. The views must beextended in these cases using transactions OMS2and MM50.

Question 56: Where do we create VendorAccount Groups, or screen layout in VendorMaster?A: Using SPRO, Financial Accounting AccountsPayable/Receivable Vendor Accounts MasterRecords Preparations for Creating VendorMaster Records Define Account Groups WithScreen Layout (Vendors) orDefine Screen Layout Per Activity.

Question 57: What are the key fields forthe Material Master?A: Material Groups, External Material Groups,Divisions, Material Status, Labs & Offices, BasicMaterials, Storage Conditions, TemperatureConditions, Container Requirements, and Units orMeasure Groups.

Question 58: What are the mainPurchasing Tables?A:EKBN Purchase RequisitionEBKN Purchase Requisition AccountAssignmentEKAB Release DocumentationEKBE History of Purchase Document

Question 59: How do you create amaterial?A: Use Transaction Code MM01. Name thematerial, choose an industry sector, choose amaterial type, create or copy the views, add abasic description, give its attributes/values, MRPinformation, reorder point, accounting valuation,warehouse management information and then savethe data.

Question 60: What are some of the datapoints provided by Purchasing for amaterial?A: Some of the key inputs when creating amaterial are Base Unit of Measure, PurchasingGroup, Reminder days, tolerance levels, shippinginstructions, GR processing time, JIT scheduleindicator, Critical part (?), etc.

Question 61: What are the Lot Sizeattributes a material can posses?A: Lot Sizing dictates the reorder quantity for amaterial. A material can have a static, periodic,optimum, or fixed lot size.

Question 62: How do you create aVendor?A: Use Transaction Code XK01. Add the Vendorname, Company Code, Purchasing Organization,Account Group, and the Vendor address. Next addthe country, Bank Key, Bank Account, AccountHolder (an actual name), and then save the data.

Question 63: How are materialsassigned to vendors?A: Information Record links materials to thevendor, thus facilitating the process of selectingquotations. Use Transaction Code ME11 orLogistics Material Management Purchasingand then Master Data Info Record Create.

Question 64: What data does theInformation Record contain?A: The Information Records has data on Units ofMeasure, Vendor price changes after a certain level,what materials have been procured by a specificvendor, price and conditions for relevant PurchaseOrganization, Tolerance limits for over/underdelivery, Vendor evaluation data, planned deliverytime, and availability time the vendor can supplythe material.

Question 65: How do you create theInformation Record based on the MaterialMaster record?A: In the IMG, Master Data Info Record Create. Enter Vendor Number, Material Number,Purchasing Organization or Plant Number. Enterthe number of the Information Record if externalnumber assignments are used (left blank, thesystem will assign a number). Enter the GeneralData for the Vendor, order unit, origin data, andsupply option, Customs Tariff Number. Next, enterthe Vendors planned delivery time (used forscheduling), responsible Purchasing Group, andStandard PO quantity (used in conjunction withprice scales for price determination). Check theControl Data. The tolerance data and theresponsible purchasing group are taken as defaultvalues from the Material Master record. Enter thenet price. Now, from the top of the screen Go To Texts to display the text overview. You canenter the info memo or the PO text. If the PO textis already defined in the Material Master record, itappears as a default value. Save the record.

Question 66: What are some of theinitial configuration steps for PurchaseRequisitions?A: Define Document Types, Processing Time,Release Procedure (with and without classification),Setup Authorization Check for G/L Accounts, DefineNumber Range.

Question 67: When, in initialconfiguration, why would you have to SetupStock Transport Order?A: If it is required to carry out an inter-plant StockTransfer through SD, then this configuration isrequired and must be carried out.

Question 68: What are some of theinitial configuration steps for InventoryManagement?A: Plant Parameters, Define System MessageAttributes, Number Assignment (Allocate documenttype FI to transactions), Goods Issues, TransferPostings, Define Screen Layout, Maintain CopyRules for Reference Documents, Setup DynamicAvailability Check, Allow Negative Stocks (?)

Question 69: What are some of theinitial configuration steps for PhysicalInventory?A: Define Default Values for Physical InventoryDocument, Batch Input Reports, Tolerances forPhysical Inventory Differences, and InventorySampling. Cycle Counting should be configured aswell.