8/19/2019 Questions SAP MM http://slidepdf.com/reader/full/questions-sap-mm 1/52 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 inforecors?Standard, consignment,subcontracting & pipeline. !. What is "eant by consi#n"ent 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. $. What are the steps involve in consi#n"ent cycle? reate consignment info record with proper ta! code, create Po with item category ", maintain output condition record for "#$S, process %R, no invoice verification done, but settlement is done through R"# transaction. %. &ell "e about the subcontractin# cycle. The Po is created with item category ' , the goods is transferred to subcontractor by ()* movemet. for this movement note no accounting docs take place. +hen %R is done automatically, () movemnt takes place which take care of the consumption of components from stock. '. (ow are the byproucts taken care of in subcontractin#? -ou can add these by products in the # for the header matl. ). What is "eant by scales? an scales be used in standard purchase order/ -ou can fi! a price in the info record for a say 0ty from *1*22 price RS*(2 & if the order 0ty is *2*1 (221 the prices is *)2 . Scales cannot be used directly in P# but can be pulled into the P# from various master data like info record, 0uota arrangement. *. What is the ifference between a contract an a scheulin# a#ree"ent? +ith regard to #utline 3greement4 *. -ou can create the centrally contract 5cross1plant6 where you can maintain different pricing conditions for each and every plant 7. -ou have to create the Release #rder with reference to #utline 3greement. . $o detailed delivery schedule can be made in the Release #rder. ). $o Release documentation is created. (. #nly time1dependent conditions can be created.
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*. The Plant 'ocation must be entered in the Scheduling 3greement.
7. +e do not have to create any other purchasing document e!cept for delivery
schedule line via Transaction ;< or RP running 5with the appropriate setting of
Source 'ist6.. =elivery Schedule line items are created subject to your specific re0uirement.
). an create both Scheduling 3greement with and without Release =ocumentation
5subject to the =ocument Type 'P or 'P36 with the selection of either >R or ?9T
delivery schedule.
(. ;ither time1dependent or time1independent conditions can be created subject to the
customi@ing in the =ocument Type of the Scheduling 3greement.
8. 9tem ategory :: and :+: can not be used.
+. (ow oes the syste" calculate ta,es?
1-. (ow oes the syste" calculate noneuctible ta,es?
11. What is "eant by batches? (ow can the batches be searche?
3 batch is a subdivision of your stock of a material having the same characteristics.
>or instance4
1 food production uses batches to indicate the day of production.
1 paint production uses batches based on production date and the used ingredients. 9t is
very hard to reproduce the same color in e!actly the same way at two different
moments.
1 ore may be divided in batches based on their mineral content.
-ou can search batches using the standard search facility 5match code, key >)6 based
on the naming convention of the batches or, if you use batch classification, based on
the characteristics of the batches.
12. (ow is a shelflife ite" "ana#e in SAP? What is the full cycle?
1!. What are the settin#s re/uire for /uota arran#e"ent?
To set up a 0uota arrangement for the procurement of a material, proceed as follows4
aster data 1A Buota arrangement 1A aintain, enter the material and plant number, press ;$T;R to display the overview screen for the 0uota arrangement periods, ;nter
a validity period for 0uota arrangement, ;nter date until which the 0uota arrangement
is valid. The start date is calculated by the system. Press ;$T;R .
Select the 0uota arrangement and choose %oto 1A 9tem overview to display the item
overview screen of the 0uota arrangement. ;nter a 0uota arrangement item for each
source of supply you want to include in the 0uota arrangement.
1 Special procurement type, ;nter k in the S column, for e!ample, if a consignment
arrangement for the material e!ists with the vendor.
1 Cendor number
1 Procurement plant 5supplying plant641 Buota column, enter the 0uota assigned to each item.
Press ;$T;R .
The percentage distribution of the 0uotas is calculated and displayed automatically by
the system.
Save the 0uota arrangement. The system assigns a number to the 0uota arrangement
item automatically
1$. What is "eant by M0P &ype an lot siin#?
1%. an it be confi#ure in such a way that the e,ternal re/uisitions can also betaken into account while M0P runs in consu"ptionbase plannin# if 34 is
selecte as M0P type?
1'. (ow are free ite"s "ana#e in a P5? yu nee to tick the te" as free in the
P5. &he price will be ero for such P56s.
1). What are the ifferences between release proceure with classification an
release proceure without classification? When are they use?
Release procedure with classification means the Purchase re0usition can be released
both at item level & at the header level. Release procedure with out classification canalso be used for PR which is used for item level release only. all other e!ternal
documents cannot be relesed with classification. The two procedures are mutually
e!clusive 5that is to say, you must decide in favor of one of them only 1 you cannot
use both6.
1*. Is it possible to have a release proceure without classification for a P5?
$o
1+. What is the "a,i"u" nu"ber of levels available in SAP?
o Befine valuation categories and valuation types.
o ssign valuation types to valuation category.
o ssign plants in which valuation is effecting.
$nce customiation settings are done.
o *reate material master and fill account cat reference in accounting view.
o gain for same material type give valuation types which u taken and give the moving
avg price.
NET STEP
o *reate /21D #urchase order
o /67$
$nce taken to /67$ check // ,-tock overview and /(2, ccounting views.
2. aluation area is generally company or plantaluation category ,split valuation is
applicable or not.
aluation class, whether the materials fall in to which category for simplification such as raw
materials5 semi finished goods like that.
3. *redit memo is as similar as money back to your account.
>or +. 6f you did e+cess payments ;the difference between #$ price and ccount )ransfer
price= to the vendor than the actual payment or under some circumstances vendor isreturning some amount to your account5 for this you need to maintain one account type5 that
account type is called credit memo. )his may be Gust to identify why and from where the
money has been posted in your account.
6f this is not maintained5 at the valuation level conflicts in payment differences may arise.
12. -ubse!uent adGustment can be #rocesses through ),*ode , /67$
13. 8-/W , 8egacy -ystem /igration Workbench ;9sed to upload the data from Don
-# to -# -ystem=
*)) , *omputer ided )est )ool ;9sed to *reate test cases as well as upload data=
14. 8-/W is uesd to migration of data from non,sap system to the sap system or sap
system to sap system5 here the data is migrated from the one system to another
system. so this is a migration tool
Whereas *)) is a computer aided testing tool5 used to test the abap obGect
1. 6n -# for any kind of development5 function consultant need to give the functional
specification stating the purpose of the developlement as well as logic for theselection5 related fields and tables. He also needs to prepare one or two test cases to
test output the report<development.
1". ased on #rice5 uality5 Belivery and -ervice.Cou can give points to this categories
and you can maintain )*ode:/"1
1%. 0eturnable transport packaging ;0)#= is a multi,trip packaging medium ;for
e+ample5 pallets or containers= in which goods can be transported more than once
between vendors and customers.
0eturnable transport packaging from a vendor that is stored at a location on your premises is
managed as special stock and clearly assigned as belonging to the vendor. 6t is the property of
the vendor and is therefore not included in the customerKs valuated stock.
1&. )he movement type used in the receipt of 0)# is ;(1 /=
1'. Serial Nu!"er:6f you want to distinguish each 6tem ;generally unit of measure will
be 5 #*.. etc= in the inventory5 then serial number will be used.-eparate serial
number profile need to be created and placed at work scheduling view or plant data
storage view of material master.
Advantage: we can track the movements of each serial number of material.
With batch handling5 you can manage not only production lots from in,house production5
but also production lots from vendors as separate entities.
o Sourcelist:6t is a combination of one material with more than one vendor or
plants;in internal=and sourcelist is the higher priority than inforecord.you can
stratify the vendor for a material with sourcelist.
g:you have 4 info records for a same material with different vendors. 6f you are not
maintained sourcelist5 check while creating #0.6t will display all vendors. 6f you have
sourcelist there you have selected a vendor as fi+ed. Cou will only get one vendor5please
check.
In'o record:6s a combination of one material with one vendor
-ource determination: if you activate this indicator5 you give vendor during #0 creation .otherwise
you can give the vendor at the time of #$. you can save the #0 without vendor. SAP MM
Interview Questions and Answers
What is meant by scales?We can fix a price in the info record for range of ty from !"!## price $s%!## & if the order ty is !#!"'##" the prices is $s%(#%Also scales cannot be used directly in P) but can be pulled into the P) fromvarious master data li*e info record+ uota arrangement etc%
What is the procedure to delete materials permanentlyfrom Material Master?,he process for deleting the materials permanently from material master is by using transaction codeMM-# and the navigation is Material Master.)ther.$eorgani/ation.Material.0hoose% ,hen build variantwith selection range of material master records to be selected for deletion and maintain run parametersand then execute%
1sing ,ransaction 0ode MM-! navigate as follows MaterialMaster.)ther.$eorgani/ation and then build the second variant+ maintain runparameters and execute% It is also important to remove the records manually form info
records+ P)+ P$ reservation etc for successful deletion of the material%
What M$P procedures are available in MM"02P30onsumption 2ased Planning4?
5arious material planning methods are used in M$P 3Material $euirements Planning4%!% $eorder point procedure 35M4
6% 7orecast"based planning 3554 8% ,ime"Phased materials planning 3P94,hese are specified in material creation 3MM#!4 under the M$P ! tab%
:xplain the function )2;0?
,he 7unction )2;0 stands for 0onfigure Automatic Postings% When the systemsettings are entered for the Inventory Management and Invoice 5erification transactionsthe automatic posting to <=> accounts% Postings are made to <=> accountsautomatically in the case of Invoice 5erification and Inventory Management where thetransactions are relevant to 7inancial and 0ost Accounting%
What is the procedure to ma*e the period indicator in the
M$P6 view as P@?,o ma*e the period indicator in the M$P6 view as P@ the transaction variant S9# andthen S:(8 is used%
What is the procedure to ma*e the Source >istautomatically appear in Material Master as default if maintained at plant level using )M:'?
,he maintained source list reuirement in )M:' was not maintained the source list for the material+ Po canBt be released% So it is reuired to maintain source list for allmaterials in the plant where the indicator is set if maintain source list at plant level ismaintained or it can ma*e use of info record to do so automatically%
>ist some info records types?,he lists of Info $ecords ,ypes are Standard+ 0onsignment+ Subcontracting and Pipeline%
:xplain what is consignment stoc*?,he 0onsignment stoc* is a stoc* that is supplied by the vendor is in the companies premises with thecompany having no liability for the same% ,he liability for the company will only be affected when thegoods are issued from the consignment stoc* for use%
Is it possible to have scales in a uotation?Co+ it is not possible to have scales in a uotation
What is the subcontracting cycle?,he Subcontracting 0ycle is that when Po is created with item category >+ the goods is transferred tosubcontractor by 'D! movements% 7or this movement note no accounting documents ta*e place% When<$ is done automatically+ 'D8 movementsB ta*es place which ta*e care of the consumption of components from stoc*%
:xplain the procedure to create P$ or P) by M$P?,he procedure to create P$ is according to the safety stoc* mentioned for the material or can betriggered from a reuirement% 7or creating a P)+ you need to have the scheduling agreement in place%After the M$P is run the schedule lines are generated which is nothing but the P)%
What types of special stoc*s are available?Special Stoc*s that are available are Subcontracting+ consignments+ pipeline+ proEect+ sales order+ $,P+stoc* transfer+ and the third party%
Is it possible to have scales in a uotation?Co+ it is not possible to have scales in a uotation
:xplain the steps that are involved in consignment cycle?,he steps that are involved in consignment cycle is by creating consignment info record with proper taxcode+ maintain output condition record for F)CS+ no invoice verification done+ create Po with itemcategory F+ process <$+ but settlement is done through M$F) transaction%
:xplain the difference between a contract and ascheduling agreement?,he 0ontract agreement or the )utline Agreement is that create the centrally contract 3cross"plant4 whereit can maintain different pricing conditions for each and every plant% It creates the $elease )rder withreference to )utline Agreement% Co detailed delivery schedule can be made in the $elease )rder% Co$elease documentation is created% )nly time"dependent conditions can be created+ Some Item 0ategoryGMG and GWG can be used%
Whereas the Scheduling Agreement is the Plant >ocation what must be entered in the Scheduling Agreement% Its no need to create any other purchasing document except for delivery schedule line via,ransaction M:8H or M$P running 3with the appropriate setting of Source >ist4% 9elivery Schedule lineitems are created subEect to your specific reuirement% It can create both Scheduling Agreement with or without release of 9ocumentation 3subEect to the 9ocument ,ype >P or >PA4 with the selection of either 7$0 or I, delivery schedule% :ither time"dependent or time"independent conditions can be createdsubEect to the customi/ing in the 9ocument ,ype of the Scheduling Agreement% Item 0ategory GMG and GWGcan not be used%
What is the difference between release procedure withclassification and without classification and when are theyused?,he release procedure with classification deals with the purchase reuisition it can be released both at
item level and at the header level% 0oming to release procedure without classification can also be used for purchase reuisition which is used for item level release only% All other external documents cannot bereleased with classification ,hese two procedures are mutually exclusive to say+ it has to be decided infavor of one of them only%
In what way does the Subcontracting was cared by thebyproducts?,he 2yproducts ta*e care of subcontracting in 2)M for the header%
What is the procedure to give specifications for developments?,he procedure to give specifications are normally prepared for the business reuirement document inwhich we specify what is reuired+ what field and tables have to be referred for the reuired development%
2. How is the MM module integrated with other modules of SAP?
• The MM module deals with materials procurement on the basis of the production required;
therefore it is lin!ed with the PP module.
• The S" module is proportionall# related to the MM module because it uses information about
the quantit# of material sent for production.
• The $M module is related to the MM module because the MM module maintains information
about materials storage and materials transfers inside an organi%ation.
• The &' module is also related to the MM module because e(er# operation performed in the
MM module directl# impacts the financial processes of the organi%ation.)*. $hat are the main components of the MM module? How are these components used in
SAP?
• The MM module deals with materials procurement on the basis of the production required;
• The S" module is proportionall# related to the MM module because it uses information about
the quantit# of material sent for production.
• The $M module is related to the MM module because the MM module maintains informationabout materials storage and materials transfers inside an organi%ation.
• The &' module is also related to the MM module because e(er# operation performed in the
MM module directl# impacts the financial processes of the organi%ation.
2. +rgani%ational Structure
). $hat is the organi%ational structure in the MM module?
The organi%ational structure in the MM module is a hierarch# in which (arious organi%ational
units are arranged according to their tas!s and functions. The different organi%ational units
that constitute the organi%ational structure of the compan# are as follows,
• -lient A self/contained unit in the SAP s#stem with separate master records and its own set
of tables.
• -ompan# code The smallest organi%ational unit. 0ou can create an independent set of
accounts for this unit for the purpose of e1ternal reporting.
• Plant An organi%ational unit where materials are produced or goods and ser(ices are
pro(ided. 0ou can di(ide an enterprise into (arious plants according to production
procurement maintenance and materials planning.
• Storage location An organi%ational unit where the goods produced in the plant are stored.
• $arehouse number An alphanumeric !e# that represents a warehousing s#stem which ismade up of different organi%ational and technical storage areas.
• Storage t#pe An area such as a goods receipt area goods issue area or pic!ing area. Also
the ph#sical or logical di(ision of a comple1 warehouse.
all compan# codes must use the same transactions in addition to the same fiscal #ear
brea!down; howe(er compan# code currencies can (ar#.
• A compan# is different from a client because a client can itself be a compan# or an
organi%ation that has multiple companies. &or e1ample the owner of the entire SAP s#stem is aclient. The s#stem will ha(e onl# one operational client but the client ma# further ha(e a group
of companies. The following data are held at the compan# code le(el,
o Material number
o -lassification data
o Multilingual description
o =nits of measure
o Technical data
>. How to create a compan# code in SAP?
• 'n SAP a compan# code is created using the transaction +@2. The compan# code field is
represented b# a four/character alphanumeric string. 0ou can create a compan# code in SAP b#
The (iew cluster Maintenance, 'nitial Screen window appears with the "etermine $or! Area,
2ntr# dialog bo1 opened.
• 'n the "etermine $or! Area, 2ntr# dialog bo1 enter a plant number and clic! -ontinue. The
change (iewStorage 7ocations, +(er(iew screen appears where #ou can assign a storage
location to the plant.
2@. -an storage locations be created automaticall#? How can the# be created automaticall#?
Storage locations can be created automaticall# when an inward goods mo(ement for a materialis performed. 'n order to create storage location automaticall# open the SAP 'mplementation
guide and clic! Materials Management : 'n(entor# Management and Ph#sical 'n(entor# : Doods
3eceipt : -reate Storage 7ocation Automaticall# .
3. Master Data in SAP MM
). $hat is Master data in MM module?
The master data in the MM module acts as reference data defining (arious business entities
and pla#ing a !e# role in the core operation of the business.
2. How is master data important in MM module?
The master data in the MM module contains all of the basic information needed to manage
material. The data is stored and sorted on the basis of different criteria such as the
descripti(e nature of the material 5si%e dimension and weight8 and the control functions of
the material 5material t#pe and industr# sector8. Apart from data maintained b# the user the
master data also stores data that is automaticall# updated b# the s#stem 5such as stoc!le(els8.
*. $hat are the (arious t#pes of master data in MM module?
The different t#pes of master data in the MM module are as follows,
B. $hat data in material master is maintained at the client le(el?
The general data i.e. the data applicable to the compan# as a whole is stored at the clientle(el.
C. $hat are the data in material master that are maintained at the compan# code le(el?
The data that is specific to a particular compan# and the plant and storage areas assigned to
that compan# is maintained at the compan# code le(el.
)@. $hat are the plant/specific data in material?
The M3P data and forecast data are the plant/specific data in the material master.
)). $hat is the lot si%e attribute of a material?
• The lot si%e attribute represents the reorder quantit# for a material. A material can ha(e a
periodic optimum or static 5fi1ed8 lot si%e.
)2. How is material information structured in material master records?
Material information is structured in material master records on the basis of different
criteria such as the materialKs master detail 5including its name si%e dimension and weight8
which shows its descripti(e nature and the materialKs detail related to control functions 5such
as material t#pe price control and industr# sector8. Material master records also store
information about the data that can be automaticall# updated b# the s#stem. &or e1ample the
stoc! le(el can be automaticall# updated b# the s#stem on the basis of the material data
update.
)*. $hat is a batch?
A batch is a group of materials combined into one quantit# for (arious reasons. er# often
materials with the same characteristics and (alues are grouped into a batch. &or e1ample inthe chemical industr# a specified number of containers of a specific product ma# be
considered a batch if the# were produced at the same time and ha(e the same ph#sical and
chemical characteristics.
)9. $h# is batch record important?
• A batch represents a quantit# of a particular material processed at the same time with the
same parameters. These materials produced as one batch ha(e the same characteristics and
(alues which ma# (ar# from the materials of another batch produced on the same da#.
• A batch record is important because batch records indicate that the batch conforms to the
current Dood Manufacturing Procedures 5DMP8. The batch record also contains specific
information about the product tested anal#tical methods and test results.
0ou can delete a batch b# using the MS-2E transaction code. 0ou can alternatel# delete abatch record b# flagging the batch master record. &or this #ou need to first select the batch
in the -hange mode.
)C. $hat is Jatch 'nformation -oc!pit?
The Jatch 'nformation -oc!pit 5J'-8 is the main switching point ha(ing a wide range of options
for scrutin# and control of batches. 't stores at a single location all the information related to
the anal#sis of a particular batch.
2@. $hat are the le(els at which a batch number can be configured?
A batch number can be configured at se(eral different le(els, client le(el plant le(el and
material le(el. 0ou can select a batch number at an# of the following le(els,
• -lient le(el $hen #ou configure a batch at the client le(el #ou need to assign the batch
number onl# once throughout the whole client. +nl# one batch number e1ists for each material
assigned at this le(el.
• Plant le(el 'n SAP the plant le(el is the default le(el for the batch number. At plant le(el a
batch number is unique for a plant and material. This means that #ou can ha(e a batch of the
same number at a different plant within the same compan#.
• Material le(el At this le(el material numbers are assigned to the products. The material
number helps to differentiate between two products in case their batch numbers are the same.
The materials are identified b# the combination of the material number and batch number.
2). How are batch numbers assigned?
The batch number is predefined in SAP. 0ou can change the batch numbers either b# using the
+MA" transaction code or b# using the na(igation path 'MD : 7ogistics/Deneral : Jatch
A serial number is assigned to an item to identif# it and to store information about it. A serialnumber is mostl# used to refer to equipment such as motors drills or (acuums. 'n MM an item
of material contains a serial number as well as a material number. This combination helps touniquel# identif# an item of material.
2*. $hat is a class t#pe? How will #ou configure a class t#pe?
• A class t#pe is the SAP s#stemKs top/le(el unit which is used to control the SAP s#stemKs
classes. 't performs the following tas!s,
o "efines the class obGects
o -hec!s if class obGects can be used in other classes or not
o "efines the class maintenance screen
• 0ou can configure a class t#pe b# using the following menu path, SAP -ustomi%ing
An AJ- indicator is an indicator assigned b# the AJ- anal#sis procedure. An AJ- indicator
pro(ides details of the consumption (alue of the material in(ol(ed in the AJ- anal#sis. The AJ-
anal#sis is performed b# multipl#ing the current price of the materials b# their quantit#. The
different consumption (alues are gi(en as follows,
• A materials'mportant parts high usage4consumption (alue
• J materials7ess important parts medium usage4consumption (alue
• - materials3elati(el# unimportant parts low usage4consumption (alue
2. $hat are the main master files used in MM?
The following are the main master files used in MM,
• Material master file
• 'n(entor# master file
• endor master file
2B. Di(e some e1ample of master data in material management 5MM8.
Material master material master general data 5MA3A8 ta1 -lassification material 5M7AE8info records source list and (endor master are e1amples of master data in MM.
2C. How is the (endor created?
0ou can create a (endor b# using the transaction code F@) and performing the following
steps,
• Add the (endor name compan# code purchasing organi%ation account group and (endor
address.
• Add the countr# ban! !e# ban! account and the name of the account holder.
endor master data contains details of each (endor that supplies materials or ser(ices to an
enterprise. The (endor master data is stored in indi(idual (endor master records consisting of
data such as the (endorKs name the (endorKs address the currenc# used for the transaction
pa#ment terms and the contact personKs name 5on the sales staff8.
*). $hat are the different sections in (endor master data?
• &ollowing are the three sections in (endor master data,
o Deneral data Pro(ides general information about the (endor that can be
entered into the s#stem for creating (endor records. Deneral data can pro(ide the name
address telephone and fa1 of the (endor through specified search terms. Additional
information can also be added to the (endor master record b# the accounting and purchasing
departments using the transaction code F@).
o Accounting data 3efers to financial information entered at the compan# code
le(el. The financial information includes ta1 information ban! details reconciliation accountpa#ment terms pa#ment methods and dunning information. 0ou can enter this financial data
using the transaction code &F@).
o Purchasing data 3efers to data entered while creating a (endor at the
purchasing organi%ation le(el. "ifferent purchasing organi%ations ha(e different purchasing
data. The purchasing data includes partner functions purchasing default fields and in(oice
(erification indicators. 0ou can enter this data using the transaction code MF@).
*2. $hat are the different fields in (endor master data?
• The different fields in (endor master data are as follows,
o The name and address of the (endor
o The currenc# in which the transaction will be done
o The terms and conditions of pa#ment
o The names of important contact persons
o The accounting information such as the reconciliation account in the general
ledger**. How do we create a (endor number range?
• $hen #ou create a number range it is important to remember that (endor numbers
such as material numbers can be assigned e1ternall# or internall#. 0ou can create (endor
number ranges b# selecting the following na(igation path, 'MD : &inancial Accounting : Hendor
9<. $hat is the document management s#stem 5"MS8 in SAP?
• The "MS in SAP helps #ou store e1ternal documents such as pictures of the goods ormaterial. J# using the "MS #ou can set the ma1imum si%e of the picture that can be uploaded
in a document. The "MS helps to lin! these e1ternal documents with the appropriate SAP
obGects.
4. Procurement and Purchasing in sap mm
). $hat are the special stoc!s used in MM?
• Special stoc!s are stoc!s that are managed separatel# regardless of whether the#
belong to #our compan#. The compan# manages a material b# using a data record which
contains all the required information. The different t#pes of special stoc!s are as follows,
o Sales order stoc!
o 3eturnable pac!aging with customer
o -onsignment stoc! at customer
o endor consignment stoc!
o 3eturnable transport pac!aging
o Subcontracting
o Pipeline
2. $hat are the differences between compan#/owned special stoc!s and e1ternall#/ownedspecial stoc!s?
• The differences between compan#/owned special stoc!s and e1ternall#/owned special
stoc!s are listed in the following table,
Company-!ned Special Stoc"s #$ternally-!ned Special Stoc"s
Company-!ned Special Stoc"s #$ternally-!ned Special Stoc"s
-ompan#/owned special stoc!s aremanaged at the production le(el. 1ternall#/owned special stoc!s aremanaged at the place where the# arestored.
*. $h# is negati(e stoc! needed in an organi%ation?
+rgani%ations need negati(e stoc! when a material is shipped to a customer and production is
not confirmed or there is not enough stoc! to satisf# the requirement. The s#stem still allowsthe issuing of the material and in(entor# shows a negati(e quantit# of stoc! until the
production of the material is confirmed.9. $hat are special procurement t#pes?
'n a normal purchasing s#stem the customer purchases the goods from the wholesaler4retailer
and the possession of the goods transfers from the wholesaler4retailer to the customer. This
might not be the case with special procurement t#pes where the transfer of goods ma# not
necessaril# be from the wholesaler4retailer to the customer directl#. &or e1ample #ou might
order a good for a friend of #ours who in turn purchases the good from the
wholesaler4retailer and then transfers the good to #ou. The friend is the third part# in(ol(ed
in this process. Therefore the possession of the good indirectl# transfers to the customer.This t#pe of procurement is called the special procurement t#pe. The special procurement t#pe
defines the e1ternal procurement or in/house production of the material. The following list
shows the special procurement t#pes a(ailable in the SAP s#stem,
• -onsignment
• Subcontracting
• Stoc! transfer using the stoc! transport order 5ST+8
• Production in another plant
• Third/part# processing
• 3eturnable transport pac!aging
• Pipeline handling
<. "efine consignment stoc!. $hat are the main features of consignment stoc!?
-onsignment in a general sense is the act of holding the ownership of materials but storing
the materials at some other premises until the materials are sold or shifted somewhere else.
The stored materials are !nown as consignment stoc! in the SAP s#stem. Therefore stoc!
that is stored at the customerKs premises but is the supplierKs propert# until the stoc! istransferred to the customerKs stoc! list is called the consignment stoc!. The main features of
the consignment stoc! are as follows,
• 0ou can combine the consignment stoc! with #our a(ailable stoc! at an# point in time.
• 0ou can e(aluate the consignment stoc! in an# currenc#.
• The price of the consignment stoc! fluctuates. This means that #ou can determine the price
of the consignment according to the mar!et conditions.
• 0ou can price the consignment stoc! in an# unit.
• 0ou can use different features of purchasing such as discounts in the consignment stoc!.
• The consignment stoc! is e(aluated at a price quoted b# different (endors.
>. How is the pricing of consignment stoc!s done? $hat information does consignment
info record contain?
• Prior to ordering a material from a (endor or posting a goods receipt to the consignment
stoc! #ou need to obtain the consignment price. 'f the consignment material is ordered from
se(eral (endors the s#stem maintains the consignment stoc! of each (endor separatel#. The
reason the s#stem maintains the consignment stoc! separatel# is that the price of the
consignment stoc! ma# (ar# from one (endor to another.
• The consignment information 5info8 record contains the consignment price required for the
purpose of material (aluation and accounting.
. How are the consignment stoc!s created?
-onsignment stoc!s are created in the normal purchase order 5P+8 or requisition but the main
thing to consider is that #ou must enter the F categor# for the consignment item. As a resultthe goods issued are posted to consignment stores and the in(oice receipt is not generated.B. "efine the consignment c#cle?
• -onsignment c#cle is similar to the purchase c#cle e1cept that when #ou create goods
receipts of the consignment stoc!s onl# quantit# 5IT08 is updated and no accounting
)*. How can #ou do in(oicing in case of consignment stoc!s?
0ou can in(oice in the case of consignment stoc!s b# performing either of the following,
• 'n(oice with P+
• 'n(oice without P+
)9. $hat do #ou mean b# subcontracting?
Subcontracting can be defined as the processing of materials b# an e1ternal supplier.
)<. How is subcontracting used in case of MM?
Subcontracting is the process b# which the (endor recei(es the materials to produce the end
product. Subcontracting in(ol(es the following procedures,
• 0ou order the end product b# using the subcontract order. The components that the (endor
needs to manufacture the end product are mentioned in the P+.
• "uring the in(entor# management process the components are posted to the stoc! of material
pro(ided to the (endor. 7ater the components are supplied to the (endor.
• The (endor then processes the ser(ice and deli(ers the materials ordered. The consumption of
the components is posted.
• 'f after posting the goods receipt the (endor notifies #ou that the quantit# of thecomponents actuall# consumed is different than planned in the P+ #ou must ma!e an
adGustment.
• The (endor then charges for the ser(ice for which the in(oice is posted in 'n(oice
(erification.
)>. $hat information does the subcontracting info records contain?
A subcontracting info record consists of ordering information related to subcontract orders.&or e1ample if #ou entered into a contract with an outside source for the assembl# of a
component the subcontracting info record would contain the price specified b# the (endor forthe assembl# wor!.
). How do we create subcontracting P+?
• Perform the following steps to create a subcontracting P+,
o nter the material to order and the categor# of the item for subcontracting 578 in the order
rules or for placing an accurate (alue on the in(entor# for ta1 purposes.
9. $hat are the initial configuration steps for ph#sical in(entor#?
The steps for purchase acquisition are as follows,
• "efining the default (alues for the ph#sical in(entor# document
• 3eporting batch inputs
• 3ecording tolerances for ph#sical in(entor# differences
• 'n(entor# sampling as well as configuration of c#cle counting
<. $hat is the difference between managing stoc! b# quantit# and managing stoc! b# (alue?
• Transactions that ma!e changes in the stoc! result in stoc! updates that are recorded in real
time. At an# point in time one can (iew the stoc! o(er(iew which represents the current
situation at that time. That is the essence of stoc! management b# quantit# and can applied tothe following stoc! t#pes,
o 7ocated in the warehouse
o +rdered but not #et recei(ed
o 7ocated in the warehouse and reser(ed for a particular purpose
o 3eser(ed for qualit# inspection
•
The managing stoc! b# (alue option re(iews the stoc! materials qualitati(el# rather thanquantitati(el#. The (aluatioEof stoc! is done either at the plant le(el or at the location le(el.
=pdates that can be done when managing stoc! b# (alue are as follows,
o The quantit# and (alue for the goods mo(ement
o The accounts that are assigned for cost accounting
o The D47 accounts for financial accounts with automatic assignment of accounts
• The (aluation area is the organi%ational le(el at which the stoc! (alue is maintained. 't can be
either at plant le(el or storage le(el.
>. $hat are the special stoc!s in SAP?
Special stoc!s are defined as stoc!s that must be managed separatel# b# a compan#. The# can
be either compan# owned or e1ternal stoc!s. The# can be categori%ed as follows,
)@. $hat is Doods mo(ement? $hat t#pe of documents is created after goods mo(ement?
Doods mo(ement refers to the mo(ement of stoc!. This mo(ement of stoc! could be either
inbound from the (endor outbound to a customer between different plants or e(en between
different stoc!s within a plant. After goods mo(ement the SAP s#stem creates two t#pes of
documents, material documents and accounting documents.
)). $hat are the goods mo(ements that ta!e place in MM?
The goods mo(ements can be defined as the ph#sical or logical mo(ements of materials that
lead to a change in stoc! le(els or results in material consumption. The goods mo(ements arepart of the MM polic#. The goods mo(ements in SAP are as follows,
o Doods receipt 3epresents the ph#sical mo(ement of goods or materials into the compan#. 't
increases the stoc! quantit#. The goods receipt can be of the following t#pes,
Doods receipt with reference to a purchase order
Doods receipt with reference to a Production order
Doods receipt without reference
o Doods issue 3epresents the ph#sical mo(ement of goods or material ouTof the compan#. 't
reduces the stoc! quantit#. The goods issue can be of the following t#pes, Doods consumption in the compan#
Doods deli(er# to customers
o Stoc! transfer 3epresents the mo(ement of materials from one location to another location.
The locations can be either within the same plant or different plants.
o Transfer posting 3epresents the stoc! transfer that can either be ph#sical or logical. 'n
logical stoc! transfers goods are transferred onl# in records while the actual stoc! transfer
does noToccur. Some e1amples of ph#sical stoc! transfer are,
Stoc! transfer between two storage locations in a plant
Stoc! transfer between two plants
Transfer of materials to customer consignment stoc!