Top 25+ SAP MM Interview Questions and Answers

SAP MM Interview Questions – Are you preparing for an SAP MM (Materials Management) interview and feeling overwhelmed with where to start? 

Don’t worry, we are here to help you! 

SAP MM professionals are in great demand, especially in Indian companies like,

• Tata Consultancy Services (TCS)
• Infosys
• Accenture
• Capgemini

With the right preparation and knowledge, you can easily crack interviews and secure a good position. 

To help you out, we have prepared this guide with 25+ SAP MM interview questions and answers.

So, let’s get started!

SAP MM Fresher Interview Questions

Here are some SAP MM basic interview questions and answers: 

1. What do you know about SAP MM?

This is one of the most common SAP MM module interview questions. You can answer it this way –

“SAP MM is short for Materials Management. It is an important component of SAP ERP systems and focuses on procurement processes, inventory management, and logistics. 

Essentially, SAP MM helps businesses efficiently manage their materials and resources to optimize operations and reduce costs.”

2. Can you explain the essential components in SAP MM?

In SAP MM, there are several key components.

• Procurement: Handles purchasing goods and services.
• Inventory Management: Manages stock levels and movements.
• Material Requirement Planning (MRP): Ensures materials availability.
• Vendor Evaluation: Assesses supplier performance.
• Invoice Verification: Verifies incoming invoices. 

These components collectively streamline material management processes to ensure operational efficiency.

3. What are some common assignment types in the SAP Material Management system?

In SAP Material Management (MM), common assignment types include,

• Purchase Orders: Used to procure materials or services from vendors.
• Goods Receipts: Confirm receipt of materials from vendors into inventory.
• Transfer Postings: Move materials from one location to another within the organization. 

These assignment types are essential for managing procurement, receipt, and internal movement of materials in the SAP MM system.

4. Difference between a Purchase Request and a Purchase Order.

A Purchase Request is simply a notification that items are needed, while a Purchase Order is a formal request for goods or services. 

Purchase Orders are sent to vendors or manufacturing facilities to initiate the procurement process. 

Different types of purchases, like stock transfers or external services, have specific definitions for their details within these documents.

5. Explain in detail the order of purchase.

A purchase order (PO) is a formal document created by a buyer and sent to a seller to confirm the buyer’s desire to purchase goods or services. It outlines the quantity and type of items required, along with details like payment terms and delivery instructions.

SAP MM Interview Questions for Experienced

Here are some experienced interview questions on material master in SAP MM:

6. What is the code for deleting a particular batch?

To delete a batch in SAP MM, use transaction code MSC2N. Alternatively, you can flag the batch in the master record, allowing for the complete deletion of the batch record.

7. What does RTP stand for?

RTP stands for “Returnable Transport Packaging.” It includes reusable containers or pallets used to move goods between retailers and customers. 

RTP, belonging to the supplier, is stored on the customer’s premises and labelled accordingly. The stock value doesn’t include RTP since it’s the supplier’s responsibility, not the customer’s.

8. What does the code MM03 do?

The code MM03 in SAP MM allows users to display material master data. It provides detailed information about a specific material, including its description, stock levels, and relevant data. 

MM03 helps users access crucial details about materials, aiding in inventory management and procurement processes.

9. List the difference between SAP MDM and SAP MM.

SAP MM (Material Management) handles daily inventory operations and procurement tasks like storage, material valuation, and purchase orders. 

On the other hand, SAP MDM (Master Data Management) focuses on vital business data such as vendor/customer details and product descriptions, including banking information. MM deals with inventory and procurement, while MDM manages critical business data.

10. What is CBP?

CBP stands for Cross-Border Planning, involving international procurement and logistics management. It includes handling customs processes, taxes, and meeting cross-border trade rules. Effective CBP ensures smooth global supply chain operations and minimizes risks.

SAP MM Interview Questions for 3 Years Experience

Here are some important SAP MM 3 years experience interview questions and answers: 

11. What is the planned delivery and GR processing time?

Planned delivery time refers to the estimated business days for receiving materials. GR processing time indicates the business days allotted for inspecting and storing materials after their arrival.

12. How does the OBYC valuation grouping code function?

The OBYC valuation grouping code in SAP allows for specifying valuation either at the plant or company code level. Using a coding system, the value area is segmented. 

Valuation grouping codes streamline automatic account determination settings, enabling common account determination across multiple valuation areas. OMWD records the valuation group code for more than one valuation domain.

13. What does the term “batches” refer to in SAP MM?

In SAP MM, “batches” represent smaller units used to manage material inventory. They’re unique entities that can’t be divided further. 

In manufacturing, a batch is the quantity of a substance produced in one production run. Batches have different levels of exclusivity, allowing for flexible management across clients, materials, and plants.

14. How are parked documents shown?

Parked documents are displayed using codes FBV3 and FB03. FBV3 reveals parked sheets, while FB03 shows posted sheets. FBV3 is handy to check for pending approval or completion of documents.

15. What is known as RFQ?

RFQ stands for Request For Quotation. It’s a form vendors receive to provide price quotes, including terms and conditions for goods or materials. It includes details like quantity, product information, and submission deadlines.

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SAP MM Interview Questions for 10 Years Experience

Here are some commonly asked SAP MM consultant interview questions for experienced:

16. What is NetWeaver?

NetWeaver is a technology that integrates all products in the MySAP group into a single server called SAP Web Application Server. It’s highly beneficial, allowing efficient access to SAP data from enterprise systems or mobile devices. This saves both time and money, as it eliminates the need for extensive training for new SAP users.

17. Explain the concept of scaling in MM.

When adding prices to the database, you can use scales. If the price per unit decreases with higher quantities ordered, scales come in handy. 

For instance, if you buy material JKR, it might cost Rs. 20 for 100 pieces, but the price drops to Rs. 15 for orders exceeding 100. Scales can be pulled into a Purchase Order from various sources like records or structures.

18. What is vendor master data?

Vendor master data comprises details about companies supplying goods/services to an organization. Each vendor has a unique record storing essential information like their name, address, currency used, payment terms, and sales contract.

19. Explain the various Special Procurement Types in SAP.

In SAP MM, there are several Special Procurement Types:

• Stock Transfer: Transferring materials from one storage location to another within the same company code.
• Subcontracting: Outsourcing certain production processes to external vendors.
• Consignment: Sending materials to a customer’s site without transferring ownership until they are used.
• Pipeline: Managing materials in transit from a supplier to a receiving location.
• Returnable Transport Packaging (RTP): Handling reusable packaging materials for transportation.
• Third-Party Processing: Involving a third-party vendor to fulfil customer orders directly.
• Direct Production: Initiating production directly from a sales order without creating a planned order or production order.

20. What are the various steps involved in Procurement Cycle of SAP MM?

Here are the various steps involved in the Procurement Cycle of SAP MM:

• Requirement Determination: 
• Source Determination
• Vendor Selection
• Purchase Order Processing
• Goods Receipt
• Invoice Verification
• Payment Processing
• Material Storage
• Inventory Management
• Reporting and Analysis

Capgemini SAP MM Interview Questions

Here are some important SAP MM questions and answers for the Capgemini interview: 

21. Can you explain the importance of material valuation in SAP MM and how it impacts inventory management?

Material valuation in SAP MM is crucial as it determines the monetary value of inventory items. It impacts inventory management by influencing decisions related to purchasing, pricing, and stock levels. Accurate valuation ensures financial transparency, aids in cost control, and facilitates effective inventory planning and management.

22. Can you provide an example from your previous experiences where you successfully improved inventory management efficiency using SAP MM, and how do you envision implementing similar improvements at Capgemini?

“In my previous role, I introduced automated inventory tracking in SAP MM, reducing manual errors and ensuring real-time visibility of stock levels. 

I plan to implement similar improvements at Capgemini by optimizing inventory processes, streamlining material movements, and utilizing SAP MM’s reporting capabilities to identify and address inefficiencies promptly. 

This approach will enhance inventory accuracy and operational efficiency for Capgemini’s procurement operations.”

Infosys SAP MM Interview Questions

Here are some SAP MM questions asked in the Infosys interview: 

23. How do you ensure data accuracy and integrity within SAP MM, particularly in material master data management?

“To maintain data accuracy in SAP MM, I conduct regular audits of material master data, verifying information against source documents. 

I enforce strict data entry standards and perform validation checks to identify and rectify errors promptly. Additionally, I implement access controls to restrict unauthorized changes and ensure data integrity throughout the material management process.”

24. Infosys places a strong emphasis on innovation and digital transformation. Can you provide examples of how you’ve utilized SAP MM to drive innovation in procurement processes, and how do you plan to incorporate similar initiatives at Infosys?

“In my previous role, I integrated SAP MM with IoT devices to enable real-time monitoring of inventory levels, leading to proactive replenishment and reduced stockouts. 

I also implemented machine learning algorithms to analyze historical procurement data and predict future demand, enhancing forecasting accuracy. 

At Infosys, I aim to explore emerging technologies like blockchain and AI to further innovate procurement processes and drive digital transformation initiatives.”

TCS SAP MM Interview Questions

Here are some SAP MM implementation interview questions asked at TCS: 

25. Can you discuss the importance of integration between SAP MM and other modules, such as SAP SD or SAP PP, and how it enhances overall business processes?

“Integrating SAP MM with modules like SAP SD and SAP PP is crucial as it ensures smooth coordination between different aspects of our business. 

By connecting these modules, we can streamline processes such as order fulfilment and production planning, leading to improved efficiency and better customer satisfaction. It’s essential for optimizing our overall business operations and achieving our goals.”

26. How do you ensure SAP MM implementations meet client expectations and uphold TCS’s reputation for high-quality solutions?

“I make sure SAP MM implementations align with client needs by closely collaborating with stakeholders, understanding their requirements, and customizing solutions accordingly. 

By adhering to TCS’s standards for excellence and continuous communication, I aim to deliver high-quality solutions that exceed client expectations.”

Accenture SAP MM Interview Questions

Here are some important interview questions for SAP MM consultant at Accenture: 

27. How do you handle challenges in SAP MM implementations, such as data migration or system integrations, and ensure successful project delivery?

“I address challenges in SAP MM implementations by conducting thorough planning, identifying potential risks, and developing contingency plans. 

I collaborate closely with stakeholders to streamline data migration and system integration processes, ensuring smooth project delivery while adhering to timelines and quality standards.”

28. How do you promote collaboration with cross-functional teams during SAP MM implementations and uphold Accenture’s commitment to teamwork?

“I foster collaboration by facilitating open communication and regular team meetings. Using simple, accessible tools and encouraging feedback ensures alignment and teamwork. 

Upholding Accenture’s commitment to collaboration, I prioritize transparency and shared goals to deliver successful SAP MM implementations.”

SAP MM MCQ Questions and Answers

Here are some SAP MM interview questions and answers topic wise in MCQ form: 

1. What is the primary function of SAP MM?

a) Inventory Management and Procurement

b) Human Resources Management

c) Financial Management

d) Sales and Distribution Management

Answer: a) Inventory Management and Procurement

2. Which SAP MM document is used to request materials or services from vendors?

a) Purchase Order

b) Goods Receipt

c) Purchase Requisition

d) Invoice Verification

Answer: c) Purchase Requisition

3. What is the transaction code used to create a Purchase Order in SAP MM?

a) ME21N

b) ME22N

c) ME23N

d) ME24N

Answer: a) ME21N

4. What is the purpose of Goods Receipt in SAP MM?

a) To request materials or services from vendors

b) To verify invoices

c) To confirm receipt of materials from vendors into inventory

d) To approve purchase orders

Answer: c) To confirm receipt of materials from vendors into inventory

5. What is the purpose of Source Determination in SAP MM?

a) To find suitable vendors or suppliers

b) To request payment from vendors

c) To confirm receipt of materials from vendors into inventory

d) To verify incoming invoices

Answer: a) To find suitable vendors or suppliers

Conclusion

So, these are the top 25+ SAP MM interview questions and answers to help you prepare for your next interview with confidence. Learning these questions will improve your chances of success in securing a job. If you’re seeking lucrative job opportunities in SAP MM, visit Hirist. It is India’s top IT job portal. With listings from major tech companies, Hirist opens doors to exciting roles and career advancement.