SAP MM FAQ's
1) What are the integral components in SAP MM?
The Components of SAP MM are listed below:
- Inventory management
- Invoice verification
- Physical inventory
- Materials requirements planning
- Materials master
- Service master
- Foreign trade/customs
2) Mention t-code to create Purchase Requisition in MM?
Transaction code ME51N can be used to create Purchase Requisition in MM
3) What are the various types of Basic Procurement?
Basic procurement is of 2 types as listed below:
- Procurement for Stock vs Consumption
- External vs Internal Procurement
4) List few of the Common Stock Transport Order Movement Types?
By utilizing MT 301, one step transfers of materials can be posted. The other different transport scenarios vary in the MTs by the good receipt and good Issues. Common Goods Issues may utilize MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt generally uses MT 101.
5) What Is the difference between a Purchase requisition and a Purchase Order?
A Purchase Requisition is a type of document which notifies the need for services or materials, whereas a Purchase Order is a document type which is a more formal request for materials or services from a plant or an outside vendor. Procurement types can also be defined at the line item and can be either subcontracting, stock transfer, standard, consignment or an external service.
6) List the difference between SAP MDM and SAP MM?
MM (Material Management) is a module which deals with the day to day operations of inventory management (stuff related to material valuation, storage, requirement planning etc ) and Procurement processes ( is related to goods, receipt, Purchase orders BOMs etc).
MDM refers to Master Data management, It is business specific data, which encompasses information regarding vendor/customer names, Product descriptions, along with banking information.
7) What is Pricing procedure in MM?
In the MM module, the Pricing procedure is a channel for determining the prices in purchasing documents. This give us functionality for assigning different calculation types for various needs. During PO and RFQ creation In MM module, the pricing procedure is utilized. The total value of material is based on all the addition and subtraction such as surcharge, discount, tax, freight, etc.
8) What are the steps needed to configure pricing procedure in SAP MM?
- Maintaining Condition Table
- Maintaining Access Sequence
- Maintaining the Condition type
- Maintaining the Calculation Schema
- For the vendor, maintaining the Schema Group
- For Purchasing Organizations, maintaining the Schema Groups
- Assigning Schema Group to Purchasing Organization
- Maintaining Schema Determination
- Assigning Schema group to Vendor
- Maintaining condition record
9) What are the various steps involved in Procurement Cycle of SAP MM?
- Determining the requirements of material
- Determining the source
- Selecting the vendor and Comparing the Quotations
- Purchase Order Processing
- Purchase Order Follow-Up
- Receiving Goods and managing Inventory
- Verifying the Invoice
- Payment to vendor
10) How can we post goods receipt?
In T-Code: MIGO navigate to post Goods Receipt using the path given below −
Logistics -> Materials Management -> Inventory management -> Goods movement -> Goods movement
11) How can a user link a document to a vendor master record?
By using the XK01 transaction code the user can successfully link the document with the vendor master record or by utilizing the following menu path:
SAP Menu -> Logistics -> Material Management -> Purchasing -> Master Data -> Vendor -> Central -> XK01-> Create.
12) What do you mean by Special stocks?
Special stocks are all those stocks which are managed separately as they don’t belong to your company or these are stored at a specific location.
13) What are the various Special Procurement Types in SAP?
Lister below the following special procurement types available in the SAP System:
- Stock transfer using stock transport order
- Third-Party Processing
- Returnable transport packaging
- Pipeline Handling
14) What is Consignment Stock?
SAP Consignment is defined as a process in which the user purchases the goods from a vendor, however, doesn’t valuate that stock. The user must make the payments to the vendor, only when goods are withdrawn from his store. Best example would be the Car shop which purchases the goods from its vendors for advertisement and display purposes and only once cars are sold, the vendor charges him.
The entire process of Consignment in SAP MM is managed by an item category in purchasing document and there are certain prerequisites/steps meant for the consignment process to work.
15) How would the user change unit of measures in mmr?
Please follow the steps below:
- Go to mm02 t.code
- Enter your mat number
- Now select the over screen and then select basic data 1,
- Now you will find basic unit of measure which you can modify.
16) How can G/L Accounts for MM Account Determination be verified?
The program RM07C030 verifies all the G/L account definition in your Material Master valuation class. User can Search it via Company code and Valuation area.
17) In Materials Management (MM), what is Data Archiving?
Data archiving removes mass data which is no longer required by the system (but that still should be available for reporting) from the database. The SAP data archiving concept is typically based on the archiving objects of the Archive Development Kit (ADK).
18) Define Stock Population?
The stock population is known as the total of all stock management units which are encompassed in an inventory sampling. All these stock management units are exclusively defined through the allocation of the stock management levels to a given inventory sampling. As a result of this, the stock population is also defined when the user allocates the level of the stock management.
19) How to make a Dummy Reservation?
The user can try to create a new movement type with reference to 201 movement type.
20) How can the user include new custom field in Services tab for a Service PO item?
The user can modify the description in the In the user field by customizing (SPRO) and appended a search help to it.
21) How to modify the Valuation Class in SAP MM?
User has to Go to t-code MMAM - This t-code is meant for altering the material type and not the valuation class.
If the user modifies the material type in MMAM transaction, then automatically the valuation class will be altered in the material master. The system will accept the changed material type valuation class which was initially created for that material type.
22) Is it possible to verify all the archive postings of a certain material?
Please try with MBAL - Archived Material Documents.
First, select the option Database table and then in the 'Tables and Archiving Objects' you are required to choose the second option 'Tables from which data is archived'
23) Can we send a multilevel BOM to a Subcontractor in purchase order?
There is no feature available in the subcontracting to have multilevel BOM, we have two options
- First, is to attach the BOM as Document in the PO for the appropriate component
- The second option is to add the relevant component in same order with delivery to same vendor as a subcontractor with BOM.
24) What is subcontracting process?
Subcontracting is defined as one of the procurement processes available in MM. In this process, the components are shared with the vendor for getting the final product. The material which must be produced by the vendor can be ordered as a subcontract item in a purchase requisition, purchase order, or scheduling agreement. Each of the subcontract item has one or more sub-items which contains the individual components the vendor is required to perform the subcontract work or value-added service.
25) How will the user consider Subcontracting PO components which are not sent by my company to vendor however they are added by the vendor(subcontractor)?
We recommend you to get an updated invoice in which the cost of Nut Bolt and Gasket etc. are all added. Thereby, you can either alter the PO price as per that price or make the invoice accordingly. By doing this the system will automatically update the Material/Product cost accordingly.
26) How to create movement type?
Assume we are creating movement type 281 Goods issue for a network
Please follow the steps below:
- First, navigate to Transaction OMJJ
- Now the standard movement type 201
- Then click on copy and overwrite the 201 with 281
- Now click the Enter button, then click on Copy all
- Please select the new movement type 281
- Now On the left-hand column screen, click on Reversal/follow-on movement
- At last fill in the reversal movement type
27) What is RTP?
RTP (Returnable Transport Packaging) is referred to a multi-trip packaging medium (for instance, containers or pallets) through which the goods can be transported multiple times between customers and vendors. Returnable transport packaging from a vendor which is stored at a place on your premises is treated as a special stock and is clearly assigned as a belonging to the vendor. RTP is vendor's property, therefore, it is excluded from the customer’s valuated stock.
28) How can the user post returnable Transport Packaging (RTP) Quantities at Goods Receipt for Purchase Order?
A quantity of returnable transport packaging can be entered at goods receipt for a purchase order, as listed below:
- In Inventory Management menu, navigate to Select -> Goods movement -> Goods receipt -> For purchase order -> PO number known -> or path PO number unknown.
- On the initial screen please enters the movement type (101) and also the order number (or the selection criteria for the purchase order).
- Now please select and copy the required items.
- Now in the overview screen, choose Edit -> W/o purchase order -> Enter.
- A popup window will appear, Please enter the movement type and the special stock indicator (e.g. 501 M ) for the quantity of returnable transport packaging.
- Now please enters the returnable transport packaging items.
- At last, post the goods movement.
29) How can you transfer Posting of RTP stock between Storage Locations?
A transfer posting of RTP stock between two storage locations is entered as listed below:
- In Inventory Management menu, navigate to Goods movement -> Transfer posting -.
- Now enter data to the initial screen:
- Now nvigate to Movement type Transfer posting -> RTP stock -> SLoc to SLoc -> ( -> 311 M ->).
- Now give the plant and the issuing storage location.
- Give vendor and the receiving storage location on the next screen.
- Please enter all the items.
- At last, post the goods movement.
30) What is the difference between the stock transfer between two plants belonging to same company code and those belonging to different company code?
Stock Transfer Order (STO) for Intra Company
- The stock transfer between two plants are done with one Company code
- Purchase Order Type 'UB' is used in this case
- Delivery Type 'NL' is used
- Goods Movement type is 641 for Intra Company
- Item Category in delivery is NLN
Stock Transfer Purchase Order (STPO) for Intra Company
- Two Different Company Codes are required for Stock Transfer Purchase Orders between two plants
- Purchase Order Type 'NB' is used in this case
- Delivery Type 'NLCC' is used
- Goods Movement type is 643 for Inter-Company
- Item Category in delivery is NLC