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Interview 5

The document contains answers to questions about SAP MM module and procurement lifecycle. SAP MM supports material management functions like planning and control. The procurement lifecycle involves checking requirements, contacting suppliers, reviewing backgrounds, negotiation, order fulfilment, and consumption. Other terms discussed include MIRO, invoice processing, MIGO, RFI, and RFP.

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Naveen Bhai
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90 views2 pages

Interview 5

The document contains answers to questions about SAP MM module and procurement lifecycle. SAP MM supports material management functions like planning and control. The procurement lifecycle involves checking requirements, contacting suppliers, reviewing backgrounds, negotiation, order fulfilment, and consumption. Other terms discussed include MIRO, invoice processing, MIGO, RFI, and RFP.

Uploaded by

Naveen Bhai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

Q26: How can we use SAP MM or Material Management module?

Answer:

SAP MM is the backbone of the logistics area, which has modules like sales and
distribution, project system, plant maintenance, production planning, and material
management that is obsessed with the MM Module.

MM module supports all sorts of material management like control, planning, etc.

MM module assists in managing the procurement activity of a company from


procurement.

Q27: What steps are involved in Procurement Lifecycle?

Answer:

Check about the requirements: The procurement process starts with gathering
information about the goods and their quantity. Once gathered all the information,
the necessary steps are taken to find out the suppliers to satisfy the
requirements.

Contact suppliers: After gathering all the information, the next will be to look
for suppliers to get the requirements. Then, quotation requests are sent to
suppliers to get the best rates.

Review about the background: Once you get to know about the suppliers, necessary
steps are taken to investigate the suppliers like warranties, maintenance services,
etc. that he can offer along with supply.

Negotiation: After reviewing the background, negotiation is done by the buyer.


Whatever negotiation is made, it is finalized by an agreement along with other
information like delivery date, the quantity of material, etc.

Fulfilment of Order: Finally, the order becomes delivered to the supplier


accordingly ordered.

Consumption, Maintenance, and Disposal: Lastly, necessary steps are initiated to


consume, maintained, and dispose of the material.

Q28: What is MIRO?

Answer: MIRO means movement in receipt out. It deals with invoice verification
activities in terms of bills raised from the vendor’s end. MIRO is basically used
by MIRO.

Q29: What is invoice processing?

Answer: It is used by a company’s account payable to manage supplier invoices.


Invoice processing is initiated when an invoice is accepted and ends when it
becomes clear, and it becomes shown in the general ledger.

Q30: What is MIGO?

Answer: MIGO means movement in goods out. It is used for those goods that are
moving out like from plant to plant transfer, goods receipt, storage location to
storage location transfer, etc. The term MIGO is used by the logistics departments.

Q31: What is an RFI?


Answer: RFI means a request for information. It is used for the business process
that assembles written information about the competencies of sellers.

Q32: What is an RFP?

Answer: RFP means Request for Proposal. It is a document where a proposal is sent
by a company or agency for the acquisition of some goods and services to any
potential seller to send business proposals.

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