SAP MM Consultant Job Interview Questions and Answers
What is SAP MM? Why is it used?
SAP MM (Materials Management) is a module in SAP ERP Central Component (ECC) that
manages procurement and inventory functions. It ensures that materials are available in proper
quantities at the right time to avoid shortages or overstocking. It integrates with other modules like
SD, PP, and FI for seamless operations.
What are the main components of SAP MM?
The main components are:
1. Master Data: Material Master, Vendor Master, Purchase Info Record.
2. Procurement Process: Purchase Requisitions, Purchase Orders.
3. Inventory Management: Goods Receipt, Goods Issue, Stock Transfers.
4. Invoice Verification: Three-way match between PO, GR, and Invoice.
5. Valuation and Account Determination: Material valuation based on different methods.
Explain the procurement process in SAP MM.
The procurement process includes:
1. Determination of requirements (via Purchase Requisition).
2. Source determination (Vendor selection).
3. Purchase Order creation and release.
4. Goods receipt against the Purchase Order.
5. Invoice verification and payment processing.
What is a purchase requisition, and how is it different from a purchase order?
A Purchase Requisition is an internal document created to request procurement of goods/services,
while a Purchase Order is an external document sent to the vendor to procure goods/services based
on requisition.
What is the role of the material type in SAP MM?
Material type defines the characteristics and functionalities of a material, such as its account
determination, valuation class, and procurement type. Examples include ROH (Raw Materials),
FERT (Finished Goods), and HALB (Semi-finished goods).
What is the difference between a plant and a storage location in SAP MM?
Plant: An organizational unit representing a location for production, procurement, and inventory.
Storage Location: A subdivision of the plant where inventory is physically stored and managed.
What are valuation classes in SAP MM? How do they affect account determination?
Valuation classes link the material type with general ledger accounts. They determine which G/L
accounts are posted during inventory movements (e.g., stock accounts, consumption accounts).
What is the purpose of the movement type in inventory management? Give examples.
Movement types control stock quantity and value changes during transactions. Examples:
101: Goods receipt for a purchase order.
201: Goods issue for consumption.
301: Stock transfer between plants.
How do you handle consignment stock in SAP MM?
In consignment, materials are stored at the company's premises but owned by the vendor. The
process includes:
1. Creating a consignment info record.
2. Using movement type 411 K for transfer.
3. Goods issue when materials are consumed (Movement type 201 K).
Explain split valuation and its use.
Split valuation allows valuing a material at different prices for different valuation types (e.g., raw
material from different sources, quality levels). This is configured in the valuation area and helps in
precise cost management.
How do you troubleshoot errors in SAP MM?
1. Analyze error messages and check SAP notes.
2. Use transaction codes like MM01/MM02 to check master data.
3. Verify configuration settings in SPRO.
4. Check logs in transaction SLG1 for application issues.
Have you worked on any SAP MM integration scenarios?
Yes, examples include:
1. Integration with SAP SD for third-party orders.
2. Integration with SAP PP for production order management.
3. Integration with SAP FI for automatic postings during goods movements.
