Most important and commonly asked interview questions for SAP MM

Most important and commonly asked interview questions for SAP MM

Question: What is SAP MM?

Answer: SAP MM is a tool companies use to manage buying and selling goods, keeping track of inventory, purchasing materials, and related processes.

Question: How do you buy things using SAP MM?

Answer: You create a purchase order in SAP MM, specifying what to buy, from whom, and at what price. Once approved, it becomes a legal document for the vendor to fulfill the order.

Question: What is a material master, and why is it important?

Answer: A material master is like a detailed information sheet for every product a company deals with. It includes data such as description, price, vendor details, and inventory levels, helping in managing and tracking materials effectively.

Question: How does SAP MM integrate with other parts of the company?

Answer: SAP MM works closely with other modules like accounting (FI) and sales (SD), updating accounting records when purchases are made and adjusting inventory levels accordingly.

Question: Can you explain the process of receiving goods in SAP MM?

Answer: When goods are delivered, you record their receipt in SAP MM through a process called goods receipt, confirming that the items received match the purchase order and updating inventory levels accordingly.

Question: What are the different types of inventory management methods in SAP MM?

Answer: SAP MM supports various inventory management methods such as perpetual inventory (always knowing stock levels), periodic inventory (counting stock at regular intervals), and special methods like consignment (keeping stock at the vendor’s location).

Question: How do you move stock from one location to another in SAP MM?

Answer: You can transfer stock between locations using a stock transfer order or a transfer posting, ensuring inventory is in the right place at the right time.

Question: What is the purpose of a valuation class in SAP MM?

Answer: A valuation class determines how materials are valued for accounting purposes, ensuring inventory is correctly valued on the balance sheet and influencing financial reporting.

Question: How do you handle returns to vendors in SAP MM?

Answer: To return items to a vendor, you create a return purchase order in SAP MM, specifying the reasons for return and the quantity of items being sent back.

Question: Can you share your experience with SAP MM implementation or a project you worked on?

Answer: Certainly! I was part of implementing SAP MM for a manufacturing company. My role included setting up material masters, configuring procurement processes, and training users. It was challenging but rewarding to see how SAP MM improved efficiency and accuracy in managing materials.

Also Read: Material Reservation in SAP: A Step-by-Step Guide for MB21, MB22, and Print Functions

Leave a Comment