1) 

What is the difference between CBP and MRP?

The main difference between CBP and MRP 

CBP MRP
When the materials are planned using this, the prediction When the materials are planned using th
for the required materials is done by past demand of the prediction for the required materials is do
same materials.                      SOP which is sales & operation planning 
Since this is used for the planning of the
Forecasting, planning which is time-phased and reorders
everything depends on the size of the lo
point are used here
was previously given.

4) Can you explain the essential components in SAP MM?

To define the requirements,  determination sources, selection of vendors, order

processing, follow up with the clients, receipts of goods and inventory management,
verification of bills, payment systems, etc.

5) Do you know about organizational structure in the MM module?

The structure in the MM module is a ladder in which various organizational units are
arranged designed according to the functions and tasks of each of them. The units that
make the structure of the organization are as given below. 

The first is the client and this unit is independent. This unit has a different record
system and well as its own table sets. The second is the company code. This is one of
the smaller units of the organization. For the need for external reports, one can make a
self-reliant account set for the unit of company code. The third is the plan.

This is where the supplies are formed and the services and goods are given. The
industry can be broken down into different plants based on maintenance, supplies,
production, procurement, etc.  The next is the location of the storage. The produced
goods are kept in this unit. The next is the number of the warehouse this shows the
system of the warehouse.

It is different for every area of storage and organization. After that is the storage type
which tells one the different areas such as issuing area, area for picking up the goods,
etc. The next is the organization of the purchasing which is the unit that negotiates with
others for purchasing and also obtains the services and the material.

The next is group purchasing which is a code for an individual buyer or a group who
actually purchases the materials. This unit is also partially involved in negotiating and
obtaining the goods.

6) Explain in detail the order of purchase?

This is a final and formal confirmation of the essential materials to be supplied by the
vendor to the industry. This will involve all the names of the essential materials with the
equivalent plant. The details of the purchase would include the code of the company,
the vendor’s name, the delivery date of the materials. 

7) Why is the record of the information of purchase useful?

It is essential because it collects various information on the vendor and the materials
supplied by them. For instance, the current price at which the vendor is selling the
material is recorded in the purchase record. 

8) What are the important criteria in purchasing?

The important criteria in purchasing include the following the unit of the order, the
group of material, the base unit, the group of purchasing, the validity, the indicator of
tax for that material, the part number of the manufacturer, and the manufacturer. 

9) Elaborate on the receipt of the goods in the SAP System?

Once the purchase is processed by the vendor the material and goods are delivered to
the party that ordered it and this process is known as the receipt of the goods. During
this time when the material is delivered the party that acquires checks for the quality
and the condition of the materials and goods. After the verification, the receipt is finally
poster. 

10) What is the code used for the extension of the view of material?
The code used for the transaction of the material view is MM50.

11) What is the code for deleting a particular batch?

The code for deleting a batch is MSC2N. Alternatively, if one flags the batch of the
master record then the batch record can be deleted completely. 

12) How is a receipt posted?

The goods receipt can be posted by going to the option of logistics and then to the
materials management and then the inventory management and the choosing the
goods movement and then choosing the T code which is MIGO. 

13) What do you mean by source list and what is the code of the
source list?

The source list is to identify the home of the supply from where the materials come.
The code for creating the source list: ME01. 

14) What is essential for creating a record of purchase information?

The essential information for making a record of purchase information is as follows

The number of the material, the part number of the manufacturer, the number of the
vendor, the level code of the organization.

SAP MM Interview Questions For Experienced

15) What is the planned delivery and GR processing time?

The meaning of planned delivery is the number of business days in which the person is
expected to receive the materials and goods. The GR processing time is the number of
business days in which the person has to inspect and place the material in the storage,
after obtaining the goods and materials.

16) What is the Material Requirement Panning and mention the code
to access this list?

Material Requirement Planning is the first working manuscript from where the
controller of MRP starts the work and it includes the planning of the information of the
goods and materials. For accessing a single item one can use the code MD05. 
17) What is known as RFQ?

RFQ is an abbreviation for Request For Quotation. It is a kind of a form that is given to
the vendors for them to submit any quotation which is indicative of the terms and
conditions and the price of the goods and materials. It has details of the quantity of the
goods, information about the goods, the delivery date of when the form is to be
submitted. 

18) Explain what is the reservation?

Reservation is the blocking of the stock beforehand so that its availability is ensured
later in time. It ensures that the stock is made available and can be used as per
requirement.

19) What is the code used for reservation?

The Transactional code used for reservation is MB21.

20) Tcode for a Stock overview?

MMBE.

21) What is CBP?

CBP essentially means the consumption value of the materials in the past. It is used to
know about the requirements in the future. Based on the consumption of the services
in the past, the average requirement of the goods can be calculated. 

22)  What is the type for the reversal of the issue of the goods?

The transactional type for the reversal of the issue of the goods is the number 262.  

23) How is quota rating checked?

The formula for checking the quota rating is the addition of the base quantity of the
quota and the allocated quantity quota and divides it by the overall quota. 

24) Mention the last stage in the cycle of procurement?

The last stage of the procurement cycle is the verification of the invoice. This also
updates the documents which are related to the accounts and finances. There is a
difference between the real invoice and the blocked one the real invoice can be
handled by verification of the invoice.

25) Mention, for the stock transport order, some movement types. 

Some of the movement types are 351, 641, 643 for the stock order. Another one is 301
which can be used as an easy way for transferring materials.  

26) What is the point of difference between the purchase order and
the purchase requisition?

A purchase requisition is said to an internal sheet and it is an appeal that is done to the
organization which is going to purchase the services and send the list of the goods. But
purchase order is the formal sheet that is sent to the vendor which has the list of the
essential items that need to be taken from the vendor. 

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27) How does one do a verification of the invoice?

When the invoice is related to an existing sheet then every information which is
relevant is taken out by the system. This includes material, vendor, delivery, and its
terms, payment, etc. One has to enter the invoice and the system takes out the
account, tax, discount, and corrections that are relevant. If the invoice is been posted
data like the average of the price are reorganized. 

28) How are parked documents shown?

Parked documents are shown with the codes FBV3 and FB03. FBV3 displays the parked
sheets whereas FB03 shows all the posted sheets. It is useful to use FBV3 if one needs
to know if any documents still need approval or if they still need completion. 

29) What are the different types of ERPs?

Different types of ERPs are as follows: SAP, Microsoft dynamics, People Soft, Oracles,
Siebel, BAAN. These are some of the different types of Enterprise Resource Planning. 

30) What is NetWeaver?

NetWeaver is an incorporated technology in which every product in the MySAP group

can be used in a single go of a server which is known as SAP Web Application Server.
This technology is very useful and helps the user efficiently. One of the advantages of
using this is that the data related to SAP can be accessed by the enterprise through or
even through mobile. This is not only cost-effective but also time-effective. If one uses
this a lot of money is saved which could otherwise go into training a new user in the
SAPclient. 

31) Explain Metadata, Transaction data, and master data? Can SAP be
called a type of database?

Metadata: Metadata informs a person about the information of a data. This gives a
person in-depth information about the hierarchy of the information or it is also called
Meta Objects. There are many types of metadata. Some of the metadata are structural
metadata, descriptive metadata, reference metadata, statistical metadata, and
administrative metadata. Each of these types has a different kind of function in a
system. 

Next is the transaction data. This is nothing but the information pertaining to the
transactions which happen on the day to day basis. After that comes the master data.
Data provides essential information about the materials, the employees, and even
information related to the customer of that service. One can also call it the data of
reference.

For instance: the person orders a product which is 20 units. So instead of asking for
the customer’s address 20 times, the same information can be used from the master
data of the customer. 

SAP cannot be called a database. Since it is an application it uses the databases which
are provided by other retailers. These retailers include Server, Oracle, SOL, and many
other retailers.

 What are the essential components in SAP MM?

 Determine requirements
 Source determination
 Vendor Selection
 Order Processing
 Order follow up
 Goods receipts and Inventory management
 Invoice Verification
List of Frequently Asked SAP MM Interview Questions:
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3) Mention what are the types of special stock available?

The types of special stock available are subcontracting, consignment, project,
pipeline, sales order, stock transfer, returnable packaging with customer, etc.

4) List out important field in purchasing view?

The critical fields in purchasing view are

 Base unit of measure

 Order unit
 Purchasing group
 Material group
 Valid from
 Tax indicator for material
 Manufacturer part number
 Manufacturer, etc.
 SAP MM Module

5) Explain the importance of the batch record?

A batch tells about a quantity of a particular product, which is processed or
produced at the same time with the same parameters. The materials produced in
such batch have the same values and characteristics. While, the batch record gives
the information about a particular batch product and helpful in knowing whether
the product has gone through GMP (Good Manufacturing Process).

6) Explain how you can link a document to a vendor master

record?
To link the document with the vendor master record by using the XK01 transaction
code or by using the following menu path

 SAP Menu > Logistics > Material Management > Purchasing > Master Data >
Vendor > Central > XK01- Create.

7) Mention what are the major purchasing tables? List the

transaction codes for them?
  Purchase requisition > EKBN
 Purchase requisition account assignment > EBKN
 Release documentation > EKAB
 History of purchase documents > EKBE

8) Mention what are the data contained in the information

record?
The information record contains data related to the units of measurement, such as
the products, vendor price, materials used by specific vendors, etc. It also contains
information on the tolerance limit of the under delivery of data, vendor evaluation
data, planned delivery time, availability status for goods.

9) Mention what is the transaction code to delete a batch?

The transaction code MSC2N is used to delete a batch. By flagging the batch master
record, you can delete a batch record alternatively.

10) Mention what is the transaction code used to extend the

material view?
To extend the material view transaction, code MM50 is used.

11) Explain how you can change the standard price in the master
material?
The standard price for the material data cannot be updated or changed directly.
However, to change the standard price you can perform the following steps

 Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-
ZKDAT) for the materials
 Select Logistics > Material Management > Valuation > Valuation Price
Determination > Future Price
12) What is Source List and what is the transaction code for
creating Source List?
To identify sources of supply for materials a source list is used. To create a source
list the transaction code used is ME01.

13) For creating a purchasing info record what are the pre-
requisites?
The pre-requisites for creating a purchase info record are

 Material Number
 MPN ( Manufacturer Part Number )
 Vendor Number
 Organizational level code

14) Explain the terms Planned delivery and GR processing time?

Planned delivery means number of calendar days required to obtain the material,
and GR processing means number of workdays required after receiving the
material for inspection and placement into storage.

15) What is purchase requisition as related to SAP? Mention the

document types that are used in purchase requisition?
Purchase requisition in SAP determines both stock and non-stock items to the
purchasing department. It can be done either manually or automatically, the
document types used in purchase requisition are

 RFO (Request For Quotation)

 Outline Agreement
 PO (Purchasing Order)

16) Explain how consignment stocks are created?

In the normal purchase order or requisition, consignment stocks are created. While
creating consignment stocks things to be considered is that you must enter K
category for the consignment item. As a result, the goods issued are posted to
consignment stores and invoice receipt is not generated.

17) Explain how is the vendor return processed without a

purchase order reference?
First you have to observe the return column and then select — Item Detail >
MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the
intention is to deduct the stock otherwise, 162 is used to undo the changes. In the
end, you have to ensure that the document is a return purchase order, and then the
document is saved.

You can also use transaction code M21N for this purpose

18) Explain how you can create a vendor account group in SAP?
To create vendor account group in SAP

 Select display IMG > Financial Accounting > Accounts Payable/Receivable

>Vendor Accounts > Master Records > Preparation of creating vendor master
records > Define Accounts groups with Screen Layout

19) Explain what are the accounts created in SAP MM?

Assignment of account is necessary for the purchase order item, it is important
in SAP MM as it determines following things

 Account assignment type

 Account that will be charged when you post the invoice or goods receipt
 Account assignment data that you should provide

20) Explain what MRP (Material Requirement Planning) list is

and what is the transaction code to access MRP list?
MRP list is the initial working document from which the MRP controller starts
working, and it consists of planning results information for the material. For an
individual item, you can access the MRP list by using the transaction code MD05.
You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List-
Material

21) Explain what is CBP? What is the difference between CBP

and MRP?
CBP is the past consumption values of stock; it is used to forecast future
requirements. On the basis of past consumption values, the net requirement of
goods is calculated.

The difference between CBP and MRP is that when you plan materials using MRP,
you have to predict the materials requirement based on sales and operations
planning (SOP). While in CBP you have to predict the material requirement based
on historical demand for materials.