SAP MM Interview Questions And Answers

SAP MM Interview Questions And Answers for experienced professionals from Codingcompiler. These SAP MM interview questions were asked in various interviews conducted by top multinational companies across the globe. We hope that these interview questions on SAP MM Interview Questions will help you in cracking your job interview. All the best and happy learning.

In this Interview Questions blog, you are going to learn…

SAP MM Interview Questions
SAP MM Interview Questions and Answers
Frequently asked SAP MM Interview Questions
Advanced SAP MM Interview Questions and Answers

SAP MM Interview Questions

1. What is SAP MM and what do you know about it?

Answer: It is one of the modules in SAP that deals with the management of materials and procurement process. It also includes master data, account determination, material valuation, inventory management, invoice verification, material requirement planning, etc.

2. List out the essential components of material management.


  • Determine requirements
  • Source determination
  • Vendor Selection
  • Order Processing
  • Order follow up
  • Goods receipts and Inventory management
  • Invoice Verification

3. Can you elaborate about SAP and how it is useful in Industries ?

Answer: SAP stands for Systems, Applications and Processing the Data.  It is the most popular software application used to provide enterprise business solutions. This ERP software application was first introduced in Germany (Mannheim) in the year 1972. ERP stands as Enterprise Resource Planning.

It provides solutions by incorporating various business tasks like sales, purchase and production.  SAP obtains details from one business process and integrates it into another business process, thus speeding up the business process.  It is broadly used in industries, since it updates and process important data very quickly and used by the department to determine how to prepare the products and also it can program business process and provide real time solutions for business.

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

Answer: 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. What does the Procurement Process in ERP comprise of?

Answer: All activities involved in buying of materials and procuring services from various dealers and vendors constitutes the Procurement Process.

6. What are the types of Basic Procurement?

Answer: There are two categories of basic procurement. They are:

– External and Internal Procurement
– Procurement for stock and Procurement for consumption

7. What Mrp Procedures Are Available In Mm-cbp (consumption Based Planning)?

Answer :

Various material planning methods are used in MRP (Material Requirements Planning).

  • Reorder point procedure (VM)
  • Forecast-based planning (VV)
  • Time-Phased materials planning (PD)
  • These are specified in material creation (MM01) under the MRP 1 tab.

8.  What Are The Organizational Levels Of The Enterprise Structure In R/3?

Answer :

The top level of the organizational plan is the Client, followed by Company Code, which represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next level down is Plant, an operational unit within a company (HQ, Assembly Plant, Call Center, etc.). The Purchasing Organization is the legally responsibly group for external transactions. This group is further subdivided into Purchasing Groups.

9. What are the different info record types?

Answer: The different info record types are Standard, Sub-contracting, Consignment and Pipeline.

10. Explain in detail about order of purchase?

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

SAP MM Interview Questions and Answers

11. What Are Special Stocks?

Answer :

Special Stocks are stocks that are accounted for but are not owned by the client, are not stored at a regular facility. Consignment, sales order, and project stock are examples.

12. What are the benefits or uses of material management?


  • Material valuation
  • Multi-location inventory
  • Bin management
  • The lot and serial traceability
  • Product life cycle management
  • Inventory replenishment
  • Scheduling and resourcing

13. What is the difference between MRP and CBP?

Answer: In material requirement planning, the prediction of material requirement is based on sales and operations planning while in, consumption-based planning the prediction of material requirement is made, based on historical demand for materials.

14. What Are Some Of The Common Stock Transport Order Movement Types?

Answer :

One step transfers of materials can be posted using MT 301. Other various transport scenarios differ in the MTs by the Goods Issues and Good Receipts. Common Goods Issues may use MTs 303, 351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.

15. What is a planned order in material management?


A planned order is sent to an industry and is a material requirement planning request for the procurement of a particular material at a determined time. It specifies when the internal material movement needs to be made and the amount of material that is demanded.

16. What are the important criteria in purchasing?

Answer: The important criteria in purchasing includes 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. 

17. What is the code used for extension of the view of material?

Answer: The code used for the transaction of the material view is MM50.

18. What is the code for deleting a particular batch?

Answer: 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. 

19. Explain a Purchase Order.

Answer: The purchase order is the final draft of the document sent to the supplier to supply material or services. It will contain information like details of material, purchasing company, company code, vendor name and date of material delivery.

20. What is essential for creating a record of purchase information?

Answer: 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.

Frequently asked SAP MM Interview Questions

21. What is Material Type in SAP?

Answer: Material Type in SAP is the property used to group materials with similar properties under one category.

22. What is the Material Requirement Panning and mention the code to access this list?

Answer: Material Requirement Planning is the first working manuscriptfrom 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. 

23. What is a Production Order?

Answer: A Production Order is used to define the material that is produced, the location of the plant, time of production and quantity of goods needed.

24. Explain what is reservation?

Answer: 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.

25. What is the code used for reservation?

Answer: The Transactional code used for reservation is MB21.

26. What Is An Indirectly Created Purchase Requisition?

Answer :

An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service Management, or PP Production Planning and Control. The “directly created” Purchase Requisition, on the other hand, is created by a person manually in the requesting department specifying what materials/services, units, and a delivery date.

27. What Are The Transactions That Will Result In A Change Of Stock?

Answer :

A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which results in an increase in warehouse stock, a Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location to another.

28. Define purchase requisition.

Answer: A purchase requisition is a primary document which is used as part of the accounting method to launch a merchandise or supply purchase. By processing a purchase order, suitable controls can monitor the legitimacy of purchase, as well as identify the business requirement for the products.

29. What is the difference between Procurement for stock vs consumption?

Answer: Procurement for Stock − A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this material keeps on increasing or decreasing based on the amount of the quantity received or issued. To order a material for stock, the material must have a master record within the system.

Procurement for Direct Consumption − When procurement is for direct consumption i.e. it will be consumed as soon as it is received, the user should specify the consumption purpose. To order a material for consumption, the material may have a master record within the system.

30. What does the module mainly consist of?

Answer: The module consists of three main functionalities, the master data, how the system is configured and transactions to complete the procurement for payment.

Advanced SAP MM Interview Questions and Answers

31. What is Internal Procurement?

Answer: Internal Procurement − Large corporate organizations may own multiple separate businesses or companies. Internal Procurement is process of getting material and services from among identical company. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when trade occurs between them it will be recorded.

32. What is Special Procurement?

Answer: Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location.

33. What is Consignment Stock?

Answer: Material that is available at our store premises, however it still belongs to the vendor (seller)/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor.

34. What are the common assignment types in SAP MM system?


  • Plant to Company code
  • Purchasing organization to company code
  • Purchasing organization to Plant
  • Standard purchasing organization to plant

35. What are the different Info record types?


  • Standard
  • Consignment
  • Subcontracting
  • Pipeline

36. When and where was ERP first introduced?

Answer: ERP was first launched in Mannheim, Germany in the year 1972.

37.  Why is SAP utilized so extensively?

Answer: SAP is the most popular software application as it is the one widely used to provide business solutions for large, medium and small scale enterprises. This is done by absorbing and processing data quickly. Also if there are any problems, SAP is able to provide solutions on a time-sensitive basis.

38. hich code is used for the extension of viewing the material?

Answer: The code that is used for the material view is MM50.

39. When Would It Be Prudent To Post Goods Movements Via The Shipping Application?

Answer :

If picking, packing, and transportation operations need to be planned in detail. Also, in shipping, you can manage movements like returns from customers, vendors, and returns to stock. Movement Types in shipping start with a 6.

40. Can You Manually Generate A Purchase Requisition Referencing A Purchase Order Or A Scheduling Agreement?

Answer :

A Purchase Requisition cannot be created with reference to either of these, as they are documents controlled by the purchasing organizations.

Requirements can be automatically generated with MRP that reference a Scheduling Agreement if the source list is maintained for item-vendor combination.

41. What is CBP?

Answer: 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.

42. What is a special stock in material management?

Answer: Special Stocks are the stocks that belong to a company code. These are not placed in any storage location & no physical inventory is performed.

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