SAP TUTORIALS-
SAP MM Interview Questions And Answer 2025-26
Introduction-
SAP MM Interview Questions And Answer 2025-26-
In SAP Hana And ECC 6.0 Material Management (SAP MM) is a key module in SAP ERP used for procurement, inventory management, and material valuation. If you're preparing for an SAP MM interview, here are some commonly asked questions along with their answers-
Que 1-)If you were to implement SAP MM in an organization, which major components would you focus on, and why?"
Answer:-
1)Master Data Management :- Master data is the foundation of SAP MM. Without accurate data, procurement and inventory processes can fail. The key master data includes:
-Material Master (MM01) – Stores all material-related information.
-Vendor Master (XK01) – Maintains supplier details..
-Purchase Info Record (ME11) – Links vendors to materials with pricing..
-Source List (ME01) – Defines approved vendors for materials..
2)-Procurement Process -:
-Purchase Requisition (PR) (ME51N) – Internal request for materials..
-Purchase Order (PO) (ME21N) – Formal order sent to vendors..
-Request for Quotation (RFQ) (ME41) – Collects price quotes from suppliers..
-Contracts & Scheduling Agreements – Long-term procurement planning..
3)-Inventory Management -:
-Goods Receipt (GR) (MIGO, MB1C) – Records incoming stock..
-Goods Issue (GI) (MB1A, MB1B) – Tracks stock consumption..
-Stock Transfer (MB1B, MIGO) – Moves stock between locations..
-Physical Inventory (MI01, MI07) – Verifies actual stock vs. system stock..
4)-Invoice Verification -:
-Invoice Posting (MIRO) – Matches invoices with purchase orders..
-Invoice Blocking & Release – Prevents incorrect payments..
-Automatic Payment Processing (F110) – Streamlines payments..
5)-Material Requirement Planning (MRP) -:
-MRP Run (MD01, MD02, MD04) – Calculates material demand..
-Reorder Point Planning – Ensures stock availability..
-Consumption-Based Planning – Avoids excess inventory..
Que 2-)"Can you list and explain the various types of special stock available in SAP MM?"
Answer:-
-Consignment Stock (K) – Stock owned by the vendor but stored at the company’s location. Payment is made when used (Example-Raw materials supplied by a vendor and stored in your warehouse.)
-Subcontracting Stock (O) – Stock sent to a subcontractor for processing but still owned by the company. (Example-Sending metal parts to a vendor for coating.)
-Customer Stock (W) – Stock that is owned by the company but is located at the customer’s site. (Example-Spare parts stored at a customer’s factory for quick service.)
-Project Stock (Q) – Stock assigned to a specific project and can’t be used for general purposes. (Example-Raw materials reserved for a construction project.)
-Sales Order Stock (E) – Stock assigned to a specific sales order and not available for general use. (Example-Custom-made products for a specific customer order.)
-Returnable Transport Packaging (M) – Packaging materials that are sent to the customer but expected to be returned. (Example-Reusable containers used for shipping parts.)
Que 3-) "Can you explain the concept of Material Type in SAP MM and its significance?"
Answer:-
-ROH (Raw Material) – Basic materials used for production (Example-Steel, Chemicals.)
-HALB (Semi-Finished Product) – Partially processed materials used in production (Example-Car Engine, Processed Wood.)
-FERT (Finished Product) – Final product ready for sale (Example-Laptop, Car.)
-HIBE (Operating Supplies) – Consumables used for operations (Example-Office Supplies, Lubricants.)
-VERP (Packaging Material) – Materials used for packaging finished goods (Example-Boxes, Bottles.)
-SERV (Services) – Non-material items like consulting or maintenance (Example-Software Installation, Repairs.)
-ERSA (Spare Parts) – Replacement parts used in maintenance (Example-Machine Components.)
Que 4-) "How does SAP MM handle materials that need to be tracked by batches?
Answer:-
-SAP MM handles materials that require batch tracking through Batch Management, which enables the system to manage and track materials at the batch level. This is crucial for industries such as pharmaceuticals, chemicals, food, and manufacturing, where materials need to be monitored based on characteristics like expiry date, production date, and quality specifications.
Que 5-) What is MRP Type in SAP MM?
Answer:-
-MRP Type in SAP MM (Material Management) defines the planning method used for a material. It controls how the system calculates procurement proposals, such as purchase requisitions or planned orders. Common MRP Types include PD (Material Requirements Planning), VB (Manual Reorder Point Planning), ND (No Planning), and VV (Forecast-Based Planning). MRP Type is maintained in the Material Master (MM02) under the MRP1 tab. It determines if and how a material is planned, whether based on demand, consumption, or manual reorder points. .
Que 6-) What is types of shelf life ?
Answer:-
Shelf life refers to the duration a product remains usable, safe, or effective. There are different types of shelf life based on industry and usage:-
1-)Two types of shelf life:-
1-)Total shelf life 2-) Minimum remaining shelf life:-
1-)Manufacturing Shelf Life – Time from production until the product is no longer usable:-
2-)Storage Shelf Life – How long a product remains stable under specified storage conditions:-
3-)Expiration Date – The final date after which the product should not be used:-
4-)Best Before Date – Recommended date for optimal quality, not safety:-
5-)Retest Shelf Life – Time after which a product needs to be tested before further use, common in pharmaceuticals:-
Que 7-)What is Split Valuation in SAP MM, and why is it used?
Answer:-
Split Valuation in SAP MM allows a single material to have multiple valuation types, enabling different prices for variations like origin, quality, or batch. It is used when the same material has different costs due to factors such as procurement source (in-house vs. external), quality grades, or different batch characteristics. Split Valuation helps in accurate inventory valuation, cost control, and better procurement decisions. It is configured in SAP by defining valuation categories (e.g., batch, procurement type) and valuation types (e.g., domestic, import).
Que 7-)What are the key steps involved in the SAP MM Procurement Cycle?
Answer:-
1-)Requirement identification (Purchase Requisition - PR):-
2-)Vendor selection and Purchase Order (PO) creation:-
3-)Delivers the goods:-
4-)Goods Receipt (MIGO):-
5-)Invoice Verification (MIRO) process ensures the invoice matches the PO and goods receipt:-
6-)Payment processing is completed through the finance module (FICO):-
Que 8-)What is the function of the valuation class?
Answer:-
In SAP Valuation Class in SAP MM determines the GL account for material postings in inventory and accounting transactions. It is assigned in the Material Master (Accounting 1 View) and links materials to the correct General Ledger (GL) accounts based on material type and movement type. This helps in automatic account determination during goods receipt, invoice posting, and stock valuation. Different materials (e.g., raw materials, finished goods)
Que 9-)Describe the use of the forecast in MRP?
Answer:-
SAP ERP HANA and ECC 6.0 In MRP (Material Requirements Planning), the forecast helps predict future material demand based on past consumption patterns. It ensures accurate procurement and production planning by estimating required quantities in advance. Forecasting is primarily used in Forecast-Based Planning (MRP Type VV), where SAP generates procurement proposals based on historical data trends. This prevents stockouts and overstocking, optimizing inventory levels.Forecasts can be adjusted manually or system-driven using statistical models. During an MRP run, forecast values are considered along with current stock, open orders, and demand requirements, ensuring smooth material availability for production and sales while reducing excess inventory costs:-
Que 10-)How do you handle blocked stock in SAP MM?
Answer:-
IN SAP HANA AND ECC 6.0 MM, blocked stock refers to materials that are unusable for consumption or sales due to quality issues, inspection, or other reasons. It is managed using movement type 103 (Goods Receipt Blocked Stock) during GR for Purchase Orders and movement type 105 to release it. For direct blocking, movement type 101 with blocked stock is used. Blocked stock is not included in MRP calculations or available stock. It can be transferred to unrestricted stock Through movement type 343 after approval:-
Que 11-)Explain the term "automatic account assignment."?
Answer:-
IN SAP HANA AND ECC 6.0 MM Automatic Account Assignment in SAP MM links material movements to the correct General Ledger (G/L) accounts without manual intervention. It is configured in OBYC (Automatic Account Determination), where SAP maps valuation classes, transaction keys, and account modifiers to G/L accounts. When a material movement (e.g., goods receipt, invoice posting, stock transfer) occurs, SAP automatically determines the relevant account based on the valuation class in the Material Master and movement type:-
Que 12-)What are the key benefits of SAP MM integration with SD and PP?
Answer:-
SAP MM integration with SD (Sales & Distribution) and PP (Production Planning) ensures a seamless flow of materials and data across supply chain processes. Integration with SD enables automatic stock updates during sales, triggering procurement or production if stock is low. It ensures smooth order fulfillment by linking sales orders with material availability. Integration with PP helps in efficient material planning for production, ensuring raw materials are available when needed. This reduces production delays and optimizes inventory. Additionally, MM integration with SD and PP enhances real-time data sharing, cost control, and accurate financial postings, improving overall business efficiency:-
Que 13-)Why are pricing conditions important in SAP MM?
Answer:-
Pricing conditions in SAP MM are essential for determining the cost of materials and services in procurement. They define price components such as base price, discounts, surcharges, freight, and taxes, ensuring accurate cost calculation in purchase orders and invoices. SAP uses condition types (Example- PB00 for gross price, RA01 for discount) to structure pricing systematically. Pricing conditions help in vendor negotiations, cost control, and financial transparency by automating price determination. They also integrate with SAP FI for correct accounting postings. Properly maintained pricing conditions check consistent procurement pricing, compliance with contracts, and accurate financial reporting in the supply chain.:-
Que 14-)What is the role of stock transport orders (STO) in intercompany transfers?
Answer:-
Stock Transport Orders (STO) work a main role in intercompany stock transfers by facilitating the controlled movement of materials between two company codes within the same organization. Unlike simple stock transfers, STO involves a purchase order (PO) process, ensuring proper documentation, valuation, and financial tracking. STO enables automatic goods receipt, invoice verification, and integration with FI and SD for correct pricing and taxation.It helps maintain accurate inventory levels, transparency, and compliance with intercompany pricing regulations. STOs can be created using ME21N and processed using outbound and inbound deliveries:-
Que 15-)What are the different types of Stock Transport Orders (STO) in SAP MM?
Answer:-
1-)Intra-Company STO – Transfers stock between plants within the same company code. It involves a stock transport purchase order (PO) but does not create an invoice:-
2-)Inter-Company STO – Moves stock between plants in different company codes. It includes billing, pricing, and financial postings, integrating with SAP SD and FI:-
3-)Stock Transfer with Delivery – Uses outbound and inbound deliveries for logistics control, commonly integrating with shipping and transportation modules:-
Que 16-)What transaction codes are used for customizing material master fields?
Answer:-
1-)OMS9 – Define Field Selection for Material Master (control mandatory, optional, or hidden fields):-
2-)OMSR – Maintain Field Selection Groups (group related fields for control)-
3-)OMT3 – Configure Material Master Views (define which views appear based on material type):-
4-)SE11 – Create or modify custom fields in the material master using Data Dictionary:-
Que 17-)How do you manage long-term agreements with suppliers?
Answer:-
IN SAP HANA AND ECC 6.0 long-term agreements with suppliers are managed using outline agreements, which include contracts and scheduling agreements. A contract (ME31K) defines agreed terms and prices for a specific period but requires release orders (POs) for procurement. A scheduling agreement (ME31L) allows automatic delivery schedules without needing separate POs. These agreements ensure stable pricing, better supplier relationships, and streamlined procurement. SAP enables tracking through release documentation, validity periods, and quantity limits. Integration with MRP ensures timely order creation. Managing long-term agreements improves cost control, procurement efficiency, and supplier collaboration, reducing manual efforts and ensuring supply chain stability:-
Que 18-)What are the settings required for Quota arrangement?
Answer:-
1-)Activate Quota Arrangement – Enable it in Material Master (MM02 → MRP 1 View) by selecting "Quota arrangement usage :-
2-)Define Quota Arrangement (MEQ1) – Maintain suppliers, validity period, and assigned quota percentages :-
3-)Maintain Source List (ME01) – Ensure vendors are valid for procurement :-
4-)Assign Procurement Type – Define whether the material is procured externally or internally :-
5-)MRP Integration – The system considers quota arrangements during MRP runs for automatic order splitting :-
Que 19-)How is RTP linked to vendor master and purchase orders?
Answer:-
In SAP MM, Returnable Transport Packaging (RTP) is linked to the Vendor Master and Purchase Orders (POs) to track and manage reusable packaging materials. In the Vendor Master (XK01 / MK01), RTP materials are assigned under procurement settings. When creating a PO (ME21N), RTP materials (e.g., pallets, containers) are included as non-valuated items (Material Type: LEIH - Loan Material). These materials are received using movement type 501M (without PO) or 101 (with PO) and tracked separately. RTP is later returned to the vendor using movement type 161.
Que 1-)What is SAP MM?
Que 2-)What is a Material Master in SAP MM?
Que 3-)What is a Purchase Order (PO)?
Que 4-)What is the difference between PR and PO?
Que 5-)What is the Procurement Cycle in SAP MM?
Que 6-)What are Movement Types in SAP MM?
Que 1-)What is the Vendor Master in SAP MM?
Que 2-)What are the main components of the Vendor Master?
Que 3-)What is a Quota Arrangement?
Que 4-)What is a Material Type?
Que 5-)What is Valuation Class in Material Master?
Que 6-)What is the significance of Material Groups?
Que 1-)What is a Contract in SAP MM?
Que 2-)What is a Scheduling Agreement?
Que 3-)What is RTP (Returnable Transport Packaging) in SAP MM?
Que 4-)What is a Scheduling Agreement?
Que 5-)What is the role of Stock Transport Orders (STO) in SAP MM?
Que 1-)What is Goods Receipt (GR) and how is it posted?
Que 2-)What is Goods Issue (GI) in SAP MM?
Que 3-)What is Transfer Posting?
Que 4-)What is a Reservation in SAP MM?
Que 5-)What is a Batch in SAP MM?
Que 1-)What is Invoice Verification in SAP MM?
Que 2-)What is the role of Tax Codes in SAP MM?
Que 3-)What is the difference between GR-Based and Invoice-Based Verification?
Que 4-)How is Freight Cost handled in SAP MM?
Que 5-)What are Pricing Conditions in SAP MM?
Que 6-)What is Subcontracting in SAP MM?
Que 7-)What is the difference between Planned and Unplanned Goods Issue?
Que 8-)What is the significance of account assignment categories?
Que 9-)What is the process for creating and managing contracts in SAP MM?
Que 10-)How do you implement SAP HANA And Fiori apps for MM?
Que 11-)How do you keep up with changes and updates in SAP MM?
Que 12-)Explain the role of user roles and authorizations in SAP MM.