1. What are the types of special stocks available?  Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third party.

2. What are the types of inforecords? Standard, consignment,subcontracting & pipeline.

3. What is meant by consignment stock? The stock supplied by the vendor is in the companies premises with the company having no liability for the same.  The liability for the company will only be affected when the goods are issued from the consignment stock for use.

4. What are the steps involved in consignment cycle?  Create consignment info record with proper tax code, create Po with item category K, maintain output condition record for KONS, process GR, no invoice verification done, but settlement is done through MRKO transaction.

5. Tell me about the subcontracting cycle. The Po is created with item category L , the goods is transferred to subcontractor by 541 movemet. for this movement note no accounting docs take place.  When GR is done automatically, 543 movemnt takes place which take care of the consumption of components from stock.

6. How are the byproducts taken care of in subcontracting?  You can add these by products in the BOM for the header matl.

7. What is meant by scales?  Can scales be used in standard purchase order?   You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record,  quota arrangement.

8. What is the difference between a contract and a scheduling agreement?  With regard to Outline Agreement:  1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and every plant  2. You have to create the Release Order with reference to Outline Agreement.  3. No detailed delivery schedule can be made in the Release Order.  4. No Release documentation is created.  5. Only time-dependent conditions can be created.  6. Some Item Category 'M' and 'W' can be used.  With regard to Scheduling Agreement:  1. The Plant Location must be entered in the Scheduling Agreement.  2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List).  3. Delivery Schedule line items are created subject to your specific requirement.  4. Can create both Scheduling Agreement with and without Release Documentation (subject to

the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule.  5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement.  6. Item Category 'M' and 'W' can not be used.

9. How does the system calculate taxes? 

10. How does the system calculate nondeductible taxes?

11. What is meant by batches? How can the batches be searched? A batch is a subdivision of your stock of a material having the same characteristics.  For instance:  - food production uses batches to indicate the day of production.  - paint production uses batches based on production date and the used ingredients. It is very hard to reproduce the same color in exactly the same way at two different moments.  - ore may be divided in batches based on their mineral content. 

You can search batches using the standard search facility (match code, key F4) based on the naming convention of the batches or, if you use batch classification, based on the characteristics of the batches. 

12. How is a shelf-life item managed in SAP? What is the full cycle?

13. What are the settings required for quota arrangement?  To set up a quota arrangement for the procurement of a material, proceed as follows: Master data -> Quota arrangement -> Maintain, enter the material and plant number,  press ENTER to display the overview screen for the quota arrangement periods, Enter a validity period for quota arrangement, Enter date until which the quota arrangement is valid. The start date is calculated by the system. Press ENTER . Select the quota arrangement and choose Goto -> Item overview to display the item overview screen of the quota arrangement.  Enter a quota arrangement item for each source of supply you want to include in the quota arrangement.  You must enter the following data.  - Procurement type - Special procurement type, Enter k in the S column, for example, if a consignment arrangement for the material exists with the vendor. - Vendor number - Procurement plant (supplying plant): - Quota column, enter the quota assigned to each item.  Press ENTER .  The percentage distribution of the quotas is calculated and displayed automatically by the system. Save the quota arrangement.  The system assigns a number to the quota arrangement item automatically

14. What is meant by MRP Type and lot sizing?

15. Can it be configured in such a way that the external requisitions can  also be taken into account while MRP runs in consumption-based planning if VB is selected as MRP type? 

16. How are free items managed in a PO? yu need to tick the tem as free in the PO. The price will be zero for such PO's.

17. What are the differences between release procedure with classification and release procedure without classification? When are they used?  Release procedure with classification means the Purchase requsition can be released both at item level &  at the header level. Release procedure with out classification can also be used for PR which is used   for item level release only. all other external documents cannot be relesed  with classification. The two procedures are mutually exclusive (that is to say, you must decide in favor of one of them only - you cannot use both). 

18. Is it possible to have a release procedure without classification for a PO? No

19. What is the maximum number of levels available in SAP?  Did not get this question …pls clarify.

20. Is it possible to have scales in a quotation?  No 

21. What is GR blocked stock? When it can be used?  Whenever you are not sure about the quality of the product received, you can put in GR blocked stock. 

22. How are the variations in subcontracting taken care of in SAP? 

23. How to give specifications for developments? We normally prepare a business requirement document in which we specify what is required. what field & tables have to be referred for the required development. 

24. How to create PR or PO by MRP?  The PR is created  according to the safety stock mentioned for the material or can be triggered from a requirement . For creating a PO, you need to have the scheduling agreement in place .After the MRP is run the schedule lines are generated which a.

RE: what are the activities we will do in SAP MM module implementation?

Responsibilities of SAP MM Consultant on Implementation Project

When you assigned to SAP implementation project then scope is very vast for the MM consultant as well for other module consultants.

As in initial project planning phase your seniors will define project scope goals and the objectives along with you and team from client side. This initial preparation detail work plan will be defined by which the whole team will work. You will receive relevant training at each

phase from your seniors.

As a senior MM Consultant one should have strong business process knowledge of core materials management as well expertise on SAP MM functionalities and should be able to

handle all integration points with other modules which you are going to implement at client side.

First of all Consultant will study analyze and document the clients existing business process with clients existing legacy system and all the management reporting requirements. After the AS IS Study with checking all the SAP functionalities TO BE

document will be prepared. Gaps between client's current business process and SAP transaction functionalities are identified and documented.

With reference to TO BE Document Business blue print document will be prepared. Business blue print means the Final document or final picture of your system Configuration. It is the actual way by which you will configure and customize your clients system. Either you will

provide any AlterNet solution to the gap found in business process or you will change accordingly in SAP by technical options. You will mention this in your Business blue

print. You will mention the reports details.

At the end off all the phases you have to face with your client the word SIGN OFF. But don't bother on this term it's for the final document approval and acceptance of your client.

You will start system configuration base line configuration final configuration the phase is realization.

MM Configuration activities Enterprise structure like Plant Purchasing Organization Storage Locations and Purchasing Groups. Enterprise structure assignment.

SAP MM Component wise Configuration

PurchasingPurchase requisition

RFQPurchase Order

Outline agreements

Pricing ProcedureRelease strategy

Inventory Management Goods Receipt Goods Issue

Stock Transfer / Transfer PostingsLogistics Invoice Verification.

Final preparation

This is final preparation for the Go Live. Activities in this phase are Unit testing Integration testing End user training; Critical issues are resolved finally in this phase. Cutover

activities Master data upload in the system.

Go Live After successfully completion of above mentioned phases you will start to run your business on production system.

 

Sub-Contracting SAP Setup

How do you set up SAP for subcontracting when one of the components is also subcontracted to another vendor and is dropped shipped to the first vendor 

Latest  Answer: 1. You can order the finished form sucontractor in p.o with subcontractor item. 2. You must provide components to subcontractor, if one component have another subcontractor for this process you can order the component in p.o with

subcontracting item ...

Read Answers (2) | Asked by : ScottA

Answer Question     Subscribe 

T codes in SAP R/3

What is T CODES? What are the applications? Where it is used?Who use it?Is knowledge about it also required for SAP CONSULTANT (PP Module ) ? 

Latest  Answer: T codes are nothing but Transaction codes.Transaction code is the shortest way to reach the screen.To reach a screen we need to type Transaction code in the command field and then enter. Then you can reach the fisrt screen of  that business ...

Read Answers (2) | Asked by : ASHISH SRIVASTAVA

Answer Question     Subscribe 

What is the difference between the Stock, NLAG & UNBW Material?

Latest  Answer: NLAG:1. The quantity is posted to consumption and the consumption statistics are updated in material master record. 2. The value is posted to consumption account and account assignment is debited with costs.UNBW:1. The quantity is posted to stock and ...Read Answers (2) | Asked by : ashwin

Answer Question     Subscribe 

What is the basic qualification for SAP Implementation ?

Latest  Answer: While Implementing SAPHCM(Functional Module), One need to have good Domain knowledge, That too based on geographical location (Country). Every country

has different statuary own rules and regulations (Taxes Law, Labor Law ...Read Answers (2) | Asked by : Santoshkumar Axanti

Answer Question     Subscribe 

How do all the SAP Modules Integrate and what is your understanding of integration?What is SAP

Basis,

How do all the SAP Modules Integrate and what is your understanding of integration?What is SAP Basis, what does it involve and what are some of the usual activities?Read Answers (1) | Asked by : Nick

Answer Question     Subscribe 

What is the tool used in SAP MM support to communicate with the user for handling the tickets

Latest Answer : The tool used to prepare are as follow's1.Remedy2.

Service Desk (SD4)3.Pregrene Tool

What are the general tickets a support MM consultant get after implementing MM MODULE.

Latest Answer : tickets in a sence is problem that over come to the enduser part he

may ask you according to his and his company requriment like eg- extending material

master,view ,changing tax procedure,pricing ,maintanins source list etc...(look dont change the

standard ...

What are the difference between PM & MM modules

Latest  Answer: PM(Plant Maintenance) module deals with Maintenance of the machines(Technical Objects) and is used for planning the maintenance in regular intervals.MM(Material Management) module deals with materials to/from the ware house. ...

Read Answers (1) | Asked by : p.r. biju

Answer Question     Subscribe 

What is meant by GR/IR clearance account?

Latest  Answer: GR/IR clearing account is offsetting account of inventory posting during GR, quatity price clearing in invoice with reference to PO. ...Read Answers (2) | Asked by : venkat

What is Back Flush?

Latest Answer: Backflush means automatic GI and GR when you do a production order.It is used in Discrete and Repetitive manufacturing of Production Planning.The basic settings of Backflush are in Material MasterWork CenterRouting(component Allocation)Backflush is used ...

What is integration in SAP?

Latest Answer: MM-SD INEGRATION:-1.Third party

processing2.S.T.O with deliver type NL and NLCCMM-FI

INTEGRATION:-Main mm-fi integration screen is OBYC   here we have to link the movement types with G/L accounts     ...

What are the Testing Tools we use to test the SAP data?

Latest Answer: Testing in SAP is usually done by use of test scripts. These are sequences of instructions which follow business processes. They can be used by configuration, support and end users. New configuration in SAP is usually done in a Development client. After ...

Is it possible to create PO with zero value? How would you create ?

Latest Answer: Yes, it is possible by setting the 'free of charge' indicator in the item overview screen. It is done to monitor the delivery dates of the material. ...

at is the difference between configuration & customization?

Latest Answer: CUSTOMIZATION is what using the SAP preconfigured functionality and enabling transactions to work.CONFIGURATION is what designing new functionality out of SAP configured transactions. ...

What is the difference between updated project and end to end project. please

explain

Latest Answer: Some organisations select to implement SAP module by module, thus gets updated as per their convenience / schedule. This is called as updated project. Some organisations simply plan all integrated functional modules and decide to go-live with all functional ...

How to integrate MM With Fico?

Latest Answer: The MM->Fi interface depends mainly on two things which are valuation class that we assign to material at the time of creating it and movement type like inventory posting(BSX), gr/ir clearing(WRX) or inventory offsetting(GBB). The 3digit codes mentioned ...

How the Price determination process works in sap-mm?

Latest Answer: System will search first calculation schema with the combination of schema group for vendor and schema group for purchase organization. Search for condition recorded belongs to condition types listed in the calculation schema. System will search condition ...

What are the cutover activities performed infinal preparartion phase ?

Latest Answer: Cutover is the period in which the team gets the productive system ready to go-live.For the security team, the tasks will be to verify all the authorisations and custom changes are in place and creation and updating of user in the production system. ...

RE: what are the documents needed during SAP MM implementation and what

are the tools needed to prepare business blue print.

First the Higher Level Executives meet the Client and they discuss all the terms and conditions

Then all the module consultants Prepare AS IS - TO BE and Present it to the client for further recommendation simunataneoulsy GAP Analysis is also done

Then quality inspection is done where in they check all funtions are working perfectly

Then it enters into a production server.What are document type controls used ?

Latest Answer: Document type controls the Docement header and it is used1. To classify Accounting DocumentsFor Example  Whether it is Vendor Document, Customer Document or G/L Document etc...2. To Distinguish between Business TransactionsFor Example Whether it is ...

In the MM module for finding out the standard cost what is the view one has to look

at?

Latest Answer: You can also know the std rate through Transaction Code MB51. In the said screen give Material Nos,Plant,  Mvt Type, Dates. Execute. Go the Vareint and select the std rate and execute. You will get all the material Std Rate Or Transaction Code MM60Madhu ...

What are the important segments in vendor master?

There are four segments mainly used they are 1. Header data

2. Company code data3. Purchase data

4. Tax and Bank dataMaster Data

Master data is central level data in SAP. Which is stores the long term information which information can be accessed to

perform multiple transactions in SAP.

In SAP every functional module has its own master data.

Functional Modules like:-

1. Financial Accounting

2. Materials Management

3. Production Planning

4. Sales and distribution

5. Quality management

What is the meaning of above used term central level data -

For example - MATERIAL MASTER DATA in SAP MM.

Material master data is used by the several departments in a company.

Purchase and stores department use master data for procurement purpose and Inventory management purpose.

Production department use the same data for the processing of it.

Accounting department use the same material master to process vendor payables

and inventory valuations.

All these can use or access the centrally maintained Single data.

If we will go depth

Departmental requirement wise material master data is maintained in the material master views selection.

Module wise master data

Material Management

MATERIAL MASTER

VENDOR MASTER

PURCHASING INFO RECORD

SOURCE LIST

Production planning Master data

BILL OF MATERIAL

WORK CENTER / RESOURCE

ROUTING / TASK LIST / MASTER RECIPE

PRODUCTION RESOURCE TOOLS MASTER

Financial Accounting Master data

G/L MASTER DATA

ASSET MASTER DATA

BANK MASTER

Can we change the name of the Vendor in a PO released on another Vendor?A: NO. You may create another PO on the vendor required by referencing any PO

Can we release a Purchase Order with price equals zero? ( like in SD- free of charge sales Order)A: Create the PO with IR field un-ticked in Item Detail screen and change the line item price to 0.

How can I extend all material to a new plant?A: The SAP program - RMDATIND is used to create /update material master record.  Q: How can we delete materials permanently from Material master?A: Use transaction MM70 - Material Master->Other->Reorganization->Material->Choose.Build variant with selection range of material master records to be selected for deletion and maintain run parameters. Execute.Use transaction MM71 - Material Master-> other-> Reorganization->Material->ReorganizationBuild a second variantMaintain run parameters and execute.It is also important to remove the records manually from info record, POs, PRs, reservation etc for successful deletion of the mater

Price Control V or S in material type

When is it useful to use the price control V or S in Material Master ?  Do I have to follow the SAP standard setting in the material type for the following material types: - ROH(Raw materials) -> moving average price - HALB(Semifinished products) -> standard price - FERT(Finished products) -> standard price In which case and why is useful to change these standard setting in material type? What is difference between standard price and moving average price?  When and how to use it?

Standard price are used for products that do not fluctuated frequently.  It is usually used for finished or semi finished products.

Moving average price are used mainly for raw materials that are purchased externally.  The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.

SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices. SAP recommends:  Price control V for raw materials and trading goods; price control S for semi-finished products and products.

If you nevertheless select price control V, take care in the following situations:

1. Unrealistic prices occur if materials are produced and also retire during one period (that is, the inventory at the end of the period is smaller than the total of aquisitions from production orders) and if, in addition, several production orders belonging to a material were finished in this period, and the production order settlement calculates variances at the end of the period. Every single production order carries out an inventory coverage check and may therefore cause the moving average price to be changed. However, the individual production orders do not check whether the inventory available at the end of the period has already been debited by another production order. 

Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the warehouse. Since an activity price of a participating cost center was higher than planned , every single production order calculates cost of goods manufactured of USD 1100 during the settlement. Every single one carries out a inventory coverage check and finds out that the variance can be posted completely to the inventory. That is, the ending inventory of one piece is debited with USD 20 x 100 and it consequently receives a price of USD 3000. 

1. A settlement is carried out although not all costs have yet been posted to the order. This can even result in a price of 0 for the delivered product. 2. No period check of the costs is carried out on the order, that is, costs from previous periods may be settled. 3. Settling orders is already possible in the 'Delivery completed' status.

Solution: Standard price for products together with possible manual price changes. If you are required to valuate semi-finished and finished products with actual prices that correspond to the costs of the actual production, SAP recommends you use the function of the material ledger for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than the moving average price. A so-called price limiter quantity is used which makes sure that in the above example price differences are proportionally taken into account (95% of the total price differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the variances of the actual prices of the raw materials in the valuation of the semi-finished and finished products that are manufactured from it. 

If we select std price for any type of material or mav and then make po, it will pick from material master or what?

The Purchase Info Record have the FIRST priority.  When no po info record is found, the Purchase Order will pick the user LAST enter price.  The PO module do not pick up any price from material master.

Adding Views in Material Master

There are 2 ways to add views to the existing material master:

1. Go to mm01 - Enter the material for which you want to add the views. - Then you enter the same material in copy from material - Then you may find all the view

- Then select the views you want to add and make entries in the same view and save it All this is done in mm01.

or

You can mass extend views for a material in tcode mm50. Select the maintenance status as V for e.g. if you want to add views of sales.

2. If the default setting is done in the material of the material type then you may not find the new views in mm01 If that is the case, then you go to spro >> log general >> mat master >> basic sett >> material types >> define attributes of materisl types. - Select material type of the material in which you want to make the change - Double click on the same, then on right hand side, you will find user parameters under which you will find the views - Select the view you want and save your settings - Then go to mm01 and do the way it is mentioned in the first step.

Why we are maintaining 4 views for mrp? What is the reason behind that?

The 4 MRP views that we maintain has got its individual importance like in - MRP1 - For for consumption based planning - MRP2 - Procurement type (inhouse or external) - MRP3 - For Planning strategy & consumption period

  Re: In release procedure in purchase requisation,i have two strategies in p.r, SRATEGY 1:P.R value is 0-10000, STRTEGY 2:P.R value is 9000-20000. if your P.R value is 9500 which srategy is taken in P.R.

Answer# 1

ANS: STATEGY 1RESON: clasification system will search release strategy with charecteristic values, then find the srategys, if first strategy is satisfied then assigned to P.R,if it is not satisfied then system will go STRATEGY 2. 

ANS : If the release value is in between the strategy itwill release directly without any approval 

Re: who we configure material master

Answer# 2

MM Consultant who is assigned for the particular project will confiqure the Material Master in realtime.

  Re: How are the variations in subcontracting taken care of in SAP?

Answer# 1

in business process for making HALF OR FERT some times we will do subcontracting outside the vendor for several reasons.

1.first we have to check the raw material. if not sufficient we have to make the po for raw material2. once we received the goods (GR) we have to make the po for sub contracting with item category L. in this po you have explore the BOM or manualley enter the raw material.2.stock trasfer to vendor (541) for making HALF AND FERT.3.check the stock at contractor place ( MBLB)4.THEN GOODS RECEIPT (GR) MOV TYPE 101 WITH PO ITEM CATEGORY L.

then check the stock with MMBE

# 2

sub contracting process is very simple when we are puchasing materials from vendor . materials is converted in to frosted like new bottle convertd into frosted that type of contracting is also called as sub contracting.

this process some times variation dependent on supplier because supplier some time exemption from tax that time variation was arrising

Re: If there is any specific purchase organization for Stock transport order how do you link with PO? I mean is there any Link b/w PO docuement type and P.org, if its there how?

Answer# 1

WE CAN ASSIGN THE P.O. IN CONECTION WITH VENDOR ONLY. perticular purchase org. can be linked with the vendor through asigning that purchase org. to the vendor

No linkage between the purchase orginzation and document type of PO. Purc org always assign with plant/comp code. Futher system allow to use those purch org for which we have created the vendor.

Re: How to inventory excise duty in SAP?

Answer# 1

If we want to inventorise the excise duty in SAP, include all the taxes to the basic price and create the PO and with the relevant tax codes without any taxes getting picked.

Then take the GR, and check for the Accounting document and do the IR.

Create two tax codes

T1 and T2

T1 with all the excise duties

T2 without any excise duties. Then create a PO and do GR and check for the Accounting documents

Inventorising Excise duty there are Condition types are available in Tax procedure.We have to use That condition type only.

Example in Taxinn JMIP is Inventorise BED.

If we want to inventorise the excise duty in SAP, include all the taxes to the basic price and create the PO and with the relevant tax codes without any taxes getting picked.

Then take the GR, and check for the Accounting document and do the IR.

Re: what is the importance of purchase group in purchasing ? Is it assigned in Org. Structure?

Answer# 3

Purchasing Group is a group of buyer which are allowed to buy certain type/class of material. Surly you need not to assigne this to any Company Code/Pur. Org

 

Re: Is it possible to have a release procedure without classification for a PO?

Answer# 2

no,it is not possible.release procedure without classification is only possible for pr

  Re: I have two plants one is in india and another one is uk,both plants are have same vendor,and same purchase organisation.you can maintain different caleculation schema for both plants?

Answer# 1

you can maintain the different schema group for vendor in vendor master record for both plant purchasing data,then you can maintain different calrculation schema  Re: If there is any specific purchase organization for Stock transport order how do you link with PO? I mean is there any Link b/w PO docuement type and P.org, if its there how?

Answer# 2

No linkage between the purchase orginzation and document type of PO. Purc org always assign with plant/comp code. Futher system allow to use those purch org for which we have created the vendor.

QuestionIn subcontracting Process once materials is delivered by vendor and if the material has to be sent back to vendor whatis the Procedure? If the company is in bangalore and vendor in Mumbai what are the documents needed for return?

Answer# 1

Dear sir,

In this case can you create a new GI with T-code MB1b

Mvt type 541 for that vendor

  Re: Can anyone explain third party rocurement process?

Answer# 1

Third Party Procurement.In this we required Customer, supplier inspite of all std data.we order the supplier to send material but not to our premises. the supplier should send it directly to customer.while creating purchase order we have to give customer and subcontracting check box ticked in the delivery tab and also use proper item category

  Re: Q. How do you plan for a vendor rating system and move about?

Answer# 1

There are several point , firstly whether the vendor is ISO certified or TS certified , vendor assessment , rejection trend analysis in a month, debit trend analysis in a month,On time delivery analysis , dependence on local transport, Documentations maintained, Yearly discounts on bulk quantity orders etc.A chart is prepared for all these activities in horizontals and in verticals the vendors names are written and then the rating is done on a 6 point scale or 1 point scale.

  Re: how to define and assign standard purchasing organisation

Answer# 1

you can define std purchase organisation in IMG-Enterprise-definition-MM-define purchase organisation.you can assign purchase organisation in IMG-enterprise-assignment-material management-assign std purchase organisation to plants.

Re: What are the fields in Purchasing view?

Answer# 1

In the general data, purchasing group, plant specific material status, autom.PO, batch management are some of the fields. Ofcourse, base unit of measure, irder unit, material group are displayed from the basic data.In purchasing values, purchasing value key is a field.In other data, Quota arrangement, source list are some of the fields.

why split valuation is only used along with the moving average price? why standard price is not used ? reasons?