Top 11 SAP MM Interview Questions and Answers to Prepare For
October 25, 2022 • 5 min read
SAP Materials Management (SAP MM) is a module or part of an ERP Central Component that lets organizations manage their warehouses, inventory, and materials more efficiently. These systems are game-changers for large corporate environments and help companies manage their stocks better. Their primary function is to keep managers aware of material quantities to reduce supply chain shortages.
If you want a job in SAP Materials Management and secured an interview, congratulations! These interviews involve many technical terms that hiring managers will ask about to gauge your knowledge. We compiled a list of the top 11 most frequent SAP MM interview questions with pointers on how to best respond to each.
This opening question allows the hiring manager to determine what drives you and how you got into the field. It also allows them to gauge how invested you are in finding solutions for common - and uncommon - issues that may arise in supply chain management.
You can expand on your love for detail-oriented work and how human power and software manage problems seamlessly.
SAP MM is an invaluable part of operations nowadays. It helps you understand what needs improvement in individual company warehouse and material management functions. Because not everyone knows that the SAP MM module exists, you can explain how inventory management systems improve workflows and manage bottlenecks in one fell swoop.
This question gauges your overall understanding of SAP MM. You can approach this answer by breaking down these features into four short responses:
- SAP MM is a module that helps companies manage their inventories and materials
- The process enables companies to prevent material and stock shortages by reducing or eliminating gaps in the supply chain process
- When used correctly, SAP MM increases productivity and lowers the cost
- It includes tools like Procurement Processes, Inventory Management, and Material Requirement Planning.
SAP is the acronym for Systems, Applications, and Processing Data. It merges multiple business tasks and moves data between processes for faster and easier access. Overall, companies use these features to accurately improve their workflow and manage their inventory.
The components of SAP ECC are logistics functions executed through transactions. Inventory, Purchasing, Material Resource Planning and Master Data are the most frequently used.
Depending on the question, you can keep the answer as is or expand on each category by dissecting the subcategories.
Organizational structures in MM modules are “ladders” that organize independent units according to their function. For example, customers are the first unit with unique record systems and table sets. The second unit is the company code, a smaller segment. The third is the plan that involves supplies, goods, and services. Then comes storage type, purchase organization, and group purchasing.
You can receive orders in the SAP system using a Purchase Order or Stock Transport Order issued by the purchasing department. Purchase orders are necessary for monitoring and managing inventory. It is a list that includes elements such as the name and quantity of materials, details of the purchasing company, and the company code, along with a date for delivery.
This question aims to gauge your understanding of how SAP MM can help a company through its processes and different systems. You can mention multiple benefits, such as:
- Some advantages of SAP MM systems are that they can reduce material costs by limiting the amount of unnecessary stocking
- We can minimize inventory losses by using the multi-location inventory options of the SAP MM
- We can reduce labor costs due to more efficient management of inventory
- Increases accountability and traceability through lots and serial numbers
- allows companies to maintain inventory replenishment seamlessly
- Provides efficient product life cycle management
- Improve overall processes in the organization and reduces the risk of inventory and material shortages
A good receipt is the physical transfer of goods or materials to the warehouse. This receipt pinpoints when goods are transferred and received from vendors. The result is an increase in warehouse stock and more efficient management processes. As for the postcode receipt, it specifies the reference to the purchase order.
Yes, three different stocks exist in SAP MM:
- Valuated stock
- Non-valuated stock
- Special stock
Valuated and Special Stock segment into different parts. For example, valuated stock includes unrestricted, blocked, and quality inspection stock. Special Stock has some classifications, such as subcontracting, consignment, pipeline handling, third-party processing, and stock transport orders.
Consignment stocks mean stock materials stored in a consignee’s location belonging to the owner or seller. Once these stocks move from storage, the buyer must then pay for them. Payment is unnecessary if the buyer doesn’t want to use this stock.
Consignment stocks benefit both buyers and sellers. Primarily, it helps establish a long-term, healthy business relationship between both parties. It also renders goods immediately available, preventing shortages and supply lags.
Yes, there are four different record types in SAP MM. They are:
- Standard: This record contains essential information on standard purchase orders without a master record.
- Consignment: This information record contains information about materials that vendors keep inside the company at their own cost.
- Pipeline: This record has information about commodities supplied through pipes, like water or oil.
- Subcontracting: This record contains data on subcontract orders, including assembly prices.
Most major corporations have separate businesses and companies. The internal procurement process exchanges materials and services between identical companies. Although each of these companies has a different bookkeeping system and balances, when trades happen between them, the system records them.
Vendor Evaluation allows you to access Materials Management, Logistics, and Inventory data. SAP MM assigns a score to each vendor, between 1 and 100. The score factors several criteria per vendor, the most critical being delivery, quality, price, and service.
Now that you are ready to tackle the most common SAP MM interview questions make sure your resume stays relevant, updated, and polished. You should constantly update your CV if you want to seek another opportunity and limit wasted time.
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