Top 11 SAP MM Interview Questions and Answers to Prepare For

Brandi Glass
October 25, 20225 min read
Warehouse Aisle

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.

What Sparked Your Interest in SAP MM Consultancy?

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.

What Are the Features of SAP MM and How Does it Help Companies?

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.

What Are the Most Frequently Used Components of SAP ECC?

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.

Can You Explain the Organizational Structure of the MM Module?

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.

How Do You Receive Goods on the SAP MM System?

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.

Can You List Some Advantages of the SAP MM System?

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

What is the Difference Between Goods Receipts and Postcode Receipts?

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.

Are different types of stocks Used in SAP MM?

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.

What are consignment stocks used for, and what are their advantages?

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.

Are There Different Information Record Types in SAP MM?

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.

What is Internal Procurement?

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.

What is Vendor Evaluation, and How Can You Determine Which Vendor to Use?

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.

How to Apply to an SAP MM Job?

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.

You may want to apply to multiple positions in case your interview doesn’t work out. The best way to do so is to create a customized CV with the correct information and format to pass through Applicant Tracking Systems without hassles.

Rocket Resume is your one-stop solution for crafting the best SAP MM resume. You don’t have to spend hours looking for the perfect template – all you need to do is input the information, and you have a resume in minutes.

The website is easy to use and doesn’t bombard you with information, making choosing a resume template an easy and enjoyable endeavor.

Are you ready to create a solid SAP MM Consultant resume and ace your interview? Start with Rocket Resume today and sign up for a $20 discount on your first order.