Capgemini Sap MM Interview Questions and Answers

Capgemini is a leading global SAP MM partner and their technology is deeply rooted here. The company recognizes SAP MM as one of the most powerful tools for enabling superior business performance, and this is reflected in everything.  If you join the company, you will be involved in a number of exciting global SAP projects in all kinds of industries and in every major business discipline – and you will always be focused on business results.

Capgemini Sap Mm Interview Questions and Answers

If you opt for SAP MM career then you need to clear sap mm interview to secure a position in a reputed company. But if you get a collection of sap mm interview questions then you can pass the sap mm interview no matter if you are a beginner or an expert.

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SAP MM Interview Questions For Freshers

1. What is SAP MM?

MM is a functional module in SAP. MM stands for Material Management, which deals with purchasing and managing materials. It has master data, material valuation, invoice verification, material requirement planning, etc.

2. How can the SAP MM or Material Management module be used?

SAP MM is the backbone of the logistics industry, which includes modules such as sales and distribution, project management, plant maintenance, production planning and material management.

The MM module supports all aspects of material management, such as control, planning, and the like. The MM module helps in managing the purchasing activity of the company.

3. What are some common assignment types in the SAP Material Management system?

• Purchasing organization according to the company code
• Standard purchasing organization for the plant
• Company plant code
• Purchasing organization for the plant

4. What are the necessary components of SAP material management?

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

5. What is internal procurement?

There are different businesses in large organizations. The internal purchasing process collects requirements for materials and services from a single company. However, each identical company must maintain a more complex accounting system as well as separate profit and loss statements and balance sheets.

6. What is external procurement?

Outsourcing occurs when products or services are purchased from third-party suppliers. It occurs in three basic forms:

• One-off orders: These are goods that are requested irregularly.
• Longer term contracts: This term refers to materials that are regularly ordered in large quantities.
• Longer term planning contracts: This term refers to material ordered regularly and in large quantities.

7. What exactly is Special Procurement?

In SAP MM, special purchasing applies to inventory that does not belong to the company. These are kept in different places.

8. Which type of document is a purchase requisition, internal, or external document?

A purchase requisition is an internal document used within a company to request the purchase of goods or services. It is not intended for external parties, but for internal processes.

9. Explain in detail the order of purchase?

A purchase order (PO) is a legal document that a buyer creates and sends to a seller to confirm their intention to purchase goods and/or services. It specifies the number and type of items needed, as well as payment terms and delivery details.

10. How is a receipt posted?

The confirmation is posted in SAP by entering the necessary transaction details such as vendor, invoice number and amount in the appropriate module (for example FI or MM). The system verifies data and updates relevant accounts, ensuring accurate financial record keeping.

11. What is CBP?

CBP stands for  Cross-Border Planning and refers to the entire international procurement and logistics administration. It includes navigating customs procedures, dealing with customs and taxes, and meeting cross-border trade obligations. CBP that effectively supports seamless operations and reduces risk in global supply chain activities.

12. What are the various Procurement types that can be used to create Purchase requisitions in SAP MM?

A purchase requisition is issued for the following types of orders:

• Inventory Transfer: The movement of materials within an organization.
• Subcontracting involves sending the raw material to the seller and receiving the finished material in return.
• Getting the finished material back from the seller is standard.
• Outsourced Service: Obtaining services, such as maintenance, from third-party vendors.
• Consignment: Payment to the seller for the procurement of material at the company’s premises.

.13. Describe the various types of stocks.

There are three different kinds of stocks;

• Valuated Stock
• Non-valuated stock
• Special Stock

1.Valuated Stock:- valuable inventory is that which is held on site and has values ​​recorded in the books of accounts of the company. There are three types of prized supplies, each of which can be moved using a specific movement type. Each sub-type of Appreciated Shares is defined below.

2.Unrestricted Stock: Unlimited supplies are supplies that can be used immediately and are always available for use on the premises.

3.Quality Inspection Stock: Delivered material that is retained for quality inspection is referred to as quality inspection stock. It is not considered unrestricted and cannot be used freely.

4.Blocked Stock:In SAP, if the material is rejected due to low quality, it is moved to the blocked warehouse. This can also happen during production if there are any discrepancies with stock.

Non-valuated stock:- No accounting entry is made for the purchase of invaluable inventory. Although these types of SAP shares are on the company premises, they are not yet owned by the company. If the seller sends visibly damaged goods upon receipt, they are returned to the seller and not processed into inventory. In this case, the goods are received into blocked stocks without an accounting entry.

Special Stock: SAP special stock types have a different purchase method than the standard purchase and payment process. The following are the different types of special supplies:

1. Subcontracting is a special procurement method where a company chooses to outsource its work to a contractor. The company sends the raw material to the vendor for specific production processes and receives the finished material back.
2. Consignment: The seller provides the goods and stores them in the company’s warehouse during the shipment process. The seller is still the owner of the goods, and the company becomes the owner only when it takes the goods from the consignment warehouse for its own use. The company pays the seller only when the goods stored in the company’s warehouse are consumed.
3. Stock Transport Order (STO): The Stock Transfer Order (STO) process refers to a special stock process in which plant stock is transferred between the supplying and receiving plants using the same company code.
4. Third-Party Processing: Third-party processing occurs when a customer places an order with a company, which is then routed to a third-party supplier for processing. The third-party seller delivers the goods to the end customer directly, but invoicing is handled by an intermediary company.
5. Returnable Transport Packaging (RTP): This is a special purchasing process where goods can be repeatedly exchanged between sellers and customers. It is possible to do so using packaging media such as pallets and containers. Returnable transport packaging is kept as a special warehouse owned by the supplier. It is received by the company with movement type 501M and the material is not included in the customer’s valued inventory.
6. PipelineHandling: Pipeline handling is used when a company obtains materials such as water, oil, or electricity through pipelines. In this special warehouse process, it is not necessary to store the ordered material. In case of demand, the material is ordered and the goods are delivered via movement type 201P. Subsequently, the settlement with the seller is handled using the MRKO transaction code.

14. What are the different info record types in SAP MM?

There are three main types of information records in SAP MM: Standard, Subcontracts and Shipments. These records help to effectively manage purchasing and supply chain information.

15. What is consignment stock?

Consignment inventory is materials that are still available in the store but belong to the owner or seller. Buyer must pay for consignment stock as it is used.

16. What is a Purchase Order?

The buyer sends the order to their shipper to complete the requirements. Instead of material names and quantities, the purchase order contains valuable information such as the purchasing company details with company code, material name, corresponding plant and material delivery date.

17. What is an RFQ?

The abbreviation RFQ stands for Request for Quotation. An RGQ is an invitation to sellers to submit offers that include prices and terms. The RFQ also includes the delivery date, goods and services, quantity and shipment date.

18. What is material requirement planning (MRP)?

Material Requirements Planning, or MRP, is a SAP ERP (Enterprise Resource Planning) module. It is a planning tool that assists purchasing and production planners in creating realistic and actionable plans that enable a quick start to purchasing and production processes.

19. What is consumption-based planning (CBP)?

Consumption-based planning, or CBP, is based on past consumption values. Forecasting is used to determine future requirements. These CBP processes are not dependent on the master production plan. It is activated when the stock falls below a certain order point, or a forecast needs to be calculated using past consumption values.

20. How do you tell the difference between MRP and CBP?

21. What is the difference between production orders and purchase orders?

Production order: Specifies which materials must be prepared, at what time and place, and in what quantity. It also specifies the components and sequence of operations that must be used. Furthermore, concerns about ordering costs need to be addressed.

Purchase order: An order is issued by a retailer or factory to supply a specific quantity of products and services at a specific time and place.

22. How does SAP MM utilize its main master files?

SAP MM (Materials Management) uses its master master files to efficiently manage materials. These files contain basic data such as item descriptions, suppliers and prices. By accessing this information, SAP MM simplifies purchasing, inventory management and pricing processes, ensuring that businesses can manage materials efficiently and economically.

23. What is the Master production schedule (MSP)?

MSP is used to plan individual commodities that need to be continuously produced, such as production, inventory, staffing, and so on. It refers to production, where the schedule determines how much and when each product will be needed.

24. Could you please explain the process of linking a document to a vendor master record?

Linking a document to a supplier master record involves associating specific documents (e.g. invoices, contracts) with supplier information in a business or accounting system.
First, open the vendor profile, then select and upload the document. Enter document details such as type and date and save the attachment. The document is now linked to the vendor master record, allowing for easy retrieval when needed. This organized approach simplifies record keeping, improves data availability and streamlines transaction controls with suppliers. It is important to ensure secure access and regularly manage linked documents for effective supplier management and compliance.

25. What is the difference between stock procurement and consumption procurement?

Procurement for Stock: This refers to the storage of material on hand. Once received from the seller, the material is stored in it. The quantity of stock material depends on the material’s demand. We keep the master record in the system to record all information about the stock.

Procurement for Direct Consumption: When a material is stored and then used or consumed, this is referred to as procurement for direct consumption. A master record is kept within the system before ordering material for consumption.

26. What is invoice processing?

A company’s account payable department uses it to manage supplier invoices. Invoice processing begins when an invoice is accepted and ends when it is cleared and is recorded in the general ledger.

27. What is a purchase requisition?

It is a primary document used to launch a product or purchase supplies. It is a component of the accounting method. This document provides the buyer with information about the purchases and identifies the business requirements.

28. What is the difference between a goods receipt and a post goods receipt?

Goods receipt occurs when the physical inbound transfer of material and goods into the warehouse occurs. It includes the transfer of goods received from in-plant production or external vendors. The issuance of goods receipts always increases warehouse stock.

A post-goods receipt is when the receipt of goods is posted concerning the purchase order with which products or goods were ordered. When the material for a purchase order is sent, all departments must enter the system references.

29. What is SAP Material Master? How can it be kept in the SAP system?

A material master has information on various materials, such as raw materials and finished products. It is used for product identification, goods issue, receipt, purchase material, production confirmation, and MRP.

Material data is stored in a single database object to avoid redundancy. The material should be created only once in the system and given a unique number.

Depending on the views maintained, a material receives an automatic maintenance status. When you want to use a material in a process, the system checks to see if it has the required maintenance status—that is, if the required views have been maintained.

30. How does a company’s Posting Period work?

A company’s posting period is used to define five fields, including;

1. Keep the Fiscal Year Variant
2. Define Open Posting Period Variants
3. Posting Periods (Open and Closed)
4. Assign the Variant to the Company Code
5. Assign the Fiscal Year Variant to the Company Code

31. What is a contract in SAP MM?

A contract in SAP MM is a long-term agreement between the seller and the ordering party for predefined material for a specific framework. Contracts are classified into two types.

Quantity Contract: The entire value of a quality contract is stated in terms of the quantity required to be supplied by the seller.

A value contract specifies the total amount that the vendor must pay. When the company supplies the agreed total value of material against the contract, the contract is considered fulfilled.

32. What is the purpose of the batch record?

A batch is used to determine the quality of a specific product that must be processed or produced simultaneously. It should be noted that the material produced in such a batch must have the same characteristics and values. Furthermore, the batch record ensures that information about a specific batch product is available. It also helps in determining whether or not the product has gone through the Good Manufacturing Process (GMP).

33. What is the distinction between the terms RFQ, RFI, and RFP in SAP MM?

34. What do you mean by “Outline agreement”?

An outline agreement is a long-term purchase agreement. It is made with the seller with terms and conditions about the goods or material that the seller is required to send. This agreement is only valid for a limited time and covers a predefined quantity or value.

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35. How can you identify the crucial fields within the purchasing view in SAP MM?

To spot important details in SAP MM’s purchasing view:

• Look for item descriptions.
• Check quantities.
• Review prices.
• Verify supplier info.
• Inspect delivery dates.

36. In SAP MM, how is a purchase requisition created and released?

A purchase requisition is created using T-code ME51N as part of this process:

• First, the ME51N transaction is executed.
• Then, create a purchase requisition document of the following type: NB.
• Now choose the source: OFF or ON.
• Enter the heater note, material number, UoM, quantity, and storage location.
• The vendor is then determined automatically through source determination.
• Now enter the tracking number and valuation prices before saving the transaction data.

37. How can you provide a detailed explanation of the various steps involved in the Procurement Lifecycle?

Here’s a simplified explanation of the Procurement Lifecycle:

• Planning: First, plan what to buy and set a budget.
• Sourcing: Then, you find suppliers who can provide what you need.
• Selecting: You choose the best supplier based on cost and quality.
• Ordering: Next, you place an order with the chosen supplier.
• Receiving: When the goods arrive, you confirm they’re what you ordered.
• Paying: Finally, you pay the supplier for the delivered goods or services.

38. What is RTP?

RTP stands for returnable transport packaging. It is a multi-trip packaging medium in which goods or products are transported between customers and retailers more than once.

39. What steps are involved in the RFQ process?

To process an RFQ, several steps are taken:

• Enter the t-code (transaction code) ME41 first, followed by the RFQ type ‘AN.’
• After that, make a note of the location and the late date when the seller submits the quotation. Enter the purchasing group, delivery date, and other details, and click the button.
• Following that, you will see a new screen where you must enter the item codes. Now enter the item codes as well as the vendor’s information.
• Furthermore, additional requests can be made based on vendor information.

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