1. What is a Purchase Requisition in SAP MM?
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A Purchase Requisition is an internal request created when a business department requires materials or services. It captures requirement details and can follow an approval process before purchasing converts it into a suitable procurement document.
2. How is a Purchase Order created in SAP MM?
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A Purchase Order is created to formally communicate a procurement requirement to a supplier. It includes material or service details, quantities, prices, delivery dates, conditions, and supplier information required for purchasing.
3. What is a Material Master in SAP MM?
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The Material Master maintains essential information about materials used throughout procurement and inventory processes. It can contain descriptions, units, purchasing data, storage information, valuation details, and organisational information.
4. What is a Goods Receipt in SAP MM?
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Goods Receipt records the arrival of purchased materials into the organisation. When posted against a purchase order, SAP updates the relevant stock information and creates a material document for the recorded movement.
5. What is Invoice Verification in SAP MM?
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Invoice Verification records supplier invoices and checks them against purchasing and goods receipt information. This process helps identify differences in quantities, prices, or other procurement details before payment processing.
6. What is a Purchasing Organization?
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A Purchasing Organization represents the organisational unit responsible for negotiating procurement conditions and purchasing materials or services from suppliers. It plays a key role in managing procurement activities within SAP MM.
7. What is a Purchasing Group?
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A Purchasing Group identifies an individual buyer or team responsible for specific purchasing activities. It helps organisations assign procurement responsibilities and monitor purchasing operations efficiently.
8. How would you troubleshoot an incorrect vendor price?
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Review the purchase order conditions, purchasing information record, vendor data, quantity, validity dates, pricing conditions, and relevant master data. The findings can then be used to correct the purchasing document appropriately.
9. What is Automatic Account Determination?
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Automatic Account Determination helps SAP identify the appropriate financial accounts for material-related transactions. It connects inventory valuation activities with accounting postings according to configured organisational rules.
10. Why is accurate master data important in SAP MM?
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Reliable master data supports accurate purchasing, inventory management, valuation, supplier processing, and reporting. Maintaining consistent information also reduces transaction errors and improves overall procurement efficiency.