1. What are the main stages of the procure-to-pay cycle?
Ans:
The procure-to-pay cycle typically includes requirement identification, purchase requisition, supplier selection, purchase order creation, goods or service receipt, invoice verification, and payment processing. SAP MM manages key purchasing and receipt activities, while financial processes support invoice accounting and supplier payments.
2. How do you manage procurement for consumable materials?
Ans:
Consumable procurement generally involves creating a purchasing document with the appropriate account assignment, such as a cost centre, asset, or project. The selected account assignment determines where the expenditure is charged. The process must follow the organisation's approval, receipt, and invoice verification requirements.
3. What is the difference between valuated and non-valuated goods receipt?
Ans:
A valuated goods receipt creates the relevant inventory and accounting impact when the receipt is posted. A non-valuated goods receipt records the receipt without immediately creating the same inventory value posting. The applicable behaviour depends on the purchasing document, item category, and system configuration.
4. How does SAP handle purchase requisitions created by MRP?
Ans:
Material Requirements Planning evaluates planning data, stock levels, and demand to determine replenishment requirements. Depending on configuration and planning settings, SAP can generate purchase requisitions or other procurement proposals. Purchasing teams review the proposals and continue with source determination and order processing.
5. What is the purpose of quota arrangement in procurement?
Ans:
A quota arrangement distributes material requirements among multiple sources of supply according to maintained allocation rules. It can help organisations balance purchasing volumes across approved suppliers. Correct quota settings and valid source information are important for reliable source determination.
6. How would you investigate a blocked supplier invoice?
Ans:
Review the invoice status and identify whether the block resulted from quantity differences, price variances, missing receipts, or configured tolerance limits. Compare the invoice with its purchase order and goods receipt records. Resolve discrepancies through the appropriate business process before releasing the invoice for further processing.
7. What is the role of purchasing organisation assignments?
Ans:
Purchasing organisation assignments determine how procurement responsibilities are structured across plants and company codes. They support the applicable purchasing model, supplier agreements, and procurement reporting. Correct assignments help ensure that purchasing documents use the intended organisational data.
8. How can obsolete materials be identified and controlled?
Ans:
Review stock reports, consumption history, planning information, and material master settings to identify materials with little or no usage. Coordinate with planning, purchasing, and warehouse teams before changing procurement or planning parameters. Any discontinuation or deletion-related action must follow master data governance and stock clearance procedures.
9. What is the significance of GR/IR reconciliation?
Ans:
GR/IR reconciliation identifies differences between goods receipts and supplier invoices. Reviewing open balances, purchase order history, quantities, and transaction dates helps identify missing invoices, unrecorded receipts, or incorrect postings. Timely reconciliation improves purchasing accuracy and financial reporting.
10. How would you prepare for SAP MM user acceptance testing?
Ans:
Understand the business requirements and prepare realistic test scenarios covering purchasing, goods movements, invoice verification, and relevant integration points. Define expected results, test data, and acceptance criteria. Record test evidence, document defects, retest corrections, and obtain business approval before implementation.
LMS
by ACTE
Fees Starts From
