1. How do you create and maintain a Vendor Master in SAP MM?
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Vendor Master contains essential supplier information required for procurement transactions. It includes general data, purchasing information, payment-related details, and organisational assignments. Maintaining accurate vendor data helps ensure reliable purchasing and invoice processing.
2. What is a Purchase Requisition to Purchase Order conversion?
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The conversion process transforms an approved purchasing requirement into a formal Purchase Order. The buyer reviews the requirement, determines a suitable source of supply, and creates the purchasing document with relevant quantities, prices, delivery dates, and supplier information.
3. How does SAP MM support procurement approvals?
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SAP MM can support approval controls through configured release procedures for purchasing documents. Approval conditions may be based on factors such as document value, purchasing group, plant, or other business characteristics.
4. What is a Purchasing Info Record used for?
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A Purchasing Info Record maintains purchasing data for a material and supplier relationship. It can store supplier-specific prices, delivery information, conditions, and other purchasing details that assist buyers during procurement activities.
5. How do you analyse a failed goods receipt?
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First review the purchase order, material, plant, storage location, quantity, movement type, and relevant master data. Checking document status and system messages can help identify configuration or transaction issues that need correction.
6. What is a Movement Type and why is it important?
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A Movement Type identifies the business nature of an inventory transaction. It controls how SAP processes the movement and updates stock quantities and related documents for activities such as receipts, issues, and transfers.
7. How can procurement costs be analysed in SAP MM?
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Procurement costs can be reviewed using purchase orders, pricing conditions, purchasing reports, supplier information, and historical transaction data. This analysis helps organisations monitor purchasing expenditure and identify cost improvement opportunities.
8. What is a Source of Supply in SAP MM?
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A Source of Supply identifies a supplier or procurement arrangement from which a material can be obtained. SAP MM can use purchasing information, source lists, contracts, and quota arrangements to support source selection.
9. How would you handle duplicate material records?
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Review material descriptions, units, existing master records, classification details, and organisational data to determine whether duplicate records exist. Appropriate master data governance procedures should be followed before creating or changing material records.
10. Why is procurement reporting important in SAP MM?
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Procurement reporting provides visibility into purchasing volumes, supplier activity, material requirements, order status, and purchasing costs. It helps management monitor procurement performance and make informed sourcing decisions.