SAP SRM Interview Questions and Answers [BEST & NEW]

Last updated on 14th Nov 2021, Blog, Interview Questions

We have assembled the most commonly asked SAP SRM Interview Questions and Answers that will assist you to prepare for the SAP SRM viva questions and answers that an interviewer might ask you during your interview. In this list of SAP SRM basic interview questions, we have included all regularly asked basic and SAP SRM interview questions for experienced candidates with detailed answers to help you clear the job interview. The following list includes 100 important SAP SRM programming questions for freshers as well as SAP SRM questions and answers for experienced programmers to help them prepare for the interview. This complete guide of SAP SRM interview questions will encourage you to crack your Job interview easily.

1. What is SAP SRM?

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SAP SRM (Supplier Relationship Management) is a SAP product that facilitates the procurement of goods via a web-based platform. You can reduce the time span and costing of procurement cycle using innovative methods to manage business processes with key suppliers.

2. What is internal supply chain?

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Internal supply chain refers to the chain of activities within a company that concludes with providing a product to the customer. This process involves multiple functions within companies such as sales, production, and distribution.

3. What is an SRM tool?

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Supplier relationship management (SRM) involves the effective and appropriate management of a procurement professional and their supplier. Good SRM involves creating closer, more collaborative relationships to maximise value and reduce risk.

4. What is SAP SRM data flow?

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Supplier relationship management (SRM) data flow is the systematic approach to evaluating vendors that supply goods, materials and services to an organization, determining each supplier’s contribution to success and developing strategies to improve their performance.

5. What is the difference between classic and extended classic options?

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Classic	Extended classic option
In a classing deployment model, you process the shopping cart in SAP SRM and supporting documents are processed in the backend ERP system.	In the extended classic deployment model, the procurement process takes place in the SAP SRM system and PO is generated in the SRM system and a read only copy is created in the back end ERP system.
You can perform goods receipt or invoices in any of the system	You can perform goods receipt or invoices in any of the system as in case of classic scenario

6. What is the difference between SAP MM and SAP SRM?

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In SRM, your vendor/supplier is more tied into the situation. So while MM talks to the vendor via documents (PO, Invoice etc), SRM is much better integrated with the vendor’s system, so you can be a lot more efficient in your interactions. The vendor can give you better service, and you get more bang for your buck.

7. Explain about the SAP SRM sapphire part 2?

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SAP Sapphire Now is an annual conference for users and partners of SAP, the global business systems software company. … Sapphire is an acronym for “SAP’s Perennial Highly Integrated R/2-3 Exchange,” which refers to past products from the company. Since its debut in 1989, attendance has increased more than a hundredfold.

8. How do you upload and manage central contracts in ERP?

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You can upload contracts in SAP ERP system by going to SAP ERP Central Component → Logistics → Materials Management → Purchasing → Outline Purchase agreements with vendors → Contract → Central Contract → SRM Central Contract

9.What are the benefits of SAP SRM?

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The main benefits of SAP SRM are coordinating business operations, automating operational workflows, and standardizing goods and services acquisition. SAP Supplier Relationship Management is an ideal solution to manage your supplier relationship, contracts, procurement process speed, and other management related tasks.

10. What does SRM mean?

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Stands for “Storage Resource Management.” SRM is the process of managing large amounts of data. SRM software monitors and analyzes data storage usage for a specific storage environment, such as a local storage area network (SAN) or a cloud-based storage system.

11.How do I access SAP SRM?

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To check SAP SRM software navigation, you can login to the SRM system using the SAP GUI client. Select the SRM system and enter the username and password. It will display the SAP Easy Access Supplier Relationship Management screen. To open an Organization model, you can run T-code or go from Master data → Process Organization Model.

12. Describe the SAP SRM overview?

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13. What are the elements of SRM in SAP?

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SAP SRM – Software Components

• SAP Supplier Relationship Management Server. SAP SRM server includes SAP SRM server and SAP Bidding engine.
• SAP SRM Bidding Engine.
• SAP NetWeaver BI.
• SAP NetWeaver Enterprise Portal.
• Online Transaction Processing System.
• Live Auction Cockpit Server.

14. What is the difference between SAP and Ariba?

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SAP Ariba is just like your Alibaba/Ali Express of SAP procurement, its a closed ecosystem for buying and selling where SAP manages interaction between buyers and sellers, processes invoices etc and makes life easier for the players in the ecosystem.

15. What is the directions for SAP SRM

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16. What is the SRM process?

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Supplier relationship management (SRM) is the systematic approach to evaluating vendors that supply goods, materials and services to an organization, determining each supplier’s contribution to success and developing strategies to improve their performance.

17. What is SAP documentation?

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Documents represent the link between the business transaction and posting in accounting. Note. Only complete documents can be posted in the SAP system. “Complete” means that the balance from the debit and credit items is zero.

18. Why is SRM important?

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Supplier Relationship Management is about helping to create positive buyer-supplier relationships and determines which activities to engage in with each supplier. The goal of SRM is to streamline and improve processes between a buyer and its suppliers.

19. What is the difference between Professional and Simple shopping carts?

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Professional	Simple
In this shopping cart, most of the fields are used by professional buyers and employees.	Like the above shopping cart, you can use a simplified shopping cart form with less number of fields.
In the header section, you have details of the shopping cart- cart number, name, status, created date and who has created the shopping cart.	This is suitable for users who have no experience and limited authorization.

20. What is CRM and SRM?

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Customer Relationship Management software is vastly different from Stakeholder Relationship Management. As the name suggests, CRMs are solely focused on customers and sales, while SRMs are more about engagement with your stakeholders.

21. What is SAP SRM e-sourcing integration?

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SAP E-Sourcing application helps customers in streamlining the sourcing processes, managing procurement risk and compliance, reducing supplier costs and accelerating procurement cycle times

22. What is SAP MM?

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SAP MM is a material management solution (module) that processes purchase orders, purchases, inventory management, supplier invoice.

23. Provide an example of a business partner and partner function?

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Business partner	Partner function
Business Partner includes stakeholders like customers, suppliers, etc.	Partner Function includes invoicing parties, supplying parties, etc.

24. What does ECC stand for in SAP?

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SAP ERP Central Component SAP ERP Central Component (ECC) is the previous generation of SAP’s enterprise resource planning software.

25. What about the SAP SRM replication?

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26. What is SAP HANA full form?

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SAP HANA (high-performance analytic appliance) is an in-memory, column-oriented, relational database management system developed and marketed by SAP SE. Its primary function as the software running a database server is to store and retrieve data as requested by the applications.

27. What is the difference between in negotiation and in renew status of a contract?

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Negotiation	Renew
When a contract is selected for renewal and is in a saved state, the status of contract is set as in negotiation.	This is set when you select a contract for renewal.

28. Does SAP have a CRM?

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SAP started to develop a cloud based CRM which has been renamed from SAP Business ByDesign CRM to Sales on Demand to SAP Cloud for Customer and finally to SAP Cloud for Sales. SAP has consolidated all of its cloud based marketing, sales, service and commerce applications as SAP C/4HANA suite.

29. Describe the SAP SRM decoupled binding architecture?

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30. What does SRM stand for in purchasing?

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Supplier relationship management (SRM) is the systematic, enterprise-wide assessment of suppliers’ strengths and capabilities with respect to overall business strategy, determination of what activities to engage in with different suppliers, and planning and execution of all interactions with suppliers, in a coordinated.

31. What about the architecture of SAP R/3 ?

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32. What are the benefits of SAP SRM?

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The main benefits of SAP SRM are coordinating business operations, automating operational workflows, and standardizing goods and services acquisition. SAP Supplier Relationship Management is an ideal solution to manage your supplier relationship, contracts, procurement process speed, and other management related tasks.

33. Is SRM a procurement?

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Supplier relationship management is used by supply chain professionals who regularly deal with suppliers in areas such as procurement, project management and operations. Sometimes called supply chain relationship management, SRM is one of the many disciplines of supply chain management.

34. Why is SRM important?

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Supplier Relationship Management is about helping to create positive buyer-supplier relationships and determines which activities to engage in with each supplier. The goal of SRM is to streamline and improve processes between a buyer and its suppliers

35. What does SRAM stand for?

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SRAM is an acronym comprising the names of its founders, Scott, Ray, and Sam, (where Ray is the middle name of the company’s first CEO, Stan Day).

36. What is the SAP SRM portal?

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SAP SRM (Supplier Relationship Management) is a SAP product that facilitates the procurement of goods via a web-based platform. … You can reduce the time span and costing of procurement cycle using innovative methods to manage business processes with key suppliers.

37. What is HCM SAP?

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SAP HCM (SAP Human Capital Management) is a human resources management system. As the successor to SAP HR, it contains all functions that are relevant for personnel administration, payroll, applicant management, and personnel development.

38. Describe a three tier client server of SAP?

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39. What is the function of supply management in an organization?

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The supply management function of an organization is responsible for various aspects such as managing supplier performance, implementing technologies, processes, policies, and procedures to support the purchasing process. Also, provide the supplier relationship management process for providing the structure for how relationships with suppliers will be developed and maintained.

40. What is the difference between a business partner and a partner function?

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Generally in SRM business, partner means the entire stake Holders. Example: suppliers, customers, vendors, employees, etc. The function of the partner is to make the vendors as a reference, and then there will be an invoicing party, supplying party, etc.

41. What is the key business process in SAP SRM?

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The key business process in SAP SRM includes:

• Procure to pay- we can integrate catalog based requisition and gain the benefits of e-procurement.
• Catalog management- manages catalog data as master data that is deeply integrated.
• Centralized sourcing- gain visibility into the demand for goods and services.
• Centralized contract management- consolidates contract information.
• Supplier collaboration- links suppliers to our purchasing processes through the supplier portal.

42. What about the architecture of software giant SAP?

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43. What are the 6 steps in forming a SRM?

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Let’s look at each in turn.

• Broaden your definition of SRM’s value.
• Get stakeholder buy-in as high up as possible.
• Train everyone working with the suppliers, not just procurement people.
• Use technology to kick-start your transformation.
• Create joint account plans with suppliers to increase their value.

44. What is the supplier model?

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The Customer Supplier Model is used to represent the overall relationship between the end-customer and the initial supplier on the basis of different parameters. Almost every organization relies on its customers.

45. What is SRM governance?

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Supplier Relationship Management (SRM) is one approach to connect the different interests both within the organization and with the extended supply chain. SRM identifies and engages the right stakeholders to create ownership of the relationship, drive effective communication and align strategic objectives.

46. Explain about the SAP SRM classic extended deployment?

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47. What is the strategic benefit of SRM to the organization to the supplier?

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A vigorous supplier relationship management (SRM) strategy can assist organizations in maximizing partnership value, minimize risk, and manage costs through the entire supplier relationship lifecycle.

48. What is the supply base?

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A supply base is defined as the portion of a supply network that is actively managed by a buying company. The buying company, referred to as the focal company, manages the suppliers in the supply base through contracts and purchasing of parts, materials, and services.

49. What is SRM and ERP?

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ERP means Enterprise Resource Planning which is having a common database for all business modules like SRM,CRM,etc. SRM means Supply chain management, CRM means Customer chain management. CRM and SRM are components of ERP. And R/3 is the client server architecture which is used to implement the ERP.

50. What is the difference between ERP and SRM?

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While SRM functions as a place to store and organize all your interactions with suppliers, ERP focuses on increasing your business’ overall efficiency.

51. Describe the solution architecture SAP on azure?

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52. What is a Purchasing Organization?

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A Purchasing Organization is the organizational unit within a business responsible for the procurement of goods and services for plants belonging to a particular region. It also negotiates terms and conditions of contracts and purchases from vendors and also assumes legal responsibility for those purchases for the Plants that PO is responsible for. Those Plants are dependent on their assignment.

53. Why do we create the internal number range for local bid invitation?

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An internal number range must be defined to build numerically local bid invitations for RFQ`s and Auction in the Bidding Engine and Live Auction application. These bids do not have a link to any R/3 purchasing document, they are completely local to the ERP system.

54. How is SAP SRM Linked with SAP MM?

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You can replicate Purch Org, purch group, material master, vendor master from the backend. you can create PO in SRM and replicate Po in the R/3. All the procurement is done in SRM related to MM only.

55. How understanding shopping cart creation in SRM

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56. What is the SAP basis?

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SAP BASIS stands for Business Application Software Integrated Solution. It is a set of tools that will work as a bridge between your operating system, communication protocols, the various business applications and databases. SAP BASIS also includes different administration activities.

57. What does S 4 stands for in SAP?

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SAP Business Suite 4 SAP HANA

SAP S/4HANA stands for: SAP Business Suite 4 SAP HANA. It brings the next big wave of innovation to SAP customers, similar to the transition from SAP R/2 to SAP R/3.

58. Why Do We Configure Number Ranges In Srm?

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Number ranges must be established for EBP shopping carts as well as any potential purchasing document so that unique numbers can be generated in the backend R/3 system from EBP. The EBP system needs a number range established that automatically takes the next available number and assigns it to the document which will be created in R/3.configuration must also be established in R/3 to correlate with the ranges in EBP so that conflict never arise when purchasing document.

59. What does ABAP stand for in SAP?

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Advanced Business Application Programming ABAP stands for advanced business application programming, but is commonly referred to as ABAP. ABAP is a high-level programming language created by SAP that helps large corporations customize their SAP ERP platform.

60. Explain about the SAP SRM on AWS planning?

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61. What Purpose Does The Srm Org Structure Serve?

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Organizational attributes serve many purposes in the EBP system. The primary purpose is to set attributes that define the users` shopping experience. Examples of such attributes are company code, plant and cost centers that the user can order against, etc.

62. Why Do We Create The Internal Number Range For Local Bid Invitation?

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An internal number range must be defined to build numerically local bid invitations for RFQ`s and Auction in the Bidding Engine and Live Auction application. These bids does not have a link to any R/3 purchasing document, they are completely local to the ERP system.

63. What Is The Difference Between A Business Partner And A Partner Function?

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Generally in SRM business, partner means the entire stake Holders. Example: suppliers, customers, vendors, employees, etc. The function of the partner is to make the vendors as reference, and then there will be invoicing parties, supplying parties, etc. Business partner means those who supply the raw material to the customer i.e. buyer.

64. What is the architecture of SAP understanding netweaver gateway?

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65. What Are The Key Business Process In Sap Srm?

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The key business process in SAP SRM includes:

Procure to pay- we can integrate catalog based requisition and gain the benefits of e-procurement.

Catalog management- manages catalog data as master data that is deeply integrated.

Centralized sourcing- gain visibility into the demand for goods and services.

Centralized contract management- consolidates contract information.

Supplier collaboration- links supplier to our purchasing processes through the supplier portal

66. What is accounting SAP?

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The Statutory Accounting Principles (SAP) are accounting regulations for the preparation of an insurance firm’s financial statements. The focus of SAP is to ensure the solvency of insurance firms so that they are able to meet the obligations to their policyholders.

67. What Is A Purchasing Organization?

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A Purchasing Organization is the organizational unit within a business responsible for the procurement of goods and services for plants belonging to a particular region. It also negotiates terms and conditions of contracts and purchases from vendors and also assumes legal responsibility for those purchases for the Plants that PO is responsible for. Those Plants are dependent on its assignment.

68. Is SAP an ERP or CRM?

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SAP CRM is part of SAP ERP (Enterprise Resource Planning) business suite and is used to implement customized business processes related to Customer Relationship management CRM and to integrate with SAP and non–SAP systems.

69. Describe the structure of SAP SRM oplentsof?

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70. What Are The Types Of Update Requests?

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An update request can be divided into one primary (V1) and several Secondary update components (V2). Time-critical operations are placed in V1 components and those whose timing is less critical are placed in V2 components. If a V1 update fails, V2 components will not be processed.

71. Explain How Sap Gui Handles Output Screen For The User?

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• The SAP front-end s/w can either run on the same computer or on different computers provided for that purpose. User terminal input is accepted by the SAP terminal program SAP GUI, converted to SAP proprietary format and sent to the SAP dispatcher.
• The dispatcher coordinates the information exchange between the SAP GUIs and the work processes. The dispatcher first places the processing request in request queues, which it then processes.
• The dispatcher dispatches the requests one after another, to the available work process. The actual processing takes place in the work process.
• When processing is complete, the result of a work process is returned via the dispatcher to the SAP GUI. The SAP GUI interprets the received data and generates the output screen for the user.

72. How Do We Define Its Url?

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Before the Internet Transaction Server (ITS) can process EBP requests, entries in the table must be maintained to initiate a connection to a physical URL, which controls the menu on the left hand side of the screen that shows all of the transactions users have access to. The URL varies depending on which EBP client the configuration is performed in and it also consists of a base address for the integrated ITS instance. To enable EBP purchasing for each client, this configuration needs to be performed once.

73. What is SAP SRM MDG architecture design?

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74. What is a SAP warehouse?

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The SAP Warehouse Management system (WMS) provides flexible, automated support in processing all goods movements and in managing stocks in your warehouse complex. The system supports scheduled and efficient processing of all logistics processes within your warehouse.

75. If We Are Replicating From The Backend And Something Is Stuck In The Queue Of R/3 Then What Can We Do Then ?

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We use transaction SMQ1 in this case. The first thing that should be checked when downloading customizing objects is a possible stuck queue. The R/3 system uses the outbound queue (SMQ1) which is less likely to get stuck initially.

76. What Is Supply Management In Srm ?

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Supply management deals with the oversight and management of materials and services inputs, management of the suppliers, which provides vital inputs. The performance of supply management departments and professionals is measured in terms of the amount of money saved for the organization. However, managing risk is one of the aspects of supply management; especially the risk of non-availability of quality goods and services important for an organization’s survival and growth.

77. What is the difference between SAP SRM and Ariba?

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The key differentiation is that SAP SRM is an on premise solution that can integrate well with other SAP products such as MDM (for Catalogs), ECC (for follow on documents), and HCM (for the Org. Structure). On the other hand, SAP Ariba is an On-demand solution that has an excellent Supplier Network base.

78. What is SAP and GAAP?

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Statutory Accounting Principles, also known as SAP, are used to prepare the financial statements of insurance companies. On the other hand, Generally Accepted Accounting Principles or GAAP provides a common set of accounting standards, procedures and rules that are defined by the professional accountancy body.

79. What is SAP FICO?

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SAP FICO is an important core functional component in SAP ERP Central Component that allows an organization to manage all of its financial data. SAP FICO allows an organization to store a complete version of their financial transaction data. SAP FICO consists of two sections, SAP Finance (FI) and SAP Controlling (CO).

80. Is SAP a finance?

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SAP FI stands for Financial Accounting and it is one of the important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze the financial conditions of a company in the market.

81. What Is The Function Of Supply Management In An Organization?

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The supply management function of an organization is responsible for various aspects such as managing supplier performance, implementing technologies, processes, policies, and procedures to support the purchasing process. Also provide supplier relationship management process for providing the structure for how relationships with suppliers will be developed and maintained.

82. Describe the architecture of SAP SRM system landscape?

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83. What Are The Key Functions That You Perform Under Sap Srm Module?

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Catalog Management: Suppliers can easily manage catalog data and can be easily integrated with business processes like accounting, finance and planning.

Procure to Pay Optimization: Using SAP SRP product, you can streamline procure to pay life cycle and improve communication with supplier and cost management.

Self Service Procurement: End users can search products using multiple product catalog and helps them to find and purchase product that are compliant with purchase and procurement policy of the company.

Reporting Functionality: Using SAP Supplier Relationship management, you can create reports related to procurement activities, compliance and contract management, and managing costing in procurement process.

Contract Management: You can manage contracts using centralize secure repository that helps to reduce compliance violations and allows end users to follow business processes during self-service procurement.

84. What is the use of SAP Supplier Relationship Management?

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SAP Supplier Relationship Management SRM is SAP product that facilitates the procurement of goods via a web based platform. Organizations can procure all types of products like direct and indirect material, services and this can be integrated with SAP ERP modules and other non-SAP back end systems for accounting and planning.

85. How Do You Perform Sap Erp Integration With Sap Srm To Perform Upload Of Contracts?

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To upload the central contracts and to schedule agreements from SAP ERP system to SAP SRM system, you can use the program BBP_CONTRACT_INITIAL_UPLOAD. As per your configuration these contracts are loaded and scheduled from ERP to SAP SRM system.

86. Is It Possible To Integrate Procurement Function Between Sap Erp And Sap Srm Function?

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Yes, Procurement functions are seamlessly integrated between SAP ERP and SRM. There are various business functions that allow a fully integrated, end-to-end procurement management solution to improve both compliance and procurement management process as per business requirement. It helps in closing the gap in ERP sourcing functionality using SRM capabilities and provides a common UI for designing integrated procurement processes.

87. How do you perform supplier evaluation in the SAP SRM module?

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Supplier evaluation	SAP SRM
Supplier evaluation is one of the key processes in maintaining and improving long term relationships with the suppliers.	SAP supports two main methodologies for Supplier Evaluation. Event-driven evaluation, triggered from confirmation, invoice, and advanced supplier list.

88. If you want to search for a particular product or a supplier, how can you do this?

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In SAP SRM portal, you can easily search for different products and suppliers. Search criteria is easy to use.

You can also restrict the number of entries in search.

89. What is the use of workflows in SAP Supplier Relationship Management?

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Workflows are used to perform easy approvals of PO’s allowing organization to perform goods requisition easy and simple.

90. Where do you use the Standalone deployment model in SRM?

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When there is no operational backend system for material management and there exists only financial accounting systems in landscape.

When you want to move all procurement activities in SAP SRM system and hence allow companies to decrease the workload on the backend procurement system by transferring buyers which are interested to procure from selected options.

91. What about the architecture of SAP help portal?

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92. Where do you use the Classic deployment scenario in SRM?

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For those customers who have a strong backend procurement system and where buyers do not want to use multiple systems for their operations.

93. What is a Live Auction Cockpit LAC?

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LAC web presentation server is a J2ee based software application. This provides users with an option of real time bidding, real time monitoring and reverse auction options.

Apart from these technology components also includes SAP Process Integrator for integrating processes from different systems, SAP GUI for configuration and R/e plug-in for data exchange between one or more R/3 systems and other components.