SAP MM Interview Questions and Answers

A release strategy is an approval workflow for purchase requisitions or purchasing documents. The classic configuration uses classification:

1. Characteristics based on communication structures (CEBAN for requisitions, CEKKO for purchase orders), for example total value, document type or purchasing group.
2. A class (class type 032) containing these characteristics.
3. Release groups, release codes (approvers) and release indicators.
4. Release strategies with prerequisites and classification values.

Documents are released in transactions such as ME29N (individual PO) and ME28 (collective). S/4HANA also offers flexible workflow for purchase order and requisition approval.

When goods movements or invoices post, the system determines G/L accounts automatically (configured in OBYC) from:

• Chart of accounts (from the company code)
• Valuation grouping code (if valuation grouping is active)
• Transaction key, for example BSX inventory, WRX GR/IR, PRD price differences, GBB offsetting entries
• Account modifier (for keys like GBB, derived from the movement type)
• Valuation class from the material master accounting view

Example: goods receipt 101 for stock posts Dr Inventory (BSX) and Cr GR/IR (WRX).

For a material with moving average price, goods receipt values stock at the PO price. If the invoice price differs and stock is still available, the difference adjusts the stock value; if stock has already been consumed, the difference goes to a price difference account. For a material with standard price, goods receipt values stock at standard, and any difference between PO price and standard (and later between invoice and PO) is posted to a price difference account (PRD).

Split valuation lets the same material in one plant be valued separately based on criteria such as origin, procurement type or batch. You define a valuation category (for example *origin*) and valuation types (for example *domestic* and *imported*). Each valuation type has its own price and stock value, while total stock is still shown at material level.

1. Create a subcontracting purchase order (item category L) for the finished item, with components from the BOM.
2. Provide components to the subcontractor (movement type 541), which moves them into stock at the supplier (special stock O).
3. Post goods receipt of the finished item (101); components are consumed automatically (543).
4. Post the supplier invoice for the processing charges.

The supplier keeps ownership of stock stored at your premises.

1. Consignment info record and purchase order (item category K) without a price.
2. Goods receipt into consignment stock: quantity is updated but no value is posted.
3. Withdrawal for consumption or transfer to own stock creates the liability to the supplier at the info record price.
4. Periodic consignment settlement (MRKO) creates the invoice documents.

A stock transport order (document type UB) moves stock between plants with a supplying plant instead of a supplier. Without a delivery, goods issue is posted with movement type 351 to stock in transit and goods receipt with 101. With an outbound delivery, shipping data for the supplying plant is used and movement types such as 641 (intra-company) or 643 (cross-company) are posted at goods issue.

Pipeline materials (for example electricity, gas or water) flow continuously and are not stored. They are withdrawn from pipeline special stock, with the liability created at withdrawal based on the pipeline info record price. Settlement is done periodically, similar to consignment.

Tolerance keys are defined per company code. Common ones:

• PP – price variance
• DQ – quantity variance (invoice quantity versus goods receipt quantity)
• DW – quantity variance when no goods receipt exists
• BD – small differences, automatically posted
• ST – date variance
• AN / AP – amount limits for items without / with order reference

Invoices outside tolerance are blocked for payment.

Invoices blocked because of variances can be released automatically once the cause is resolved (for example the missing goods receipt is posted), or manually by an authorised user in MRBR. Manual payment blocks and stochastic (random) blocks are released through the same process.

ERS creates supplier invoices automatically from goods receipts and PO prices, so the supplier does not send an invoice. It is enabled in the supplier master and on the PO item, and settlement runs with MRRL. It works well for suppliers with stable, agreed prices and high volumes.

1. Create a physical inventory document for materials and storage locations.
2. Count the stock and enter results.
3. Review differences and recount if needed.
4. Post differences, which adjust stock and post to the inventory difference account.

Variants include annual inventory, cycle counting and inventory sampling. Postings can be blocked during counting to keep book stock stable.

A batch is a quantity of material with uniform characteristics, such as a production lot. Batch management enables traceability, shelf-life control and batch-specific characteristics through classification. Batch determination uses the condition technique to select batches that meet criteria such as expiry date or quality values. The batch level (plant, material or client) is decided during design.

Purchasing uses a calculation schema determined from the schema group of the purchasing organisation and the schema group of the supplier. The schema contains condition types such as gross price (PB00), discounts and freight. Prices are proposed from info records, contracts or conditions, and conditions with a different supplier (for example freight) become planned delivery costs.

Services can be procured using service purchase orders with service entry sheets that confirm the work performed before invoice verification. Depending on the release and configuration, projects use classic external services management or the simplified lean services approach with Fiori service entry sheets. The service entry sheet acts like a goods receipt for services.

Supplier (vendor) evaluation scores suppliers on criteria such as price, quality, delivery reliability and service, with weightings per criterion. Scores can be calculated automatically from purchasing and goods receipt data, and results support sourcing decisions. S/4HANA also provides analytical apps for supplier evaluation.