Sap Mm - Procurement Interview Questions And Answers _ All Interview Questions And Answers.pdf

26/03/2019

SAP MM - Procurement Interview Questions and Answers | All Interview Questions and Answers

SAP MM - Procurement Interview Questions and Answers 1. What is the Procurement Type? What are the Procurement Types Used in SAP? With the help of the procurement type indicator, the system can easily define whether the material is to be procured through internal production or external procurement, or through both. The following are the procurement types used for internal production: Phantom assemblies Production in an alternative plant Withdrawal from an alternative plant Direct production The following are the methods available for external procurement: Consignment Subcontracting Stock transfer 2. What are the Different Source Determination Procedures? The different source determination procedures are as follows: Quota arrangement—In this procedure, if the system finds a quota arrangement for a material that is valid for a specified date, then the vendor who supplies this material is considered the source of supply. Source list—If the system does not find a quota arrangement for a material, then the system checks the entries in the source list. If there is a single preferred vendor for a source, then the system selects that vendor as the source. If there is more than one vendor on the source list, then the system lets the buyer select the preferred vendor. Outline agreement and info records—If there is no valid source list, then the system checks the contracts, agreements, and records for the materials. After the system checks, it provides a list, from which the buyer selects the vendor. 3. Define "Source List." How Do We Generate a Source List? The source list identifies the sources of a material that can and cannot be used for a certain plant within a predefined period. The sources in the source list are defined by means of a source list record. You can auto-generate a source list for an individual item or a group of items. Perform the following steps to generate a source list for a group of items: Select Master Data > Source List > Follow-on Functions > Generate. Enter the data. Select Create the Source List. A list of source records to be generated is displayed. Select the source list records you want to include in the source list. Select the Save icon to save the selected source list records. You can generate a source list for an individual item by performing the following steps: Select Master Data > Source List > Maintain. Enter the material number and plant number. Press Enter. The overview screen appears. Select Edit > Generate Records. Enter the validity period of the source list records that are to be created. Press Enter. The source list is created. Click the Save icon ( ) to save the source list. 4. How Can a Purchase Requisition Be Created? Purchase requisitions can be created by using either of two approaches: direct or indirect. In the direct approach, employees of the requesting department enter a purchase requisition manually. The person creating the requisition finds out the details, such as what and how much to order and the delivery date. all-interview-question.blogspot.com/2014/11/sap-mm-procurement-interview-questions.html

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SAP MM - Procurement Interview Questions and Answers | All Interview Questions and Answers

In the indirect approach, purchase requisition is initiated through another SAP component in various ways, such as materials planning and control, networks (from the SAP R/3 Project System (PS) component), maintenance orders (from the SAP R/3 Plant Maintenance (PM) and Service Management components), and production orders (from the Production Planning (PP) and Control components). 5. Can We Generate a Purchase Requisition Automatically? You can generate a purchase requisition automatically only in a case where a material is sent out for external processing, for example subcontracting work. Another situation where you may need to generate a purchase requisition automatically is when the bill of materials is for a material other than a non-stock item. 6. What are the Main Criteria of the Vendor Evaluation? The main criteria of the vendor evaluation are as follows: Price quality Delivery Service and support External service 7. How Do We Maintain the Vendor Evaluations in the MM Module? You can maintain the vendor evaluations in the MM module either by using the ME61 transaction code or by using the path: SAP Menu > Logistics > Materials Management > Purchasing > Master Data > Vendor Evaluation > Maintain. 8. What are the Different Ways a PO Can Be Created in SAP? The PO can be created by the following ways: Vendor known—This procedure is used when you know the vendor from whom you receive the order. Vendor unknown—This procedure is used when you want the system to select and suggest possible vendors. These suggestions are made on the basis of sources of supply (purchase agreement, info records, and source lists) already stored in the system. Creation of POs from the assigned requisitions—This procedure is used when requisitions that have already been assigned to a vendor need to be listed for a purchasing group. Stock transfer—This procedure is used when you order the material from one of your plants and not from a vendor. Vendor managed inventory (VMI)—This procedure is used when you want to create the PO from the acknowledgement received from the vendor through EDI. 9. How Can We Create POs with Unknown Vendors? You can create a PO with an unknown vendor by using the ME25 transaction codes. 10. What is an Item Category? What are the Different Types of Item Category? An item category is an important field in the purchasing document. The item category determines whether or not an ordered item requires a material number or an account assignment or requires a goods receipt and/or an invoice receipt, or if it is to be placed in stock. Item categories are also used in categorizing the different types of stocks (including the special stocks available in the standard SAP solution) and the types of procurement processes. An item category is a field in purchase requisition that specifies the category of purchase requisition. The following are the different types of item categories: Blank—Standard K—Consignment L—Subcontracting S—Third party D—Service U—Stock transfer 11. What is the Difference between a Blanket PO and a Service Order? Blanket PO is used for consumable materials, such as office paper. In the case of a blanket PO, no goods receipt is required. In a service order, the framework order document type is used for the PO and a goods receipt and service entry (SE) are required for the PO. all-interview-question.blogspot.com/2014/11/sap-mm-procurement-interview-questions.html

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SAP MM - Procurement Interview Questions and Answers | All Interview Questions and Answers

12. Can Multiple Accounts Be Assigned to a PO Line? Yes, you are allowed to assign multiple accounts to one PO line. Multiple account assignments may be required in a situation where the cost of the item to be purchased is divided among multiple people. 13. Why Account Assignment Categories "U" and "X" can be used in Purchase Requisitions but Not in POs. The account assignment categories "U" and "X" are used if you do not know the account assignment category for which a material is being procured. This type of account assignment category is allowed in a purchase requisition but not in a PO. This is because when the buyer creates a PO, the buyer has to select a valid account assignment category and maintain all valid account assignment details. 14. What is Price Comparison? Price comparison is used to compare quotations from different vendors. You can use the transaction code ME49 to perform a price comparison between different vendors. 15. Where Can We Maintain the Conditions in the PO? We can maintain the conditions in the PO at the following levels: The conditions can be maintained on the entire PO. The conditions can be maintained in a particular item of the material to be supplied and, in the case of services, conditions can be maintained in the set of service specifications. The conditions can be maintained at the service line level for individual services (tasks or activities). 16. How are Free Items Managed in a PO? Mark the item as "free" in the PO. The price for such PO items will be zero. 17. How is the Stock Transport Order (STO) Different from the Standard PO? In the STO, the UB document type is used; STO also requires a supplying plant for the movement of materials. In the standard PO, the NB document type is used and requires a vendor for the procurement of material. 18.What is an Outline Purchase Agreement? What are the Types of Outline Purchase Agreements? An outline purchase agreement is a long-term agreement between the purchasing department and a vendor for supply of materials and services for a given period of time. The purchase department negotiates a set of terms and conditions with the vendor, and these terms and conditions remain fixed for the period of agreement. The agreement does not contain any information on specific delivery dates. An outline purchase agreement can be one of the following two types: Contract—In this type of agreement, release orders can be issued for materials or services when the customer requires them. Scheduling agreement—In this type of agreement, the purchasing department makes arrangements to procure materials according to a schedule agreed upon between the purchasing department and the vendor. 19. What are the Document Types Used in Scheduling Agreements? The document types used in scheduling agreements are: LP for standard scheduling agreements LT for stock transport scheduling agreements LPA for scheduling agreements with release documentation 20. What is a Contract? What are the Different Types of Contracts? A contract is an agreement between the customer and vendor that states that the vendor will supply material to the customer at an agreed price during a specified period of time. It can be based on either a total quantity or a total price. A contract avoids the need to create a new PO each time the material or service is required. A contract can be one of the following two types: Quantity contract—In this type of contract, the purchasing department has an agreement with the vendor for the supply of a specified quantity of materials or services. all-interview-question.blogspot.com/2014/11/sap-mm-procurement-interview-questions.html

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SAP MM - Procurement Interview Questions and Answers | All Interview Questions and Answers

Value contract—In this type of contract, the purchasing department can limit with a vendor the total spending for a material. The release orders are valid only until the total spending for the value contract equals the total agreed upon value. 21. What is a Centrally Agreed Contract? A centrally agreed contract type is created without specifying the name of the plant. The plant specification is provided at the time of creating the contract release order. In a centrally agreed contract, different conditions for individual plants can be easily maintained. Moreover, different ordering addresses or goods suppliers in the vendor master record can also be specified in this type of contract. The centrally agreed contract is useful in enterprises that have a central purchasing department and in which materials need to be bought for different plants. In this case, they create a high level contract used by the other department-specific purchase organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase and helps maintain consistency in process of purchasing throughout the enterprise. 22. What is the Difference between a Scheduling Agreement and a Contract? A scheduling agreement contains the details of a delivery schedule, whereas a contract contains only quantity and price information and does not contain any details of specific delivery dates. 23.What are the External Purchasing Documents Available in the Standard SAP System? The external purchasing documents available in the standard SAP system are as follows: RFQ—Transmitted to a vendor by a purchasing organization. The vendor sends quotations with prices in response. Quotation—Offered by a vendor to a purchasing organization. It contains the details regarding the supply of materials or performance of services subject to specified conditions. PO—Order given by purchasing organization to a vendor to request supply of materials or services. Contract—A type of outline agreement or longer-term buying arrangement in terms of SAP MM. The contract is a necessary assurance given by a vendor to ensure they will procure a material or service over a certain period of time. Scheduling agreement—Similar to a contract, a scheduling agreement is also a type of outline agreement or longer-term buying arrangement. It facilitates creation of delivery schedules by specifying purchase quantities, delivery dates, and precise time of delivery over a pre-defined period. 24.How Can We Return a Material that We Have Received with Reference to a PO? In the case of an external vendor, when your company returns a good received with reference to a PO, the reference of the PO is not mandatory in order to post the return in the system. The system will post a goods receipt correction and issue a credit memo against the vendor. However, if the vendor is internal, you may need the PO reference. In this case, the system automatically updates the stock, without any internal billing. 25.What is the Transaction Code to Set Price Control for Receipts (Goods/Invoice)? The transaction code OMW1 is used to set price control for receipts (goods/invoice). Posted 11th November 2014 by Kalandi Nayak Labels: SAP, SAP MM 0

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