SAP MM Interview Questions and Answers (6 Months Experience)
Q: What is SAP MM, and why is it used?
A: SAP MM (Materials Management) is a module in SAP that manages procurement and inventory
processes. It ensures the availability of materials and streamlines supply chain operations.
Q: Explain the procurement process in SAP MM.
A: The procurement process involves creating a purchase requisition, converting it into a purchase
order, receiving goods, and verifying the invoice before payment.
Q: What are the key components of SAP MM?
A: The key components include Material Master, Vendor Master, Purchasing, Inventory
Management, and Invoice Verification.
Q: Define a purchase organization. What are its types?
A: A purchase organization is responsible for procurement activities. Types include Centralized,
Decentralized, and Hybrid purchase organizations.
Q: What is material master data? Name key views maintained in the material master.
A: Material master data is central data used across modules. Key views include Basic Data,
Purchasing, Accounting, and MRP.
Q: Explain vendor master data and its structure.
A: Vendor master data contains information about vendors. It is structured into three segments:
General Data, Company Code Data, and Purchasing Organization Data.
Q: What is the role of a purchasing info record in SAP MM?
A: The purchasing info record stores information about materials and vendors, such as price and
delivery terms.
Q: What is a source list? How is it maintained?
A: A source list specifies approved sources for a material. It is maintained using transaction code
ME01.
Q: Walk me through the procurement-to-pay (P2P) cycle in SAP MM.
A: The P2P cycle includes creating a purchase requisition, purchase order, goods receipt, and
invoice verification.
Q: What is the difference between stock and non-stock materials?
A: Stock materials are managed in inventory, while non-stock materials are consumed directly
without inventory management.
Q: Explain the purpose of movement types. Can you list some common movement types?
A: Movement types define the type of goods movement in SAP. Common types include 101 (Goods
Receipt) and 201 (Goods Issue).
Q: How does SAP MM integrate with SAP FI/CO?
A: SAP MM integrates with FI/CO during invoice verification and account postings for goods
movements.
Q: How would you handle a situation where a goods receipt quantity does not match the
purchase order quantity?
A: Investigate the discrepancy, communicate with the vendor, and update the purchase order or
receipt accordingly.
Q: A vendor's invoice exceeds the purchase order amount. How do you handle it in SAP MM?
A: Use the invoice verification process to block the invoice for payment and resolve the discrepancy
with the vendor.
