Answers to SAP MM Questions

Here are the answers to sample SAP MM questions for certification.

1. (a) false; (b) correct; (c) false; (d) false;

If quota arrangement usage is activated in the material master the MRP assigns the procurement proposal to the sources of supply mentioned in the quota file and that are relevant for MRP in the material source list, the lot allocation or split is done based on the ratio indicated in the quota file for each source.

2. (a) false; (b) false; (c) correct; (d) false;

If the stock falls below this quantity mentioned in the reordering point mentioned in the material master MRP 1 view, the system flags the material for requirements planning by creating a planning file entry, in the case of external materials procurement the procurement process is started.

3. (a) false; (b) correct; (c) false; (d) false;

Planning calendars are used to define period totals in the stock/requirements lists and flexible splitting periods for demand management.

4. (a) false; (b) false; (c) correct; (d) false;

A rounding profile is used to adjust the order proposal quantity for deliverable units in the planning run. It is used when the procurement quantity is to be rounded up to quantities that can be delivered.

5. (a) false; (b) false; (c) correct; (d) false;

The confirmation control key regulates whether the confirmations are relevant for goods receipt or material planning and whether confirmations are expected for a specific purchase order.

6. (a) false; (b) false; (c) correct; (d) false;

If the planned delivery time is mentioned in the scheduling agreement item that will be considered during MRP, and if this field is empty then the time from material master is considered.

7. (a) false; (b) correct; (c) false; (d) false;

Procurement proposals determine when an inward stock movement should be made and when the quantity of stock is expected in MRP.

8. (a) correct; (b) false; (c) false; (d) false;

The MD15 transaction code is used to convert planned orders into requisitions in MRP.

9. (a) false; (b) correct; (c) false; (d) false;

The transaction used for single level MRP run is MD03.

10. (a) false; (b) false; (c) correct; (d) false;

The account determination during movement postings for valuated materials is influenced by the valuation area where the movement is posted, the movement type and valuation class of the material, Practically in the movement type’s customizing is specified in the account grouping what transactions are influenced and how, example for goods receipt we have for example inventory posting (BSX) and price differences (PRD).

11. (a) false; (b) correct; (c) false; (d) false;

No stock increase occurs and also no accounting posting occurs, because for valuated materials automatic account determination is needed to affect the stock figures and accounting postings.

12. (a) correct; (b) false; (c) false; (d) false;

A valuation class is a group of different materials that share some common properties. This group is defined so that you do not have to manage a separate account for each material.

13. (a) false; (b) false; (c) correct; (d) false;

You can evaluate the stock either at the plant level or the company code level.

14. (a) false; (b) correct; (c) false; (d) false;

In comparison to the average price, which changes frequently, the standard price remains constant and does not change once entered. It is not affected by the moving average price.

15. (a) false; (b) false; (c) correct; (d) false;

The account assignment category is used to determine the following: the type of account assignment, the accounts that will be charged when you post the invoice or goods receipt, the account assignment data that you should provide.

16. (a) false; (b) false; (c) correct; (d) false;

A material ledger has the following benefits: it helps to valuate material in various currencies. However, to evaluate the material in various currencies, you have to activate the ledger; it helps determine the material’s actual price.

17. (a) correct; (b) false; (c) false; (d) false;

During vendor subcontracting process the external procurement or both ways procurement must be active in the material master, the special procurement must be set as subcontracting, a BOM is needed in order to determine the components used in the process, a subcontracting info record to determine the price and purchasing details, and source list or quota arrangement where the subcontractor is specified, in order for it to be automatically determined during planning run.

18. (a) false; (b) false; (c) false; (d) correct;

In the consignment process only withdrawals and their cancellation are relevant for the consignment settlement.

19. (a) false; (b) false; (c) false; (d) correct;

It is the definition.

20. (a) correct; (b) false; (c) false; (d) false;

Special stocks are defined as stocks that must be managed separately by a company. They can be either company owned or external stocks.

21. (a) false; (b) correct; (c) false; (d) false;

Consignment stock is stored at the customer’s location but remains the vendor’s property until the customer transfers the stock to its valuated stock so the main advantage is low stock value and avoiding obsolete stocks when a product reaches its end of life.

22. (a) false; (b) false; (c) correct; (d) false;

ME2O is the transaction needed to create a delivery for issuing components in the subcontracting process.

23. (a) false; (b) false; (c) false; (d) correct;

A storage location is a unique four-character alphanumeric key; therefore, two plants cannot have a common storage location.

24. (a) false; (b) correct; (c) false; (d) false;

A material master file stores and maintains all of the information related to managing a material.

25. (a) correct; (b) false; (c) false; (d) false;

The data that is specific to a particular company and the plant and storage areas assigned to that company is maintained at the company code level.

26. (a) false; (b) false; (c) correct; (d) false;

Activation of batch management flag in the material master and definition of the batch master are the prerequisites to creating batch handled stock.

27. (a) correct; (b) false; (c) false; (d) false;

Info records contain information related to the material and the vendor who is supplying the material. They also contain details about the material, such as the current price.

28. (a) correct; (b) false; (c) false; (d) false;

The plant must to be assigned both to a company code and a purchasing organization, but it is not absolutely necessary to have a direct link between company code and purchasing organization, that is not necessary when we have one purchasing organization used for several company codes, but if we want this direct link a purchasing organization could be assigned to only one company code at a time. One plant can be assigned to only one company code at a time, but you may assign a plant to several purchasing organizations.

29. (a) false; (b) correct; (c) false; (d) false;

An invoice receipt can be posted on a PO given that the invoice receipt indicator is active; the GR/IR indicator allows you to post the invoice only if a goods receipt was posted previously.

30. (a) correct; (b) false; (c) false; (d) false;

The invoice verification types are: Invoices based on purchase orders, Invoices based on goods receipts and Invoices without an order reference.

31. (a) false; (b) false; (c) false; (d) correct;

Document parking is used so that you can modify an invoice in a parked status, whereas an invoice that is placed on hold cannot be modified.

32. (a) false; (b) correct; (c) false; (d) false;

The account types relevant for invoice verification are: Vendor accounts, Stock accounts, GR/IR clearing accounts, Tax accounts, Price differences accounts, Cash difference-clearing accounts, Freight-clearing accounts.

33. (a) false; (b) correct; (c) false; (d) false;

It refers to the process of settling down receipts of the goods in an automatic manner. In this process, the vendor and the user agree that vendors do not prepare any invoices for the goods ordered. Rather, the system will automatically generate and post the invoice document on the basis of the purchase order and receipts of goods.

34. (a) false; (b) false; (c) false; (d)correct;

Using ERS, all purchasing transactions are closed easily and fast, communications errors are avoided and invoice verification is not prone to price and quantity variances.

35. (a) correct; (b) false; (c) false; (d) false;

A logistics invoice is posted to a general ledger account or by posting to a material account with or without reference to a purchasing order.

36. (a) false; (b) correct; (c) false; (d) false;

Whenever documents are created with reference to a purchasing requisition these will appear in the processing status tab in the display transaction, also in the field “processing status” in table EBAN it is mentioned what kind of subsequent document was created.

37. (a) correct; (b) false; (c) false; (d) false;

The final invoice indicator indicates that the last invoice from a vendor has been received for an item and/or that no further invoice is expected, but it not prevents from posting further invoices or goods receipts.

38. (a) false; (b) false; (c) correct; (d) false;

During output determination for purchasing orders, for one output message only the first corresponding condition record is considered, for example you have a sequence of 3 combination keys for one output message, but you have maintained condition records for the PO only in the 2nd and the 3rd, then only the 2nd is considered because it is the first to meet the requirements in the sequence.

39. (a) false; (b) correct; (c) false; (d) false;

The account assignment category contains default flags for GR and IR requirement.

40. (a) false; (b) correct; (c) false; (d) false;

Standard SAP does not post valuated goods receipts for multiple account assignment because of the controversy it might generate, a possible problem to which accounts should be posted during partial goods receipt.

41. (a) false; (b) false; (c) correct; (d) false;

The transaction to printout one or multiple PO is ME9F.

42. (a) correct; (b) false; (c) false; (d) false;

Only one message of a certain type can be processed in one purchasing document at a given time manually or automatically.

43. (a) false; (b) false; (c) false; (d) correct;

Service procurement consists of activities such as bidding, contract management, and operational procurement processes, from requisition to payment.

44. (a) false; (b) correct; (c) false; (d) correct;

By marking the Free of charge option in the item and its price will be set to zero.

45. (a) false; (b) correct; (c) false; (d) false;

An FO is a purchasing document used for procuring materials or services. This type of PO has an extended validity period instead of a stipulated delivery date as in the case of the standard PO.

46. (a) false; (b) false; (c) correct; (d) false;

A centrally agreed contract type is created without specifying the plant name and it is used in companies which have central purchasing departments and procure goods for several plants.

47. (a) correct; (b) false; (c) false; (d) false;

Using multiple account assignment in a PO allows you to apportion the cost associated with a PO item. When you use multiple account assignment, the account assignment data takes the form of individual account assignment items.

48. (a) false; (b) false; (c) correct; (d) false;

Tax code defines how the taxes will be calculated and posted in an SAP system. The SAP system reads this tax code for each item and calculates the tax for it. This tax and tax code is a part of the PO.

49. (a) false; (b) false; (c) correct; (d) false;

Physical inventory is a process in which all the transactions related to the movement of goods are stopped and the company physically counts inventory. It is required in financial accounting rules or for placing an accurate value on the inventory for tax purposes.

50. (a) false; (b) correct; (c) false; (d) false;

The physical inventory analysis consists of: entering the result of the count in the system and initiating a recount if necessary.

51. (a) false; (b) false; (c) correct; (d) false;

MI01 create physical inventory document.

52. (a) false; (b) correct; (c) false; (d) false;

When the differences in the inventory status of an item are input into the system it is adjusted and it corresponds to the actual value of the inventory.

53. (a) correct; (b) false; (c) false; (d) false;

MI11 –recount.

54. (a) false; (b) correct; (c) false; (d) false;

The decision to recount the physical inventory it is taken when a large difference appears between the count shown in SAP and the physical count.

55. (a) correct; (b) false; (c) false; (d) false;

Transaction MC46 display the slow moving stock materials, MB51 display the goods movements for specified materials, MB52 displays stocks at plant and storage location level, MC49 –displays the mean stock value.

56. (a) correct; (b) false; (c) false; (d) false;

The stock transfer in MM can be performed in a one step or two steps procedure between: 2 company codes or 2 plants or 2 storage locations from the same plant.

57. (a) false; (b) correct; (c) false; (d) false;

Stock that hasn’t been used for a certain amount of time, use the transaction MC46 to display this stock and specify the period used to search these materials, for example stocks that haven’t been used for 30 days.

58. (a) false; (b) false; (c) correct; (d) false;

In MRP, the available stock is reduced by the reserved quantity. An entry is made in the MRP file as a result of the reservation.

59. (a) correct; (b) false; (c) false; (d) false;

Automatic reservations are of two types. The first category consists of reservations for orders, networks, or projects; the second category covers stock transfer reservations done when the available stock on hand falls

below the reorder point and the system generates a stock transfer reservation for the plant for the replenishment of quantity. Only one reservation is created for each purpose.

60. (a) false; (b) false; (c) false; (d) correct;

From the material plant and sales organization -sales area data and shipping point determination for the delivery, details and from the plant master – customer code to deliver the goods to.

61. (a) false; (b) false; (c) correct; (d) false;

The following types of material stocks are eligible for scrapping: unrestricted-used stock, quality-inspected stock, blocked stock.

62. (a) false; (b) correct; (c) false; (d) false;

You can create it from the MIGO transaction with or without reference to a PO.

63. (a) false; (b) correct; (c) false; (d) false;

In the purchasing documents the payment terms from the purchasing view are considered, while during financial activities, those from the company code data are being taken into account.

64. (a) correct; (b) false; (c) false; (d) false;

A scheduling agreement is a delivery schedule agreed with the supplier based on which goods receipts and incoming invoices are posted, a contract is a document used to create other purchasing documents for a supplier which will result into a procurement process.

65. (a) correct; (b) false; (c) false; (d) false;

When using confirmation control that is GR relevant like inbound delivery, no goods receipt is possible without having a confirmation line created.

66. (a) false; (b) correct; (c) false; (d) false;

By flagging the closed option from the PR item and the item is then considered by the system, this operation can be made manually, but it could also be done automatically by the system if the setting is activated in customizing, but it is not advisable because also even if you create a partial quantity PO, the PR item is automatically closed by the system.

67. (a) false; (b) false; (c) false; (d) correct;

Company owned special stocks are managed in the production area while external owned special stocks are managed where they are stored.

68. (a) correct; (b) false; (c) false; (d) false;

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, 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 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.

69. (a) correct; (b) false; (c) false; (d) false;

The document types used in a PO are: Standard PO, stock transfer orders, Framework order.

70. (a) false; (b) false; (c) correct; (d) false;

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.

71. (a) false; (b) correct; (c) false; (d) false;

A PO is a document type that notifies you about formal requests for materials or services from an outside vendor or plant. A purchase requisition is a document type that notifies you about a need for materials or services.

72. (a) correct; (b) false; (c) false; (d) false;

The automatic PO flag has to be flagged in the material master and vendor master.

73. (a) false; (b) correct; (c) false; (d) false;

In the process of conversion, the SAP system attempts to merge as many purchase requisition items as possible to form one PO.

74. (a) false; (b) false; (c) correct; (d) false;

Automatic generation of POs from purchase requisitions is recommended only in cases when you have a well-maintained SAP system, otherwise manual processing is advised.

75. (a) false; (b) false; (c) correct; (d) false;

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.

76. (a) false; (b) false; (c) false; (d) correct;

File transfer is not one of the SAP standard communication methods in output management for purchasing documents.

77. (a) false; (b) false; (c) false; (d) correct;

The usage scenarios for Solution Manager are: implementation of SAP solutions, change request management, service desk, delivery of SAP solutions, monitoring solutions, upgrade of SAP solutions.

78. (a) correct; (b) false; (c) false; (d) false;

It provides change management processes which include: the approval process for change requests, the deployment of changes, and analysis of changes.

79. (a) false; (b) correct; (c) false; (d) false;

SAP Solution Manager ensuring quality of the solution by enabling traceability of all changes and controls all software and configuration changes of the IT solution.

80. (a) false; (b) false; (c) correct; (d) false;

Choose SAP menu-> Test->Test Workbench->CATT->Extended CATT or transaction code SECATT.