Best SAP MM Interview Questions and Answers 2025
Are you preparing for an SAP MM (Materials Management) interview in 2025? Whether you’re a fresher or an experienced professional, being familiar with the most frequently asked questions can significantly boost your confidence and chances of success. This guide categorizes SAP MM interview questions into basic, intermediate, and advanced levels, complete with concise and up-to-date answers.
What is SAP MM?
SAP MM (Materials Management) is a core module in SAP ERP Central Component (ECC) that deals with procurement processes and inventory management. It helps organizations efficiently manage materials, maintain a smooth flow of goods, and ensure proper inventory control across the supply chain.
Basic SAP MM Interview Questions and Answers
1. What are the main components of SAP MM?
- Purchasing
- Inventory Management
- Material Master Data
- Vendor Master Data
- Invoice Verification
- Physical Inventory
- Valuation and Account Determination
2. What is a purchase requisition?
A purchase requisition is an internal document raised to request the purchasing department to procure a certain quantity of a material or service.
3. What is a purchase order (PO)?
A purchase order is an official document sent to a vendor, requesting the supply of goods or services under agreed terms and conditions.
4. How does a purchase requisition differ from a purchase order?
- A purchase requisition is internal and initiates the procurement process.
- A purchase order is external and sent to a vendor to place the actual order.
5. What is a goods receipt?
A goods receipt is the physical receipt of materials into the warehouse. It updates the inventory levels in the system.
6. What is MRP (Material Requirements Planning)?
MRP ensures materials are available for production and procurement. It calculates what materials are needed, in what quantity, and when.
7. What are movement types in SAP MM?
Movement types classify material movements, e.g.:
- 101: Goods Receipt
- 201: Goods Issue
8. What is a vendor master record?
A vendor master record contains all necessary information about the vendor like name, address, tax ID, payment terms, and bank details.
9. How is material master maintained?
Material master data is maintained using:
- MM01 – Create
- MM02 – Change
- MM03 – Display
10. What is the transaction code to create a purchase order?
The transaction code is ME21N.
Intermediate SAP MM Interview Questions and Answers
11. What is the difference between a stock transfer and a transfer posting?
- Stock Transfer: Physical movement of materials between storage locations or plants.
- Transfer Posting: Change in stock type or ownership without physical movement.
12. What is the release procedure in SAP MM?
The release procedure is used for the approval of documents like purchase requisitions and POs. It can be configured with or without classification based on parameters like plant, purchasing group, or value.
13. What is a pricing procedure?
A pricing procedure defines how pricing conditions (discounts, freight, taxes) are applied in purchase orders using condition types, access sequences, and calculation schemas.
14. What are the types of purchasing info records?
- Standard
- Subcontracting
- Pipeline
- Consignment
15. What is invoice verification?
Invoice verification ensures the vendor’s invoice matches the PO and goods receipt before initiating the payment process.
16. What is consignment stock?
Consignment stock is stored at the company’s location but owned by the vendor. Payment is made only when the stock is consumed.
17. What is the difference between a contract and a scheduling agreement?
- Contract: Long-term agreement with fixed terms.
- Scheduling Agreement: Includes delivery schedules over a defined period.
18. What is a source list?
A source list determines the approved vendors for procurement of a specific material at a specific plant.
19. What is a quota arrangement?
Quota arrangement allocates procurement quantities across multiple vendors based on predefined ratios.
20. What are procurement types in SAP MM?
- External procurement: Standard PO, subcontracting, consignment
- Stock transfer
- Third-party procurement
Advanced SAP MM Interview Questions and Answers
21. How does SAP MM integrate with other modules?
- SAP SD (Sales and Distribution): For order processing and stock availability
- SAP PP (Production Planning): For raw material procurement
- SAP FI (Financial Accounting): For invoice processing and payments
- SAP WM (Warehouse Management): For detailed inventory tracking
22. What is batch management in SAP MM?
Batch management helps manage materials in batches to track product quality, shelf life, and origin.
23. What is a valuation class?
Valuation class links material types to G/L accounts and determines how material movements are posted in financial accounting.
24. What is account determination?
Account determination assigns transactions to appropriate G/L accounts based on factors like valuation class, material type, and transaction type.
25. What are special stocks in SAP MM?
Special stocks are not part of regular inventory and may include:
- Consignment stock
- Subcontracting stock
- Stock in transit
- Project stock
26. What are planned and unplanned delivery costs?
- Planned costs: Predefined in the PO
- Unplanned costs: Captured during invoice verification
27. What is a blanket purchase order?
A blanket PO is used for recurring purchases without specifying exact quantities or delivery dates.
28. How is automatic PO generation configured?
Automatic PO creation can be configured via:
- Vendor master (Purchasing view)
- Material master (Purchasing view)
- Transaction code OMK0 (configuration)
Read More About : Master SAP S/4HANA MM Sourcing & Procurement | Real-Time Training with Certification
Conclusion
Mastering these SAP MM interview questions will prepare you for interviews in 2025, whether you’re entering the workforce or advancing your career. Keep practicing, stay updated with new releases, and ensure your practical understanding matches your theoretical knowledge.
