Top 16 SAP S/4HANA MM Interview Questions for Beginners

Here are SAP S/4HANA MM interview questions and answers for beginners as well experienced professionals to get their dream job. Following topics are covered

  • Organization Structure
  • Company Code
  • Plants
  • Storage Locations
  • Purchasing Organization
  • Purchasing Groups
  • SAP Calendar

Top 16 Interview Questions

  1. What is Plant?

    A plant can be defined as
    👉 a location that holds evaluated stock (or)
    👉 an organizational unit that is central to planning production (or)
    👉 a location that contains service or maintenance facilities.

  2. What are key characteristics of a plant?

    ✅ A plant is assigned to a single company code. A company code can have several plants assigned.
    ✅ A single plant contain several storage locations in which material stocks are managed.
    ✅ A plant can be defined as a maintenance planning plant.
    ✅ A plant can have several shipping points, how ever a shipping point can be assigned to several plants.
    ✅ A plant can be assigned to several combinations of sales organization and distribution channels.
    ✅ A plant can have single business area assigned.

  3. What are prerequisites for setting up a plant?

    Before setting up a plant following setting must be defined: Factory Calendar, Country Key, Region Keys

  4. What is the tcode to maintain material valuation level?


  5. What is Valuation Area or Valuation Level?

    The valuation area/level is simply the level at which a company wants to valuate its inventory. If you define valuation at the plant level, you will need to define a separate valuation area for each plant, and stock materials will be evaluated separately for each plant.

  6. What is the tcode to assign plants to company code?

    OX18. You can assign multiple plants to a company code.

  7. What is a Storage Location?

    A storage location is the lowest of location where stock is physically kept within a plant. It can be physical or virtual to store a material. At least one storage location will always be defined for a plant.

  8. What are the main attributes for a storage location?

    ✅ A storage location has at least one address and description
    ✅ Stocks in a storage location are managed only on a quantity basis and not on a value basis.
    ✅ Physical inventories are performed at the level of the storage location.
    ✅ It is possible to store material data specific to a storage location.

  9. Is it possible to create storage location automatically?

    Yes, storage location can be created automatically when a goods movement for a material type is performed. The configuration needs the plant and/or the type of movement type to be defined using transaction OMB3.

  10. What is a Purchasing Organization?

    A purchasing organization is simply defined as a group of purchasing activities associated with all or a specific part of the intelligent enterprise.

  11. What are different types of Purchasing Organization?

    There are 5 main types of purchasing organization, they are
    👉 Plant-Specific Purchasing Organization
    👉 Cross-Plant Purchasing Organization
    👉 Cross-Company Code Purchasing Organization
    👉 Reference Purchasing Organization
    👉 Standard Purchasing Organization

  12. Can a cross-company code purchasing organization be assigned to company code?

    No, for a cross-company code purchasing organization can be assigned to plants only. A cross-company code purchasing organization is responsible for procurement activities for several plants, and those activities belong to different company code.

  13. Can a purchasing organization be assigned to another purchase organization?

    Yes, we can assign a purchasing organization to Reference purchasing organization to refer to following settings:
    ✔️Allowed transactions – Release Order
    ✔️Referenced data – Conditions
    ✔️Referenced data – Info Read
    ✔️Referenced data – Own Info record
    ✔️Referenced data – Supplier Master

  14. What is a Purchasing Group?

    A purchasing group is a person or group of people who work with a specific material or group of materials purchased by the purchasing organization.

  15. SAP Calendar is client-specific?

    False. SAP Calendar is not client-specific and each change takes effect directly in all clients.

  16. What are different steps in SAP Calendar creation process?

    SAP Calendar creation process includes three individual steps:
    1. Define holidays
    2. Create a holiday calendar
    3. Define a factory calendar and assign a holiday calendar to it

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