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

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.

✅ 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.

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

OX14

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.

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

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.

✅ 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.

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.

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

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

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.

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

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.

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

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