SAP MM Certification Guide

A Firm Decision: Career after SAP MM Certification

Taking a decision to go for SAP MM certification followed by consulting area is critical task, for that you need to look for following points

1. You are working with same domain(procurement, supply chain management etc.) and looking for career in SAP MM consulting
2. You are fresher and completed your post graduate in MBA, you have made your mind to go for SAP MM consulting for whatever reason (mostly you are influenced by job market)
3. You have some knowledge on SAP, or you are working on other modules of SAP and you want to move into SAP MM consulting.

Do you really need to be certified SAP MM

Introduction to Quotation and RFQ in SAP MM

Quotations

Quotations are requests for vendors to provide us information about their best prices, terms and conditions, schedule of deliveries and other information in order to select the best source for our procurement needs.

Below you can see the process flow for quotations in purchasing in SAP MM module.

Quotation process is started with creation of a request for quotation, and afterwards maintenance of the quotations to input all the information received from possible vendors. Then we want to compare the offers and select the best suitable one(s) rejecting the others.In SAP, there are several transaction used in the process.

Effect of Goods Receipt Posting in SAP MM Procurement Process

What is Good Receipt?

A goods receipt transactions is used to receive material via a purchase order or an in-house production order. The goods receipt process can be simple or complex depending on the nature of the material being received.

Each organization has its own procedures for the receipt of material, and these have to be considered when using the goods receipt functionality in SAP, if the material is received into stock, either unrestricted or quality, the value of the material is posted to the plant accounts. That means that the company has spent money to have that material in the plant. 

Effects of Goods Receipt Posting

Once the goods receipt has been posted, a series of events are triggered

Material document:

The material document is the audit that describes the movements of the material of entered in the goods receipt. The material document is created during the posting of the goods receipt and can be displayed using transaction MB03

Accounting Document:

The accounting document is created in parallel with the material document during the posting of the goods receipt. The accounting document describes the financial movements associated with material receipt. The accounting document can be accessed from the material document transaction MB03.

Goods Receipt Note:

The goods receipt note is a printed document that can be used by the warehouse to store the material in the correct location. Three goods receipt note printed versions can be selected in transaction MIGO.

Individual GRN: An individual goods receipt note is printed for each of the material document items

Individual GRN: With inspection text. Once goods receipt note is printed per material document item, but will include any quantity inspections text that s contained in the material master record.

Collective slip: This goods receipt note containing all of the items

The goods receipt note has three printed versions defined within SAP. These are WE01, WE02 and WE03. These can be modified to include the information relevant for issuing procedure of each company.

Stock Changes:

When a goods receipt is posted, the relevant stock levels will change. the stock level will be increased for a goods receipt and decreased for a goods receipt reversal. A goods receipt reversal may occur if the material was found to be defective or failed quality inspections. If this occurs. the inventory control department may decide to reverse the goods receipt so the material will be deducted from the plant stock level.

Vendor Consignment in SAP MM

Consignment in Real Business

As a business deal you have an agreement  with a vendor to source a particular number of consignment material to your organization. The consignment material value is still retained by the vendor until you take out it from the consignment inventory or post it to own valuated stock. You take possession of the material when you issue to a cost centre or handover it into your own stock. You settle your consignment liabilities with the vendor monthly. As a SAP MM consultant you want to set up this scenario in SAP system.

Special Procurement Vendor Consignment

Vendor Consignment in Material Management

As described above in first paragraph, consignment means that material made accessible to you by a vendor is stored in your company but truly valued to the vendor. A liability to the vendor only rises when you pull out material from the consignment stocks. The following section roughly outlines the entire vendor consignment process Details on the individual steps are covered in the further sections.

To manage material in the consignment stock. you need the following master data:

How to Change Purchase Order in SAP MM

Step 1)

For changing an existing purchase order you can use transaction code ME22N  (or ME22 – the old version).

Immediately after executing transaction code, system will take you to the most recent purchase order you have created, changed or viewed. If you need to change some other purchase order, you can use the option which appears in the menu

How to Post Goods Receipt in SAP MM

Step 1) You can post the goods receipt for a purchase order using transaction code MIGO.

Let’s say we want to do a goods receipt for our purchase order 4500018386.

1. Choose A01 – Goods Receipt.
2. Choose R01 – Purchase Order.
3. Enter your purchase order number.
4. Press ENTER.

Step 2)

How to Release Invoice in SAP MM Process

An invoice request is blocked for payment until its manually released. You can release the invoice by using t-code MRBR.

Step 1)

1. Execute t-code MRBR.
2. On the initial screen enter the company code and invoice number.
3. Check the release method (release manually if you want to process it in the second screen). This can be done choosing Automatically (please note the difference with automatic release in MIRO transaction being blocked and automatic release in t-code MRBR as those are two different things).
4. Our document has a manual payment block, so we will select that option. Execute.

Invoice Verification in SAP MM Process

Invoice verification is done via MIRO transaction.

Step 1)

1. Enter transaction code MIRO.
2. Choose invoice as a transaction type.
3. Enter the invoice date.
4. Enter the purchase order number.
5. Hit ENTER.

Step 2)

On Payment tab choose R – invoice verification.

How to Create Service PO in SAP MM Process

Service purchase orders are entered for services that are procured internally or externally. These purchase orders are different from standard ones as they don’t require a goods receipt since they have no stock. Other than that, there are a few small differences in PO creation. First is the document type for these orders. It should be FO – Framework Order.

To procure a service directly for a cost center, we will follow the below procedure.

Step 1)

Go to transaction ME21N.

1. Choose document type FO – Framework Order.
2. Choose vendor.
3. Choose validity start for PO.
4. Choose Account Assignment Category – K and Item Category – D.
5. Enter the description for the service.
6. Enter the quantity and unit of measure.
7. Enter the price for the service (e.g. 900 EUR per 1 AU – activity unit).

Create Purchase Order With Reference to Existing Document

Purchase order with reference

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order etc. To reference a PO to a previous document you can use the appropriate function.

You can create a PO referencing a previous document in 2 ways

1. Using ME58
2. Using ME21N

Referencing through ME58

In our case if we want to create a PO for a purchase requisition, we can use the transaction code ME58.

I will demonstrate the process starting from ME58 as it calls the ME21N and you can see that actually we create a PO in ME21N anyway.

Step 1)

1. Enter t-code ME58.
2. Choose Vendor and purchasing organization and
3. Select document types.
4. Execute.

How to Create Purchase Order in SAP MM Process

Purchase orders are used for a number of processes in procurement. They can be used for internal procurement (from one plant to another), external procurement of goods (direct consumption or stock) and services. It can also be used for subcontracting, third-party and consignment processes.

Purchase order processing is shown in the following diagram.

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order.

How to create a Purchase Order

Purchase orders are created by using standard transaction ME21N (or ME21 – the old instance of the transaction).

Step 1)

1. Enter transaction code ME21N.
2. Enter vendor.
3. Enter material number that needs to be procured.
4. Enter the quantity and unit of measure (optional – system uses UoM from purchase info record).
5. Press ENTER to confirm the data entered.

How to Select or Reject Quotation in SAP MM

Step 1)

1. Select the quotation that’s favourable (you want to process it further as it’s having the best conditions).
2. Choose the Edit Quotation button on the toolbar.

Step 2) Now you are in the ME47 transaction. Here you can choose the item and go to the item details screen.

1. Select the item.
2. Click on the item details icon.

How to Create Source List in SAP MM

You can create a sourcelist in ME05 transaction. A source list is a list of possible sources for a material. If a source list requirement exists for the material, you must create a source list to proceed with the ordering.

1. Execute t-code ME05.
2. Enter material, or material list/range.
3. Enter plant.
4. Untick the test run check box to perform the transaction instead of using the test mode.
5. Execute the transaction.

How to Perform Price Comparison Among Different Quotation in SAP MM

After your quotations are entered, you can compare them to select the best available offer at this moment. We can compare the quotations in transaction code ME49.

We can select which quotations will be compared by using the collective number we addressed before to be an important field that is maintained on RFQ (or directly on the quotation).

If we forget to enter the collective number, we will have to supply all the quotation numbers in the selection field “Quotation”.

Step 1) In transaction ME49, Enter

1. Purchasing organization (e.g. 0001).
2. Collective RFQ (we have used 190123).
3. Execute the transaction.

Answers of SAP MM Certification Questions: Set 6

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

SAP MM Certification Questions and Answers: Set 6

In this post you can find some of the scenario base SAP MM certification questions which are actually helpful to your SAP MM certification exam. First, try to attempt listed below SAP MM questions and check your answers given at last for respective SAP MM questions. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate answers.

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

3. What can be the possible entries the system can make during invoice verification if a valuated good receipt is defined for a purchase order with account assignment and there is a price variance?

Answers of SAP MM Certification Questions: Set 5

1. In which kind of posting method in IV is the cash discount amount not credited to the stock or cost account?

1. Gross Posting
2. Net posting

2. What controls the posting of invoice as gross or net?

1. Item category
2. Document type

3. How can postings be done in invoice verification for a purchase order in foreign currency?

1. Fixed exchange rate at GR and IV.
2. Current exchange rate at GR and IV
3. Current exchange rate cannot be changed at IV.
4. Exchange rate differences can occur
5. Exchange rate difference postings are Customization based.

SAP MM Certification Questions and Answers: Set 5

In this post you can find some of the scenario base SAP MM certification questions which are actually helpful to your SAP MM certification exam. First, try to attempt listed below SAP MM questions and check your answers given at last for respective SAP MM questions. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my Premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate answers.

1. In which kind of posting method in IV is the cash discount amount not credited to the stock or cost account?

1. Gross Posting
2. Net posting

2. What controls the posting of invoice as gross or net?

1. Item category
2. Document type

3. How can postings be done in invoice verification for a purchase order in foreign currency?

1. Fixed exchange rate at GR and IV.
2. Current exchange rate at GR and IV
3. Current exchange rate cannot be changed at IV.
4. Exchange rate differences can occur
5. Exchange rate difference postings are Customization based.

4. How is the quantity that has already been invoiced valuated at goods receipt if the invoice is posted before goods receipt and the subsequent GR quantity is greater than the invoice quantity?

1. At purchase order price
2. At invoice price

5. During the check of invoices with which of the following variances does the system perform Date variance?

Answers of SAP MM Certification Questions: Set 4

1. What are the ways in which invoice postings are possible?

1. Manual posting
2. Automatically through electronic transfer
3. Evaluated receipt settlement
4. Invoicing plan
5. Consignment settlement

2. From where can the terms of payment be an input for invoice verification?

1. User entry
2. Purchase order
3. Purchase order history
4. Vendor master
5. Material master

3. Which of the following does the system copy from the purchase order during invoice verification entry?

1. Purchase order number
2. Tax amount
3. Currency
4. Vendor
5. Bank information

SAP MM Certification Questions and Answers: Set 4

Here, I am posting sample of SAP MM questions ans answers set with only True-False. First try to answers yourself and check the correct answers at bottom. Note: In real time exam, you will not get question on true-false, these SAP MM questions and answers will helps you to clear your concept on respective topic. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my Premium Set of SAP MM Certification Questions and Answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate

1. What are the ways in which invoice postings are possible in SAP MM Process?

1. Manual posting
2. Automatically through electronic transfer
3. Evaluated receipt settlement
4. Invoicing plan
5. Consignment settlement

2. From where in SAP MM Process, can the terms of payment be an input for invoice verification?

1. User entry
2. Purchase order
3. Purchase order history
4. Vendor master
5. Material master

3. Which of the following does the system copy from the purchase order during invoice verification entry?