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

How to Create Material Master in SAP MM

When we want to use a new material in SAP MM process which is important master data maintenance, we have to define it’s characteristics, in order to control it’s behavior in all of the transactions. Every material is created in the either of these two ways:

1. By calling transaction MM01 (mostly used in a productive environment)
2. Mass creation (mainly used only once on transition of materials from the previous system into SAP ERP)

We will focus now on transaction MM01, and leave the mass creation for later since it is an advanced tool. We will discuss it after you have enough knowledge about material master views and organizational levels.

Step 1) Initial Screen of SAP MM Material Master Data (MM01)

Transaction that is used for the creation of material master record, as stated above isMM01. The execution of the transaction brings us to the initial screen, which consists of few fields that contain the basic information on our material.

Automatic Account Determination in SAP MM

What is Automatic Account Determination? 

Different transactions in inventory management and invoice verification are relevant to accounting. These transactions must be recorded in an accounting document containing the postings to the FT G/L accounts. The G/L accounts to which the postings are made in such a document should be determined automatically by the program as far as possible.

Example: 
When a. raw material is issued for a production order, postings are made to stock accounts (under credits) and to consumption accounts (under debits).

in SAP MM process,  automatic account determination is a. procedure applied to accounting-relevant transactions. The system uses it to identify the G/L accounts to which postings are to be made without any user intervention. Therefore, these accounts must be entered in a. special table in Customizing for the transactions in inventory management and invoice verification.

Contracts in SAP MM Process

What is Contract:

In the MM Purchasing element, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame. (In the literature and in practice, similar concepts may also be referred to by a number of other terms, such as "systems contract", "blanket order agreement", "blanket contract", and "period contract".)

A contract is an agreement between the vendor and the customer for the vendor to supply material to the customer at an agreed price over a specified period of time.

Structure on Contract in SAP MM:

The contract consists of items defining the individual materials, material groups, or services with prices and in many cases quantities.

An item is assigned to an item category, which defines the type of procurement (e.g. item category K for consignment, or L for subcontracting).

An item of the procurement type "external service" contains a set of service specifications. Such specifications may be hierarchically structured. The summary view of such a hierarchical structure is termed an "outline", and the individual levels of the hierarchy are referred to as "outline levels". Quantities are specified in service lines. Services can be released (ordered, or called off against the contract) at item level or at the level of the service line.

Costs can be apportioned among various Controlling objects via the account assignment.

Release orders issued against the contract (see below) are logged in the release documentation.

Contracts can take the following forms:

Quantity contracts (MK):
Use this type of contract if the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totaling a given quantity have been issued.

Value contracts (WK):
Use this type of contract if the total value of all release orders issued against the contract is not to exceed a certain predefined value. The contract is regarded as fulfilled when release orders totaling a given value have been issued.

You can also set up corporate buying contracts with your vendors. These are valid for all plants and company codes within a client (see Centrally Agreed Contract - DC).

Over the contract validity period, certain quantities of the materials or services covered are released (called off) against the contract as and when required through the issue of purchase orders referencing the latter. Such purchase orders are thus termed "contract release orders" or simply "release orders". (Outside SAP, particularly in the UK; they may also be referred to as "call-off orders".)

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.

Create Quotations in SAP MM Procure to Pay Process

Using transaction code ME47, we can create a quotation based on a request for quotation.

Step 1)

1. Transaction code for quotation maintenance – ME47.
2. RFQ: request for quotation that we are using as a reference document.
3. Press ENTER.

Step 2)

1. RFQ quantity
2. Delivery date
3. Net price per unit of measure
4. Storage Location

Create Purchase Order from Purchase Requisition in SAP MM

Upon release purchase requisitions can be converted into purchase orders. This can be accomplished in transaction code ME21N .Process for converting a PR into PO is straight forward, and the steps for performing it are as follows:

Step 1)

1. Execute transaction code ME21N.
2. Choose the appropriate purchase order type: in our case NB – standard PO.
3. Organizational levels: enter them according to needs.
4. Purchase requisition: enter the purchase requisition number released in the previous lesson.

Hit ENTER.

You may have to hit ENTER quite a few times to go through several warning messages.

How to Make Changes in Purchase Info Record

We said that the transaction used to create info record is code ME11. When we need to change the info record we can use codeME12 t-code, and for display only we should use code ME13, just as SAP standards are.

Step 1)

1. Transaction code to change the info record.
2. Vendor, material, purchase organization, plant, info record number data: we use it to identify what exactly we need to change in our session. If we fill in all the fields, we will be able to change all the existing views and data in those views. For example, if we don’t specify Purchase Organization we will not be able to edit the Purchase organization Data 1 View.
3. Info category (purchasing type). We are changing the data for this info category (only for views that are info category dependent).

Basic Introduction to Purchase and Purchase Requisition in SAP MM

Purchasing is a component of SAP MM module and its process can be roughly depicted in below diagram.

MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Next step is assigning source to Purchase Requisition, and release of Purchase Requisition. The PR gets converted to Purchase Order and upon goods receipt an invoice receipt can be done to complete the purchasing process. Additionally payment is processed (in FI module).

Procurement doesn’t have to start by the MRP, it can be initiated by consumption based planning or by direct creation of PR or PO.

MRP is a system function to determine the material requirements on both the material and BoM level. A BoM (Bill of Materials) is a list of components and subcomponents a single material is consisting of.

How To Create A Purchase Info Record in SAP MM Process

Purchase Info Record in SAP MM

Purchase info records are information about terms for purchasing a specific material from a vendor. They are maintained at vendor/material combination and can contain data for pricing and conditions, overdelivering and underdelivering limits, planned delivery date, availability period.

Procurement types in info record in SAP MM

1. Standard

   A standard info record contains information for standard purchase orders. The info records can be created for materials and services with and without master records.

2. Subcontracting

   A subcontractor info record contains ordering information for subcontract orders. For example, if you subcontract the assembly of a component, the subcontractor info record would include the vendor’s (subcontractor’s) price for assembling the component.
   

How to Change Material Master Data in SAP MM

It may be needed to change certain option in our material master (due to the organizational changes, or changes in processes). We cannot use MM01 as that is the transaction code used only for creating views that are not maintained for certain material. In this case, we need to use MM02 and MM03 transaction codes.

In SAP transactions ending with 01 are for creating, ending with 02 for editing/changing, and the ones ending in 03 are used for viewing data without possibility to change it.

Process to change Material Master in SAP MM

Step 1)

1. Enter transaction code MMO2 in the command prompt
2. Enter the material number whose material master data we want to change.

Create Material by Copying Existing Material Master in SAP MM Process

In this tutorial we will go through the process of copying an existing material master data into new material

Step 1) In transaction MM01

1. Enter material number that you want to create.
2. Enter our existing material from which we want to copy the data.
3. Click on Select Views button.

Step 2)

1. Select the views you need to copy to new material
2. Click Org levels

How to Create Multiple Material Master Data in SAP MM

In order to create multiple materials at once, you should have access to a function like

1. eCatt tool
2. LSMW(Legacy System Migration Workbench)
3. BDC (Batch Data Communication) recordings
4. BAPI (Business Application Programing Interface)

You can also use mass maintenance transaction MM17 to create views in some cases.

But you must keep in mind that not all of the organizational levels should contain the same data (MM17 requires that all data for the materials and organizational levels you select should be the same).

Mass creation is never considered to be end users responsibility.But as a module specialist you may need to work on MM17 . In case of LSMW, BDC or BAPI, it is considered to be developers or consultants work. So you do not have to understand in detail, you just have to know the concept, and that there is this kind of possibility for mass data maintenance.

You can use MM17 for mass changing of material master data (if something can’t be accomplished by this transaction it can be done using LSMW, BDC or BAPI).

Step 1)

1. Enter transaction MM17
2. Select the data type you need to change, for example, we need to change a field in general data.
3. Execute.

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?

Physical Inventory Process in SAP MM

Physical inventory process in SAP is a process of determining that the inventory quantities are exact, or if there are differences in quantity mentioned physically present and that mentioned in the SAP system. Basically, after you are finished with physical inventory process in SAP MM, your system and physical stock levels must be the same.

It is mandatory for legal reasons, and in the most of the times it is conducted once a year.

To simplify the process, check the below diagram, these are the most common steps for doing physical inventory (not only in SAP ERP).

Physical Inventory Process Steps In SAP MM

Besides the legal reasons it is extremely helpful having the correct stock quantities in the system matching the physical stock. Management can have the correct information on the value of stock materials. ATP for sales is correct. MRP is done using the correct input parameters (material stock quantities).