SAP MM FAQ'S
Q) How can you define an MM module? What is its importance in SAP R/3?
MM stands for Materials Management and is a part of the Logistics functional area of SAP R/3. It is an important SAP R/3 module because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch management, and materials storage. Since materials are the most precious resource of an organization, extreme care needs to be taken in all the processes related to materials management. Efficient materials management is the essence of the MM module of SAP R/3.
Q)How is the MM module integrated with other modules of SAP?
• The MM module deals with materials procurement on the basis of the production required; therefore, it is linked with the PP module.
• The SD module is proportionally related to the MM module, because it uses information about the quantity of material sent for production.
• The WM module is related to the MM module, because the MM module maintains information about materials storage and materials transfers inside an organization.
• The FI module is also related to the MM module, because every operation performed in the MM module directly impacts the financial processes of the organization.
Q) What is the organizational structure in the MM module?
The organizational structure in the MM module is a hierarchy in which various organizational units are arranged according to their tasks and functions. The different organizational units that constitute the organizational structure of the company are as follows:
Client: A self-contained unit in the SAP system with separate master records and its own set of tables.
Company cod: The smallest organizational unit. You can create an independent set of accounts for this unit for the purpose of external reporting.
Plant: An organizational unit where materials are produced or goods and services are provided. You can divide an enterprise into various plants according to production, procurement, maintenance, and materials planning.
Storage location: An organizational unit where the goods produced in the plant are stored.
Warehouse number: An alphanumeric key that represents a warehousing system, which is made up of different organizational and technical storage areas.
Storage type: An area such as a goods receipt area, goods issue area, or picking area. Also the physical or logical division of a complex warehouse.
Purchasing organization: An organizational unit that procures materials and services and negotiates with vendors to purchase materials or goods.
Purchasing group: An alphanumeric key for a buyer or a group of buyers who are involved in purchasing activities. The purchasing group is responsible for materials procurement and dealing with vendors.
Q)What are the levels of organizational units of Enterprise Structure in R/3?
The client is the highest level unit of the organizational units in Enterprise Structure in SAP R/3. The client is followed by the company code, which represents a unit with its own accounting, balance, and profit and loss (P&L). The next level of organizational units in Enterprise Structure is the plant, which represents an operational unit of a company.
Q)Define Client. What is its importance in SAP?
A client can be defined as a person, company, or organization that purchases goods from another person, company, or organization. In terms of SAP, a client is defined as a unit that has its own master records and a set of tables. The client is important in SAP because it stores and maintains data about the organization where SAP is implemented.
Q)How to create a company code in SAP?
In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
• Open the SAP Customizing Implementation guide.
• Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
• Double-click Edit Company Code Data. The change view Company Code: Overview screen appears where you can create a company code.
Q)How can you assign a company code to a company in SAP?
• In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
• Open the SAP Customizing Implementation guide.
• Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
• Double-click Edit Company Code Data. The change view Company Code: Overview screen appears, where you can create a company code.
Q) How many charts of accounts can be assigned in a company?
Yes. One chart of accounts can be assigned to several Company Codes. However, the reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a single Company Code.
Q) How many company codes can be assigned in one chart of accounts?
You can assign many company codes to a chart of accounts.
Q)How many company codes can be assigned to a company?
You can assign only one company code to a plant
.
Q) What is a plant in MM?
A plant is an organizational unit where materials are produced or goods and services are provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A plant is allocated to one company code, and a company can have many plants. In the organizational unit, a plant can be at one of the following locations:
• Corporate headquarters
• Central delivery warehouse
• Manufacturing facility
• Regional sales office
Q) How is a plant defined in MM?
You can define a plant in the MM by performing the following steps:
• Select IMG > Enterprise Structure > Definition > Logistic–General > define, Copy, Delete, Check Plant.
• Click Execute. The Choose Activity dialog box appears.
• Select Define Plant to create a plant. The change view Plants: Overview screen appears.
• Click New Entries. The New Entries: Details of Added Entries screen appears.
• Specify the plant code in the plant field.
• Click the address icon to display the Edit Address field.
• Specify the required values in the fields, such as Title, Name, and Search Term 1/2.
• Click OK. The New Entries: Details of Added Entries screen appears again.
• Click the Save icon to save the newly defined plant.
Q)What is the menu path to assign a plant to a company code?
You can assign a company code to a plant by navigating the following menu path: SAP Menu > Tools > Customizing > IMG > Execute Project > Display IMG (SAP reference IMG) > Enterprise Structure > Assignment > Logistics-General > Assign Company Code to Plant.
Q)What is Master data in MM module?
The master data in the MM module acts as reference data, defining various business entities and playing a key role in the core operation of the business.
Q)How is master data important in MM module?
The master data in the MM module contains all of the basic information needed to manage material. The data is stored and sorted on the basis of different criteria, such as the descriptive nature of the material (size, dimension, and weight) and the control functions of the material (material type and industry sector). Apart from data maintained by the user, the master data also stores data that is automatically updated by the system (such as stock levels).
Q)What are the various types of master data in MM module?
The different types of master data in the MM module are as follows:
• Material master
• Vendor master
• Purchasing information record
• Source list
Q)What is a Material Master file?
A material master file stores and maintains all of the information related to managing a material. The material master is sorted on the basis of different criteria.
Q)Why are material master records used in SAP?
Material master records are used in the SAP R/3 system to manage material-specific data. The material information stored in material master records is used by all logistics areas in the SAP R/3 system. The material master records integrate all material-specific data into a single database object that eliminates the problem of data redundancy. Because material master records store data in a single database object, the same data can be shared by all departments, such as purchasing, inventory management, materials planning, and invoice verification.
Q)How is the information of material master records updated?
You can manually update the information in the material master records, however, there are some exceptions for which the information can be updated by the SAP R/3 system only, for example, administrative data.
Q)What data in material master is maintained at the client level?
The general data, i.e., the data applicable to the company as a whole, is stored at the client level.
Q)What are the data in material master that are maintained at the company code level?
The data that is specific to a particular company and the plant and storage areas assigned to that company is maintained at the company code level.
Q)What are the plant-specific data in material?
The MRP data and forecast data are the plant-specific data in the material master.
Q)What is the lot size attribute of a material?
The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or static (fixed) lot size.
Q)How is material information structured in material master records?
Material information is structured in material master records on the basis of different criteria, such as the material's master detail (including its name, size, dimension, and weight), which shows its descriptive nature, and the material's detail related to control functions (such as material type, price control, and industry sector). Material master records also store information about the data that can be automatically updated by the system. For example, the stock level can be automatically updated by the system on the basis of the material data update.
Q) What is a batch?
A batch is a group of materials combined into one quantity for various reasons. Very often, materials with the same characteristics and values are grouped into a batch. For example, in the chemical industry, a specified number of containers of a specific product may be considered a batch if they were produced at the same time and have the same physical and chemical characteristics.
Q)How to create a batch?
You can create a batch record manually by using the transaction code MSC1N. The navigation path for creating a batch is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Create.
Q)How can batch records be changed?
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Change.
It is important to note that these changes to the batch record will also be available for review.
Q)How to delete a batch?
You can delete a batch by using the MSC2N transaction code. You can alternately delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
Q)What is Batch Information Cockpit?
The Batch Information Cockpit (BIC) is the main switching point, having a wide range of options for scrutiny and control of batches. It stores at a single location all the information related to the analysis of a particular batch.
Q) What is a serial number?
A serial number is assigned to an item to identify it and to store information about it. A serial number is mostly used to refer to equipment such as motors, drills, or vacuums. In MM, an item of material contains a serial number as well as a material number. This combination helps to uniquely identify an item of material.
Q)What is a class type? How will you configure a class type?
A class type is the SAP system's top-level unit, which is used to control the SAP system's classes. It performs the following tasks:
• Defines the class objects
• Checks if class objects can be used in other classes or not
• Defines the class maintenance screen
You can configure a class type by using the following menu path: SAP Customizing Implementation Guide > Cross Application Component > Classification System > Classes > Maintain Object Types and Material Types.
Q)State the importance of classification data.
Classification data allows you to search for materials on the basis of the characteristic values entered into the classes. This feature is very useful when the customer wants to search for a particular vendor and particular batches.
Q)What is an ABC indicator?
An ABC indicator is an indicator assigned by the ABC analysis procedure. An ABC indicator provides details of the consumption value of the material involved in the ABC analysis. The ABC analysis is performed by multiplying the current price of the materials by their quantity. The different consumption values are given as follows:
• A materials—Important parts, high usage/consumption value
• B materials—Less important parts, medium usage/consumption value
• C materials—Relatively unimportant parts, low usage/consumption value
Q)What are the main master files used in MM?
The following are the main master files used in MM:
• Material master file
• Inventory master file
• Vendor master file
Q) How can you define an MM module? What is its importance in SAP R/3?
MM stands for Materials Management and is a part of the Logistics functional area of SAP R/3. It is an important SAP R/3 module because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch management, and materials storage. Since materials are the most precious resource of an organization, extreme care needs to be taken in all the processes related to materials management. Efficient materials management is the essence of the MM module of SAP R/3.
Q)How is the MM module integrated with other modules of SAP?
• The MM module deals with materials procurement on the basis of the production required; therefore, it is linked with the PP module.
• The SD module is proportionally related to the MM module, because it uses information about the quantity of material sent for production.
• The WM module is related to the MM module, because the MM module maintains information about materials storage and materials transfers inside an organization.
• The FI module is also related to the MM module, because every operation performed in the MM module directly impacts the financial processes of the organization.
Q) What is the organizational structure in the MM module?
The organizational structure in the MM module is a hierarchy in which various organizational units are arranged according to their tasks and functions. The different organizational units that constitute the organizational structure of the company are as follows:
Client: A self-contained unit in the SAP system with separate master records and its own set of tables.
Company cod: The smallest organizational unit. You can create an independent set of accounts for this unit for the purpose of external reporting.
Plant: An organizational unit where materials are produced or goods and services are provided. You can divide an enterprise into various plants according to production, procurement, maintenance, and materials planning.
Storage location: An organizational unit where the goods produced in the plant are stored.
Warehouse number: An alphanumeric key that represents a warehousing system, which is made up of different organizational and technical storage areas.
Storage type: An area such as a goods receipt area, goods issue area, or picking area. Also the physical or logical division of a complex warehouse.
Purchasing organization: An organizational unit that procures materials and services and negotiates with vendors to purchase materials or goods.
Purchasing group: An alphanumeric key for a buyer or a group of buyers who are involved in purchasing activities. The purchasing group is responsible for materials procurement and dealing with vendors.
Q)What are the levels of organizational units of Enterprise Structure in R/3?
The client is the highest level unit of the organizational units in Enterprise Structure in SAP R/3. The client is followed by the company code, which represents a unit with its own accounting, balance, and profit and loss (P&L). The next level of organizational units in Enterprise Structure is the plant, which represents an operational unit of a company.
Q)Define Client. What is its importance in SAP?
A client can be defined as a person, company, or organization that purchases goods from another person, company, or organization. In terms of SAP, a client is defined as a unit that has its own master records and a set of tables. The client is important in SAP because it stores and maintains data about the organization where SAP is implemented.
Q)How to create a company code in SAP?
In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
• Open the SAP Customizing Implementation guide.
• Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
• Double-click Edit Company Code Data. The change view Company Code: Overview screen appears where you can create a company code.
Q)How can you assign a company code to a company in SAP?
• In SAP, a company code is created using the transaction OX02. The company code field is represented by a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
• Open the SAP Customizing Implementation guide.
• Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
• Double-click Edit Company Code Data. The change view Company Code: Overview screen appears, where you can create a company code.
Q) How many charts of accounts can be assigned in a company?
Yes. One chart of accounts can be assigned to several Company Codes. However, the reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a single Company Code.
Q) How many company codes can be assigned in one chart of accounts?
You can assign many company codes to a chart of accounts.
Q)How many company codes can be assigned to a company?
You can assign only one company code to a plant
.
Q) What is a plant in MM?
A plant is an organizational unit where materials are produced or goods and services are provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A plant is allocated to one company code, and a company can have many plants. In the organizational unit, a plant can be at one of the following locations:
• Corporate headquarters
• Central delivery warehouse
• Manufacturing facility
• Regional sales office
Q) How is a plant defined in MM?
You can define a plant in the MM by performing the following steps:
• Select IMG > Enterprise Structure > Definition > Logistic–General > define, Copy, Delete, Check Plant.
• Click Execute. The Choose Activity dialog box appears.
• Select Define Plant to create a plant. The change view Plants: Overview screen appears.
• Click New Entries. The New Entries: Details of Added Entries screen appears.
• Specify the plant code in the plant field.
• Click the address icon to display the Edit Address field.
• Specify the required values in the fields, such as Title, Name, and Search Term 1/2.
• Click OK. The New Entries: Details of Added Entries screen appears again.
• Click the Save icon to save the newly defined plant.
Q)What is the menu path to assign a plant to a company code?
You can assign a company code to a plant by navigating the following menu path: SAP Menu > Tools > Customizing > IMG > Execute Project > Display IMG (SAP reference IMG) > Enterprise Structure > Assignment > Logistics-General > Assign Company Code to Plant.
Q)What is Master data in MM module?
The master data in the MM module acts as reference data, defining various business entities and playing a key role in the core operation of the business.
Q)How is master data important in MM module?
The master data in the MM module contains all of the basic information needed to manage material. The data is stored and sorted on the basis of different criteria, such as the descriptive nature of the material (size, dimension, and weight) and the control functions of the material (material type and industry sector). Apart from data maintained by the user, the master data also stores data that is automatically updated by the system (such as stock levels).
Q)What are the various types of master data in MM module?
The different types of master data in the MM module are as follows:
• Material master
• Vendor master
• Purchasing information record
• Source list
Q)What is a Material Master file?
A material master file stores and maintains all of the information related to managing a material. The material master is sorted on the basis of different criteria.
Q)Why are material master records used in SAP?
Material master records are used in the SAP R/3 system to manage material-specific data. The material information stored in material master records is used by all logistics areas in the SAP R/3 system. The material master records integrate all material-specific data into a single database object that eliminates the problem of data redundancy. Because material master records store data in a single database object, the same data can be shared by all departments, such as purchasing, inventory management, materials planning, and invoice verification.
Q)How is the information of material master records updated?
You can manually update the information in the material master records, however, there are some exceptions for which the information can be updated by the SAP R/3 system only, for example, administrative data.
Q)What data in material master is maintained at the client level?
The general data, i.e., the data applicable to the company as a whole, is stored at the client level.
Q)What are the data in material master that are maintained at the company code level?
The data that is specific to a particular company and the plant and storage areas assigned to that company is maintained at the company code level.
Q)What are the plant-specific data in material?
The MRP data and forecast data are the plant-specific data in the material master.
Q)What is the lot size attribute of a material?
The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or static (fixed) lot size.
Q)How is material information structured in material master records?
Material information is structured in material master records on the basis of different criteria, such as the material's master detail (including its name, size, dimension, and weight), which shows its descriptive nature, and the material's detail related to control functions (such as material type, price control, and industry sector). Material master records also store information about the data that can be automatically updated by the system. For example, the stock level can be automatically updated by the system on the basis of the material data update.
Q) What is a batch?
A batch is a group of materials combined into one quantity for various reasons. Very often, materials with the same characteristics and values are grouped into a batch. For example, in the chemical industry, a specified number of containers of a specific product may be considered a batch if they were produced at the same time and have the same physical and chemical characteristics.
Q)How to create a batch?
You can create a batch record manually by using the transaction code MSC1N. The navigation path for creating a batch is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Create.
Q)How can batch records be changed?
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP Menu > Logistics > Materials Management > Material Master > Batch > Change.
It is important to note that these changes to the batch record will also be available for review.
Q)How to delete a batch?
You can delete a batch by using the MSC2N transaction code. You can alternately delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
Q)What is Batch Information Cockpit?
The Batch Information Cockpit (BIC) is the main switching point, having a wide range of options for scrutiny and control of batches. It stores at a single location all the information related to the analysis of a particular batch.
Q) What is a serial number?
A serial number is assigned to an item to identify it and to store information about it. A serial number is mostly used to refer to equipment such as motors, drills, or vacuums. In MM, an item of material contains a serial number as well as a material number. This combination helps to uniquely identify an item of material.
Q)What is a class type? How will you configure a class type?
A class type is the SAP system's top-level unit, which is used to control the SAP system's classes. It performs the following tasks:
• Defines the class objects
• Checks if class objects can be used in other classes or not
• Defines the class maintenance screen
You can configure a class type by using the following menu path: SAP Customizing Implementation Guide > Cross Application Component > Classification System > Classes > Maintain Object Types and Material Types.
Q)State the importance of classification data.
Classification data allows you to search for materials on the basis of the characteristic values entered into the classes. This feature is very useful when the customer wants to search for a particular vendor and particular batches.
Q)What is an ABC indicator?
An ABC indicator is an indicator assigned by the ABC analysis procedure. An ABC indicator provides details of the consumption value of the material involved in the ABC analysis. The ABC analysis is performed by multiplying the current price of the materials by their quantity. The different consumption values are given as follows:
• A materials—Important parts, high usage/consumption value
• B materials—Less important parts, medium usage/consumption value
• C materials—Relatively unimportant parts, low usage/consumption value
Q)What are the main master files used in MM?
The following are the main master files used in MM:
• Material master file
• Inventory master file
• Vendor master file
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