BCSE ERP Materials Management (MM) 1 — Questions and Answers
Question 1: What is the 'procurement cycle' in SAP MM?
- The process of recycling materials
- The end-to-end process from purchase requisition to vendor payment (Correct answer)
- The material shelf-life management process
- The annual supplier audit process
Correct answer: The end-to-end process from purchase requisition to vendor payment
The procurement cycle in SAP MM covers the complete process: purchase requisition → RFQ → purchase order → goods receipt → invoice verification → payment.
Question 2: What is a 'purchase requisition' (PR) in SAP MM?
- A legal contract with a vendor
- An internal document requesting the procurement department to purchase goods or services (Correct answer)
- A vendor's price quote
- A goods receipt confirmation
Correct answer: An internal document requesting the procurement department to purchase goods or services
A purchase requisition is an internal SAP document created to notify the purchasing department that materials or services are needed.
Question 3: Which SAP MM transaction is used to create a purchase order?
- MM01
- ME21N (Correct answer)
- MIGO
- MB1A
Correct answer: ME21N
Transaction ME21N is used to create a new purchase order in SAP Materials Management.
Question 4: What is 'three-way matching' in SAP MM?
- Matching three vendors for comparison
- Verifying that the purchase order, goods receipt, and vendor invoice all agree before payment (Correct answer)
- Matching three material types
- Reconciling three fiscal periods
Correct answer: Verifying that the purchase order, goods receipt, and vendor invoice all agree before payment
Three-way matching in SAP MM ensures the purchase order, goods receipt (MIGO), and vendor invoice (MIRO) quantities and values match before payment is authorized.
Question 5: In SAP MM, what is a 'valuation class' used for?
- To classify vendors by size
- To link material types to specific G/L accounts for automatic account determination (Correct answer)
- To define material quality standards
- To set reorder point levels
Correct answer: To link material types to specific G/L accounts for automatic account determination
A valuation class in SAP MM links a material to specific G/L accounts, enabling automatic account determination when goods movements are posted.
Question 6: What does the SAP transaction MIGO perform?
- Creates a new material master
- Posts goods movements such as goods receipts, goods issues, and transfers (Correct answer)
- Runs inventory valuation
- Creates a vendor invoice
Correct answer: Posts goods movements such as goods receipts, goods issues, and transfers
MIGO (Material, Item, Goods movement, Order) is the central SAP transaction for posting all types of goods movements including receipts, issues, and transfers.
BCSE ERP Materials Management (MM) 1
What is the 'procurement cycle' in SAP MM?