Materials Management (MM) Flashcards

What is a 'vendor evaluation' in SAP MM?

Answer: A scoring system that rates vendors on criteria like price, quality, and delivery performance

SAP MM vendor evaluation scores suppliers on defined criteria (price level, quality of goods, delivery reliability) to support sourcing decisions.

What is the 'reorder point' in SAP MM inventory management?

Answer: The stock level at which a procurement proposal is automatically triggered

The reorder point is the stock level threshold in SAP MM at which MRP automatically generates a purchase requisition to replenish the material.

What is 'split valuation' in SAP MM?

Answer: Allowing a single material to be valuated at different prices based on origin or quality

Split valuation in SAP MM allows one material to be managed with different stock values depending on characteristics like country of origin or batch quality.

In SAP MM, what is a 'release strategy' for purchase orders?

Answer: A workflow approval process that routes POs for authorization based on value or other criteria

A release strategy in SAP MM defines multi-level approval workflows for purchase orders based on criteria like value thresholds, requiring sign-off before the PO is sent to the vendor.

What is 'physical inventory' processing in SAP MM?

Answer: The process of counting actual stock and reconciling differences with system inventory records

Physical inventory in SAP MM involves creating inventory documents, counting actual stock on hand, and posting any differences to reconcile the system with reality.

Which pricing procedure component in SAP MM is used to apply automatic vendor discounts?

Answer: Condition type

Condition types in SAP MM's pricing procedure represent specific pricing elements like discounts, surcharges, and taxes that are automatically applied to purchase orders.