SAP Materials Management Discussion Questions

What is a purchase order in material management?

A formal request to a vendor to supply goods or services.

Which of the following stock type allows movement of stock?

All

What does the Info Records contain?

All of the choices

In Material Management Case study, which step goes first in MM department?

Create Material Master for Trading Goods

What are the consequences of a Goods Receipt in a material management system?

Creation of a material document

What Functional Area has a similar Organizational Structure to Material Management (MM)?

Enterprise Asset Management

What does the Material Movement type '101' indicate?

Goods receipt into warehouse

What activities are usually based on a purchase order?

Invoice verification and goods receipt.

What does the system do if the source list contains a sole source for a material?

It will assign the vendor to the requisition

In SAP MM, you can view the most up to date planning data on a material using which of the following?

Material Requirement Planning List

Which method can be utilized to generate a purchase requisition automatically within an organization's procurement process?

Material Requirements Planning (MRP)

Which of the following is a primary objective of Material Management?

Minimizing inventory holding costs

Which of the following best describes the primary objective of Material Management (MM) in supply chain operations?

Optimizing inventory levels

Which of the following components are present in the header of a purchase order?

PO Price

Which of the following criteria are typically used in vendor evaluation?

Price, Quality, Delivery

Which department primarily utilizes and maintains the Vendor Master?

Purchasing and Accounting

Which stock type can items NOT be received into?

Quantity-use stock

What does RFQ stand for?

Request for Quotation

Which of the following is NOT a type of purchasing document in SAP MM?

Sales Order

What happens when an invoice is verified in the system after matching with a goods receipt?

The Purchase Order and Material Master are updated, and an Accounting Document along with an Invoice Document are created.

In SAP Material Management, what is the main purpose of the Purchase Order (PO) document?

To officially request goods or services from suppliers

What is the purpose of a Vendor Master record?

To store essential data required for conducting business with external

In SAP S/4HANA, the Material Ledger is used for:

Valuating material inventories in multiple currencies and GAAPs in parallel.

Vendor Managed Inventory (VMI) is a strategy where:

Vendors control the inventory levels at the buyer's site