BCSE ERP Materials Management (MM) 2 — Questions and Answers
Question 1: What is a 'blanket purchase order' in SAP MM?
- A PO for a fixed quantity at a fixed price
- A long-term PO with a value limit that covers multiple deliveries over a period without specifying quantities upfront (Correct answer)
- An emergency purchase order
- A PO that covers all vendors
Correct answer: A long-term PO with a value limit that covers multiple deliveries over a period without specifying quantities upfront
A blanket PO (also called a value contract) sets a total spending limit for a vendor over a time period, allowing multiple goods receipts without creating individual POs each time.
Question 2: In SAP MM inventory management, what is 'movement type 101'?
- Goods issue to production
- Goods receipt against a purchase order (Correct answer)
- Transfer posting between storage locations
- Return to vendor
Correct answer: Goods receipt against a purchase order
Movement type 101 in SAP MM represents a goods receipt (GR) posted against a purchase order, increasing stock in the warehouse.
Question 3: What is the purpose of a 'source list' in SAP MM?
- A list of available storage locations
- A record that specifies approved vendors for a material within a specific time period (Correct answer)
- A list of materials to be ordered
- A record of historical purchases
Correct answer: A record that specifies approved vendors for a material within a specific time period
A source list in SAP MM defines which vendors are approved to supply a specific material within a defined validity period, and can enforce sourcing rules.
Question 4: What is 'consignment stock' in SAP MM?
- Stock that has been written off
- Vendor-owned stock stored at the customer's premises, only paid for when consumed (Correct answer)
- Damaged goods awaiting inspection
- Stock reserved for a specific customer
Correct answer: Vendor-owned stock stored at the customer's premises, only paid for when consumed
Consignment stock in SAP MM is inventory physically located at the company's plant but owned by the vendor; payment is only triggered when the stock is withdrawn for use.
Question 5: Which SAP MM function is used to verify and post a vendor invoice?
- ME21N
- MIRO (Correct answer)
- MB1C
- ME2M
Correct answer: MIRO
Transaction MIRO (Materials Invoice, Receipt Order) is used in SAP MM to enter and verify vendor invoices against purchase orders and goods receipts.
Question 6: What is 'MRP' in the context of SAP MM and PP?
- Material Return Procedure
- Material Requirements Planning — a process that calculates material needs based on demand (Correct answer)
- Monthly Reporting Process
- Master Record Protocol
Correct answer: Material Requirements Planning — a process that calculates material needs based on demand
Material Requirements Planning (MRP) in SAP calculates what materials are needed, in what quantities, and when, based on sales orders, production plans, and stock levels.
BCSE ERP Materials Management (MM) 2
What is a 'blanket purchase order' in SAP MM?