BCSE ERP Materials Management (MM) 3

Question 1

What is a 'vendor evaluation' in SAP MM?

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

The stock level at which a procurement proposal is automatically triggered

Answer

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

Question 3

What is 'split valuation' in SAP MM?

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

What is 'physical inventory' processing in SAP MM?

Accepted Answer

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

Answer

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

BCSE ERP - Business Certified SAP ERP Practice Test

BCSE ERP - Business Certified SAP ERP Practice Test

BCSE ERP Materials Management (MM) 3