Question 101. Can Storage Locations Be Created Automatically? How Can They Created Automatically?
Storage locations can be created automatically when an inward goods movement for a material is performed. In order to create a storage location automatically, open the Sap implementation guide and then follow this path:
Materials Management->Inventory Management and Physical Inventory->Goods Receipt->Create Storage Location Automatically.
Question 102. Can Two Plants Have A Common Storage Location?
A storage location is a unique four-character alphanumeric key; therefore, it cannot be common for two plants.
Question 103. What Is The Menu Path To Configure The Storage Location?
You can configure the storage location by navigating the following menu path:
Select Display IMG ->Enterprise structure ->Definition->Maintain storage location
Question 104. What Are The Different Ways Of Organizing Purchasing Organizations?
The different ways to organize purchasing organizations is distributed purchasing and centralize purchasing. Distributed purchasing represents multiple purchasing organization for multiple plants and centralized purchasing represents one purchasing organization per plant.
Question 105. What Is The Reference Purchasing Organization In Sap?
The reference purchasing organization can be defined as an organization whose conditions or contracts are linked to other purchasing organizations. This organization can make conditions or contracts that can easily be used in other purchasing organizations.
Question 106. What Is Master Data In Mm Module?
Master data in MM module acts as a reference data defining various business entities and plays a key role in the core operation of a business.
Question 107. How Is Master Data Important In Mm Module?
A Master Data in MM module contains all the basic information needed to manage a material. The data is stored and sorted on the basis of different criteria, such as the descriptive nature of the material (size, dimension, and weight), control function of the material (material type and industry sector). Apart from the data maintained by the user, it also stores data that is automatically updated by the system (such as stock levels).
Question 108. What Is A Material Master File?
The complete information related to managing a material is stored and maintained in a data record in the material master, which is sorted on the basis of different criteria.
Question 109. Why Are Material Master Records Used In Sap?
Material master records are used in the SAP R/3 system to manage the material I-specific data. The material information stored in material master records is used by all logistics areas in the SAP R/3 system. The material master records integrate all the material-specific data into a single database object that eliminates the problem of data redundancy. Since material master records store data in a single database object, the same data can be shared by all departments, such as purchasing, inventory management, materials planning, and invoice verification.
Question 110. How Is The Information Of Material Master Records Updated?
You can manually update the information of the material master records; however, there are some exceptions that can be updated by the system only, for example, the administrative data that is updated by the SAP R/3 system only.
Question 111. What Data In Material Master Is Maintained At The Client Level?
The general data, that is, the data applicable to the company as a whole is stored at the client level.
Question 112. What Are The Data In Material Master That Are Maintained At The Company Code Level?
The data that is specific to a particular company and the plant and storage areas assigned to the company is maintained at the company code level.
Question 113. What Are the Plant-specific Data in Material?
The MRP data and forecast data are the plant-specific data in material.
Question 114. What Is The Lot Size Attribute Of A Material?
Answer: The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or a static or fixed lot size.
Question 115. How Is Material Information Structured In Material Master Records?
Material information is structured in material master records on the basis of different criteria, such as material’s master detail (such as name size dimension, and weight), that shows its descriptive nature and material’s detail with a control function (such as material type, price control and industry sector). Material master records also store the information about the data that can be automatically updated by the system. For example, the stock level can be automatically updated by the system on the basis of the material data update.
Question 116. What Is A Batch?
A batch is a group of materials combined together quantity-wise for various reasons. Very often, the materials with the same characteristics and values are grouped into a batch. For example, in a chemical industry, a certain number of containers of a specific product may be considered a batch as these products were produced at the same time and have the same physical and chemical characteristics.
Question 117. Why Is Batch Record Important?
A batch represents a quantity of a particular material processed at the same time with the same parameters. These materials, produced under one batch, have the same characteristics and values. However, these characteristics may vary from the materials of another batch produced on the same day.
A batch record is important as having a batch record indicates that it conforms to the current Good Manufacturing Procedures (cGMP) and contains specifications of the product tested, analytical methods, and test results.
Question 118. How to Create a Batch?
You can create a batch record manually by using the transaction code MSC1N. The navigation path of creating a batch is: SAP Menu -> Logistics -> Materials Management -> Material Master -> Batch -> Create.
Question 119. How Can Batch Records Be Changed?
You can change a batch record by using the transaction code MSC2N. The navigation path of changing the batch record is: SAP Menu -> Logistics -> Materials Management -> Material Master -> Batch -» Change.
You can change the batch record, but you should note that these changes are also available for review.
Question 120. How to Delete A Batch?
You can delete a batch by using the MSC2N transaction code.
You can delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
Question 121. What Is Batch Information Cockpit?
The Batch Information Cockpit (BIC) is the main switching point having a wide range of options for scrutiny and control. It stores all the information related to the analysis of a particular batch at a single location.
Question 122. What Is A Serial Number?
A serial number is provided to an item to identify it and to store information about it. A serial number is mostly used to refer to equipment’s such as motors, drills, or vacuums. In MM, an item of a material contains serial number as well as a material number. This combination of the material number and serial number helps to uniquely identify an item of a material.
Question 123. State The Importance Of Classification Data.
The classification data allows you to search for the materials on the basis of the characteristics values entered into the classes. This feature is very important when the customer wants to search for a particular vendor and batches.
Question 124. What Are The Main Master Files Used In Mm?
The following are the main master files used in MM:
Material master file
Inventory master file
Vendor master file
Question 125. Give Some Example Of Master Data In Material Management (mm).
Material master, material master general data (MARA), tax classification material (MLAN), info records, source list, and vendor master are the examples of master data in MM.
Question 126. What Is Vendor Master Data?
Vendor master data contains details of each vendor who supplies materials or services to an enterprise. The vendor master data is stored in individual vendor master records consisting data, such as vendor’s name vendor’s address currency used for the transaction payment terms and contact person’s name sales staff.
Question 127. What Are The Different Fields In A Vendor Master Data?
The different fields in a vendor master data are as follows:
The name and address of the vendor
The currency in which the transaction would be done
The terms and conditions of payment
The names of important contact persons
The different accounting information, such as the reconciliation account in the general ledge
Question 128. How to Create a Vendor Number Range?
When you create a number range, it is important to remember that vendor numbers, such as material numbers can be assigned externally or internally. You can create vendor number ranges by selecting the following navigation path:
IMG -> Financial Accounting -> Vendor Accounts -> Master Data -> Preparations for Creating Vendor Master Data -» Create Number Ranges for Vendor Accounts.
For configuring the vendor number range, you should enter a unique number for the range which is a two character field and then specify the limit for the number range. The current number field is used to define the current number. The Ext. field defines whether the number range is defined externally by the user.
Question 129. What Is The Transaction Code To Access The Materials Management Configuration Menu?
The OLMS transaction code is used to access the Materials Management Configuration menu.
Question 130. What Are Purchasing Information Records?
Answer: The purchasing information records, also known as info record, contain information related to the material and vendor who is supplying the material. It also contains details about the material, such as the current price of the material.
Question 131. What Are The Categories Of Purchasing Information Record?
The following are the categories of purchasing information record:
Standard — Contains information for the standard purchase order. In this type of purchasing info record, you can create info records for materials and services which do not have master record.
Subcontracting— contains the ordering information for subcontract orders.
Pipeline— Contains information of the commodity that is sent through the pipeline such as oil, water.
Consignment— Contains information of the material that is in vendor’s possession and is kept by the vendor at some other premises at his own cost.
Question 132. What Are The Prerequisites Of Creating A Purchasing Info Record?
Answer: The prerequisites of creating a purchasing info record are as follows:
Material number — before creating a purchasing info record, the material number of the Material Master record should be known Manufacturer Part Number (MPN) Material number — Before ordering a material having a MPN, you must know its MPN material number
Vendor number— the number of the vendor master record should also be known
Organizational level — Suppose the purchasing info record is for a particular purchasing organization or plant then the code specific to that purchasing organization or plant is required
Question 133. How Can You Create A Purchasing Information Record?
You can create a purchasing information record either manually or automatically by setting the Info update indicator when maintaining a quotation, a purchase order, or an agreement.
Question 134. Can Purchasing Info Record Be Created Without A Material Number?
Answer: Yes, you can create a purchasing info record without a material number. If the material is without the material number, you need the following information for creating the purchasing info record:
Material short text
Short term key
Question 135. How Is An Information Record Based On The Material Master Created?
At first, you need to create the info record by selecting SAP Menu->Master Data-Info Record->Create. Details, such as vendor number, material number, purchase organization, or plant number, are then entered. The number of the information record (in case of external assignments) is then entered. Next, the general data for vendors, ordered quantity, origin of data, supplying information, and Customs Tariff Number is entered. The planned delivery time, purchasing groups, and standard purchasing quantity are then entered. The control data is then checked. The default value of tolerance data and purchasing group are taken from the material master record. The net price is entered and then select go TO->Texts to display the text overview. If the PO text is already defined, it appears in the material master record; otherwise, it needs to be entered. After all these entries, the record is saved.
Question 136. What Is Document Management System In Sap?
Document management system (DMS) in SAP helps you store external documents, such as the goods or material pictures. By using the DMS, you can set the maximum size of the picture that can be uploaded in a document. The DMS helps to link these external documents with the appropriate SAP objects.
Question 137. How Will You Create A Document?
You can create a document by using the CV01N transaction code or by using the following menu path:
SAP Menu -> Logistics -> Central Functions -> Document Management System -> Document -> CVOIN-Create.
Question 138. Name The Key Fields That You Must Specify While Creating A Document.
The key fields that you must specify while creating a document are:
Document Number — Refers to a unique alpha-numeric number that is used to identify the document. .
Document Type— Refers to a document type that categorizes a document.
Document Part— Refers to a document’s section that is treated as an in dividable document.
Document Version— Refers to a two-character number that represents the document version
Question 139. How Will You Link A Document To A Material Master Record?
After creating a document, you can link it with the Material Master record by using the MM01 transaction code or by using the following menu path:
SAP Menu -> Logistics -> Materials Management -> Material Master -> Material -> Create (General) -> MM01- Immediately.
Question 140. How Will You Link A Document To A Vendor Master Record?
Once you complete creating a document, you can link that document with the vendor master record by using the XK01 transaction code or by using the following menu path:
SAP Menu -> Logistics -> Materials Management -> Purchasing -> Master Data -> Vendor -> Central -> XK01- Create.
Question 141. How Classification System Is Used To Describe A Document?
A Document Management System (DMS) stores large number of documents; thereby, it becomes quite difficult to find the right document. In such a case, the classification system is used to describe a document that uses a set of characteristics combined together to form a class, which is later assigned to a document. The class assigned for a document can be used to find a specific document from the DMS.
Question 142. What Is the Source of Error “not Allowed” In Case of Custom Movement Type Creation?
You need to check the allowed transaction for the customized movement types and use the OMJJ transaction code.
Question 143. Give The Names Of The Tables Where The Header Level And Item Data Are Stored In A Purchase Order.
The EKKO and EKPO are the two tables where the header and item level data are stored, respectively.
Question 144. Give The Names Of The Tables Where The Material Master Data Is Stored.
The MARA and MARC are the two tables where the master data is stored.
Question 145. What Is The Vendor Evaluation? How Is It Maintained?
The vendor evaluation is an activity to find a vendors performance by giving a particular score on a scale of 0 to 100. Alternatively, you can use a transaction code ME61 and enter purchase organization and vendor number to view the details.
Question 146. Write The Name of the Sap Program Used to Updated or Create Material Master Records (mmr).
The RMDATIND program of SAP is used to update or create Material Master Records (MMR).
Question 147. What Is the Storage Location-specific Material Master Data?
There might be a case when you need to store a material at more than one storage locations. In this case, to store the data, you need to create different material master records for each storage location. This is called the storage location-specific material master data.
Question 148. When Is a Production Resource Tool (prt) Defined for a Material?
If purchasing and inventory functions are carried out for Production Resource Tool (PRT), then a PRT is defined for a material.
Question 149. What Transaction Code Is Used To Extend The Material View?
The MM50 transaction code is used to extend the material view.
Question 150. What Is Source List? What Is The Menu Path To Define A Source List?
A source list is used to identify sources of supply for certain materials. The following is the menu path to define a source list:
Select Logistics -> Materials management -> Purchasing -> Source list.
Question 151. What Do You Mean By Material Numbers In Sap?
Material numbers are unique numbers used to identify a material.
Question 152. What Does An Industry Sector Control?
While creating the material master record for a material, you need to classify the material according to the industry type. This is called the industry sector. The industry sector controls the screen appearance, the screen sequence, and the appearance of industry-specific fields on individual screens in the material master record.
Question 153. Can We Change The Industry Sector Of An Existing Material?
once assigned you cannot change the industry sector of an existing material.
Question 154. What Is Valuation Category?
The valuation category specifies the standard used to differentiate the different partial stocks. In simple words, you can say that valuation category is the criteria to define partial stocks. The standard system comprises a variety of valuation categories, such as B and H. B is used for procurement type that is here the stock is divided up depending on whether the stock is procured externally or manufactured in-house. On the other hand, H is used for origin that is here the stock is divided on the basis of from where it was delivered. The valuation category in the Material Master record holds every material that is assigned for valuation.
Question 155. What Does The Material Type Control?
The material type controls the materials stock management, which implies:
If there is a change in the quantity of the material, it should be updated in the material master record.
Along with the change in the material master record, there should be changes in the stock accounts also.
Question 156. What Is The Transaction Code To Create A Material Type?
MOS2 is the transaction code to create a material type.
Question 157. What Material Types Are Prompted While Creating A New Material?
Click the F4 key to select the material type for a material that you want to create. For example, the material type FHMI is used for Prod. Resources/tools, the material type ROH is used for raw materials, and FERT is used for finished product.
Question 158. What Is The Menu Path To Define Material Type Attributes?
The following is the menu path to define material type attributes:
Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.
Question 159. Can We Change The Material Type Of A Material?
Yes, we can change the material type of a material.
Question 160. How Are User Defaults Set For Views?
You can set user defaults for views by selecting Defaults->Views.
Question 161. List The Steps To Create A Profile.
You can create a profile by following these steps:
1. Select Profile -» MRP Profile from the Menu screen to display the Initial Create Profile screen.
2. Enter the value in the key file that you want to assign in the profile.
3. Select Goto -> Selection to display the Selection screen.
4. Enter a profile description and select the fields that you want to include in the profile.
5. Select Goto -> Data to display the Data screen.
6. Enter your data in the Data screen and save the profile by selecting Profile -> Save.
Question 162. How Are The Characteristics Changed?
The characteristics are the properties that describe the length, color, and other related features of an object. Perform the following steps to change the characteristics of an object:
Select SAP Menu->Gross App. Components->Classification System->Master Data->Characteristics
Alternatively, the CT04 transaction code is used to change the characteristics.
Question 163. How Is A Class Created?
A class is a collection of the group of the characteristics for a particular object. You need to enter the class name and a description for it and then select the group. After saving the details, the class is created. Alternatively, you can use CL01 T-code for this purpose.
Question 164. Can You Include a Roh (raw Material) Type in the Sales View?
Usually, the raw materials cannot be included in the sales view. However, the raw materials can be included in the sales view only when they are sold to procure finished products in return.
Question 165. List The Key Fields Of The Material Master Table.
The key fields of the material master table are material groups, material status, divisions, storage conditions, labs and offices, basic materials, container requirements, measure groups, container requirements, and temperature.
Question 166. What Are The Major Purchasing Tables? List The T Codes For Them.
The major purchasing tables along with their T-codes are as follows:
Question 167. What Is Non-valuated Material?
The material that is maintained on the basis of the quantity rather than its value is called the non- valuated material. The non-valuated material can only be withdrawn from the stores or warehouses only when it is transferred to “valuated” stock.
Question 168. How Can You Access The Additional Data Screen?
You can access the additional data screen in a material master record from any view by selecting additional data in the standard material master.
Question 169. How to Move a Material Master Record From One Sap System To Another?
You can use either of the two ways to move data from one SAP system to another.
1. Using direct input
2. Using Application Link Enabling (ALE)
Question 170. What Is The Transaction Code To Display Material Of Sap Mm?
MM03 is the transaction code to display material of SAP MM.
Question 171. What Is The Purchasing Value Key?
It is the key, which determines the following:
Reminder keys— Keys that help determine the number of the days before or after the vendor has to be reminded for the material procurement
Under delivery tolerance limit & over delivery tolerance limit
Order acknowledgement requirements in purchase order
Question 172. How Can You Configure The Purchasing Value Key?
You can configure the purchasing value key by performing the following steps:
1. Open the SAP implementation guide.
2. Click Materials Management->Purchasing->Material Master->Define Purchasing Value Keys.
This opens the Change View “default Values: Material Master”: Overview page.
3. Enter the New Entries button. This opens the New Entries: Details of Added Entries page.
4. Enter the appropriate values in the fields.
5. Click the Save button on the toolbar.
Question 173. What Is Vendor Sub-range?
The vendor sub-range is defined as a subdivision of the total range of products provided by a vendor. Vendor sub-ranges are required when you create or maintain Material Master Data.
Question 174. What Is A One-time Vendor?
A one-time vendor is the vendor who rarely or only once supplies the materials or articles to your company. For such vendors, you do not need to create a separate master record because the master records have no use after the business transaction is completed. Therefore, you can collectively create a master record for all the one-time vendors.
Question 175. Why Is Negative Stock Needed In An Organization?
Negative stock is needed in an organization when a material is shipped to a customer and the production is not confirmed or there is not enough stock to satisfy the requirement. The system allows issuing the material and inventory shows a negative quantity of stock, until the product of material is confirmed.
Question 176. How Are The Consignment Stocks Created?
The consignment stocks are created in the normal purchase order or requisition, but the main thing to consider is that the K category is to be entered for the consignment item. As a result, the goods issued are posted to the consignment stores and the invoice receipt is not generated.
Question 177. Define The Consignment Cycle?
Consignment cycle is much more similar to the purchase cycle except that when you create goods receipts of the consignment stocks, only QTY (quantity) is updated without creating any accounting documents. Once the goods are utilized, consignment is settled. The value of the consumed or issued consignment stocks is used from the active purchase info record.
Question 178. How Is Consignment Material Procured?
The consignment material is procured through purchase requisitions, purchase orders, and outline agreements.
Question 179. How Can We Take Consignment Stocks Into Our Own Stock?
You can take consignment stocks from the vendor into your own stock by performing the following steps:
1. Select Goods movement->Transfer posting to display the initial screen.
2. Enter the plant name and the location where you want to store the materials.
3. Select Movement type->Transfer posting->Consignment->Consignment to own.
4. Select Continue to display the collective entry screen.
5. Enter the name of the vendor, the materials, and the quantity of materials.
6. Enter the receiving storage location if you want to store the materials in another storage location.
7. Post the document. This makes the vendor liable to change the storage location of the materials.
Question 180. How Can You Do Invoicing In Case Of Consignment Stocks?
You can do the invoicing of consignment stocks by performing either of the following:
Invoicing with purchase order
Invoicing without purchase order
Question 181. How Can We View The Stocks Provided To Vendor?
The stocks of material provided to vendor can be viewed by using the SC Stock Monitoring for Vendor report. The report can be accessed by selecting Purchase Order->Reporting->SC stocks per vendor from the menu. With this report, the current status of the stocks, the planned issues, and the planned receipts can be viewed.
Question 182. How Are Components Consumed In Case Of Subcontracting?
In subcontracting, the end product is ordered by using a subcontract order. The materials or components required by the vendor to manufacture the end product are mentioned in the purchase order. The components are posted to the stock of material provided to vendor in Inventory Management. When the components are supplied to the vendor, the vendor manufactures the end-product and delivers it. At this point, the goods receipt with reference to the subcontract order is posted. The goods receipt also contains the posting of the consumption of the components from the stock of material provided to vendor. In case the components consumed by the vendor are more or less than that specified in the purchase order, an adjustment needs to be posted to correct the consumption of components.
Question 183. What Is the Need of Creating Physical Inventory Documents for an Inventory Cycle-count Procedure of a Material or Materials?
For a cycle-count procedure, the physical inventory documents are needed, because these are used to record inventory levels of the materials.
Question 184. What Is The Difference Between Planned And Unplanned Consumption?
The difference between planned consumption and unplanned consumption is that planned consumption is updated if goods are withdrawn due to reservation, whereas unplanned consumption is updated, if goods are withdrawn from stock without a reservation.
Question 185. How Can One Vendor Obtain Components from Another Vendor or Third-party?
The components can be provided by a third party, such as another vendor. In this case, the subcontractor is specified as the delivery address in the purchase order. This implies that the components are directly delivered to the subcontractor. To order components for a subcontract order from another vendor, perform the following steps:
1. Select Purchase order->Create->Vendor known from the Purchasing menu.
2. Enter the vendor of the components and the desired plant.
3. Enter the components.
4. Select Item->More functions-> Delivery address. A dialog box appears in which the delivery address can be entered.
5. Enter the number of the subcontractor in the Vendor field.
6. Select the SC vendor box. As a result, the components at the goods receipt are posted to the stock of material provided to the vendor.
7. Save the purchase order.
Question 186. How Is Invoice Verification Of Subcontracting Po Done?
The invoice verification of subcontracting PO is done in the same way as it is done in purchase order.
Question 187. How Do You Attach A Document In The Purchase Order?
A document can be manually attached to a purchase order by using the document management system in SAP. In case when the purchase order is prepared using the T-code ME21N, then no attachment can be added. You need to save the purchase order and re-open with the T-code ME22N. Click the service for object button, select Service Object Button-> Create-> Create Attachment, and then select the file to be attached.
Question 188. How Can A Subcontract Order Be Created?
A subcontract order can be created by performing the following steps:
1. Enter the end-product to be ordered and the item category for subcontracting (L) in the order item.
2. Press the Enter key to display the screen for component processing.
3. Enter the components required by the vendor to manufacture the end-product.
4. Save the purchase order.
Question 189. What Do You Mean By The Lot Size?
The lot size is the quantity of materials used for re-ordering. It can be static, periodic, optimum, or fixed in attributes.
Question 190. What Do You Mean By A Reservation?
A reservation is a document that ensures availability of materials in the warehouse when materials are required for transferring materials to a customer. It contains information, such as which materials are needed, what quantities of materials are required, and when or where the materials are needed. It helps the Material Requirement Planning (MRP) system to avoid lack of stock in the warehouse.
Question 191. What Transaction Codes Are Used With Reservations?
The following transaction codes are used with reservations:
The MB21 transaction code: Creates a reservation
The MB22 transaction code: Changes a reservation
The MB23 transaction code: Displays a reservation
The MB25 transaction code: Displays lists of reservations
Question 192. How Is The List Of All Reservations In The Systems Displayed?
The reservation list can be displayed by running the RM07RESL report.
Question 193. State The Difference Between Stock Transfer And Transfer Posting?
Stock transfer is the physical movement of goods from one store to another store or one plant to another plant. Transfer posting is movement of goods from one stock type to another or from one storage location to another storage location within a plant.
Question 194. What Is The Transaction Code To Create Movement Types?
OMJJ is the transaction code to create movement types.
Question 195. How to Create Movement Type?
Perform the following steps to create a movement type:
1. Select the standard movement type 201 from the Determine Work Area Entry dialog box.
2. Click the copy icon and then overwrite 201 with Z01.
3. Select the new movement type Z01 from the Determine Work Area Entry dialog box.
4. Select Reversal-> follow-on movement.
5. Enter the reversal movement type.
Question 196. How Is Stock transferred In a Cross-company Scenario?
Stocks can be transferred between plants that belong to different company codes. Such a stock transfer process can be done in any of the following ways:
One-step plant-to-plant stock transfer
Two-steps plant-to-plant stock transfer
STO without delivery through shipping
STO with delivery through shipping
Question 197. How Can A Stock Transfer Be Monitored In Purchasing?
A stock transfer can be monitored in Purchasing by using the following stock documents:
Stock transport order (STO)
Stock transport scheduling agreement
Question 198. Can A Purchase Requisition Be Generated Automatically?
You can generate a purchase requisition automatically only in case where a material is sent out for external processing, for example subcontracting work. Another situation where you may need to generate a purchase requisition automatically is when the bill of materials is for a material other than a non-stock item.
Question 199. State The Configuration Steps For Purchase Requisition?
The steps for the purchase acquisition are as follows:
1. Defining of document type
2. Processing Time
3. Release Procedure
4. Authorization Check
5. Defining of the number ranges
Question 200. How Do You Change A Purchase Requisition Once It Is Issued?
To change a purchase requisition after it is issued, the first task is to check whether a purchase order against was issued or not. If it is issued, then the purchase groups are informed. Next step is to check whether the purchase requisition is approved or not. If it is approved, then only change to the limited extent is possible. Also if the purchase requisition is created by the MRP, then much less interference in the process is possible. Keeping all these parameters in mind, regarding all the changes that are going to be brought into effect, select the desired item and select Go To-> Statistics ->Changes link.
Question 201. State The Differences Between The Purchase Requisition With A Master Record And Without A Master Record?
In case of the purchase requisition with the master record, the source list, information record, and vendor evaluation are present in the system. In this case, the outline agreements are generated due to the changing of the short-term purchasing into the long-term agreement. As a reason, the purchase order cannot be issued against a purchase order, but only an agreement can be set up. If the material master is not present, then the material is ordered as a consumable item. The account assignment is done by specifying the consumption accounts against this acquisition. For example, the purchase information related with this requisition can be assigned to a specific cost centre.
Question 202. State The Importance Of The Vendor Evaluation In The Purchase Department?
Vendor evaluation is an important function of the purchase department as it supports in optimizing the procurement process by selecting vendors to supply materials or services.
Question 203. What Are the Main Criteria’s Of Vendor Evaluation?
The main criteria’ of vendor evaluation are as follows:
Service and Support
Question 204. What Are The Document Types Used In Prs?
Purchase requisitions (PRs) are internal documents of an enterprise. These documents are used to request the Purchasing department of the enterpriser to procure a particular material or a service. The quantity of the requested material and the date of the procurement are also specified in the PRs. The document types used in PRs are as follows:
1. Request for Quotation (RFQ).
2. Outline Agreement.
3. Purchase Order.
Question 205. What Is The Difference Between An Indirectly Created And Directly Created Purchase Requisition?
A purchase requisition is said to be created indirectly when it is initiated through another SAP component, such as consumption-based planning, project system, plant maintenance, and production planning and control. On the other hand, a directly created purchase requisition is the one that is manually created through the requesting department. The person concerned has the full control to decide the item, the quantity to be ordered, and the delivery date of the order.
Question 206. Can A Purchase Requisition Be Manually Generated Through The Reference Of A Purchase Order Or A Scheduling Agreement?
A purchase requisition cannot be generated either by using the reference of a purchase order or by using a scheduling agreement.
Question 207. What Is A Purchase Order? What Does A Purchase Order Contain?
A purchase order is a document issued by a buyer to a seller which consists of the type and quantity of the goods or services the seller will provide to the buyer at a specified date.
A purchase order consists of:
Document Header — Relates to the entire purchase order
Number of Items — Relates to the number of items to be provided by the seller to the buyer.
Question 208. Where Do We Define Payment Terms In Po?
The payment terms in PO represent the agreements of customers and vendors. You can define the payment terms in PO in the master records of customers and vendors.
Question 209. What Are The Document Types Used In Po?
The document types used in PO are:
Standard Purchase Order (NB)
Stock Transport Order (TB)
Question 210. What Is The Difference Between Blanket Purchase Order And The Service Order?
The blanket purchase order is used for consumable materials, such as office paper with a sort text. In case of blanket purchase order, no Good Receipt (GR) is required for the purchase order. In framework order, the document type is used for purchase order and GR and Service Entry (SE) are required for purchase order.
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