Explore our comprehensive guide on ‘SAP Interview Questions on Material Master‘ at saphanatutor.com, a must-read for SAP aspirants. Dive into key aspects of the Material Master module, an essential component of SAP’s ecosystem.
What is Material Master in SAP SD?
In SAP, the Material Master is a central repository for all data related to materials and inventory within an organization. This comprehensive module is integral to various SAP functions, including Sales and Distribution (SD), Production Planning (PP), and more. It encompasses diverse data elements, categorized into sections like Basic Data, Sales Data, Purchasing Data, Inventory Management, and Accounting. Each category serves specific operational needs, ensuring that all relevant material information is accessible across different SAP modules. The Material Master streamlines logistics processes by providing a unified view of material-related data.
SAP Interview Questions on Material Master
Our experts have curated the top 47 SAP Interview Questions asked in MNC’s. The questions cover the fundamental concepts, processes, and functionalities of Material Master in SAP. Whether you’re a beginner or an experienced professional, these interview questions will enhance your understanding and preparation for SAP roles.
Q1: What is the purpose of valuation class?
A: The valuation class in SAP SD is key for categorizing materials for valuation purposes. It links the material with the general ledger accounts, affecting how material movements are accounted for financially.
Q2: What happens if we don’t maintain cost in material master?
A: Not maintaining cost in the material master can lead to inaccurate valuation of inventory, affecting financial statements and profitability analysis. It’s essential for proper accounting and controlling workflows.
Q3: I want to block the material for sales, where is the control?
A: To block material for sales, the control is in the sales organization view of the material master, specifically in the ‘Sales: sales org. 2’ tab, where you can set the delivery block for the material.
Q4: What is the material type for semi-finished goods?
A: The material type for semi-finished goods is typically designated as ‘HALB‘ in SAP, representing products that are in the intermediate stage of production.
Q5: What is the material type for configurable material?
A: The material type for configurable material is ‘KMAT‘. This allows for customization of the product as per customer specifications during the sales order process.
Q6: What is the purpose of product allocation?
A: Product allocation ensures that available product quantities are distributed equitably among customers, especially when demand exceeds supply, to align with business priorities and commitments.
Q7: What is the purpose of volume rebate group?
A: The volume rebate group is used to manage volume-based rebates by classifying customers into different groups to automate rebate calculation based on sales volume.
Q8: What is the purpose of material pricing group?
A: The material pricing group allows for differential pricing strategies for groups of materials, facilitating efficient pricing administration and condition records management.
Q9: What is the purpose of shipping conditions?
A: Shipping conditions determine the shipping process, including the shipping point and route selection, based on the terms agreed with the customer.
Q10: What is the purpose of loading group?
A: The loading group determines how the material is to be loaded during shipping, affecting the shipping point determination and delivery scheduling.
Q11: What is the purpose of general item category group?
A: The general item category group helps in determining the default item category in sales documents, influencing how individual items are processed in the sales cycle.
Q12: What is the item category group for third party material?
A: For third-party materials, the item category group is typically ‘BANS‘, which triggers processes like automatic purchase order creation when a sales order is placed.
Q13: What is the item category group for BOM header pricing main item?
A: For BOM header pricing, the main item category group is usually ‘LUMF’, which allows for price determination at the BOM header level rather than at individual item levels.
Q14: System should not allow to change the sales unit while creating a sales order; where is the control?
A: The control to prevent changes to the sales unit while creating a sales order is in the sales document type configuration, within the ‘Sales Item Category’.
Q15: While creating delivery if the delivery quantity is less than 50 quantities then the system should give an error message; where is the control?
A: This control is managed through the ‘Minimum Quantity’ field in the delivery item category configuration, which can trigger an error message if the set condition is not met.
Q16: What is the purpose of item category group?
A: The item category group in SAP SD determines the item category in sales documents. It helps the system identify how to process different items, whether they’re stock items, services, non-stock items, or text items, influencing the entire sales and delivery process.
Q17: What is the prerequisite to determine cash discount percentage into sales document?
A: The prerequisite for determining the cash discount percentage in a sales document is setting up the payment terms correctly in the customer master record and assigning the relevant condition types for cash discount in the pricing procedure.
Q18: What availability check field controls in material master?
A: In the material master, the ‘Availability Check’ field controls whether and how the system checks the availability of a material when a sales order is entered. It is linked to the checking group and the checking rule.
Q19: What is the difference between daily requirements and individual requirements?
A: Daily requirements consolidate all requirements for a day, providing a summarized view, which is useful for streamlining procurement and production planning. Individual requirements list each order separately, offering detailed insight for precise material planning.
Q20: What is automatic PO (Purchase Order) check?
A: Automatic PO check is a feature in SAP SD that, when enabled, automatically generates a purchase order for non-stock items during sales order processing. This is typically used for drop-ship items or third-party order processing.
Q21: After creating a material master, how to change the cost in material master?
A: To change the cost in the material master after creation, you can use transaction code ‘MR21 – Price Change’. This allows you to adjust prices and update the cost conditions accordingly.
Q22: How requirement type determines into sales document?
A: The requirement type in a sales document is determined based on the item category and the material’s MRP type. It influences how the system handles material requirements and inventory management for that particular sales order.
Q23: What is the purpose of RLT?
A: The Replenishment Lead Time (RLT) is used in SAP SD to define the time needed to replenish inventory, including procurement and production times. RLT is vital for ensuring materials are available when needed to meet customer demands.
Q24: What is price control?
A: Price control refers to the valuation approach of material in inventory. It can be set to either ‘Standard Price’ (S), where the material is valued at a fixed standard cost, or ‘Moving Average Price’ (V), where the valuation is based on the average price of the material.
Q25: T-code to create CMIR?
A: The transaction code to create a Customer Material Information Record (CMIR) in SAP SD is ‘VD51’. This record allows you to maintain specific material information unique to each customer.
Q26: How plant determines into sales document?
A: The plant in a sales document is determined by the sales area (which includes the sales organization, distribution channel, and division) and the customer master data. The system can also use rules defined in the ‘material determination‘ process to automate this selection.
Q27: What is the purpose of check division?
A: The check division function in SAP SD ensures that all items in a sales order belong to the division specified in the sales area of the order, maintaining consistency in order processing and reporting.
Q28: What is the purpose of item division?
A: Item division in SAP SD allows for the assignment of a division to each individual line item within a sales document, ensuring that the division-specific characteristics are applied correctly.
Q29: If a document is incomplete, I don’t want the system to save the order, where is the control?
A: The control for preventing the saving of incomplete documents is within the ‘Incompletion Log’. You can configure incompletion procedures to define the necessary fields that must be filled for a document to be considered complete.
Q30: What is the purpose of transaction variant?
A: The purpose of a transaction variant in SAP SD is to customize standard transactions to better fit business needs by defining specific screen layouts, mandatory fields, and hidden fields.
Q31: What is status profile?
A: A status profile in SAP SD is a set of user statuses that can be assigned to documents or line items. It is used to track and control the progress of various business transactions, allowing for custom status flows and user-defined statuses to manage business processes effectively.
Q32: What is the purpose of ALT TYPE1 & ALT TYPE2?
A: ALT TYPE1 and ALT TYPE2 in SAP SD are alternative condition types used in pricing procedures. They allow for different pricing calculations in specific scenarios, providing flexibility in how pricing is applied to sales documents based on business requirements.
Q33: What is the purpose of document pricing procedure?
A: The document pricing procedure in SAP SD is designed to determine the pricing conditions applicable to a sales document. It allows the system to consider various factors like customer, document type, and sales area to apply the correct pricing strategy.
Q34: What is the purpose of condition type line item?
A: The condition type line item in SAP SD identifies the type of condition being applied to a line item, such as a discount, surcharge, or freight. This classification allows for precise control over pricing and costing within a sales document.
Q35: What is Make to Order?
A: Make to Order (MTO) is a production approach where manufacturing begins only after receiving a customer’s order. This allows businesses to provide customized products and reduce inventory carrying costs.
Q36: What is Make to Stock?
A: Make to Stock (MTS) is a production strategy where items are produced based on forecasted demand and kept in stock for future sales. This helps in meeting customer demand promptly but requires accurate demand forecasting to minimize excess inventory.
Q37: What is safety stock?
A: Safety stock is additional inventory that is kept to protect against stockouts caused by variability in supply and demand. It serves as a buffer to ensure that production and customer service levels are maintained.
Q38: What is the purpose of the business item checkbox?
A: The business item checkbox in SAP SD is used to indicate whether an item has relevance to specific business processes or scenarios, such as profitability analysis or account determination, affecting how the item is processed in various applications.
Q39: What is the purpose of item relevant for delivery in item category?
A: The ‘Item Relevant for Delivery’ setting within an item category specifies whether an item should be included in the delivery process. Items marked as relevant will be processed through the shipping stages, while non-relevant items will be excluded.
Q40: Which item category do we assign to special stock?
A: Special stock, such as consignment or project stock, is assigned to item categories specifically configured for such stocks, like ‘KONS’ for consignment sales. These item categories handle the unique processing and inventory management needs of special stocks.
Q41: I don’t want to update the line-item value into credit management, where is the control?
A: To prevent line-item values from updating in credit management, the control lies in the configuration of credit management settings. You can specify which sales document types or item categories should be excluded from credit value updates.
Q42: What is the prerequisite to determine cost into sales document?
A: The prerequisite for cost determination in a sales document is that the material cost must be maintained in the material master, and the appropriate costing model should be configured in the pricing procedure.
Q43: What is the T code to run MRP?
A: The transaction code to run Material Requirements Planning (MRP) in SAP is ‘MD01’ for single-item, multi-level planning, or ‘MD02’ for single-item, single-level planning.
Q44: What is the purpose of valuation class?
A: (Repeated question; the answer is provided above in Q1.)
Q45: What is the T code for storage location determination?
A: The transaction code for configuring storage location determination in SAP SD is part of the delivery item configuration, typically managed via ‘OVLP.
Q46: What is the T code to determine the shipping point?
A: The transaction code to determine the shipping point in SAP SD is part of the delivery processing configuration, which can be set using ‘OVLY.
Q47: How does shipping point determination occur?
A: Shipping point determination occurs based on the shipping conditions, the loading group, and the plant associated with the line item in the sales document. The system uses this data to automatically select the most appropriate shipping point for delivery processing.