MM QUESTIONS

Master Data
General Master Records
Material Master
1) which departments/organizational units are responsible for
maintaining the material data?
2) Is master data common across all departments (common master data)?
3) which types of materials do you distinguish between?
4) how do these types differ regarding business processes (stock
management, procurement, sales, and so on), data maintained, and
persons responsible?
5) Do you group similar products together (for example, in divisions or
material groups)?
6) If you have multiple plants, is your material normally supplied by a
specific plant?
7) Can a material have different values in one plant? What are the criteria
for the different values?
8) Do you require your vendors to provide quality certificates (certificates
of conformance or certificates of analysis) either prior to or with
material shipments? Describe the types of certificates you require
9) Do you block a vendor invoice for payment until the quality inspection
has been successfully completed?
10) How many different materials do you procure on a regular basis?
11)Do you want to maintain a source list for the material types you will
procure
12)Do you value your materials using a standard price, a moving average
price, or different valuation methods for different materials?
13)Each material must belong to exactly one material group. Which
material groups do you need to organize your materials?
14)Describe the structure and numbering system for material numbers
(internal/external, specific to material type, other criteria).
15) What types of texts do you maintain for your materials?
16) Are your materials taxable?
Vendor Master Record
1. What types of vendors do you have? (Domestic, foreign, payment
address, one-time vendors, etc.)
2. How many active vendors do you want to transfer to R/3?
3. Do you have plants that supply materials or services to other plants in
other company codes?
4. Do stock transport orders take place between stores?
5. Is it necessary for you to maintain different purchasing vendor master

6.
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data for different plants?

When working with your suppliers, do you deal with people with
different roles? If yes, indicate the appropriate roles.
Do you employ different payment terms by facility?
Are there any vendor-specific instructions or information that you want
to include in purchasing documents?
Do your vendors offer discounts for prompt payment (for example, 1%
cash discount within 10 days)? Provide a list of the payment terms you
require.

10.Do you have vendors with several/different ordering addresses, payees,

carriers, and so on? If so, what do these depend on (assortment, supply
region)?
11.How many vendors regularly supply you with goods?
Procurement
Purchasing Group
1)Shall purchasing groups represent individual buyers or groups of
buyers? If Groups of buyers, provide a list of groups.
Purchasing Organization
1) Which purchasing departments exist in your enterprise?
2) If there is more than one department, which handles all purchasing,
specify which department(s) negotiates pricing terms and conditions
with your suppliers.
3) Do you have departments outside your purchasing department, which
handle purchasing? If so, list these departments and what they purchase.
4 ) Where do you procure materials/services in your enterprise?
5) Which material types/external services do you procure?
6) For which enterprise entities do you procure materials/services? List
these materials/services.
7) Do you negotiate vendor pricing at a corporate or local level?
8) Where do you procure materials/services in your enterprise centrally?
9) Which materials/services do you procure centrally?
Inventory Management
Storage location
1) List the storage locations that you will need for each Plant.
2) Explain your strategy(s) regarding material receiving and product
picking.
3) Does each part have a unique location or can they be stored anywhere?
Procurement

1) How many different materials do you procure on a regular basis?

1) Which price components do you use in purchasing documents (e.g. gross
price, surcharges,
discounts, freight, duty, import)?
2) Do prices depend on the quantity ordered (e.g. quantity discounts or
price scales)? If so, specify price components, quantity, and other factors.
3) To which date does the price determination process relate? (E.g.
delivery date, PO date, other.)
4) Is pricing information from other systems to be used for price
computation purposes in R/3?
5) Do you manually change the price at header level for the entire
purchasing document?
6) Do you allow changes to the gross price that is automatically determined
by the R/3 System?
7) Does the vendor's price include value-added tax?
8) Is it possible to change pricing conditions after a PO has been created?
Release Strategy
1) Will any purchasing documents be subject to approval in SAP? If yes,
describe the criteria that will be needed to determine the appropriate approval
policy for purchase requisitions, RFQs, purchase orders, contracts and
scheduling agreements.
the individual weightings.
Procurement of Materials and External Services
Purchase Requisition
Purchase Requisition Processing
1) How are purchase requisitions created in the case of stock material,
material for direct consumption, external services?
2) How many days does it take, typically, before a purchase requisition
becomes demand in a purchasing document given to a supplier? Please
indicate processing time per plant.
Purchasing
Purchase Order Processing
1) How will purchase orders be created in your system?
2) Do you want the system to check whether the purchase price is within a
predefined tolerance in your system, compared with the material valuation
price?
3) Describe how the source of supply is determined for manually created
purchase requisitions!
4) Specify the consumption categories for which you will procure external
services and material directly: Asset, cost center, production order, project.

5) Which types of purchase order will you use?

6) How do you transmit purchase orders to your vendors?
7) Do you order material in a unit of measure that differs from the one used
for stock keeping purposes?
8) Will you be purchasing material imported from foreign vendors?
9) Do you plan and enter freight costs in the PO? If yes, describe the basis of
the costs. Also indicate if any types of costs can be determined automatically (for
example, freight costs per piece, per unit of weight, as a percentage of the
value).
10) Do you want to prevent users from changing the account assignment of
items in purchasing documents for which they have no authorizations? If so,
for which purchasing documents?
11) Do you sometimes order stock material directly for a cost center or
another consumption category?
12) Do you have to declare your ordering activities to the authorities? If so,
describe.
13) Do you allow over deliveries? If so, specify the percentage variance for the
individual materials/material types. Yes, what percentage would you allow?
14) On the occasion that a vendor sent you less than the quantity ordered,
would you ever want this shortfall to be considered an under delivery, with no
further deliveries expected? Please list the values for each material/material
group.

Goods Receipt
Reservation Processing
1) Will you maintain specific material reservations (for sales, for production)
for your stock materials?
2) How far in advance are materials to be allowed to be reserved?
3) In which cases would you want to use manual reservations?
Goods Receipt Processing
1) If you do not use the R/3 Purchasing functionality, describe the process of
receiving goods from a vendor.
2) Should the person who posts a goods receipt be able to use a different
account assignment than the one specified via the automatic account
determination processing assignment?
Goods Receipt Processing with Reference
1) Describe the process for receiving goods with reference to a purchase
order.
2) Name the storage locations to which vendors deliver the goods.
3) How do you inform the Purchasing Department that goods have been
received?

4) Do you receive quantities less than the ordered quantity? If yes, is the
purchase order considered complete then or do you receive the missing
quantities later?
5) Do you physically store the goods you have received into "stock in quality
inspection" at a different location than those posted to normal stock?
6) Do you allow every material to be stored at all storage locations? Please
describe!
7) Do you use a unit of measure for the pricing of the goods other than the
unit you order in? If yes, you can define the variances in customizing.
8) Do the materials you receive have to be stored for a certain time before
they can be used or do they have an expiration date that you want to keep in
the system?
10) Which documents are generated with the goods receipt?
11) Which documents are generated in connection with a goods receipt?
12) Will you inspect the material/article at the time of goods receipt? If so, do
you enter the goods receipt and the inspection result or do you only enter the
goods receipt after the inspection has been carried out?

Service Entry Sheet

1) Do you wish to process or document completion of the services performed
by the service provider?
Invoice Verification
1) Do you reduce the amount of your vendors' invoices automatically in the
event of variances?
2) Name the types of tax that might appear on a vendor's invoice.
3) List the types of tax that are generally applicable and should therefore be
4) How do you treat unplanned delivery costs included in an invoice?
5) Do you sometimes have to change the account assignment for a certain
purchase order at the time of invoice verification?
6) Should down payments also be cleared?
8) Is a goods receipt always necessary for invoice verification purposes? If so,
do you allow reversal of the goods issue after the invoice has been posted?
Has been entered?
9) Is the automatic account determination process only defined by Financial
Accounting? If not, who is responsible within Logistics?
10) Do you wish to notify Purchasing if the invoice price exceeds the purchase
order price?
Invoice Overview
1) Who is responsible for processing incorrect invoices in your firm?
2) Describe the information flow between Purchasing and Invoice Verification

when an error occurs?

Return Delivery
1) Will you create action plans/tasks for this defective material?
2) Do you enter data (for example, defects, characteristic results, specific
findings) on the defective material found in the stockroom or on the shop
floor?
3) Do you have to inspect/re-inspect defective material found in your
stockroom or on the production floor?
4) Which documentation should accompany the goods that are returned to
the vendor?
5) Describe the handling of inspection lots where the usage decision has
determined that they are to be rejected and returned to the vendor.

Stock Transfers / Trans. Postings

Two-Step Stock Transfer
1) Do you want to transport goods receipts to more than one physical storage
facility?
One-Step Stock Transfer
1) In the case of stock transfers, do you wish the material to be immediately
available at the receiving plant?
Goods Issue
Goods Issue Processing
1) How much time elapses between the actual goods issue and its posting in
the system?
2) Is the posting made online or in batch mode?
3) Are deliveries posted individually or for each group of goods issues?

Physical Inventory & Cycle Counting

Physical Inventory
Specification of Cycle Counting Phys. Inv.
1) Which materials do you count in cycles?
2) How are the ABC indicators to be assigned? - based on material
consumption/usage - based on material requirements - manually - other,
please describe
Cycle Counting Phys. Inv. Preparation

1) Do you block the relevant stock during the physical inventory count?
2) Do you conduct a physical inventory for:
3) Which types of physical inventory do you wish to use to count the materials
in your warehouses?
Printout of Physical Inventory Document
1) How are physical inventory documents to be printed out?
Inventory Count
1) How do you carry out the physical inventory count (e.g. manually)
Physical Inventory Analysis
1) Are physical inventory differences aggregated at material group level?
2) Do you allow physical inventory tolerances? Specify these tolerances.
Post Inventory Differences
Q:
1) Who is responsible for posting physical inventory differences?
Specify the persons responsible and the maximum differences allowed.
RFQ/Quotation
Processing of Requests for Quotations
1) Do you generally request several vendors to submit prices, terms and
conditions in the form of a tender/bid/quotation?
2) Do you want to assign a collective number to the different quotations
submitted by several vendors?

Transmission of RFQs
1) How will you transmit your purchasing documents to your vendors?
2) Will you send rejection letters to unsuccessful bidders? Indicate how such
letters are to be transmitted to the vendor.
Vendor Quotation Processing
1) Do you wish to have the system automatically analyze/evaluate quotations
submitted by vendors?
2) How do you receive the quotations?
3) Are the quotations submitted by vendors to be automatically compared by
the system?
Transmission of Rejections
1) How will you transmit your purchasing documents to your vendors?
2) Will you send rejection letters to unsuccessful bidders? Indicate how such
letters are to be transmitted to the vendor.

Country India Version related Questions:

1. Whether all your Plants are Excise Registered? If not list down which plants
are Excise Registered and which are not?
2. Do you have Manufacturing, Trading, and Depot activities in your plants? If
so please list down the plants according to the activities?
3. Do the excise invoice accompany all the goods receipts?
4. What are the various excise duty components you receive in the incoming
invoice?
5. Do you have vendors with SSI status and charging different excise duty?
6. How do you treat Excise duty on Capital Items Received?
7. Do you claim CVD amount on imports? Explain the process
8. Do you have subcontracting operations?
9. Do you have multiple goods receipts under a single Excise invoice?
10. What are the Various Registers do you maintain?
11. Do you have Export Oriented Plants? If so please specify which plants?
12. Do you have VAT charges on your receipts? If so how do you treat them?
13. Do you have any bonded warehouses? If yes, Please explain the process.
14. What are the Taxes other than Excise duty, do you have in your material
receiving invoices?
15. Who handles excise related activities in plants?