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SAP S/4HANA MM study materials
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SAP S/4HANA MM practice questions

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Question 1Procurement Processes and Customizing

In SAP S/4HANA, which element determines the number range and the field selection for a purchase requisition?

  1. The material type of the requisitioned material
  2. The purchasing group entered in the item
  3. The account assignment category of the item
  4. The purchase requisition document type Correct answer.

Explanation

The document type is the central control for a purchasing document: it assigns the number range interval and the field selection that decides which fields are ready for input. It is assigned in Customizing for Purchase Requisition document types. Material type, account assignment category and purchasing group supply defaults and required entries but do not control numbering or field selection.

Question 2Procurement Processes and Customizing

What is the purpose of a source list in SAP S/4HANA purchasing?

  1. It stores the price conditions that were negotiated with a vendor for a material
  2. It fixes the release codes that a purchase order must pass before it is released
  3. It defines which sources of supply may be used for a material at a plant Correct answer.
  4. It records the goods receipt quantities that have been posted for a purchase order

Explanation

A source list is maintained per material and plant and lists the vendors or outline agreements that are permitted as sources of supply. Each entry has a validity period and can carry indicators such as blocking or fixed source. Prices and release logic are stored in other objects.

Question 3Procurement Processes and Customizing

A purchase requisition is created for office supplies that a department consumes immediately. Which account assignment category is appropriate?

  1. F (Order)
  2. A (Asset)
  3. P (Project)
  4. K (Cost Center) Correct answer.

Explanation

Account assignment category K assigns the procurement cost to a cost center and posts consumption directly to expense when the goods receipt is posted. Categories A, F and P require additional objects such as an asset number, an internal order or a WBS element.

Question 4Procurement Processes and Customizing

Which statement describes the function of the GR/IR clearing account?

  1. It temporarily balances goods receipts for which no invoice has yet been posted Correct answer.
  2. It stores the standard price of materials procured externally
  3. It holds the price differences that arise when an invoice differs from the purchase order price
  4. It records down payments made to a vendor before delivery

Explanation

At goods receipt the system debits inventory or consumption and credits the GR/IR clearing account; at invoice receipt the clearing account is debited and the vendor credited. The balance of the account therefore represents goods received but not yet invoiced, or invoices received for goods not yet delivered. It is cleared by the corresponding follow-on posting or by period-end reconciliation programs.

Question 5Procurement Processes and Customizing

A purchase order release strategy is defined with a release group, a release strategy and release codes. Which mechanism links an individual purchase order to the correct release strategy?

  1. The partner schema of the vendor master record
  2. Classification of the purchase order header using characteristics Correct answer.
  3. The number range interval assigned to the document type
  4. The output condition records for the purchase order message

Explanation

The release group defines the class and the characteristics that are used to classify a purchase order header. The characteristic values of the individual document (for example, document type or total value) then determine which release strategy and which release codes apply.

Question 6Procurement Processes and Customizing

How is the calculation schema for a purchase order item determined in SAP S/4HANA?

  1. From the material type and the valuation class of the material
  2. From the plant and the storage location entered in the item
  3. From the vendor's schema group and the purchasing organization's schema group Correct answer.
  4. From the purchase order document type and the account assignment category of the item

Explanation

Both the vendor master purchasing data and the Customizing entry for the purchasing organization contain a schema group. The combination of these two schema groups determines the calculation schema, which in turn controls which condition types are available in the purchase order item.

Question 7Procurement Processes and Customizing

Which purchasing document is an outline agreement with a validity period and an overall target quantity or value, against which individual release orders are issued?

  1. Purchase requisition
  2. Request for quotation
  3. Contract Correct answer.
  4. Scheduling agreement

Explanation

A contract is a long-term outline agreement in which a target quantity (quantity contract) or a target value (value contract) is agreed for a validity period, and release orders are created against it. A scheduling agreement also has a validity period, but deliveries are called off through schedule lines rather than release orders.

Question 8Procurement Processes and Customizing

A purchasing info record exists for a material and vendor. Which values does the system propose by default when a purchase order item is created?

  1. The release strategy and release codes of the purchase order
  2. The account assignment category and the cost center
  3. The vendor's bank details and payment terms for automatic payment
  4. The net price and the planned delivery time from the info record Correct answer.

Explanation

The purchasing info record stores price conditions and purchasing organization data, so the net price and the planned delivery time are proposed in the purchase order item. Additional data such as order unit and tolerance values may also be copied from it.

Question 9Procurement Processes and Customizing

Output determination for purchase orders is based on the condition technique. Which Customizing elements are required for it?

  1. Condition tables, access sequences, and output determination procedures Correct answer.
  2. Release codes, release indicators, and release prerequisites of the strategy
  3. Tolerance keys, tolerance groups, and blocking reasons
  4. Movement types, valuation classes, and account modifiers

Explanation

Message determination in purchasing uses condition tables that hold the communication data, access sequences that define the search order, output types that describe the message, and a determination procedure that groups the output types. These are assigned to the purchasing document via the message schema.

Question 10Procurement Processes and Customizing

Which purchase order item category is used when a vendor manufactures a finished material using components that the purchasing company provides?

  1. Consignment (K)
  2. Stock transfer (U)
  3. Subcontracting (L) Correct answer.
  4. Third-party (S)

Explanation

Item category L represents subcontracting: the components are provided to the vendor and monitored as provided stock, and the goods receipt of the finished material consumes those components. Item category S, by contrast, describes a delivery sent directly from the vendor to the customer.

Question 11Procurement Processes and Customizing

In consignment procurement, at which point does the purchasing organization incur a liability toward the vendor?

  1. When material is withdrawn from the consignment store Correct answer.
  2. When the consignment stock arrives in the plant's storage location
  3. When the consignment stock is returned to the vendor
  4. When the purchase order for consignment stock is created

Explanation

Consignment stock remains the vendor's property and is not valuated in the company's own inventory. A liability and the corresponding settlement arise only at the moment material is withdrawn from the consignment store, because that withdrawal represents the consumption or transfer of ownership.

Question 12Procurement Processes and Customizing

Which Customizing objects define the variance limits that must be exceeded before an invoice is blocked in Logistics Invoice Verification?

  1. The number range intervals for invoice documents
  2. The calculation schema and the condition types
  3. The posting period variant and the fiscal year variant
  4. The tolerance keys and the tolerance groups Correct answer.

Explanation

Tolerance keys define the permitted percentage or absolute differences for amount, quantity, price and date variances. The tolerance group assigned to the user, together with the tolerance limits of the company code, determines whether an invoice is accepted, blocked, or blocked with the option of being released.

Question 13Procurement Processes and Customizing

What is the purpose of a quota arrangement?

  1. To cap the maximum quantity that may be ordered from a single vendor within one purchase order
  2. To distribute the procurement quantity of a material among several sources using quota ratings Correct answer.
  3. To define the rounding profile that is applied to the order quantity of a purchase order item
  4. To determine the release sequence that a purchase requisition must pass before it is approved

Explanation

A quota arrangement assigns quota ratings to several sources of supply for a material over a validity period. When a requirement is converted, the system allocates the quantity to the sources in proportion to these ratings, which is used to split business deliberately between vendors or between in-house production and external procurement.

Question 14Procurement Processes and Customizing

A goods receipt was posted against a purchase order with movement type 101. Which movement type reverses this goods receipt?

  1. 102 Correct answer.
  2. 122
  3. 161
  4. 201

Explanation

Movement type 101 posts the goods receipt for a purchase order, and movement type 102 is its exact reversal, cancelling the quantity and value posted and reducing purchase order history accordingly. Reversal movement types are maintained in Customizing for goods movements.

Question 15Procurement Processes and Customizing

Which organizational unit is a key for a buyer or group of buyers who are responsible for the operative purchasing activities for certain material types?

  1. Purchasing organization
  2. Company code
  3. Purchasing group Correct answer.
  4. Storage location

Explanation

The purchasing group represents a buyer or a team of buyers and is used as a selection and responsibility criterion in purchasing documents. The purchasing organization, in contrast, is the unit that legally negotiates the conditions of purchase with vendors.

Question 16Procurement Processes and Customizing

A vendor ships goods directly to the company's customer and the company never takes physical delivery. Which purchase order item category is used?

  1. Third-party (S) Correct answer.
  2. Consignment (K)
  3. Subcontracting (L)
  4. Stock transfer (U)

Explanation

Item category S represents third-party processing: the purchase order is linked to a sales order, the vendor delivers straight to the customer, and no goods receipt is posted in the company's own stock. The invoice from the vendor is matched against the customer billing instead of an inventory posting.

Question 17Procurement Processes and Customizing

An invoice posted in Logistics Invoice Verification is blocked because of a quantity variance. Which transaction is used to review and release blocked invoices?

  1. MR8M
  2. MIR7
  3. MR11
  4. MRBR Correct answer.

Explanation

MRBR is the transaction for releasing blocked invoices and credit memos; it lists documents blocked for payment and allows them to be released individually or collectively. Blocking occurs when the configured tolerance limits are exceeded or a manual block is set.

Question 18Procurement Processes and Customizing

Which vendor master setting requires that an invoice can only be posted when a goods receipt exists for the purchase order?

  1. The GR-based invoice verification indicator in the vendor master Correct answer.
  2. The GR processing time field in the material master
  3. The delivery completed indicator that is set on the purchase order item
  4. The source list requirement indicator in the material master purchasing view

Explanation

The GR-based invoice verification indicator in the vendor master purchasing data makes invoice verification refer to the goods receipt quantities, so an invoice cannot exceed the quantity received. It can be overridden at purchase order item level and is copied into the item when the order is created.

Question 19Procurement Processes and Customizing

Which material master setting determines whether a material is procured externally or produced in-house?

  1. The procurement type Correct answer.
  2. The material type
  3. The valuation class
  4. The purchasing value key

Explanation

The procurement type in the material master MRP view controls whether the material is produced in-house, procured externally, or both. It drives whether purchase requisitions or planned orders are generated during MRP.

Question 20Procurement Processes and Customizing

In the release procedure for purchase orders, what does the release indicator control?

  1. Which release codes are permitted to approve the purchase order
  2. Whether the document can still be changed after a release Correct answer.
  3. The number of release steps the document has to pass
  4. The output type that is used when the order is sent to the vendor

Explanation

The release indicator is assigned to each release code in a release strategy and defines the document status after that release step, in particular whether the purchase order is still changeable. It therefore controls the changeability of released documents rather than the approval permissions themselves.

Question 21Procurement Processes and Customizing

In a calculation schema, which step type is assigned to a condition type whose value should be displayed but not included in the net price calculation?

  1. Statistical Correct answer.
  2. Basis
  3. Requirement
  4. Subtotal

Explanation

The statistical step type shows a condition value for information only; it does not change the net price or any subsequent calculation. The other step types are used to form intermediate values, to define the base for percentage conditions, or to control whether a condition is calculated at all.

Question 22Procurement Processes and Customizing

How does the system post the goods receipt of a purchase order item that has no account assignment and is kept in stock?

  1. Directly to a consumption account without a GR/IR entry
  2. To the inventory account, offset by GR/IR clearing Correct answer.
  3. To the vendor reconciliation account in the subledger
  4. Only statistically, with no financial posting at all

Explanation

For a stock item the goods receipt is valuated at the purchase order price or the material's valuation price and debits the inventory account, while the GR/IR clearing account is credited until the invoice is posted. Account-assigned items behave differently and post straight to a consumption or asset account.

Question 23Procurement Processes and Customizing

Which document type is normally used when creating a request for quotation in SAP S/4HANA?

  1. NB
  2. FO
  3. UB
  4. AN Correct answer.

Explanation

Document type AN is delivered as the standard document type for requests for quotations, and the vendor's reply is stored as a quotation. Bids entered in the RFQ can later be compared and used as a source of supply for purchase orders.

Question 24Procurement Processes and Customizing

What happens to a purchase requisition item when a purchase order is created with reference to it?

  1. The requisition item is deleted from the requisition and renumbered
  2. The requisition item is archived immediately
  3. The requisition item is updated with the order number and a new status Correct answer.
  4. The requisition item remains completely unchanged and keeps its open status

Explanation

When a requisition item is ordered, the purchase order number is written into the requisition item and its processing status changes to indicate that an order exists. The item remains in the requisition for documentation and follow-up processing.

Question 25Procurement Processes and Customizing

Which document type is used for a quantity contract in standard SAP S/4HANA?

  1. FO
  2. MK Correct answer.
  3. WK
  4. LP

Explanation

MK is the standard document type for quantity contracts, in which a total target quantity is agreed over the validity period and release orders draw down that quantity. Value contracts use a different document type because they commit to a monetary target instead.

Question 26Procurement Processes and Customizing

Which standard document type is used when a purchaser creates a normal purchase order in SAP S/4HANA?

  1. NB Correct answer.
  2. LP
  3. AN
  4. MK

Explanation

NB is the standard purchase order document type delivered with SAP S/4HANA; it has its own number range and standard field selection for a normal PO. The document type also influences number assignment and the field selection used for the header and items.

Question 27Procurement Processes and Customizing

In SAP S/4HANA, where is the purchasing data of a vendor such as order currency and default purchasing group stored?

  1. Purchasing info record
  2. Business partner with the supplier role Correct answer.
  3. Material master record
  4. Contact person master record

Explanation

The vendor master is modelled as a business partner to which the supplier role is assigned, and the purchasing data segment of that role holds settings such as order currency and default purchasing data. The business partner is the single master object for supplier data in S/4HANA.

Question 28Procurement Processes and Customizing

How many purchasing organizations can a plant be assigned to in standard SAP S/4HANA Customizing?

  1. Any number of purchasing organizations
  2. No purchasing organization assignment is possible
  3. Exactly one purchasing organization Correct answer.
  4. At most two purchasing organizations

Explanation

The plant is linked to exactly one purchasing organization in the plant master data; that purchasing organization may, however, serve several plants and even several company codes. Cross-plant or centralized purchasing beyond that link is handled by the reference purchasing organization.

Question 29Procurement Processes and Customizing

Which account assignment category charges a purchase order item to a cost center?

  1. A
  2. K Correct answer.
  3. F
  4. P

Explanation

Account assignment category K assigns the purchase order item to a cost center, so the received or invoiced value is posted as cost on that cost center. The category determines which account assignment fields the item shows and how follow-on postings are made.

Question 30Procurement Processes and Customizing

The source list requirement is activated for a plant. What is the effect for purchasing documents of that plant?

  1. Each vendor must first be flagged as an approved vendor in the vendor master
  2. The source list replaces the purchasing info record for price determination
  3. A source must exist in the source list for the material and plant Correct answer.
  4. A quota arrangement must be maintained before any requisition is created

Explanation

When the source list requirement is active, a vendor may only be used in purchasing documents if a source list record exists for the material and plant, either as a fixed source or as a blocked source that the buyer releases. Without such a record the system rejects the document with an error message.

Question 31Procurement Processes and Customizing

A buyer sets the delivery completed indicator on a purchase order item. What is the consequence?

  1. The release strategy is recalculated when the next goods receipt is posted
  2. The purchase order is flagged for archiving at the end of the period
  3. The open quantity is closed, so no further goods receipts are posted Correct answer.
  4. The system posts a final invoice for the remaining quantity automatically

Explanation

The delivery completed indicator tells the system that no further deliveries are expected for the item, so the open purchase order quantity is closed and the item is no longer treated as an outstanding delivery. MRP therefore no longer plans a remaining receipt for that item.

Question 32Procurement Processes and Customizing

A purchase order item carries an account assignment to a cost center. How is the goods receipt posted?

  1. It is posted non-valuated, because the item is consumed by an account assignment Correct answer.
  2. It is valuated at the purchase order price and the quantity is added to unrestricted stock
  3. It is valuated at the standard price and the offsetting entry goes to a price difference account
  4. It is posted valuated, but the value is reversed automatically when the invoice is received

Explanation

Account-assigned purchase order items are consumed directly by the account assignment object and are not taken into stock, so the goods receipt is posted without a value. The value is recorded later at invoice receipt, where the expense is posted to the account assignment.

Question 33Procurement Processes and Customizing

Which document type is used for a stock transport order between two plants in standard Customizing?

  1. UB Correct answer.
  2. NB
  3. MK
  4. FO

Explanation

Stock transport orders use document type UB together with item category U; the supplying plant is entered in the item and the goods movement is posted with the appropriate stock transfer movement type. The document type distinguishes the stock transport process from normal external procurement.

Question 34Procurement Processes and Customizing

The final invoice indicator is set on a purchase order item. What does the system do?

  1. It blocks the invoice for payment until the purchase order is released
  2. It closes the item for further invoice postings Correct answer.
  3. It closes the item for further goods receipts
  4. It closes the purchase order for further purchase requisitions

Explanation

The final invoice indicator signals that no further invoices are expected, so the item is closed for invoice verification; the system can also set it automatically once the invoiced quantity reaches the ordered quantity. It works independently of the delivery completed indicator.

Question 35Procurement Processes and Customizing

What is the purpose of a reference purchasing organization?

  1. It defines which company code pays for cross-company-code procurement
  2. It lets several purchasing organizations share one number range
  3. It controls which release strategy applies to purchase orders of a plant
  4. A plant without its own purchasing organization can purchase through it Correct answer.

Explanation

A reference purchasing organization supports centralized procurement: plants that are not assigned to a purchasing organization of their own can use the reference purchasing organization, including its contracts and conditions. It does not change the plant-to-purchasing-organization assignment itself.

Question 36Procurement Processes and Customizing

Which purchase order item category is used for a blanket order item that is limited to an overall value?

  1. B Correct answer.
  2. K
  3. U
  4. D

Explanation

Item category B (limit) is used in a blanket purchase order, where an overall limit value is agreed and individual releases are drawn against it. The limit is checked so that the total of the released values does not exceed the agreed amount.

Question 37Procurement Processes and Customizing

A purchase order is created for a material whose order unit differs from its base unit of measure. In which unit is the purchase order quantity entered?

  1. Valuation unit of the plant
  2. Conversion unit stored in the purchasing info record
  3. Order unit proposed from the material master Correct answer.
  4. Base unit of measure of the material

Explanation

The purchase order quantity is entered in the order unit, which the system proposes from the purchasing view of the material master; the buyer can override it. Stock quantities in the material document are converted to the base unit of measure.

Question 38Procurement Processes and Customizing

What does the confirmation control key control in a purchase order or scheduling agreement item?

  1. The output type used for the order confirmation
  2. Whether and what the vendor must confirm Correct answer.
  3. The tolerance limits for quantity variances
  4. The number range used for schedule lines

Explanation

The confirmation control key, maintained in the item detail, defines whether the vendor must send an order acknowledgment and which date or quantity categories are confirmed. The incoming confirmations then update the corresponding confirmation date categories in the document.

Question 39Procurement Processes and Customizing

Release strategies for purchase orders are based on classification. Which data supplies the characteristics for the release strategy check?

  1. Vendor master fields of the purchasing data segment
  2. Purchase order item fields supplied through communication structure CEKPO
  3. Account assignment fields of the purchase order item
  4. Purchase order header fields supplied through communication structure CEKKO Correct answer.

Explanation

The release strategy is determined by classifying the purchase order against a class whose characteristics are taken from communication structure CEKKO, which contains header fields such as document type, purchasing group, and total value. If the characteristic values match a release strategy, the order is subjected to its release codes and release indicator.

Question 40Procurement Processes and Customizing

Which Customizing element determines whether a specific field of a purchase order is a required entry, an optional entry, or hidden?

  1. The release indicator of the release strategy
  2. The access sequence of the output condition type
  3. The field selection key defined in the document type Customizing Correct answer.
  4. The number range interval assigned to the document type

Explanation

A field selection key is assigned to the purchase order document type (for header and item, and in combination with the account assignment or item category) and this key, through the field reference, sets each field to required, optional, display, or suppressed. Changing the key therefore changes which fields the buyer must or can fill.

Question 41Inventory Management and Physical Inventory

Which movement type records a goods receipt against a purchase order into unrestricted-use stock?

  1. 501
  2. 101 Correct answer.
  3. 201
  4. 261

Explanation

Movement type 101 is the standard goods receipt for a purchase order and increases unrestricted-use stock. It also creates the material document and the financial postings for the receipt.

Question 42Inventory Management and Physical Inventory

Which transaction is used to create a physical inventory document?

  1. MI04
  2. MI01 Correct answer.
  3. MI31
  4. MI07

Explanation

MI01 creates the physical inventory document and freezes the book inventory for later comparison with the count. The count itself is entered later, and differences are posted in a separate step.

Question 43Inventory Management and Physical Inventory

Which document records a goods movement and provides the basis for the stock and financial updates?

  1. Material document Correct answer.
  2. Reservation
  3. Purchase order
  4. Invoice

Explanation

A material document is created for each goods movement and contains the material, quantity, movement type, and posting data. It triggers the stock update and the related Financial Accounting postings.

Question 44Inventory Management and Physical Inventory

Which stock type is available for all business transactions without restriction?

  1. GR blocked
  2. Unrestricted Correct answer.
  3. In inspection
  4. Blocked

Explanation

Unrestricted-use stock is fully available for consumption, transfer, and sales. Blocked stock and goods receipt blocked stock cannot be used, and quality inspection stock must first be released.

Question 45Inventory Management and Physical Inventory

What is the primary purpose of physical inventory in Inventory Management?

  1. To settle production order variances
  2. To generate purchase requisitions automatically
  3. To recalculate moving average prices
  4. To match book stock to counted stock Correct answer.

Explanation

Physical inventory compares the book inventory with the actual quantity counted on the floor. Any difference is posted so that the system stock again reflects the physical stock.

Question 46Inventory Management and Physical Inventory

Which movement type is used for a goods issue to a cost center?

  1. 301
  2. 201 Correct answer.
  3. 101
  4. 261

Explanation

Movement type 201 issues goods to a cost center and posts the consumption to the appropriate cost account. It reduces unrestricted-use stock.

Question 47Inventory Management and Physical Inventory

Which transaction is used to enter count results for a physical inventory document?

  1. MI04 Correct answer.
  2. MI07
  3. MI21
  4. MI01

Explanation

MI04 is the count entry transaction for a physical inventory document. After counts are entered, differences can be reviewed and then posted.

Question 48Inventory Management and Physical Inventory

Which movement type is used to reverse a goods receipt posted with movement type 101?

  1. 502
  2. 102 Correct answer.
  3. 122
  4. 161

Explanation

Movement type 102 is the reversal of a 101 goods receipt and reduces stock accordingly. It is used when goods received against a purchase order must be reversed.

Question 49Inventory Management and Physical Inventory

Which movement type performs a one-step transfer posting of stock from one plant to another?

  1. 303
  2. 301 Correct answer.
  3. 321
  4. 311

Explanation

Movement type 301 transfers stock from one plant to another in a single step. The stock is removed from the issuing plant and added to the receiving plant at the same time.

Question 50Inventory Management and Physical Inventory

Which movement types are used for a two-step transfer posting of stock between plants?

  1. 311 and 312
  2. 301 and 302
  3. 303 and 305 Correct answer.
  4. 321 and 322

Explanation

A two-step plant-to-plant transfer uses 303 to issue the stock from the supplying plant and 305 to receive it at the receiving plant. The stock is in transit between the two postings.