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Q 1 - Which of the following is first step in Procurement life cycle?
Requirement and Information Gathering
Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements.
After gathering requirements one will look for the suppliers who can fulfill the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them.
Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.
Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc.
Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included.
Consumption, Maintenance and Disposal
As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analyzed.
Once the product or services are consumed or contract expires and needs to be renewed, or the product or service is to be re-ordered, company experience with vendors and service provider is reviewed. If the products or services are to be re-ordered, the company decides whether to order from previous supplier or think about new suppliers.
Q 2 - The Organizational Structure in MM consists of which of the following elements?
Q 3 - Which of the following purchasing type, a purchasing organization is not assigned to any company code and it procures for all company codes belonging to different client?
Q 4 - Which of the following document types can appear in the purchase order history for a purchase order line item?
Q 5 - Which of the following category represents an account assignment category?
Q 6 - After processing of purchase order by vendor, material is delivered to ordering party and this process is called as goods receipt?
Q 9 - In SAP MM, you can view the most up to date planning data on a material using which of the following?
You can make changes to Purchase Order when it is released. When it is significant change it will retrigger approval cycle.