Question no 4203 : GR non-valuated indicator

In SAP S/4HANA Material Management, which of the following can in the Purchasing Document item can control how the GR non-valuated indicator is default?

(only one answer)

A)  Purchasing Document Type

B)  Item Category.

C)  Combination of Purchasing Document and Account Assignment.

D)  Combination of Purchasing Document, Item Category, and Account Assignment.

E)  Account Assignment.

.

Answer: B, E

IMG > Material Management > Purchasing > Account Assignment > Maintain Account Assignment Categories

In the above IMG, 

Flagged for GR indicator, GR non-valuated indicator, and Invoice indicator can be defaulted

Also set the Flagged indicators as display only.

...

Note that

IMG > Material Management > Purchasing > Define External Representation of Item Categories, 

there are indicators for GR non-valuated indicator (one or flag selectable and another for firming); however, the settings are provided by SAP which cannot be changed by the user. 

Note: as at S/4 1909, Item Category "L" ,"K", "C" have "GR Non Val.Firm" as delivered by SAP but the "GR non-valuated" is not delivered as flagged. 

...

As the above is the SAP documentation, perform appropriate testing as the ABAP program logic finally decides the field behavior. 

Question no 4197 : Material Master MRP4 data view

In SAP S/4HANA, the MRP 4 data view in the Material Master no longer have which data field ?

(more than one answer)

A)  BOM Selection Method.

B)  Availability Check indicator.

C)  Bulk Material.

D)  Assembly Scrap Factor.

E)  Storage Location data segment.

.

Answer: A. E

A) "BOM Selection method" is now missing field in the MRP4 data view, and Production Version is now Mandatory for BOM and Routing in MRP and Production Order creation. This "Simplification" means that the BOM and Routing selection is ONLY via Production Version making it a Mandatory setup for every material which require BOM explosion. 

E) "Storage Location" data segment is no longer available in the MRP4 data view, and to use some of the "Storage Location" features; it is recommended to use MRP area. Also, when using t-code "MMSC" (Collective Storage Location Entry); the "Planning data" data fields segments are no longer available. This "Simplification" means that the only method for implementation Planning data at the Storage Location level can only be done via ONE method which is using MRP Area.

Question no 4192 : Product Type Group in the PR and PO

In SAP S/4 1909, Note the "Product Type Group" in the "Material Data" TAB in the PO item detail, select the correct statements describing the Product Type Group ? 

(more than one answers)

A) The Product Type Group is assigned to the Material Type.
B) The Product Type Group is an alternative to the Material Group and only use for grouping of materials for reporting purpose.
C) The Product Type Group can be set in the Material Master Basic 1 data view.
D) The Product Type Group cannot be changed in the Purchase Order item detail screen.
E) The Product Type Group can be set in the Purchase Order item detail screen.
.

Answer: A, E

A) You can find the Product Type Group assigned to the Material Type in OMS2 (top right corner) of the IMG screen. Either "Blank", "1 Material", "2 Service or "3 Subscription".

B) The Product Type Group define the procurement process to be different for materials and services. For example, you can only maintain the field Service Performer when you purchase a service. In S/4, a new Material type "SERV" is provided which is configured with Product Type Group "2 Service"; you will find that when creating a Material Master using "SERV", there will be minimum fields to be entered for this Service Material. Note the MIGO and ML81N is not possible for this kind of Material, and you will have to use a dedicated FIORI App to complete to Service Completion of the PO.

C) You sill not be able to find the Product Type Group in the Material Maser basic 1 data view, and it does seem that the field is not defaulted from the Material Type to the Material Master.

D) In standard SAP, for Purchase Order with Material created using "SERV", the system default the Product Type Group "2" in the PO item (Material data TAB) as DISPLAY field. However, if the Material Type is configured with "Blank" Product Type Group and the Material is a "ROH" material where MIGO is expected; the system will default the Product Type Group "1" in the PO item (Material data TAB) as DISPLAY field. Nevertheless, try creating a PO without a Material Master, and the "Product Type Group" field will be an ENTRY field in the PO item detail for the user to decide as "1 Material " (GR via MIGO or in case of Item Category "D" via ML81N), or "2 Service" (Service Completion via a FIORI App).

E) It is interesting to note that the Product Type Group field is always open for maintenance whether with or without Material Master entry in the Purchase Requisition. However, the system will still check the validity of the Product Type Group entry of "1" or "2" depending on the Material Master entered. For example, a Material with "SERV" (standard SAP) was entered in the PR but the user set the "Product Type Group" to "1 Material" will be an ERROR. Likewise, a Material with "ROH" (standard SAP) was entered in the PR but hte user set the "Product Type Group" to "2 Service) will be an ERROR. The last case of creating a PR without Material entry, similar to the PO case where user can decide as "1 Material " (GR via MIGO or in case of Item Category "D" via ML81N), or "2 Service" (Service Completion via a FIORI App).

Question no 4191 : Configurable fields in the Purchase Order

In SAP S/4 1909, which of the following for Purchasing Document are not configurable (in this case cannot be user defined) ?

(more than one answers)

A) Account Assignment category.
B) Item category.
C) Purchase order document type.
D) Confirmation control key.
E) Stock type to be posted into for the PO item.
.

Answer: B, E

A) Account Assignment category can be user defined (although it is a single alpha-numeric key). The IMG is MM > Purchasing > Account Assignment > Maintain Account Assignment Categories or t-code OME9.

B) Item category can be configured in IMG > MM > Purchasing > Define External Representation of Item Categories; however SAP item categories are delivered as "internal Category keys" such as "0" for Standard and what is configurable is just the External item category to be selected in the PO creation screen. And user can create a new Item Category.

 

C) Purchase order document type can be configured in IMG > MM > Purchasing > Purchase Order > Define Document Types, a new PO doc type can be create with a 4 alphanumeric key.

 

D) Confirmation Control key at the PO item can be configured in IMG > MM > Purchasing > Confirmations > Setup Confirmation Control and a user-defined Confirmation control key can be created.

E) The Stock type in the Delivery TAB at the PO item detail level is delivered as "Unrestricted use", "Blocked stock", or "Quality Inspection" and they cannot be user-defined.

Question no 4190 : Error message in Purchase Order creation

In SAP S/4 1909, when creating a Purchase Order and the message "ME047" is prompted with ERROR and saving the PO is not possible, what are the possible measure to be taken ?

(more than one answers)

A) MM01 to extend the Material Master with Purchasing data view.
B) MM01 to extend the Material Master with Accounting data view.
C) MMSC to extend the Material Master with Storage Location data.
D) Decide if it is an Accounting assignment Purchase Order and choose a Plant without Value update for the Material Type of the Material Master in the Purchase Order.
C) Storage Location was not entered in the Purchase Order line item.
.

Answer: B, D

If the user decides that the Purchasing scenario is Stock scenario, then next step is to extend the Material Master with Accounting data view.
If the user decides that the Purchasing scenario is Non-Stock /Non-valuated scenario, there will be 2 possible:

a) still extend the Material master with Accounting data view and re-create the PO but now enter also the Account assignment category. 

b) decide for the Material Master's Material Type for that Plant in PO creation should always be Account Assignment PO case and then request configuration of the Material Type/Plant combination in OMS2 to be set without "Value Update".

 

Question no 4135 : Down Payment creating and processing for Purchase Order

In SAP Material Management, which of the following setup and processing are TRUE about Down Payment processing for Purchase Order ?

(more than one answers)

A) The Down Payment G/L Account is assigned to the Vendor's Reconciliation Account.
B) Each Vendor's Reconciliation Account can only be assigned to one Down Payment G/L Account for each Special G/L Indicator
C) Down Payment can be entered for the Purchase Requisition item and copied to the Purchase Order item. 
D) Down Payment can only be entered after at least one Goods Receipt completed for the Purchase Order item. 
E) One or more Down Payments can be posted to each Purchase Order item.

Answer: A, B, E

Question no 4134 : Discount-in-Kind in MM Purchase Order

In SAP Material Management as at S/4 HANA 2023, what are the prerequisites for "Free Goods" (Discount-in-Kind) in Purchase Order ?

(more than one answers)

A) set "Grant Free Goods" in the General data view of the Purchasing Info Record.
B) set "Grant Free Goods" in the Purchasing Organization data view of the Business Partner Vendor. 
C) set "Grant Free Goods" in the Source List for the Vendor and Material combination in the Source List. 
D) set "Grant Free Goods" in the Plant data view of the Material Master. 
E) Set "Grant Free Goods" in the Plant Parameter in the Configuration. 
.

Answer: B, D

Question no 4131 : Effective Price Calculations

In SAP Material Management as at S/4 1909, Effective Price Calculation in "Info Record List Display Report (Transaction code 1E1M" includes/considers which of the following?

(more than one answers)

A) Freight costs.
B) Discounts.
C) Customs and Duties (Taxes).
D) Surcharges
E) All of the above.
.

Answer: A, B, C, D, E

Effective price calculation in SAP MM determines the actual procurement cost of a material by adjusting the gross price with discounts, surcharges, freights, and taxes. It serves as the baseline for evaluating price variances against the Material Master and drives accurate accounting entries at Goods Receipt. 

Key Price Tiers:

• Gross Price: The base price of the material before any deductions or additions.
• Effective Price: The resulting price after deducting all discounts (cash, quantity, special) and adding surcharges.
• Net Price: The final payable amount. Calculated by taking the Effective Price and adding delivery costs (freight), packaging costs, and relevant taxes.

Price Calculations example:

• Purchase Order for a Material with Quantity of 100 units
• Gross Price: $10.00 per unit 
• Standard Discount (2%): -$20.00 (2% x $1,000)
• Surcharge: +$70 fixed amount
• Freight Charge: +$50.00 fixed amount
• Tax: 10% based on Gross Value
• Payment Term Cash Discount (2% in 30 Days)

• Gross Value: Gross Price × Quantity 
• Gross Value: $10.00 per unit x 100 units 
• Gross Value: $1,000.00 (or $10.00 per unit)

• Net Value: (Gross Price × Quantity) - Discounts + Surcharges
• Net Value: ($10.00 per unit x 100 units) - (2% of $1,000) + ($70)
• Net Value: $1050.00 (or $10.50 per unit)

"Info Record List Display Report (Transaction code 1E1M" offers the calculation of "Effective Price" calculation as follow:

• Effective Value: Gross Value - Standard Discounts + Surcharges + Freight + Taxes - Cash Discount
• Effective Value: $1,000 - $20 + $70 + $50.00 + (10% x $1,000) - (2% of $1050)
• Effective Value: $1,179.90 ($11.79 per unit)

Payment Term Cash Discount via standard condition type SKTO condition type (based on the Payment Term agreed with the Vendor) for cash discounts is included in the pricing schema on a purely statistical basis. It calculates the discount amount for informational purposes but does not alter the actual net price, effective price, or inventory value. Payment Term Cash Discounts are (usually) only considered when actual payment to the Vendor is done within the Payment term stipulated Days to enjoy that Cash Discount; therefore only effectively "Gain" at the point of Actual payment. 

Important Note: in SAP MM Condition calculations in the PURCHASING DOCUMENTs, the Calculation Schema (Pricing Procedure) dictates how the system computes the final procurement price. It defines the exact sequence of conditions (such as gross price, discounts, freight, and taxes), the mathematical operations (addition or subtraction), and the subtotals required to arrive at the final net or effective price. Therefore, the derivation of price values are configurable based on the company requirements. In this context paragraph, the Payment Term Cash Discount is often designed to be STATISTICAL in Standard SAP.

Question no 4130 : Cash Discount "SKTO" in MM Purchase Order

In SAP Material Management, note the Cash Discount of Standard Condition Type "SKTO", how did the system retrieve the 3% Cash Discount of "SKTO" Condition Type ?

(only one answer)

A) Purchasing Info Record.

B) Material Master Purchasing data view Condition Record.

C) General Condition.

D) Vendor Master Payment Term in the Purchasing Organization data.

E) Rebate Condition.

.

Answer: D

Notes on Condition Type SKTO: 

• In SAP MM (Materials Management) and SD, SKTO is a standard condition type used to calculate and display cash discounts (prompt payment discounts). It retrieves the discount percentage based on your agreed payment terms and displays it for information purposes during pricing.
• Statistical Condition: SKTO is marked as statistical in the pricing procedure. This means it only calculates for information, it does not alter the actual net value of the material or affect the final inventory valuation.
• Payment Terms Trigger: The discount rate and amount are automatically fetched from the payment terms maintained in the vendor master or Purchase Order (PO). It is important to note that there 2 payment terms in the vendor master; one in the company code level (for non-po based invoice) and another one in the purchasing org data level (for po based invoice). 
• How it works in MM:
• When you create a Purchase Order (ME21N), the system applies the Payment Terms (e.g., Pay within 14 days, get a 2% discount).
• The SKTO condition automatically reads these payment terms and calculates the potential discount amount.
• Because it is statistical, the Purchase Order remains correctly valued at the gross price, but the system stores the SKTO data so the Finance team knows exactly what discount to expect if the invoice is paid early.
• Accounting Impact: When the actual invoice is processed in Logistics Invoice Verification (MIRO), the cash discount is handled directly by SAP's financial accounting component (FI). Depending on your company code settings, the discount taken is either posted to a cash discount received/cleared account or reduces the material's inventory value.
• In SAP, you can post vendor invoices in transaction MIRO using either Gross (Document Type RE) or Net (Document Type RN) methods, primarily depending on how you want to handle cash discounts and taxes:
• Gross Invoice Posting (Document Type: RE): 
• This is the default, standard method in MIRO. The vendor is credited with the full invoice amount (including taxes), and the cash discount is not considered during the initial invoice entry.
• Cash discounts are only recognized when the payment is actually made, reducing the cash discount account.
• d
• Net Invoice Posting (Document Type: RN): 
• The invoice amount is entered exclusive of the cash discount. The system automatically deducts the expected cash discount from the stock or cost account. This means that the cash discounts are already realized when the invoice is first posted.
• The discount amount is posted to a Cash Discount Clearing account and then cleared at the time of payment.
• Organizations that strictly enforce automatic cash discount deductions and want their inventory/material costs accurately reflected at the net cost immediately. 
• Net invoice posting via transaction code MIRO is an acceptable practice in accounting, but its acceptability depends heavily on strict internal controls and consistent accounting policies. 

Question 4121 : STO with SD Delivery parameter requirements

In SAP MM-SD integration as at S/4 1909 for Stock Transport Order via SD Delivery for Step 1 of Goods Issue from the Supplying Plant, which of the following are the desired parameter requirements ?

(more than one answers)

A) Sales Area assigned to the Receiving Plant in the Configuration.
B) Material Master to be created at the Sales Area.
C) Assign the Document Type to the Receiving Plant and not for the Supplying Plant.
D) Customer Master to be assigned to the Receiving Plant.
E) Assign the SD Delivery Type to the MM STO Purchasing Document Type.
.

Answer: A, B, E

Question 4120 : Subcontracting for MM

In Material Management as at S/4 1909, which of the following are possible requirements for Subcontracting process flow requires ?

(more than one answers)

A) Production Version.
B) BOM Application assigned to the Plant with a valid Selection ID.
C) Special Procurement key for Subcontracting in both the Assembly and Components material master to be provided the the Subcontractor.
D) Special Procurement key for Subcontracting in Assembly and but not for the Components to be provided the the Subcontractor.
E) Subcontracting Purchasing Info Record for the Assembly.
.

Answer: A, B, D, E

Question 4119 : Collective Number in MM Procurement

In SAP Material Management as at S/4 1909, a Collective Number can be found _______________.

(only one answer)

A) Purchase Requisition item.
B) RFQ/Quotation header.
C) Scheduling Agreement header.
D) RFQ/Quotation item.
E) Purchase Requisition item.
.

Answer: B

Question 4108 : Field Selection in Purchase Requisition

In SAP Material Management as at S/4 1909, which of the following elements play a role in Field Selection in the Purchasing Requisition ?

(more than one answers)

A) Account Assignment Category.
B) Item Category.
C) Document Type.
D) Transaction code.
E) Release Indicator assigned to Release Codes combination in the Release Strategy.
.

Answer: A, B, C, D, E

Question 4106 : "Direct Postings" in Logistics Invoice Verification

SAP Material Management as at S/4 1909, Logistics Invoice Verification "Direct Postings" can be configured/activated for which of the following ?

(more than one answers)

A) Material Master Accounts.
B) Cost Center.
C) Asset.
D) WBS.
E) G/L Account.
.

Answer: A, C, E

IMG > MM > LIV > Incoming Invoice > Activate Direct Posting to G/L & Material Accounts & Assets

IMG > MM > LIV > Incoming Invoice > Activate Direct Posting to Contacts

Question 4105 : Regular Supplier in Materials Management

In SAP Material Management as at S/4 1909, what is TRUE about the "Regular Supplier" indicator in the Purchasing Info Record ?

(more than one answer)

A)  If you try to enter a different supplier than the regular supplier in the source list or quota arrangement the system will issue a warning message.
B)  Regular Supplier/Vendor is activated at the Plant level in the Customizing.
C)  Regular Supplier/Vendor is activated at the Purchasing Organization level in the Customizing.
D)  Fixed Supplier in the Source list will have higher priority then the Regular Supplier in the Info Record for manual Source Determination in the PR line item. 
E)  When Regular Supplier is activated, the Source List is no longer used in Source Determination.
.

Answer: A, B, D

In the standard system, the regular supplier is not preferred in the source determination process. Instead, it is treated in the same way as other sources in the Source List without the "Fixed Indicator". To use "Regular Supplier", activate at the Plant level in the Customizing via t-code OMKH. The "Regular Supplier" feature is not used in MRP run for source determination to create Purchase Requisitions in a Planning run. It is used for Manual Source Determination when creating the PR item. 

Question 4089 : Valuation Category with "Determine Valuation Type Automatically"

In SAP as at S/4 1909, select the correct scenario description of the following Valuation Category configuration ?

(more than one answers)

A) Batch number will be the Valuation Type ID
B) Goods Receipt will generate Batch number and Valuation Type automatically
C) Valuation Type segment Accounting data view of the Material Master can be generated automatically at point of Purchase Order creation.
D) Valuation Type segment Accounting data view of the Material Master can be generated automatically at point of Goods Receipt Posting.
D) Valuation Type segment Accounting data view of the Material Master cen be generated automatically at point of Invoice Verification.
.

Answer: A, B, D