How To Perform Invoice Verification - Purchase

Invoice verification is done via MIRO transaction.

Step 1)

1. Enter transaction code MIRO.
2. Choose invoice as a transaction type.
3. Enter the invoice date.
4. Enter the purchase order number.
5. Hit ENTER.

Step 2)

On Payment tab choose R – invoice verification.

You can always check if the document has any problems.

1. Click Messages button.
2. Review the messages and fix the problems if there are any.

As it is shown on the below screen, I have a warning message that my price is too low, below tolerance limit. It is only a warning message, and it will not stop me from further processing.This message appeared as informational because I manually changed the item 1 price from 28.000 to 22.000! Err, just to show you the message.

How To Release An Invoice - Purchase

An invoice request is blocked for payment until its manually released. You can release the invoice by using t-code MRBR.

Step 1)

1. Execute t-code MRBR.
2. On the initial screen enter the company code and invoice number.
3. Check the release method (release manually if you want to process it in the second screen). This can be done choosing Automatically (please note the difference with automatic release in MIRO transaction being blocked and automatic release in t-code MRBR as those are two different things).
4. Our document has a manual payment block, so we will select that option. Execute.

Step 2)

1. Select the invoice you want to release.
2. Click on the flag icon – release.

You can see that now the invoice has Status field filled with green flag – it means,it is released to FI.

Financial department should now be able to see the invoice ready for payment.

How To Post Goods Receipt - Purchase

Step 1) You can post the goods receipt for a purchase order using transaction code MIGO.

Let’s say we want to do a goods receipt for our purchase order 4500018386.

1. Choose A01 – Goods Receipt.
2. Choose R01 – Purchase Order.
3. Enter your purchase order number.
4. Press ENTER.

 

Step 2)

How To Change A Purchase Order - Purchase

Step 1)

For changing an existing purchase order you can use transaction code ME22N  (or ME22 – the old version).

Immediately after executing transaction code, system will take you to the most recent purchase order you have created, changed or viewed. If you need to change some other purchase order, you can use the option which appears in the menu

Purchase order = > Other Purchase Order.

Step 2)

How To Select Or Reject A Quotation - Purchase

Step 1)

1. Select the quotation that’s favourable (you want to process it further as it’s having the best conditions).
2. Choose the Edit Quotation button on the toolbar.

Step 2) Now you are in the ME47 transaction. Here you can choose the item and go to the item details screen.

1. Select the item.
2. Click on the item details icon.

Step 3)

How To Create A Source List - Purchase

You can create a sourcelist in ME05 transaction. A source list is a list of possible sources for a material. If a source list requirement exists for the material, you must create a source list to proceed with the ordering.

1. Execute t-code ME05.
2. Enter material, or material list/range.
3. Enter plant.
4. Untick the test run check box to perform the transaction instead of using the test mode.
5. Execute the transaction.

On the results screen select the appropriate line item and click on the save button.

You have created a source list.

SAP MM Certification - How to Start Preparation ?

A Firm Decision: Career after SAP MM Certification

Taking a decision to go for SAP MM certification followed by consulting area is critical task, for that you need to look for following points

1. You are working with same domain (procurement, supply chain management etc.) and looking for career in SAP MM consulting
2. You are fresher and completed your post graduate in MBA, you have made your mind to go for SAP MM consulting for whatever reason (mostly you are influenced by job market)
3. You have some knowledge on SAP, or you are working on other modules of SAP and you want to move into SAP MM consulting.

Contact us @ sapinfoonline@gmail.com 

Do you really need to be certified SAP MM consultant?

This is another decision where you need to think deeply. Do I really need SAP MM certification? This question mostly targets to those who are already working as SAP MM consultant with no certification. Mostly candidates do it for job security.

Register for SAP MM Training with SAP authorized training center

If you are new to SAP MM, but intended to go for SAP MM Certification, you need to join the official training. In some countries, SAP has made it mandatory join authorized SAP training institutes before you go write the certification exam. However, in other countries, you can directly register and attend the SAP MM certification exam. If you are blessed enough to give the money, then, it is advisable to get certain official training.

Acquire the knowledge as much as you can about syllabus

There is plenty of material available on internet, however please do not deviate from your specific syllabus provided for SAP MM certification. However, prepare with mock test available which is given on this website

Prepare as per the weighting per topics given in the SAP MM certification syllabus;

please check the weight of topic here.

Get confidence on direct questions from the topics in SAP MM certification exam like

Defined rules – plant, all determination, pricing procedure, picking location, route, account determination, shipping point, tax, item category, material, etc.

Go through related screens of SAP MM process, transaction level screens like inventory, purchase order, MRP, invoice verification, physical inventory, some standard reports etc. and verify what is possible and what is not possible at each transaction document. Check that what are all possible functions are defined at header and at item level. Navigate through all menu path of all possible transaction document and check what all is possible and how data are processed.

Go through all the masters like material, vendor, condition records for price, purchasing info record, output, etc. Check which data are defined at what level, how it is stored and what all is possible

Check entire SAP MM process related setting in IMG

It will give you comfort to recognize that how settings are stored to serve the possible SAP MM process.

In the real time certification exam, give extra attention to the words used for respective questions and the approach to understand the questions – particularly with the words like mostly, most likely, least, less likely, only, except, can and always. Carefully read each question. The sentences in the actual SAP MM certification exam will be confusing always, so think rationally and logically, and give a best suitable answer which comes after such analysis.

Read your text books or SAP MM manuals 3-4 times

I can give you an assurance that you will definitely find something new which you don’t know before on SAP MM process. Note down determination rules, documents functions, master data functions, document level functions (header or line item) when you study from SAP MM manuals. This will actually help you to crack scenario based questions in actual SAP MM certification exam.

In actual SAP MM certification exam, they don’t ask the configuration. They will only ask what is possible and what is not possible.

Give mock tests with real time SAP MM certification question and answers

Once you are done with preparation from text books provided by SAP authorized training center, start attempting the SAP MM question whatever you can find on internet. Try to focus on scenario based questions which candidates feel most tough to crack. I have prepared real time and scenario based SAP MM certification question and answers, which is based on actual SAP MM certification exam pattern.

Contact us @ sapinfoonline@gmail.com 

Tips

• Practice with sample questions
• Try to associate your knowledge with live scenarios that will help you to crack the complex question in SAP MM certification exam
• Answer the questions which you know very well
• Don’t memorize T-Codes, that will be not asked in SAP MM Certification Exam

How To Create Quotations - Purchase

Using transaction code ME47, we can create a quotation based on a request for quotation.

Step 1)

1. Transaction code for quotation maintenance – ME47.
2. RFQ: request for quotation that we are using as a reference document.
3. Press ENTER.

Step 2)

1. RFQ quantity
2. Delivery date
3. Net price per unit of measure
4. Storage Location

SAP MM Sample Questions for Certification (Set.3) Answers

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

3. What can be the possible entries the system can make during invoice verification if a valuated good receipt is defined for a purchase order with account assignment and there is a price variance?

1. Debit consumption
2. Credit consumption
3. Debit GR/IR
4. Credit GR/IR
5. Credit Vendor

4. Which costs are entered at item level in the purchase order?

1. Planned delivery costs
2. Unplanned delivery costs

5. In Total Based acceptance what validations can the system do before deciding that the balance is too large for the invoice to be posted?

1. First checks whether the variance falls within the defined invoice reduction limit.
2. First checks whether the variance falls within the small difference.
3. If the difference is greater than the small difference it checks whether the variance falls within the defined invoice reduction limit.
4. If the positive difference is greater than the small difference it checks whether the variance falls within the defined invoice reduction limit.
5. If the invoice reduction limits are set to do not check, the system compares the variance with the acceptance limit.

6. When does the system propose current account assignment?

1. Goods receipt
2. Invoice Verification

7. A purchase order has been issued on a vendor for two materials. 150 units of material A has been ordered at 4 UNI/pc. 20 units of material B has been ordered at 45 UNI/pc. The vendor has supplied all the materials. The invoice for the supply has been received and posted. He now sends an invoice that includes 875 UNI as freight charges and 125 UNI as custom duty that was not planned. The system has been configured to distribute delivery costs amongst items. How will the cost be apportioned when the invoice is posted?

1. Stock account for Material A 380 +, Stock account for Material B 570 +
2. Stock account for Material A 500 +, Stock account for Material B 450 +
3. Freight clearing 875+
4. Custom clearing 125 +

Sample SAP MM Questions for Certification (Set.3)

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

3. What can be the possible entries the system can make during invoice verification if a valuated good receipt is defined for a purchase order with account assignment and there is a price variance?

1. Debit consumption
2. Credit consumption
3. Debit GR/IR
4. Credit GR/IR
5. Credit Vendor

4. Which costs are entered at item level in the purchase order?

1. Planned delivery costs
2. Unplanned delivery costs

5. In Total Based acceptance what validations can the system do before deciding that the balance is too large for the invoice to be posted?

1. First checks whether the variance falls within the defined invoice reduction limit.
2. First checks whether the variance falls within the small difference.
3. If the difference is greater than the small difference it checks whether the variance falls within the defined invoice reduction limit.
4. If the positive difference is greater than the small difference it checks whether the variance falls within the defined invoice reduction limit.
5. If the invoice reduction limits are set to do not check, the system compares the variance with the acceptance limit.

6. When does the system propose current account assignment?

1. Goods receipt
2. Invoice Verification

7. A purchase order has been issued on a vendor for two materials. 150 units of material A has been ordered at 4 UNI/pc. 20 units of material B has been ordered at 45 UNI/pc. The vendor has supplied all the materials. The invoice for the supply has been received and posted. He now sends an invoice that includes 875 UNI as freight charges and 125 UNI as custom duty that was not planned. The system has been configured to distribute delivery costs amongst items. How will the cost be apportioned when the invoice is posted?

1. Stock account for Material A 380 +, Stock account for Material B 570 +
2. Stock account for Material A 500 +, Stock account for Material B 450 +
3. Freight clearing 875+
4. Custom clearing 125 +

Sample SAP MM Questions for Certification (Set.2) Answers

1. In which kind of posting method in IV is the cash discount amount not credited to the stock or cost account?

1. Gross Posting
2. Net posting

2. What controls the posting of invoice as gross or net?

1. Item category
2. Document type

3. How can postings be done in invoice verification for a purchase order in foreign currency?

1. Fixed exchange rate at GR and IV.
2. Current exchange rate at GR and IV
3. Current exchange rate cannot be changed at IV.
4. Exchange rate differences can occur
5. Exchange rate difference postings are Customization based.

4. How is the quantity that has already been invoiced valuated at goods receipt if the invoice is posted before goods receipt and the subsequent GR quantity is greater than the invoice quantity?

1. At purchase order price
2. At invoice price

5. During the check of invoices with which of the following variances does the system perform Date variance?

1. Quantity Variance
2. Price variance
3. Purchase order price quantity variance

6. There is a purchase order for 100 pieces at Rs. 0.80. The 100 pieces are received. An invoice is received for 100 pieces at Rs 0.75 per piece. However at the time of receipt of invoice the stock of the material is only 30.What are the effects of the above at invoice verification?

1. Stock account is 5-
2. Stock account is 1.5-
3. Stock account is 3.5-
4. Price difference account is 3.5-
5. Price difference account is 1.5-

7. Under what situation does the system compares the ratio of PO quantity(in PO price units) / PO quantity (in PO units), invoice quantity (in PO price units / invoice quantity (in PO units)?

1. Goods receipt before invoice receipt
2. Invoice receipt before goods receipt.

8. The initial Stock of a material is 200 pieces. There is a purchase order for 100 pieces at Rs. 0.75. The 100 pieces are received. An invoice is received for 100 pieces at Rs 0.80 per piece. What are the effects of the above at invoice verification?

1. If the material is valuated at a standard price of Rs 1, the stock account will be 5+.
2. If the material is valuated at a moving average price of Rs 1, the stock account will be 5+.
3. If the material is valuated at a moving average price of Rs 1, the material master record reflects the moving average price at Rs 0.92.
4. If the material is valuated at a standard price of Rs 1, the price difference expense account will be 5+.
5. If the material is valuated at a standard price of Rs 1, the stock price difference income account will be 5+.

Sample SAP MM Answers for Certification (Set.1)

 1. What are the ways in which invoice postings are possible?

1. Manual posting
2. Automatically through electronic transfer
3. Evaluated receipt settlement
4. Invoicing plan
5. Consignment settlement

2. From where can the terms of payment be an input for invoice verification?

1. User entry
2. Purchase order
3. Purchase order history
4. Vendor master
5. Material master

3. Which of the following does the system copy from the purchase order during invoice verification entry?

1. Purchase order number
2. Tax amount
3. Currency
4. Vendor
5. Bank information

4. What is the process of invoice verification?

1. Purchase order, service or GR referenced for incoming invoice.
2. Invoice items suggested by the system against referenced document
3. Corresponding automatic account postings carried out.
4. Payment proposal list for vendor generated.

5. What happens when an invoice is posted?

1. Material master always updated.
2. Purchase order history updated
3. Individual line items posted to appropriate accounts
4. MM invoice document created if necessary.
5. FI document always created.

6. What purpose does invoice verification serve in materials management?

1. It allows invoice that do not originate in materials procurement to be processed.
2. Completes the materials procurement process
3. Handles the payment
4. Allows credit memos to be processed
5. Handles the analyses of invoices.

7. There is a stock of 60 pc of a material having a standard price of Rs.9. A purchase order has been raised on the vendor for 40 pieces at Rs. 11 per pc. The material was received and invoice verified. What would the accounting entries show for this movement after IV?

1. Stock account Rs. 360+, vendor account Rs. 360-
2. Stock account Rs. 440+, vendor account Rs. 440-
3. Stock account Rs. 440+, vendor account Rs. 360-
4. Stock account Rs. 360+, vendor account Rs. 440-
5. Stock account Rs. 0, vendor account Rs. 80-

8. What happens to accounting entries when an invoice is posted?

1. GR/IR account debited, vendor account credited
2. GR/IR account credited, vendor account debited