SAP SRM Interview Questions

This SAP SRM Interview Questions contains few questions answers for fresher as well as experienced as a free online practice test.

What is the use of SAP Supplier Relationship Management?

Answer

• SAP Supplier Relationship Management SRM is SAP product that facilitates the procurement of goods via a web based platform. Organizations can procure all type of products like direct and indirect material, services and this can be integrated with SAP ERP modules and other non-SAP back end systems for accounting and planning.
• SAP SRM allows you to optimize your procurement process to work effectively with suppliers to get long term benefits and also to perform forecasting, procurement cycle and to work with partners. You can reduce the time span and costing of procurement cycle using innovative methods to manage business processes with key suppliers.
• SAP Supplier Relationship Management supports the full procurement cycle i.e. starting from source and purchase to pay through complete procurement process with suppliers and effectively managing supplier to build long term relationship.

What are the key functions that you perform under SAP SRM module?

Answer

Catalog Management

Suppliers can easily manage catalog data and can be easily integrated with business processes like accounting, finance and planning.

Procure to Pay Optimization

Using SAP SRP product, you can streamline procure to pay life cycle and improve communication with supplier and cost management.

Self Service Procurement

End users can search products using multiple product catalog and helps them to find and purchase product that are compliant with purchase and procurement policy of the company.

Reporting Functionality

Using SAP Supplier Relationship management, you can create reports related to procurement activities, compliance and contract management, and managing costing in procurement process.

Contract Management

You can manage contracts using centralize secure repository that helps to reduce compliance violations and allows end users to follow business processes during self-service procurement.

In SAP SRM, where do you create quotations and process them?

Answer

Bidding Engine

If you want to search a particular product or a supplier, how can you do this?

Answer

In SAP SRM portal, you can easily perform search for different products and suppliers. Search criteria is easy to use.

You can also restrict the number of entries in search.

What is the use of workflows in SAP Supplier Relationship Management?

Answer

Workflows are used to perform easy approvals of PO’s allows organization to perform goods requisition easy and simple.

When you install SAP SRM application, what technical components get install with SRM software?

Answer

SAP SRM: Software Components

There are various application and technology components that are part of SAP Supplier Relationship management product. Application components include component that are required to create RFx and submit bids, for financial management, BI needs, Enterprise portal for application interaction and other various components to perform different functions.

Technology component consists of NetWeaver Process Integration to integrate with SAP and non-SAP external systems, SAP GUI for configuration, and R/3 plugin for master data.

Let’s see each of the component under application and technology in detail −

SAP Supplier Relationship Management Server

SAP SRM server includes SAP SRM server and SAP Bidding engine. SAP SRM is based on SAP NetWeaver application server and is available for different platforms and database. You can check all the releases of SAP SRM on SAP Market place under PAM.

SAP SRM Bidding engine

SAP Bidding engine can be used to create and process requests for bids, bidders can submit bids and other functions in RFx.

Bidding engine defines the rules for bidding and bidders can use it to submit bids in the system.

SAP NetWeaver BI

In SAP SRM spend analysis, BI is primary used and requires Application server ABAP on the same system. It may also require Java Application server and SAP Enterprise portal.

SAP NetWeaver Enterprise Portal

This is used as entry point for users to manage applications and information related to Supplier Relationship management. It provides role based and secure access to applications and services.

Online Transaction Processing System

Various systems can be used for back end transaction processing to manage material and financial queries. SAP ERP system can be used and data exchange occurs between SAP SRM and SAP ERP system.

You can also install SAP SRM as standalone without a backend system.

In SAP SRM Standalone deployment, where do the processing occurs?

Answer

• In a standalone deployment model, all the procurement processing is performed in SAP SRM system and back end accounting system is used for invoice financial processing.
• In a Standalone scenario, purchase order management, shopping cart and goods receipt and invoices are processed in SRM system.

Where do you use Standalone deployment model in SRM?

Answer

• When there is no operational backend system for material management and there exists only financial accounting systems in landscape.
• When you want to move all procurement activities in SAP SRM system and hence allow companies to decrease the work load on the backend procurement system by transferring buyers which are interested to procure from selected options.
• It is recommended for customers who want to maintain only minimal product data and only rely on supplier catalogs.

What is the difference between classic and extended classic option?

Answer

• In a classing deployment model, you process the shopping cart in SAP SRM and supporting documents are processed in backend ERP system.
• You can perform goods receipt or invoices in any of the system.
• In extended classic deployment model, procurement process takes place in SAP SRM system and PO is generated in SRM system and a read only copy is created in back end ERP system.
• You can perform goods receipt or invoices in any of the system as in case of classic scenario.

Where do you use Classic deployment scenario in SRM?

Answer

For those customers who has a strong backend procurement system and where buyers do not want to use multiple systems for their operations.

Provide an example of decoupled deployment scenario in SAP SRM?

Answer

Consider a customer who wants to use the standalone model for certain indirect materials and routine services, the classic scenario for stock materials to utilize inventory and planning capabilities of backend materials management system, the extended classic scenario to perform effective supplier management to provide response for PO’s.

What is a Contract? Can you place multiple contracts for similar goods in SAP SRM Contract Management?

Answer

In SAP SRM, contract is defined as a negotiation between a supplier and an organization for supply of goods and material or delivery of services within defined terms and conditions in a specific time period. These contracts are placed at central secure location to resolve the lack of visibility into contract across the different groups.

This allows you to manage different local contracts with different terms and conditions for the similar type of goods.

What is the benefit of using Central Contract management process?

Answer

Central contract management allows buyers form different part of company from different locations to take advantage of negotiated terms and conditions. The terms and conditions are transitioned into a central contract and to be distributed to local purchasing group to perform procurement process for the company.

How do you perform SAP ERP integration with SAP SRM to perform upload of Contracts?

Answer

To upload the central contracts and to schedule agreements from SAP ERP system to SAP SRM system, you can use program BBP_CONTRACT_INITIAL_UPLOAD. As per your configuration these contracts are loaded and scheduled from ERP to SAP SRM system.

How do you perform a search for Contracts in SAP SRM?

Answer

To perform contract search you can use TREX search engine. This search engine is provided with SAP SRM but you have to install it and run program to create indexing for all the available contracts. You should run program BBP_TREX_INDEX_ADMIN that creates a new indexes for existing documents and helps you to perform indexing for all new or changed documents when a contract is saved.

What is Live Auction Cockpit LAC?

Answer

LAC web presentation server is a J2ee based software application. This provides user with an option of real time bidding, real time monitoring and reverse auction options.

Apart from these technology component also includes SAP Process Integrator for integrating processes from different systems, SAP GUI for configuration and R/e plug in for data exchange between one or more R/3 systems and other components.

How do you upload and manage central contracts in ERP?

Answer

You can upload contracts in SAP ERP system by going to SAP ERP Central Component → Logistics → Materials Management → Purchasing → Outline Purchase agreements with vendors → Contract → Central Contract → SRM Central Contract

Is it possible to edit a completed central contract?

Answer

No

What are the different fields in a Central contact?

Answer

You can see different tabs- header tab, overview tab and distribution tab in a Contract. In overview tab go to fill the item details and general header data. You can fill the below details in a contract −

Target Quantity and value

In this field, you need to enter the target quantity and target value. This defines the quantity which shows the number of units to be purchased from a supplier in a time period.

Release Value

It is defined as accumulated value of all POs against the central contract.

Basic Contract

Now if you define a contract as basic contract, it only contains header data and conditions and you can’t put line items and cannot be distributed to a catalog.

Item Category

Under item category, you can define following options −

Normal

When you define item category as normal, it must contain a product category.

Product category

Under product category, you need to define a target value and a product category item always refer to all connected catalogs.

When a contract is set to completed status?

Answer

When a contract is expired or released status and you select close contract, the status of contract is set to complete and this is irreversible status.

You can search the completed contracts and use them as template for creating new contracts.

What is the difference between in negotiation and in renew status of a contract?

Answer

In Negotiation

When a contract is selected for renew and is in saved state, the status of contract is set as in negotiation.

In Renewal

This is set when you select a contract for renew is in released state.