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 Request for quotation RFx?

Answer

• A bid invitation is defined as a request from a buyer to a supplier to submit a quotation for goods or services as per mentioned criteria. Bid invitation is also known as request for quotation RFx.
• A request for quotation RFx is an invitation sent to supplier by an organization’s purchase department to submit RFx response for the supply of certain goods under specified terms and condition. RFx document contains information like vendor name, vendor’s address, goods quantities and delivery dates for the material. You can create RFx with reference to a purchase requisition and all the information is copied from the purchase requisition. When RFx is created without any reference, you can enter the details manually in RFx document.

What is difference between public and restricted bid invitation?

Answer

Public Bid Invitations

These bid invitations are available to all bidders via a web portal. Bidders can access the url available on web portal to login to SAP bidding engine and there they can enter the bids. If you want some specific bidders to send the bid, you can directly email them the bid invitation.

Restricted Bid invitations

In restricted bid invitations, hyperlink to login to SAP bidding engine is sent to some specific set of bidders via email. Bidders can login to Bidding engine and enter the bid.

While creating a bid invitation, is it possible to search for suppliers/bidders?

Answer

You can search for suppliers/bidders from the supplier directories and extend the bid invitation to these bidders in case of public invitation.

Explain bid invitation and Quotation process in SAP SRM?

Answer

A Quotation is defined as a response to RFx where a bidder confirms the goods selling and services to buyers/purchasers as per specific criteria. As part of bid invitation process when the email is triggered, supplier gets the information on the request for quotation. Suppliers start bidding as per the bid invitation and when they submit the bid in SAP Bidding engine, final price is shown. Suppliers can bid till the end date is reached and once bids are closed, purchases can perform a price comparison to get the best supplier and to award the bid, and purchase order can be raised for the best supplier.

If you get less number of quotation for RFx, what can be done to fix this?

Answer

When number of bidders are less or purchase feels that there is not a best bid. He can always convert RFx to live auction.

How do you create a Live Auction?

Answer

To create a live auction, purchasers can use SAP Bidding engine and auction takes place in Live Auction cockpit. Purchasers can create live auction −

• Using an Auction template
• By copying an auction
• In SRM portal from the Sourcing application

When you convert RFx to Live Auction, what happens to Request for Quotation RFx?

Answer

When you convert RFx to an auction, RFx is set to the status Completed and there are no changes that you can make to RFx.

Is it possible to integrate procurement function between SAP ERP and SAP SRM function?

Answer

Yes, Procurement functions are seamlessly integrated between SAP ERP and SRM. There are various business functions that allow a fully integrated, end-to-end procurement management solution to improve both compliance and procurement management process as per business requirement. It helps in closing the gap in ERP sourcing functionality using SRM capabilities and provides a common UI for designing integrated procurement processes.

What is the use of configuring number ranges in SRM?

Answer

Number ranges must be established for EBP shopping carts as well as any potential purchasing document so that unique numbers can be generated in the backend R/3 system from EBP. The EBP system needs a number range established that automatically takes the next available number and assigns it to the document which will be created in R/3.configuration must also be established in R/3 to correlate with the ranges in EBP so that conflict never arise when purchasing document.

What is the use of Organization structure in SAP SRM?

Answer

To set attributes that define the users` shopping experience. Examples of such attributes are company code, plant and cost centers that the user can order against, etc.

Provide an example of business partner and partner function?

Answer

Business Partner includes stake holders like customer, supplier, etc.

Partner Function includes invoicing party, supplying party, etc.

Which option can be used to faster the procurement process for customers?

Answer

Customer Shopping Cart

What are different types of shopping carts?

Answer

1. Professional Shopping Cart
2. Simple shopping Cart

In Standalone scenario, where do al processing is done for shopping cart?

Answer

In a standalone scenario, shopping cart and other processing is done in SRM system and only final invoice is sent to backend system for financial accounting.

What is the difference between Professional and Simple shopping cart?

Answer

Professional Shopping Cart Form

In this shopping cart, most of the fields are used by professional buyers and employees. In header section, you have details of shopping cart- cart number, name, status, created date and who has created the shopping cart.

Simple Shopping Cart Form

Like the above shopping cart, you can use a simplified shopping cart form with less number of fields. This is suitable for users who has no experience and limited authorization.

It only depends on the catalogs and no other options are there for purchasing.

Which processes of SAP SRM is linked with SAP MM?

Answer

To replicate Purchase Organization, Purchase group, material master, vendor master from backend. You can create PO in SRM and replicate PO in the R/3.

What is the use of supplier management function in SRM?

Answer

It is used for managing supplier performance, implementing technologies, processes, policies, and procedures to support the purchasing process.

When do you suggest to use shopping cart?

Answer

This is recommended for purchases with less experience to perform purchasing.

What are the different steps in a shopping cart wizard?

Answer

Key steps in Shopping cart −

• Selecting Goods/Services
• Shopping Cart
• Complete and Order
• Confirmation

What is Supplier Self Service process? What are the key advantages of using SUS?

Answer

Supplier self-service is one of the component in SRM that shortens the procurement life cycle time and reduce the costing of procurement process. In SUS, suppliers are provided with access to purchaser’s procurement system and they are able to provide fast response.

Explain key business processes in SAP Supplier Relationship Management process?

Answer

Following are the business process in SAP SRM −

• Procure to pay – we can integrate catalog based requisition and gain the benefits of e-procurement.
• Catalog management – manages catalog data as master data that is deeply integrated.
• Centralize sourcing – gain visibility into the demand for goods and services.
• Centralized contract management – consolidates contract information.
• Supplier collaboration – links supplier to our purchasing processes through the supplier portal

What is the use of company code?

Answer

By assigning a company code, you can keep financial and legal parameters and reports remain separate in the system.

How do you perform supplier evaluation in SAP SRM module?

Answer

• Supplier evaluation is one of the key process in mainting and improving long term relationship with the suppliers.
• SAP supports two main methodologies for Supplier Evaluation −
• Event-driven evaluation, triggered from confirmation, invoice, and advanced supplier list.
• Ad-hoc surveys using the Supplier Survey Cockpit

Where do you define a supplier evaluation area in SAP system?

Answer

To define Evaluation area, go to SRM Server → Supplier Evaluation → Evaluation Area

What is the use of internal number ranges in for RFx and quotations in Bidding Engine?

Answer

Using internal number ranges, bids does not have a link to any R/3 purchasing document, they are completely local to the ERP system.

What are different evaluation categories as part of supplier evaluation process?

Answer

In supplier evaluation, you can divide each survey as per evaluation category. This refers to the questionnaire and the target group.

Example − Delivery, Quality, etc.

What is the key tasks that are performed using SAP SRM module?

Answer

SAP SRM performs SUS, catalog management, Procurement, Supplier Evaluation, Central Contracts, shopping carts and Live Auction Cockpit.

What is the use of configuring number ranges in SAP SRM system?

Answer

Number ranges is used to define for shopping carts and purchasing document for EBP, to generate unique number in R/3 backend system.

What are the different deployment options that you can use for Live Auction Cockpit?

Answer

• Live Auction Cockpit on Java Web Server
• Live Auction Cockpit on ABAP Web Server
• Live Auction Cockpit on Java Web Server in supplier self-services
• Live Auction Cockpit on ABAP Web Server in supplier self-services