Top SAP Supplier Relationship Management (SRM) Interview Questions and Answers-(2024)

1 .

What is SAP Supplier Relationship Management(SRM)?

SAP Supplier Relationship Management (SAP SRM) provides you with innovative methods to coordinate your business processes with your key suppliers and make them more effective. SAP SRM enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus to gain long-term benefits from all your supplier relationships.

With SAP SRM you can examine and forecast purchasing behavior, shorten procurement cycles, and work with your partners in real time. This allows you to develop long-term relationships with all those suppliers that have proven themselves to be reliable partners.

The efficient processes in SAP SRM enable you to cut down your procurement expenses and to work more intensively with more suppliers than ever before.

SAP SRM is part of SAP Business Suite.

The SAP SRM documentation offers a comprehensive description of the functional scope of SAP SRM, and highlights the relationship between the application and the underlying technologies.

2 .

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

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.

3 .

Discuss the benefits that SAP SRM brings to a business.

* SAP SRM enables the organization to achieve the following business benefits: Sustainable cost savings- which enables the companies to achieve a closed-loop from source-to-pay.

* Contract compliance – provides visibility into enterprise expenditures and enables the procurement organization to effectively demonstrate according to corporate guidelines.

* Competitive advantage – gives the tools to partner with key suppliers, define supplier management approach, and determine the key metrics.

4 .

What does SRM handle?

SRM handles analytics, supplier collaboration, operational contracts, service purchasing, self-service procurement, catalog content, supplier qualification, strategic sourcing, and plan-driven procurement.

5 .

What are SRM submodules?

These would be the Supplier self-services (SUS) service agent, the SUS order processor, the SUS invoicing party, the SUS administrator supplier, the one-client invoice verification clerk, the survey reviewer, the strategic purchaser, the component planner, the employee, and the invoice verification clerk. This is about one-third of the submodules in SRM.

6 .

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

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.

7 .

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

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

8 .

What about Enhancement Packages and Business Functions?

Enhancement packages and business functions enable you to considerably simplify the process of introducing and using new developments for SAP Business Suite. This technology enables you to selectively introduce individual new developments and to optimize selected business processes.

Enhancement packages are offered for the following applications of the SAP Business Suite :

* SAP CRM

* SAP ERP

* SAP SCM

* SAP SRM

There are also enhancement packages available for SAP NetWeaver. These enhancement packages form the basis for the enhancement packages of the applications of the SAP Business Suite, but follow different principles. Therefore, the statements made in this documentation do not apply for the enhancement packages of SAP NetWeaver.

9 .

What are the Business Functions in SAP SRM?

For information about individual business functions, see the related documentation that is linked from the Switch Framework: Change Business Function Status screen. The documentation describes the business value, possible limitations, and dependencies.

Activation of Business Functions

When you activate business functions, you activate Switch Framework switches (SFW switches). SFW switches directly control whether new Customizing activities and Customizing switches are visible.

You can activate SAP SRM business functions in Customizing for SAP Supplier Relationship Management under SRM Server > Activate Business Functions .

Deactivation of Business Functions

In SAP SRM, you can deactivate a business function if the following applies:

* The business function only activates Customizing switches and does not directly activate any code or fields.

* The Customizing switches corresponding to the business functions can be deactivated.

For more information, see the documentation of the individual business functions.

To deactivate a business function, perform the following steps :

* Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management.

* Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect the Revertible checkbox. To do this, you need special authorizations.

* Save and activate your changes.

10 .

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

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.

11 .

Why do we configure number ranges in SRM?

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 arises when purchasing document.

12 .

What purpose does the SRM org structure serve?

Organizational attributes serve many purposes in the EBP system. The primary purpose is 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.

13 .

Is there anything, in particular, that needs to be done to a user or a vendor to make them a valid part of SRM?

A user or supplier record cannot be assigned to an organizational unit it has a business partner recorded. This means, if Business Partner relationships are not established, users cannot be imported into the organizational structure from the User_Gen Transaction. Then the following error occurs: ‘Business partner of the organizational unit does not exist’.

14 .

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

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.

15 .

Where do you use Standalone deployment model in SRM?

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.

16 .

What is the difference between classic and extended classic options?

Classic	Extended classic option
In a classing deployment model, you process the shopping cart in SAP SRM and supporting documents are processed in backend ERP 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.	You can perform goods receipt or invoices in any of the system as in case of classic scenario.

17 .

Why do we create the internal number range for local bid invitations?

An internal number range must be defined to build numerically local bid invitations for RFQ`s and Auction in the Bidding Engine and Live Auction application. These bids do not have a link to any R/3 purchasing document, they are completely local to the ERP system.

18 .

How SAP SRM is Linked with SAP MM?

You can replicate Purch Org,purch group, material master, vendor master from the backend. you can create PO in SRM and replicate Po in the R/3. All the procurement is done in SRM related to MM only.

19 .

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

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.

20 .

What is the benefit of using Central Contract management process?

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.

21 .

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

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.

22 .

Explain Customizing Switches in SAP SRM.

Customizing switches are Customizing activities that allow you to execute new code and display the related user interface elements, such as new fields, buttons, or columns. Customizing switches affect the user interface and the business logic as follows:

* They call soft switch methods in the code, so that some sections of the code are only executed if the Customizing switch is active.

* The Customizing switch framework provides table columns where Customizing switches can be entered. This has the following effect:

* If the Customizing switch is active, the table entries assigned to the Customizing switch are taken into account at runtime.

* If the Customizing switch is inactive, the table entries assigned to the Customizing switch are ignored at runtime.

Activation of Customizing Switches : You can find a list of all Customizing switches in Customizing for SAP Supplier Relationship Management under SRM Server > Display Status of Customizing Switches . From here, you can also navigate to the Customizing activities where you activate or deactivate the Customizing switches. The documentation available with the Customizing activities provides further information, such as the initial status and the revertibility of the Customizing switch.

Deactivation of Customizing Switches : Most of the Customizing switches are revertible and can be deactivated. A Customizing switch is revertible if the following applies:

* The function switched on using the Customizing switch only affects the business process or user interface, but not the data that is written to the database.

* The function switched on using the Customizing switch does affect data written to the database, but you have not yet created a document with this function, so no data has yet been written to the database.

To find out whether a Customizing switch is revertible, see the documentation of the Customizing activity that you use to activate or deactivate the Customizing switch.

23 .

What is the difference between Professional and Simple shopping carts?

Professional	Simple
In this shopping cart, most of the fields are used by professional buyers and employees.	Like the above shopping cart, you can use a simplified shopping cart form with less number of fields.
In the header section, you have details of the shopping cart- cart number, name, status, created date and who has created the shopping cart.	This is suitable for users who have no experience and limited authorization.

24 .

What is SAP SRM e-sourcing integration?

SAP E-Sourcing application helps customers in streamlining the sourcing processes, managing procurement risk and compliance, reducing supplier costs and accelerating procurement cycle times.

25 .

How do we define ITS URL?

Before Internet Transaction Server, it proposes EBP requests, and it entries in table must contains a connection to a physical URL, which controls the menu on the left hand side of the screen that shows all transaction users have an access to. The URL variation depends on that the EBP client of the configuration is showed and it also consists of base address for the integrated ITS instance. To enable EBP purchasing for each client, this configuration wants to be performed once.

26 .

Why Client implemented EC but not Classic when they have strong ECC?

* The reason is to save time and reduce dependency on purchasing department that usually focuses on core purchasing tasks.

* For example in the classic scenario, a purchase order is generated in ECC. For any changes to PO, we need to contact purchasing department.

* So still we have a dependency. But in ECS, we can edit the PO in the SRM system itself and changes will be replicated to ECC. So we need not contact purchasing team and the burden on purchasing team for such requests will totally be eliminated. So for low spend purchases, we need to depend on purchasing department at all

27 .

What is a Purchasing Organization in SAP SRM?

A Purchasing Organization is the organizational unit within a business responsible for the procurement of goods and services for plants belonging to a particular region. It also negotiates terms and conditions of contracts and purchases from vendors and also assumes legal responsibility for those purchases for the Plants that PO is responsible for. Those Plants are dependant on its assignment.

28 .

What is Live Auction Cockpit LAC?

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.

29 .

How do you upload and manage central contracts in ERP?

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.

30 .

What is the use of Request for quotation RFx?

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.

31 .

How do you create a Live Auction?

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

32 .

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

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.

33 .

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

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.

34 .

How do you perform supplier evaluation in SAP SRM module?

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

35 .

What are the different steps in a shopping cart wizard?

Key steps in Shopping cart :

* Selecting Goods/Services

* Shopping Cart

* Complete and Order

* Confirmation

36 .

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

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.