SAP ERP Financials and FICO Handbook

90 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS
213. What is the difference between a contract and a scheduling agreement?
In the SAP IM module, a contract represents an agreement between buyer and seller
for the supply of material or services. There are two types of contracts: (1) quantity
contract and (2) value contract.
A scheduling agreement represents how material will be delivered during a
period of time.
You can create a contract through transaction code ME31K and a scheduling
agreement through transcation code ME31L.
214. What is the use of configurable material?
Typically, the concept of configurable material is used for a made-to-order environment.
This concept is useful where a lot of permutations and combinations exist
for a product. For example, in the case of a laptop, there are various combinations
possible with respect to hard drive capacity, processor, and other features. For configurable
material, you will use a super BOM, which takes care of all possible alternative
materials. A routing is also maintained, consisting of all possible operations
that could be used. Configurable materials are either created in a material type that
allows the configuration (in the standard system, the material type KMAT) or they
are given the indicator Configurable in the material master record.
215. Is it possible to generate a purchase requisition (PR) with reference to
a scheduling agreement?
You can create a PR with reference to another PO. A PR can’t be created with a PO
or scheduling agreement. POs and scheduling agreements are outcomes of PR. You
can create a PO with reference to a PR through transaction code ME21N.
216. What is a standard price and a moving average price?
A standard price and a moving average price are two different methods of
valuating inventory. In the case of a standard price, inventory will be valuated
at a fixed price, where in the case of a moving average price, the valuation price
changes. Generally, you will use a moving average price for raw materials, spare
parts, and traded goods. Standard prices are used for the valuation of finished and