113 Terp10 Unit 5 - Procurement

Front 1

1.What are the steps in the procurement cycle? (8)

Back 1

1. Determination of requirements
2. Determination of source supply
3. Vendor selection
4. Purchase Order processing
5. Purchase order monitoring
6.Goods Receipt
7.Invoice verification
8.Payment processing

Front 2

2.Name the organizational units relevant to purchasing? (6)

Back 2

1. Client
2. Company Code
3. Plant
4. Storage Location
5. Purchasing Organization
6. Purchasing Group

Front 3

3.What is the difference between purchase organizations and purchasing groups? (2)

Back 3

1. Purchasing Organization – an organizational level that negotiates conditions of purchase with vendors for one or more plants or companies. It is legally responsible for completing purchasing contracts.
2. Purchasing Group – The key for a buyer or group of buyers responsible for certain purchasing activities.

Front 4

4.What master data is relevant for procurement? (5)

Back 4

1. Basic Data – Applicable to the entire company -> Client: Product description, material #, material group, unit of measure.
2. Purchasing Data – for orders -> relevant to the Plant
3. Inventory Management Data – for posting goods movement and managing physical inventory
4. Accounting Data – for material valuation upon goods movements or in invoice verification -> is relevant to the Company Code
5. Materials Planning Data – for material requirements planning (MRP) and Execution (Work Scheduling) -> is relevant to the Plant.

Front 5

5.Name the vendor master data views. (3)

Back 5

1. Client – General Data: valid for the whole corporate group (address, bank account, etc.).
2. Company – Company Code Data: Accounting data, payment transactions, tax
3. Each Purchasing Org – Purchasing Organization Data (payment conditions, etc.)

Front 6

6. Can a plant belong to more than one company code?

Back 6

1. No, a plant is always assigned to only one company code.

Front 7

7. Can you use the same storage location number in more than one plant?

Back 7

1. Yes, despite having identical storage location numbers or names in the plants concerned, storage locations are completely independent organizational units with separate inventory management.

Front 8

8. T/F - A purchasing organization can procure material or services for only one plant.

Back 8

1. False

Front 9

9. T/F – A plant is assigned to exactly one purchasing organization.

Back 9

1. False

Front 10

10. T/F – A purchasing group is always responsible for only one purchasing organization.

Back 10

1. False

Front 11

11. What forms the link between a vendor and FI?

Back 11

1. Reconciliation Account

Front 12

12. What is the purpose of the purchasing info record? (2)

Back 12

1. Contains concise information on a vendor and the material you procure from this vendor.
2. Important for buyers because if allows them to find out at any time which vendors offer a particular material.

Front 13

13. What are the methods for creating purchasing requisitions? (2)

Back 13

1. Manually by the department responsible
2. Automatically by MRP

Front 14

14. What is a consumable material? (3)

Back 14

1. Materials or services that are procured specifically for an account assignment object. Examples: Office supplies (cost center) and Computer systems (Assigned to an asset)
2. It does not have to have a material master.
3. If it does have a master record,
i.There is no value-based inventory management
ii.Consumption is automatically updated in the material master record.

Front 15

15. What field is necessary on a purchase order item when the item is a consumable? (1)

Back 15

1. Account Assignment

Front 16

16. List some account assignment categories? (5)

Back 16

1. Asset
2. Cost Center
3. Project
4. Prod. Order
5. Sales Order

Front 17

17. What is the structure of a purchase order? (2)

Back 17

1. Header – Doc #, Terms of payment, PO date, Vendor, Curreny
2. Items – Material #, Short Text, Order Quantity, delivery date, PO price

Front 18

18. What are the options for creating a PO? (2)

Back 18

1. With Reference
2. Without Reference

Front 19

19. What field on a line item on a PO controls the purchasing process? (1)

Back 19

1. Item Category

Front 20

20. What is the Movement Type and what are the effects of goods receipt? (1) (3)

Back 20

1. Movement Type 101
2. WM: Transfer Requirement is created along with the goods being placed into the warehouse.
3. MM: Quantity of the stock is increased
4. FI: Value of the stock is increased (except for material types without value updating)

Front 21

21. In general, what is a goods movement?

Back 21

1. A transaction that causes a stock change

Front 22

22. What step in the procurement process provides the integration point between MM and FI? (1)

Back 22

1. Invoice Verification

Front 23

23. What are the GL postings that result from the steps in the procurement process?

Back 23

1. Debit to Stock
2. Credit to GR/IR
3. Debit to GR/IR
4. Credit to vendor subledger

Front 24

24. What transaction gives you a static overview of all the stock in inventory by organizational level? (1)

Back 24

1. Stock Overview

Front 25

25. Define movement type? (1)

Back 25

1. A three digit key to differentiate between goods movements in the system.

Front 26

26. What are the three stock types? (3)

Back 26

1. Unrestricted-use
2. In quality inspection
3. Blocked

Front 27

27. Can you view the accounting document created by a goods movement from the material document? (1)

Back 27

1. No. They are independent

Front 28

28. What are the effects of invoice verification? (3)

Back 28

1. The provisions in the GR/IR clearing are reversed.
2. The purchase order history is updated.
3. An open item is created in the vendor’s account.

Front 29

29. What are the two types of invoice verification and what are
the differences?

Back 29

1. Purchase-order-based Invoice Verification: You can settle all items, irrespective of whether there have been partial deliveries.
2. Goods-receipt-based Invoice Verification: You use the goods receipts as the basis of the invoice entry. Invoices for quantities greater than the goods receipt quantity cannot be posted.

Front 30

30. What FI accounts are updated during the procurement process? (3)

Back 30

1. Stock
2. GR/IR
3. Vendor Subledger

Front 31

31. T/F – When you create a master record for a vendor, you must enter all relevant data for purchasing and accounting in one single step.

Back 31

1. False: SAP ERP also affords the possibility of a decentralized maintenance of a vendor master record. The purchasing and accounting views can be maintained separately.

Front 32

32. T/F – A plant can be assigned to several company codes.

Back 32

1. False: A plant can be assigned to only one company code.

Front 33

33. You cannot enter a goods movement without specifying a _______

Back 33

1. Movement type: The movement type determines the kind of goods movement. It is also an important factor influencing the stock or consumption posting made in accounting.

Front 34

34. What are the effects of the entry of a goods receipt against a purchase order? (3)

Back 34

1. A material document is generated
2. An accounting document can be generated
3. The PO history is updated for each item of the purchase order

Front 35

35. T/F – A purchase organization must always be assigned to a company code.

Back 35

1. False: The assignment of a purchase organization to a company code is optional.

Front 36

36. Client, _______ and _______ are examples of organizational levels that play a role in the maintenance of material master records. (2)

Back 36

1. Plant: All data that is valid for a plant.
2. Storage locations: All the data that is valid for a certain storage location.

Front 37

37. What are the views that make up the vendor master record? (3)

Back 37

1. General data which has data relevant at the client.
2. Accounting data relevant for the company code
3. Purchasing data on the vendor is managed separately for each purchasing organization.

Front 38

38. Which G/L accounts are updated at goods receipt when purchasing a stock material? (2)

Back 38

1. Stock account
2. GR/IR

Front 39

39. You can create a purchase order with reference to? (3)

Back 39

1. RFQ
2. Purchase Requisition
3. Source List

Front 40

40. What accounts are affected during invoice verification and how are they affected? (2)

Back 40

1. Debit to GR/IR
2. Credit to vendor subledger account.

Front 41

41. What organization data is included on all purchase orders?(3)

Back 41

1. Company Code
2. Purchasing Group
3. Purchasing Organization

Front 42

42. An account payable is posted to accounting upon creation of what document? (1)

Back 42

1. Invoice Verification

Front 43

43. Purchasing in which the purchasing organization is not assigned to any company code is called _____. (1)

Back 43

1. Cross-company code

Front 44

44. T/F – Invoice verification is the final step in the procurement cycle.

Back 44

1. False: It is payment

Front 45

45. T/F - Upon invoice verification, the system automatically carries out the payment process.

Back 45

1. False

Front 46

46. The purchasing view of the material master is relevant at what organizational level? (1)

Back 46

1. Plant

Front 47

47. What are the advantages of posting good receipt by referencing to purchase orders? (3)

Back 47

1. Accounting document relating to Good Receipt transaction is automatically posted.
2. Material Document is automatically created containing material information and quantity.
3. The AD and MD are generated simultaneously.

Front 48

48. T/F –A material master record is required to purchase a material. (1)

Back 48

1. False

Front 49

49. What are the account assignment categories? (4)

Back 49

1. Cost Center
2. Asset
3. Production
4. Sales order

Front 50

50. Name the item categories on purchase orders. (6)

Back 50

1. Standard
2. Consignment
3. Third-Party
4. Subcontracting
5. Stock Transfer
6. Services

Front 51

51. Computer systems for an asset, Blueberries for a production order, and Office supplies for a cost center are examples of what? (1)

Back 51

1. Consumables

Front 52

52. What movement type (#) is used to receive goods from a purchase order? (1)

Back 52

1. 101

Front 53

53. What are the advantages of the SAP List Viewer and ALV Grid Control? (3)

Back 53

1. Uniform design of all lists and tables
2. Cross-application, standard function with uniform icons
3. Simple creation and changing of layouts

Front 54

54. What organizational levels are required to create a purchase order? (3)

Back 54

1. Plant
2. Purchasing organization
3. Purchasing Group

Front 55

55. What business integration processes within SAP ERP occur with the completion of logistic invoice verification? (3)

Back 55

1. The provisions in the GR/IR clearing account are reversed
2. The purchase order history is updated
3. An open item is created in the vendor’s account

Front 56

56. What happens when the invoice is posted in SAP ERP? (1)

Back 56

1. The GR/IR account within the general ledger is debited.

Front 57

57. What are four examples of Data Views of the material master record?

Back 57

1. Purchasing Data for ordering.
2. Inventory Management Data for posting goods movements and managing physical inventory.
3. Accounting Data for material valuation upon goods movements or in invoice verification.
4. Material Planning Data for material requirements planning.

Front 58

58. The Vendor master contains information about a vendor from a ______________ and __________ perspective.

Back 58

1. Purchasing
2. Accounting

Front 59

59. What are four examples of Purchasing Info Record data?

Back 59

1. Current and future prices and conditions (i.e., freight and discounts).
2. Delivery data (i.e. planned delivery time and tolerances)
3. Vendor data.
4. Texts

Front 60

60. What is the main purpose of Conditions when used in purchase orders?

Back 60

1. Determine price.

Front 61

61. What are two company organizations that can be the source of a Purchase Requisition?

Back 61

1. SCM (APO) – Supply Chain Management (Advanced Planning and Optimization).
2. SRM (EBP) – Supplier Relationship Management (Enterprise Buyer Professional)

Front 62

62. Before converting the purchase requisition into a purchase order, the buyer has to define what?

Back 62

1. The source of supply

Front 63

63. When procuring consumable materials that do not have a material master record, what three A have to be entered, as well as the account assignment category.

Back 63

1. Short Text (description).
2. Material Group.
3. Order Unit.

Front 64

64. What is the difference in configuration between Non-stock and Non-valuated consumable materials? (2)

Back 64

1. Non-stock (NLAG): Quantity and value are not updated.
2. Non-valuated (UNBW): Quantity is updated, but value is not.

Front 65

65. A PO can be created without reference , or with reference to: (3)

Back 65

1. Purchase Requisition
2. Request for Quote (RFQ).
3. Another PO.

Front 66

66. What is a Purchase Order?

Back 66

1. A formal request to a vendor to supply you with goods or services at the conditions stated in the PO.

Front 67

67. What is an Item Category?

Back 67

1. It defines the process used to procure a material or service.

Front 68

68. A Goods Movement includes both external and internal movements. What are four types of GM?

Back 68

1. Goods Receipt (GR): Receipt of goods from both an external vendor and from production is posted, which increases warehouse stock.
2. Goods issue (GI): When a material withdrawl, goods issue, material consumption, or goods shipment is posted to a customer.
3. Stock Transfer: Removal of materials from a particular storage location and placement into another storage location within the same plant or between two plants.
4. Transfer Posting: A stock transfer that changes the stock identification or qualification of a material, regardless of whether the posting is linked to a physical movement or not.

Front 69

69. The _____ _____ plays a central role in automatic account determination in Inventory Management.

Back 69

1. Movement Type

Front 70

70. What are the six Stock-to-stock Transfer Posting.

Back 70

1. 322: Unrestricted to Quality Inspection
2. 350: quality Inspection to Blocked
3. 349: Blocked to Quality Inspection
4. 321: Quality Inspection to Unrestricted
5. 344: Unrestricted to Block
6. 343: Blocked to Unrestricted

Front 71

71. T/F – The material and accounting document for a goods movement are created simultaneously.

Back 71

1. True

Front 72

72. What are the five elements of the Payment Transaction?

Back 72

1. Select payment method and bank
2. Select items for payment
3. Calculate the payment amount, taking account of cash discount periods.
4. Post the payment document.
5. Print payment medium.

Front 73

73. Materials Management (MM) integrates with what seven business processes?

Back 73

1. FI
2. Manufacturing
3. Sales Order Management
4. Plant Maintenance
5. Production Planning
6. Management Accounting
7. Human Capital Management

Front 74

74. How is MM integrated in FI?

Back 74

1. Purchasing maintains data on the vendors that are defined in the system jointly with Finance.

Front 75

75. How is MM integrated in S&D? (2)

Back 75

1. For materials planning and control, a requirement that has arisen in the Sales area can be passed on to Purchasing.
2. A requisition can be directly assigned to a sales order

Front 76

76. How is MM integrated in Production Planning?

Back 76

1. MM is closely linked to Production Planning through inventory needs.

Front 77

77. How is MM integrated in Plant Maintenance? (2)

Back 77

1. MM and Plant Maintenance are linked by BOM.
2. Serial numbers are activated in MM but used within Plant Maintenance.

Front 78

78. How is MM integrated in Logistics?

Back 78

1. While Inventory Management manages the stock quantity and value, the Warehouse Management System handles and monitors storage.

Front 79

79. What are the three basic types of information found in information structures, like PURCHIS?

Back 79

1. Characteristics: Criteria which is specified to collect data on a certain subject.
2. Period Unit: Criterion used in information structures
3. Key Figure: Performance measures

Front 80

80. For the Balance Sheet, what are the two effects of procurement (AP) into the warehouse?

Back 80

1. Material stock increase
2. Bank account reduction

Front 81

81. During the AP Payment Run, the system does what three things?

Back 81

1. Posts payment documents
2. Clears open items
3. Prepares data for the printing of payment media.

Front 82

82. What is the purpose of Accounts Payable? (2)

Back 82

1. It records all business transactions that have to do with the relationship to suppliers.
2. It takes much of its data from Purchasing (MM Material Management).

Front 83

83. T/F - An automatic payment run can be defined for multiple vendors and company codes. 248

Back 83

1. True

Front 84

84. T/F - The GR/IR account is used in the accounts payable payment process. 235

Back 84

1. False