Terp10 Unit 05 - Purchase To Pay Business Process

Front 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

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

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

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

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

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

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

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

Back 8

False

Front 9

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

Back 9

False

Front 10

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

Back 10

False

Front 11

What forms the link between a vendor and FI?

Back 11

Reconciliation Account

Front 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

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

Back 13

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

Front 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

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

Back 15

1. Account Assignment

Front 16

List some account assignment categories? (5)

Back 16

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

Front 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

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

Back 18

1. With Reference
2. Without Reference

Front 19

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

Back 19

1. Item Category

Front 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

In general, what is a goods movement?

Back 21

1. A transaction that causes a stock change

Front 22

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

Back 22

1. Invoice Verification

Front 23

What are the GL postings that result from the steps in the procurement process? (4)

Back 23

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

Front 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

Define movement type? (1)

Back 25

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

Front 26

What are the three stock types? (3)

Back 26

1. Unrestricted-use Stock
2. Quality Inspection Stock
3. Blocked Stock

Front 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

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

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

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

Back 30

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

Front 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

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

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

Back 32

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

Front 33

You cannot enter a goods movement without specifying a _______

Back 33

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

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

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

Back 35

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

Front 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

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

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

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

Back 39

1. RFQ
2. Purchase Requisition
3. Source List

Front 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

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

Back 41

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

Front 42

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

Back 42

1. Invoice Verification

Front 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

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

Back 44

False: It is payment

Front 45

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

Back 45

False

Front 46

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

Back 46

Plant

Front 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

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

Back 48

False

Front 49

What are the account assignment categories? (4)

Back 49

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

Front 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

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

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

Back 52

1. 101

Front 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

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

Back 54

1. Plant
2. Purchasing organization
3. Purchasing Group

Front 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

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

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

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

Back 58

1. Purchasing
2. Accounting

Front 59

What are four examples of Purchasing Info Record data? (4)

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

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

Back 60

1. Determine price.

Front 61

What are two company organizations that can be the source of a Purchase Requisition? (2)

Back 61

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

Front 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

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. (3)

Back 63

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

Front 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

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

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

What is an Item Category?

Back 67

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

Front 68

A Goods Movement includes both external and internal movements. What are four types of GM? (4)

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

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

Back 69

1. Movement Type

Front 70

What are the six Stock-to-stock Transfer Posting. (6)

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

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

Back 71

1. True

Front 72

What are the five elements of the Payment Transaction? (5)

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

Materials Management (MM) integrates with what seven business processes? (7)

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

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

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

How is MM integrated in Production Planning?

Back 76

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

Front 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

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

What are the three basic types of information found in information structures, like PURCHIS? (3)

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

For the Balance Sheet, what are the two effects of procurement (AP) into the warehouse? (2)

Back 80

1. Material stock increase
2. Bank account reduction

Front 81

During the AP Payment Run, the system does what three things? (3)

Back 81

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

Front 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

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

Back 83

1. True

Front 84

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

Back 84

1. False

Front 85

Identify the organization units (5)

Back 85

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

Front 86

Which organization unit structure represents the legal entity?

Back 86

Company code

Front 87

Which organization unit structure negotiates the general conditions of purchasing?

Back 87

Purchase Organization

Front 88

Which organization unit structure is responible for purchasing activities?

Back 88

Purchasing Group

Front 89

Purchasing is organized centrally or de–centrally, what are the three ways? (3)

Back 89

Plant specific
Cross Plant
Cross company–code

Front 90

The Vendor Master record can be maintained by

Back 90

Accounting and Purchasing

Front 91

Can a plant belong to more than one company?

Back 91

No

Front 92

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

Back 92

Yes

Front 93

A purchasing organization can procure material or services for only one plant? (T/F)

Back 93

False

Front 94

Steps to the procurement environment (8 steps)

Back 94

1. Requirement determination
2. Determination of source of supplier
3. Vendor selection
4. Order processing
5. PO monitoring
6. Good receipt
7. Invoice verification
8. Payment processing

Front 95

The purchase requisition can be created by: (2)

Back 95

1. Manually or

2. Automatically if the material is set for MRP

Front 96

Good receipts compares quantity or price?

Back 96

Quantity

Front 97

Invoice verification checks the accuracy of?

Back 97

Price and Content

Front 98

Purchasing converts the purchase requisition into a (2)

Back 98

Request for Quotation (RFQ) or Purchase Order

Front 99

Consumable materials are materials or service that are procured specifically for

Back 99

Account Assignment Object
i.e. Office Supplies assigned to cost center and Computer assigned to an asset

Front 100

When is a material master record not necessary during procurement?

Back 100

Purchasing a consumable material such as computers and office supplies

Front 101

What are examples of Account Assignment Objects? (5)

Back 101

A: Asset
K: Cost Center
P: Project
F: Production order
C: Sales Order

Front 102

The consumable materials _____ different account assignment objects of the account assignment category specified.

Back 102

Debits

Front 103

What are the require fields for procuring consumable materials that do not have a material master record? (5)

Back 103

Account Assignment Category
Short Text (description)
Material Group
Order Unit

Front 104

A purchase order is a?

Back 104

formal request to a vendor for services or goods under a stated condition

Front 105

A purchase order is either sent to a ______ or a _______.

Back 105

Vendor
Stock Transport Order

Front 106

The item category defines? (6)

Back 106

The process used to procure a material or service.
Blank – Standard
K – Consignment
L – Subcontracting
S – 3rd Party
U – Stock transfer
D – Services

Front 107

Which two documents are created when posting Goods Receipt?

Back 107

Material document (quantity)
Accounting document (value)

Front 108

A goods receipt is a goods movement from? (2)

Back 108

1. Vendor or
2. Production
Note: It's an increase in stock

Front 109

A goods issue is a goods movement from? (2)

Back 109

1. Material consumption or
2. Sales Order to Customer

Front 110

What are 3 basis of stock types for a goods receipt? (3)

Back 110

1. Unrestricted–use stock
2. Quality Inspection
3. Blocked stock

Front 111

Where can you preplan to have stock in quality inspection? (2)

Back 111

1. Material , if it is generally subject to inspection.

2. Purchasing or Production order for exceptional cases of inspection.

Front 112

Where is the stock type found on the Purchase Order?

Back 112

In the item details on the Delivery tab

Front 113

Where is the stock type found on the Production Order?

Back 113

On the Goods Receipt tab

Front 114

Movement type # of good receipt into warehouse/stores?

Back 114

101
Note: 122 is return to vendor

Front 115

The movement type determine which stock or consumption accounts are updated in Financial Accounting? (T/F)

Back 115

True. Also, the movement type determines the structure of the screen when you enter documents and updating of the quantity fields.

Front 116

Due to a damaged water pipe in the warehouse, a certain material can no longer be used and is transferred to?

Back 116

Blocked Stock

Front 117

In addition to Material (quantity) and Accounting (values) documents being created, what other areas are affected by goods receipt? (4)

Back 117

1. Purchasing (History Updated)
2. Quality Management (if active)
3. Warehouse Management (if active)
4. Output maybe generated (slip and pallet labels)

Front 118

Invoice verification creates a link between MM (Material Management) and

Back 118

Accounting

Front 119

An invoice items can be posted with reference to a ? (3)

Back 119

1. Goods receipt
2. Purchase order
3. Delivery note

Front 120

When posting an invoice, what accounts are debited and credited?

Back 120

Debit – (Gross Receipt / Invoice Receipt) GR/IR clearing account
Credit – Vendor's Accounts Payable

Note: Price difference the stock value and moving average is updated in MM.

Front 121

In Purchasing Reports, the selection parameter determines:

Back 121

Which documents are analyzed by the report.
i.e. open POs, expired, not received

Front 122

In Purchasing Reports, the scope–of–list parameter determines:

Back 122

Which data is displayed for a selected document.
(i.e short list)

Front 123

SAP List Viewer and ALV Grid Control can be summarized as: (3)

Back 123

1. Uniform design
2. Cross Application
3. Simple creation

Front 124

Information structures contain 3 basic types of information. (3)

Back 124

1. Characteristics
2. Period Unit
3. Key Figures

Front 125

A vendor has just delivered materials to you. The materials were received directly into Blocked Stock. As a result, SAP performed which of the following?

Back 125

Material management document

Front 126

Your project team is involved in implementing the MM module for procurement. You need to explain the organization levels relevant to procurement. Which of the following will you describe to your team?

Back 126

Client
Plant
Storage Location
Purchasing organization
Purchasing group

Front 127

A colleague is asking a question about purchase organizations and purchase groups. While explaining purchase organizations to him/her, you include which of the following?

Back 127

The unit legally responsible for purchasing contracts

Negotiates prices and conditions with vendors

Front 128

Your company has agreed to purchase materials from a new supplier. Master data must be created for this supplier. While creating this master data, you can create which of the following? (2)

Back 128

1. General data which has data relevant at the client level

2. Accounting data relevant for the company code

Front 129

A client calls you asking about purchasing a new vehicle needed for transportation. This vehicle will be put into use immediately upon receipt. Your client wants to know how to handle this. Which of the following options are correct regarding this vehicle?

Back 129

1. No material master record

2. With a master record with no value based inventory but with quantity based inventory

Front 130

You are explaining consumable materials to a client. When purchasing a consumable material, you explain the importance of account assignment objects. Which of the following can be used as account assignment objects?

Back 130

Cost center
Asset
Production order
Sales order

Front 131

A raw material just arrived from one of your vendors. You perform a GR with reference to the PO. Which of the following are effects of this receipt?

Back 131

1. Update quantity in material master
2. Debit stock account for a stock item
3. Transport request if WM activated

Front 132

While explaining PO creation to your client, you emphasize the importance of organizational levels. During your explanation, you identify which of the following as required to create the PO?

Back 132

1. Plant
2. Purchasing organization
3. Purchasing group

Front 133

Logistic invoice verification, in SAP ERP, is the process whereby a vendor's invoice is compared to the goods receipt document and the purchase order. What business integration processes, within SAP ERP, occurs with the completion of logistic invoice verification?

Back 133

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 134

Within SAP ERP Procurement, the procurement process is completed by logistics invoice verification. What accounts is debited when the invoice is posted in SAP ERP?

Back 134

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

Front 135

A vendor has just delivered materials to you. The materials were received directly into Blocked Stock. As a result, SAP performed which of the following? (one correct answer)
a. Material management document
b. Financial document
c. Inventory account is debited
d. Transfer requirement if WM is activated

Back 135

a. Material management document

Front 136

Your project team is involved in implementing the MM module for procurement. You need to explain the organization levels relevant to procurement. Which of the following will you describe to your team? (4 correct answers)
a. Client
b. Plant
c. Purchasing organization
d. Shipping point
e. Warehouse
f. Purchasing group

Back 136

a. Client
b. Plant
c. Purchasing organization
f. Purchasing group

Front 137

A colleague is asking a question about purchase organizations and purchase groups. While explaining purchase organizations to him/her, you include which of the following? (2 correct answers)
a. A group of employees who process purchasing for a group of materials
b. The unit legally responsible for purchasing contracts
c. Negotiates prices and conditions with vendors
d. The location where materials are stored

Back 137

b. The unit legally responsible for purchasing contracts
c. Negotiates prices and conditions with vendors

Front 138

Your company has agreed to purchase materials from a new supplier. Master data must be created for this supplier. While creating this master data, you can create which of the following? (2 correct answers)
a. General data which has data relevant at the client level
b. Purchasing data relevant for the company code
c. Accounting data relevant for the company code
d. Accounting data relevant for the purchasing organization

Back 138

a. General data which has data relevant at the client level
c. Accounting data relevant for the company code

Front 139

A client calls you asking about purchasing a new vehicle needed for transportation. This vehicle will be put into use immediately upon receipt. Your client wants to know how to handle this. Which of the following options are correct regarding this vehicle? (2 correct answers)
a. No material master record
b. With a master record with no value based inventory but with quantity based inventory
c. With a master record with no quantity based inventory but with value based inventory
d. With a master record with both quantity and value based inventory

Back 139

a. No material master record
b. With a master record with no value based inventory but with quantity based inventory

Front 140

You are explaining consumable materials to a client. When purchasing a consumable material, you explain the importance of account assignment objects. Which of the following can be used as account assignment objects? (4 correct answers)
a. Cost center
b. Asset
c. Production order
d. Stock account
e. Sales order
f. Purchasing organization

Back 140

a. Cost center
b. Asset
c. Production order
e. Sales order

Front 141

A raw material just arrived from one of your vendors. You perform a GR with reference to the PO. Which of the following are not effects of this receipt? (2 correct answers)
a. Update quantity in material master
b. Debit stock account for a stock item
c. Debit GR/IR account
d. Transport request if WM activated
e. Price variances posted

Back 141

c. Debit GR/IR account
e. Price variances posted

Front 142

Your accounting department is about to enter a vendor’s invoice for materials into SAP. As a result, SAP will perform which of the following? (2 correct answers)
a. Credit to revenue
b. Debit to GR/IR
c. Credit to stock account
d. Credit to vendor subledger
e. Debit to vendor subledger

Back 142

b. Debit to GR/IR
d. Credit to vendor subledger

Front 143

While explaining PO creation to your client, you emphasize the importance of organizational levels. During your explanation, you identify which of the following as required to create the PO? (3 correct answers)
a. Plant
b. Purchasing organization
c. Storage location
d. Vendor
e. Purchasing group

Back 143

a. Plant
b. Purchasing organization
e. Purchasing group

Front 144

Logistic invoice verification, in SAP ERP, is the process whereby a vendor's invoice is compared to the goods receipt document and the purchase order. What business integration processes, within SAP ERP, occurs with the completion of logistic invoice verification? (3 correct answers)
a. The vendor master record is updated.
b. The provisions in the GR/IR clearing account are reversed.
c. The on–hand quantity in the material master is updated.
d. The purchase order history is updated.
e. An open item is created in the vendor's account.

Back 144

b. The provisions in the GR/IR clearing account are reversed.
d. The purchase order history is updated.
e. An open item is created in the vendor's account.

Front 145

Within SAP ERP Procurement, the procurement process is completed by logistics invoice verification. What happens when the invoice is posted in SAP ERP? (one correct answer)
a. The payment is applied to the vendor's account.
b. The standard price in the material master is recalculated.
c. An accounting document is generated which posts directly to the Accounts Payable account within the general ledger.
d. The GR/IR account within the general ledger is debited.

Back 145

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