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50 Cards in this Set

  • Front
  • Back
Identify the organization units
Storage Location
Purchasing Organization / Purchasing Group
Which organization unit structure represents the legal entity?
Company code
Which organization unit structure negotiates the general conditions of purchasing?
Purchase Organization
Which organization unit structure is responible for purchasing activities?
Purchasing Group
Purchasing is organized centrally or de-centrally, what are the three ways?
Plant specific
Cross Plant
Cross company-code
The Vendor Master record can be maintained by
Accounting and Purchasing
Can a plant belong to more than one company?
Can you use the same storage location number in more than one plant?
A purchasing organization can procure material or services for only one plant? (T/F)
Steps to the procurement environment (8 steps)
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
The purchase requisition can be created
Manually or automatically if the material is set for MRP
Good receipts compares quantity or price?
Invoice verification checks the accuracy of?
Price and Content
Purchasing converts the purchase requisition into a (2 items)
Request for Quotation (RFQ) or Purchase Order
Consumable materials are materials or service that are procured specifically for
Account Assignment Object
i.e. Office Supplies assigned to cost center and Computer assigned to an asset
When is a material master record not necessary during procurement?
Purchasing a consumable material such as computers and office supplies
What are examples of Account Assignment Objects?
A: Asset
K: Cost Center
P: Project
F: Production order
C: Sales Order
The consumable materials _____ different account assignment objects of the account assignment category specified.
What are the require fields for procuring consumable materials that do not have a material master record?
Account Assignment Category
Short Text (description)
Material Group
Order Unit
A purchase order is a?
formal request to a vendor for services or goods under a stated condition
A purchase order is either sent to a ______ or a _______.
Stock Transport Order
The item category defines?
The process used to procure a material or service.
Blank - Standard
K - Consignment
L - Subcontracting
S - 3rd Party
U - Stock transfer
D - Services
Which two documents are created when posting Goods Receipt?
Material document (quantity)
Accounting document (value)
A goods receipt is a goods movement from? (2 items)
Vendor or
Note: It's an increase in stock
A goods issue is a goods movement from? (2 items)
Material consumption or
Sales Order to Customer
What are 3 basis of stock types for a goods receipt?
Unrestricted-use stock
Quality Inspection
Blocked stock
Where can you preplan to have stock in quality inspection?
Material , if it is generally subject to inspection.

Purchasing or Production order for exceptional cases of inspection.
Where is the stock type found on the Purchase Order?
In the item details on the Delivery tab
Where is the stock type found on the Production Order?
On the Goods Receipt tab
Movement type of good receipt into warehouse / stores?
Note: 122 is return to vendor
The movement type determine which stock or consumption accounts are updated in Financial Accounting? (T/F)
True Also, the movement type determines the structure of the screen when you enter documents and updating of the quantity fields.
Due to a damaged water pipe in the warehouse, a certain material can no longer be used and is transferred to?
Blocked stock
In addition to Material (quantity) and Accounting (values) documents being created, what other areas are affected by goods receipt?
Purchasing (History Updated)
Quality Management (if active)
Warehouse Management (if active)
Output maybe generated (slip and pallet labels)
Invoice verification creates a link between MM (Material Management) and
An invoice items can be posted with reference to a ? (3 items)
Goods receipt
Purchase order
Delivery note
When posting an invoice, what accounts are debited and credited?
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.
In Purchasing Reports, the selection parameter determines
which documents are analyzed by the report.
i.e. open POs, expired, not received
In Purchasing Reports, the scope-of-list parameter determines`
which data is displayed for a selected document.
i.e short list
SAP List Viewer and ALV Grid Control can be summarized as (3 items)
Uniform design
Cross Application
Simple creation
Information structures contain 3 basic types of information
Period Unit
Key Figures
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?
Material management document
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?
Storage Location
Purchasing organization
Purchasing group
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?
The unit legally responsible for purchasing contracts

Negotiates prices and conditions with vendors
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?
General data which has data relevant at the client level

Accounting data relevant for the company code
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?
1. No material master record

2. With a master record with no value based inventory but with quantity based inventory
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?
Cost center
Production order
Sales order
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?
1. Update quantity in material master
2. Debit stock account for a stock item
3. Transport request if WM activated
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?
1. Plant
2. Purchasing organization
3. Purchasing group
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?
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.
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?
The GR/IR account within the general ledger is debited.