Unit 04: Procurement

Front 1

What organizational levels are used in procurement?

Back 1

- Client
- Company code
- Plant
- Storage location
- Purchasing organization

Front 2

Define purchasing group

Back 2

A buyer or group of buyers responsible for certain purchasing activities.

Front 3

List 3 types of purchasing organizations and the organizational levels to which they are respectively assigned

Back 3

- Plant-specific purchasing (plant)
- Cross-plant purchasing (company code)
- Cross-company-code purchasing organization (client)

Front 4

What master data is used in procurement?

Back 4

- Material master
- Vendor master
- Purchasing info records
- Conditions

Front 5

Besides Purchasing, who else maintains the vendor master and why?

Back 5

Accounting, because a vendor is a crediting business partner

Front 6

General vendor data is stored at the _____ organizational level.

Back 6

client

Front 7

Vendor accounting data is stored at the _____ organizational level.

Back 7

company code

Front 8

Purchasing data for the _____ is stored separately for each purchasing organization.

Back 8

vendor

Front 9

List 2 kinds of optional vendor master data.

Back 9

- plant
- vendor sub-range

Front 10

List 4 kinds of information you can store in a purchasing info record

Back 10

- current and future prices and conditions
- delivery data
- vendor data
- texts

Front 11

List and describe the 3 types of purchasing conditions

Back 11

- Conditions in a contract apply to all release orders that reference the contract
- Conditions in purchasing info records apply to all purchase order items that contain the material and vendor
- Extended conditions are included if purchase order meets special criteria. More flexible than the other two types.

Front 12

List the 8 steps of the procurement process

Back 12

1. Determine requirements
2. Determine source of supply
3. Select vendor
4. Create purchase order
5. Monitor purchase order
6. Goods receipt
7. Verify invoice
8. Process payment

Front 13

List 2 ways a purchase requisition can be generated

Back 13

- Manually
- Automatically by MRP

Front 14

Purchasing converts a purchase requisition into either a _____ or a _____.

Back 14

- request for quotation (RFQ)
- purchase order (PO)

Front 15

Before converting a purchase requisition into a purchase order, the buyer has to define the _____.

Back 15

source of supply

Front 16

Consumable materials are procured specifically for a _____.

Back 16

account assignment object

Front 17

List 5 account assignment objects to which consumable materials might be assigned

Back 17

- cost center
- asset
- project
- production order
- sales order

Front 18

Vis-a-vis material master records, describe 3 kinds of consumable materials

Back 18

- without material master record
- with material master record, but not subject to inventory management (either quantity or value)
- with material master record, and subject to inventory management on quantity basis (but not valuation)

Front 19

List 4 data that you must enter when procuring consumable materials that do not have a material master record

Back 19

- short text (description)
- material group
- order unit
- account assignment category

Front 20

A purchase order may be created with a reference to _____ (list 4 possible values)

Back 20

- nothing
- a purchase requisition
- a request for quotation
- another purchase order

Front 21

List the 2 possible next steps after creating a purchase order

Back 21

- send it to a vendor
- execute a stock transport order

Front 22

You define whether the material is intended for stock or direct consumption in the _____.

Back 22

purchase order

Front 23

List 4 types of documents in which the source determination function might look to suggest a possible vendor

Back 23

- outline agreements
- info records
- source list entries
- quota arrangements

Front 24

List 6 item categories that might be set during procurement

Back 24

- Standard
- Subcontracting
- Consignment
- Stock transport orders
- Third-party orders
- Services

Front 25

The _____ defines the process used to procure a material or service

Back 25

item category

Front 26

When a goods receipt to the warehouse is posted, a _____ is created. If the goods receipt is relevant for valuation, a _____ is created as well.

Back 26

- material document
- accounting document

Front 27

A transaction that causes a stock change is a _____.

Back 27

goods movement

Front 28

List 4 types of goods movements

Back 28

- goods receipts
- goods issues
- stock transfers
- transfer postings

Front 29

If material is generally subject to a quality check on receipt, set the "Post to inspection stock" indicator in the _____.

Back 29

material master

Front 30

If material is only occasionally subject to a quality check on receipt, set the "Post to inspection stock" indicator in the _____.

Back 30

relevant document (purchase order or production order)

Front 31

List the 3 stock types in inventory management that indicate the usability of the material

Back 31

- unrestricted use
- in quality inspection
- blocked stock

Front 32

If the usability of a material changes, a _____ is posted.

Back 32

transfer posting

Front 33

List 10 possible effects of a goods receipt

Back 33

- Material stock updated
- Material value updated
- Accounting document created
- Material document created
- Stock/consumption GL accounts updated
- Inspection lot in QM created
- Transfer requirement in warehouse management created
- Goods receipt slip (hard copy) created
- Notification of goods receipt created
- PO and PO history updated

Front 34

List the 3 inputs of invoice verification

Back 34

- material document
- invoice
- purchase order

Front 35

List the 2 outputs of invoice verification

Back 35

- Invoice document
- Accounting document

Front 36

List and describe 2 types of invoice verification

Back 36

- Purchase order based. Settled against PO. Possible to settle partial deliveries.
- Goods receipt based. Settled against goods receipt. If invoice is greater than GR quantity, invoice cannot be posted.

Front 37

List 3 effects of invoice verification

Back 37

- Accounting document
- PO history is updated
- If invoice price varies from PO price, stock value and moving average price are recalculated

Front 38

List the 5 steps of making a payment

Back 38

1. Select payment method and bank
2. Select items to be paid
3. Calculate payment amount, including discounts
4. Post the payment
5. Print the payment medium (e.g. check)

Front 39

List and describe 5 integration points between materials management and other modules

Back 39

FI: Vendor data managed jointly by purchasing and FI
SD: sales are passed to purchasing
PP: tightly integrated through inventory
PM: Linked by BOMs and serial numbers
WM: MM controls inventory stock, WM controls inventory location

Front 40

List 7 information systems available in logistics

Back 40

- SIS: sales i.s.
- PURCHIS: purchasing i.s.
- INVCO: inventory controlling
- TIS: transportation i.s.
- SFIS: shop floor i.s.
- QMIS: quality management i.s.
- PMIS: plant maintenance i.s.