MIS Ch 9

At the time of a goods receipt in an internal procurement process, both material and FI documents are created

False

At the time of goods receipt in an internal procurement process, the material document consists of two lines for each of the plants

False

Creating a purchase order is a step in the fulfillment process.

False

In externam procurement, materials have the status "stock in transit" at the time of the goods issue step for receiving plant

False

Sales order processing and payment are steps in the procurement process

False

The delivery document is a request to move materials from one plant to another

False

The last step of the production process is always goods issue

False

The warehouse management process always results in the creation of a material document

False

The warehouse management processsometimes involves the creation of an FI document

False

There is a controlling (CO) impact in the billing step of the procurement process

False

There is an FI impact at the time of the goods receipt during a stock transfer

False

When a payment to a vendor is initiated, the bank account will be debited by the amount of the payment.

False

Shipping, billing, and payment are steps in which process?

Fulfillment

Identify the step in the fulfillment process for which a material document is created

Goods issue

In a plant-to-plant movement, valuation occurs at

Goods issue and at the valuation price of the issuing plant

Which statement about the production process is true

It involves issuing materials to the production order

What is the CO impact in the confirmation step of the production process?

Labor costs are transferred from the work centers to the production order

In the procurement process, a purchase requisition is created during which step?

Requirements determination

In a make-to-order strategy the production of finished goods or semi-finished goods is most frequently triggered by a

Sales order

Which one of the steps listed most likely would be the final step in the procurement process?

Send payment

After a transfer order related to fulfillment has been confirmed, which of the following steps is most likely to occur next

Shipping

If the storage location is warehouse managed, then a goods receipt will trigger the WM processes.

True

In the internal procurement process, the debits and credits for the GL account postings at the goods issue step are calculated based on the valuation price at the sending plant

True

No material documents are created during WM processes.

True

Sell-from-stock strategy uses inventory as a buffer between processes to de-couple them or to make them less dependent on each other.

True

The amount of debit and credit for the goods issue step in fulfillment is based on current moving average price of the material

True

The availability check in the fulfillment process can trigger the procurement process

True

The confirmation of the transfer order (TO) is executed during the warehouse management process

True

The fulfillment process can trigger the procurement process

True

The goods issue step in the fulfillment process results in the creation of FI and material documents and also has a CO impact

True

The production process can trigger the procurement process

True

The shipping step involves creating a delivery document.

True

There is a controlling (CO) impact in the goods issue step of the fulfillment process

True

When a payment from a customer is received, an automatic posting is made to the accounts receivable reconciliation account.

True

When an invoice from a vendor is received, a credit entry is posted to the GR/IR account.

True

In which of the following processes is a material document NOT created?

Warehouse management

In which of the following processes is a transfer order (TO) created?

Warehouse management

A goods receipt moves materials from "unrestricted use" to "in transit" status.

False

Calculate the debit and credit for the goods issue step in the fulfillment process, based on the following data. (Note: You need to pick the right price for this calculation.) Materials sold (trading goods): Printers Quantities sold: 100 Price for customer: $120.00 Current average moving price: $85.00 Price from vendor: $84.00 Average price 30 days before customer order was placed: $86.00 a. $12,000 b. $8,500 c. $8,400 d. $8,600 e. $0.00

$8,500

Which one of the following statements about the goods receipt step in the procurement process is TRUE?

Both FI and material documents are created

A company has decided to acquire materials via internal procurement. What is likely next step?

Create an STO

What is the general ledger impact of the goods issue step in the fulfillment process?

Debit COGS, credit inventory

What is the general ledger impact when a vendor invoice is received and verified?

Debit GB/IR, credit vendor subledger account

Calculate the financial effect of a goods issue posting based on the following data. Procurement type: Internal Materials: Pens Quantity shipped: 100 Valuation price at the receiving plant (for one pen): $2.30 Valuation price at the sending plant (for one pen): $2.40 a. Debit GR/IR, credit inventory for $230.00. b. Debit inventory, credit COGS for $240.00. c. Debit inventory, credit GR/IR for $230.00. d. Debit and credit to the inventory account for $240.00. e. No financial effect takes place at this step, so no FI document is created.

Debit and credit to the inventory account for $240.00.

When is the GL entry when a company receives a payment from a customer?

Debit bank, credit customer, credit accounts reconciliation account

What is the FI effect of a goods receipt posting in the external procurement process?

Debit inventory, credit GR/IR

In the WM steps related to fulfillment, a transfer order is created based on a(n)

Delivery document

Which one of the following activities triggers the shipping step (goods issue) in the fulfillment process?

Picking is completed

Receive invoice is a step in which process?

Procurement

What is the general ledger impact of the goods receipt step during a stock transfer?

There is no GL impact

What is the general ledger impact when a transfer requirement is created in the warehouse management process?

There is no impact on the GL

A purchase requisition is converted to a PO in the purchase order processing step in the procurement process

True

At the time of a goods receipt in an external procurement process, the material document consists of a single line item.

True