System Implementation
The relationship between company code to sales organization is:
1:M
Which of the following is NOT true for work centers?
A plant can only have one work center.
___________ records and manages all accounting related data associated with a company's customers.
Accounts Receivable
Orders that include offset postings for costs accrued calculated in the CO module are:
Accrual orders
Which detail is generally not included in the Purchase Requisition?
Amount
One of the requirements of GAAP is that companies report revenue and expenses for all key product and service lines. This is referred to as segment reporting. Within the SAP ERP system, ____________is used to represent segments.
Business Area
How the system will determine if the materials ordered by a customer can be delivered by the date requested is an example of?
Business Rules and Parameters
Which is the second key configuration phase in financial accounting?
Business Rules and Parameters
Which of the following modules mostly reflects the managerial accounting side of SAP?
CO
From a business standpoint, purchasing or sourcing cannot be done at the level.
Client
Why it is usually best not to change source code?
Companies that have done that have had difficulty upgrading to newer versions of SAP
An enterprise comprises of two companies, one located in the US and one in Germany. Each is represented in the ERP system by the enterprise structure element?
Company Code
Valuation Area can be defined at which level in SAP?
Company Code, Client, Plant
Tolerance groups are defined for each .
Company code
Tolerance groups are defined for each .
Company code
Which one deals with the classification, analysis and management of costs by the people who are responsible for those costs?
Cost center accounting
A true cost allocation method for primary cost transfers and reposting of primary costs is:
Distribution
"The US East Sales organization, and the wholesale distribution channel" is an example of which of the following enterprise structure elements?
Distribution chain
Which of the following enterprise structure elements is NOT related to the production process?
Division
Which form of purchasing is used by organizations that want to centralize the procurement process?
Enterprise Level Model
Which is the first key configuration phase in financial accounting?
Enterprise Structure
A planned order is a proposal either to produce a material in-house or to acquire it externally (procurement). It is a planning tool and cannot be changed or deleted.
False
A sales organization can be assigned to multiple company codes.
False
Accounts receivable accounting records and manages all accounting transactions for the customers of an organization. It is an integral part of the procurement process.
False
At the order confirmation stage, there is posting to FI.
False
Business Rules & Parameters change often.
False
Business areas are assigned to company code.
False
Display only fields reveal entered information which can be useful for entry of required fields and can be modified by users when necessary.
False
GBI's US company (US00) and German company (DE00) purchase from the same vendor XYZ so master data for same vendor should be defined as (Company Code -> Master Data relationship). US00 and DE00 can both use the same vendor XYZ. One master data record would be needed and can be used by both.
False
MBG Corp is a fishery company that has three separate legal entities located in the U.S, Canada and New Zealand, now they wish to implement the SAP ERP system. The three entities will all report under the GAAP standard. MBG Corp should assign one company code to all entities for convenience
False
Make-to-order is when the production order is related to a production plan that seeks to maintain a level of inventory deemed adequate to meet finished product demand.
False
Make-to-order is when the production order is related to a production plan that seeks to maintain a level of inventory deemed adequate to meet finished product demand.
False
Make-to-stock is when the production order is connected directly to an order for the finished product.
False
Management accounting, which is sometimes referred to as cost accounting, because of the main focus of management of costs, includes the external accounting processes of a company.
False
Management accounting, which is sometimes referred to as cost accounting, is concerned with the financial reporting. The key management accounting processes are general ledger accounting, accounts receivable accounting, and accounts payable accounting.
False
One Controlling are can be assigned to one and only one company codes.
False
Order settlement and order confirmation impact both FI and CO.
False
Overhead costs are costs that can be directly assigned to products or services.
False
Periodic allocation is an immediate flow-through of costs using activity types of the sender.
False
Posting keys are assigned at the company level.
False
Pricing procedures are used to calculate the purchasing price of a material based on various conditions.
False
Storage locations identify areas within a plant where equipment (e.g., machines) is stored and activities completed.
False
The Enterprise Structure change often.
False
The access sequence has no impact on pricing and the order of computation.
False
The cost center can be deleted even after accounting transactions have been posted to that cost center.
False
The customer group identifies groups of customers. It is used to apply different settings to a set of customers with different characteristics.
False
The plant is an organizational unit in an enterprise that is responsible for procuring materials and services, negotiating with vendors about the conditions of purchasing from them and for all the various transactions related to procuring materials and services.
False
The fiscal year end is voted by the shareholders.
False
Tolerance groups for employees do not specify the extent of payment differences that are permitted in employee postings.
False
A sales organization is a combination of distribution chain and division.
False`
____________ is to capture and record all data generated by the execution of business process steps that have a financial accounting impact.
General Ledger Accounting
Which step has a material and financial impact in the General Ledger?
Goods Receipt
At which stage does posting of finished goods to FI occurs?
Goods receipt
___________ chart of accounts enables a company to provide consolidated corporate reports by including the general ledger accounts used by all company codes in the entire corporate group.
Group
is concerned with testing end to end business processes.
Integration Testing
Which focuses on the classification, analysis and management of costs on a more temporary basis?
Internal order accounting
Which is considered as the central component to business process configuration?
Managerial Accounting and Financial Accounting
_______ is imported from existing information systems and includes elements such as customers, vendors and materials.
Master Data
Companies use the _______ for day-to-day business operations.
Operating
Which one is not one of the categories of general ledger?
Operating Cash Flow
Orders that capture costs related to internal activities that are settled to cost centers are:
Overhead orders
Which of the following represent a typical production process?
Planned order > Production order > Goods issue > Order confirmation > Goods receipt
Which of the following is NOT true about planned and production order?
Planned order authorizes production
Which of the following activities does NOT impact CO?
Planned production
Organizational unit where a company carries out some of its business activities are configured in system the system as a _____________?
Plant
Organizational unit where a company carries out some of its business activities are configured in system the system as a _____________?
Plant
Which manufacturing o%en involves mixing and blending of ingredients to create the final product?
Process
________ is the process involving the acquisition (purchasing) of materials and/or services required by the organization.
Procurement
A plant cannot be _______________.
Product
__________ involves the steps necessary to convert raw materials into finished goods.
Production
Which is most o%en applied in construction of a facility or producing an item with a complex production process?
Project
_______ serves an important role in connecting a material master with a vendor master, and containing specific information about this relationship between the vendor and material
Purchasing Info Record
_______ serves an important role in connecting a material master with a vendor master, and containing specific information about this relationship between the vendor and material
Purchasing Info Record
What type of inventory is not associated with the Purchase to Pay process.
Raw material
Which of the following is the steps to the Order to Cash process?
Receive purchase order > Create sales order > Prepare and send shipment > Send invoice > Receive payment
is done during system changes such as installations of enhancement packages, configuration modifications, and significant master data changes
Regression Testing
Under which form of production process the quantity of finished product is produced is predetermined rate?
Repetitive
Which of the following is NOT necessary for a sales transaction to be entered?
Sales office
A distribution chain is a valid combination of _______________ and distribution channel reflecting how a sales organization distributes materials and services.
Sales organization
A distribution chain is a valid combination of _______________ and distribution channel reflecting how a sales organization distributes materials and services.
Sales organization
_________ focuses on the interaction of multiple related transactions. These tests are often built as a series of related functional tests.
Scenario Testing
_________ define the shipping strategy for shipping goods to a customer.
Shipping conditions
The ________________ is the part of a company from where goods are shipped out.
Shipping point
_______ is used to propose a shipping point when a delivery is to be done.
Shipping point determination
Which account is used to separate accounting for customers, vendors and assets?
Subsidiary Ledger
Which is not the allocation method to get costs to the right place in SAP:
Testing
The fiscal year end is voted by the shareholders.
The general ledger accounts are the key part of master data required for a basic financial accounting set up.
_________ is associated with testing.
Transactional Data
The transportation group is used to group together materials with similar __________.
Transportation requirements
A Bill of Materials (BOM) is a master data defined for a specific material and for a specific plant.
True
A Bill of Materials (BOM) is a master data defined for a specific material and for a specific plant.
True
A cost object is anything that can collect or receive costs
True
A purchasing group does not have the legal authority to enter into procurement transactions.
True
A purchasing organization has the legal authority to enter into procurement transactions.
True
A sales organization can only be assigned to one company code, but a company code can have many sales organizations.
True
A typical procurement process starts with the creation of a purchase requisition.
True
Account Group is assigned to G/L account, and the G/L account inherits the field statuses from the account group
True
Accounts receivable accounting records and manages all accounting transactions for the customers of an organization. It is an integral part of the fulfillment process.
True
Allocation structures help to allocate the costs from a sender, such as a cost element or cost element group, to the receiver of costs and is used for assessments and settlement.
True
An enterprise comprises of two companies, one located in the US and one in Germany. They may purchase from the same vendor, but may have different relationships (e.g., different payment terms). Consequently, master data for the same vendor must be defined separately for each.
True
Company code is assigned to business areas.
True
Condition types are defined for a specific discount or surcharge for a specific material.
True
Delivery type defines the various types of business transactions for processing deliveries.
True
Direct allocation is an immediate flow-through of costs using activity types of the sender.
True
During Goods Receipt, both FI and material documents are created
True
Each primary cost element is assigned to a G/L account.
True
Finished goods and trading goods are the typical materials that are used in the fulfillment process.
True
Finished goods and trading goods are the typical materials that are used in the fulfillment process.
True
For Plant level valuation - Material in each plant can have different material price and value
True
For Plant level valuation - Material in each plant can have different material price and value
True
GBI's US company (US00) and German company (DE00) purchase from the same vendor XYZ so master data for same vendor should be defined as (Company Code -> Master Data relationship). US00 and DE00 would need to have different vendors set up. Master data would need to be defined separately for each company code.
True
In production, activity types are used to logically separate the activities of the work center (cost center) so that costs can be properly allocated to the activity for both control and planning.
True
Make-to-order is when the production order is connected directly to an order for the finished product.
True
Make-to-order is when the production order is connected directly to an order for the finished product.
True
Management accounting, which is sometimes referred to as cost accounting, because of the main focus of management of costs, includes the internal accounting processes of a company.
True
Material types are used to segregate materials into different groups. Material types classify materials based on how they are used in a company.
True
Order settlement records the difference between planned cost and actual cost of production.
True
Posting keys are assigned at the client level.
True
Primary costs are original outside of management accounting aspects of SAP and would come over from general ledger accounts in financial accounting.
True
Process execution takes place in a previously configured system.
True
Production process which begins with the creation of a planned order that is converted to a production order taking into consideration capacity and material availability.
True
Reconciliation accounts are posted indirectly to whereas the subsidiary ledger gets the direct posting.
True
Steps of configuration of Master Data include chart of accounts, general ledger accounts, sub-ledger accounts, asset classes, and fixed assets.
True
Terms of payment determine whether an invoice amount is to be divided into partial amounts with different due dates.
True
Terms of payment determine whether an invoice amount is to be divided into partial amounts with different due dates.
True
The access sequence has a big impact on pricing since it impacts the order of computation.
True
The controlling area must be set up first, then the standard hierarchy.
True
The controlling area must be set up first, then the standard hierarchy.
True
The fiscal year can be the calendar year or another 12 month period of time that is the best way to track the activity for the company.
True
The fiscal year end depends on the company and the industry, which can be the calendar year or another 12 month period of time that is the best way to track the activity for the company.
True
The general ledger accounts are the key part of master data required for a basic financial accounting set up.
True
The general ledger accounts include data from both the chart of accounts and the company code levels.
True
The general ledger is the complete record of all financial business transactions of an organization.
True
The operating chart of accounts is the chart of accounts that is used for the daily posting of transactions to the company code.
True
The order settlement process in production involves having the actual cost of the production order being settled in cost accounting.
True
The primary purpose of general ledger (G/L) accounting is to capture and record all data generated by the execution of business process steps that have a financial accounting impact.
True
The primary purpose of general ledger (G/L) accounting is to capture and record all data generated by the execution of business process steps that have a financial accounting impact.
True
The production scheduler is the person responsible for the scheduling and control of a material.
True
The purchasing group can be used to represent a group of buyers, an individual buyer or even an external agency.
True
The purchasing organization is responsible for procuring materials and services, negotiating with vendors about the conditions of purchasing from them and for all the various transactions related to procuring materials and services.
True
The standard hierarchy provides the specific enterprise structure for cost center accounting.
True
Tolerance groups provide controls for how much certain people in the company can post to the system.
True
We can only post a document in SAP within the number range we set
True
We need to set up cost elements and cost centers in managerial accounting.
True
Whereas in discrete production the desired quantity is specified, in repetitive production the desired rate is specified.
True
________ is the lowest level of testing in the system. Each process step, which is represented by an individual transaction in the ERP system is executed.
Unit Testing
______ is usually done close to system go-live. The goal with this testing is to assess usability issues with the system.
User Acceptance Testing
Which one is not the view of Material master data?
Valuation Data
Which of the following master data does not included in the Order to Cash process?
Vendor master data
These questions can be answered with settlement rule functionality EXCEPT:
What costs are going up over time?
