ISDS 4111 EXAM 2 *ANSWERS*

To physical move materials within the enterprise from one organizational level or location to another

What is a stock transfer used for?

Debit inventory, credit GR/IR

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

Debit bank, credit customer, credit accounts reconciliation account

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

Receipt of payment from the customer

What is the final step in the fulfillment process?

Debit COGS; credit inventory

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

liabilities

Which term represents what a company owes to others, including money owed to vendors and loans from financial institutions?

assets

Which term represents what a company owns, such as cash, inventory of materials, and buildings?

expenses

Which term represents the costs associated with creating and selling products and services?

revenue

Which term represents the monies a company earns by selling its products and services?

control structure

With a new ERP system, not only do workers fear a loss or change in their jobs, but they also fear an overall change in the:

Create an STO

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

A request to purchase materials

A purchase requisition is

A stock transfer between two storage locations within the same plant

A storage location-to- storage location transfer involves which of the following?

Space, materials, and activity

A storage type is a division of a warehouse based on the characteristics of the

The plan is transferred to demand management

After the SOP process has generated the production plan,

Shipping point

All of the following are key organizational elements for which material master data are defined for the fulfillment process except

A shipping dock

All of the following can serve as a work center except

Plant level

At what level are material requirements planning (MRP) and work scheduling data defined?

chart of accounts (COA)

Which term refers to an ordered listing of accounts that comprise a company's general ledger?

managers

BPR teams will be composed of functional users and ________ along with facilitators.

smooth business operations

Benefits of implementing BPM include:

managing change

Half of all ERP projects fail to deliver all the anticipated benefits because they do not do a good job of:

Goods issue

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

Goods receipt

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

Need to increase inventory

If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?

PIRs, without regard to CIRs

In SAP ERP production planning strategy, net requirements planning (Strategy 10), procurement proposals are based on

is created in both one-step and two-step movements

In plant-to- plant transfer, an FI document

A facility from which the company delivers products and services to its customers

In the fulfillment process, a plant is

requirements determination

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

Issuing raw materials or semifinished goods to a production order

In the production process, a goods issue reflects

Interim storage areas and warehouse bins

In warehouse management steps associated with the procurement process, the warehouse inventory is calculated as sum of the inventory in the following places:

Warehouse management

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

The production control technique used in planning.

MRP type specifies

Basic data, sales organization data, sales plant data

Material master data are grouped into views. Which one of the following combination of views is relevant to the fulfillment process?

Procurement

Receive invoice is a step in which process?

How many of the materials are needed and when they are needed.

Requirements in the material planning process specify

In-house production time

Setup time, processing time, and interoperation time are elements of

Confirmation

The creation ofa production order results in several outcomes including all of the following except

General data, accounting data, and sales area data

The data in the customer master are divided into the following three segments:

Asset management

The fulfillment process is integrated with all of the following processes except

Storage location

The key organizational level associated with inventory management is

To balance the demand for materials with the supply

The main objective of material planning is

Product routings, bills of material, material

The master data elements in material planning are:

Client, company code, plant, storage location

The organizational data elements in material planning are:

communication

Two factors that help ensure organizational commitment to the ERP project include the OPM3 process and a ________ plan.

By organizations that have either large quantities of materials or an expensive inventory

Warehouse management is typically used

A material document

What document is NOT created during the billing step of the fulfillment process if profitability analysis is active?

Forecasting and planning

What is SOP used for?

confirmation

What step in the production process is used to enter data in to the SAP ERP system when the operations needed to produce a materials are completed?

parallel sequences

What term describes two simultaneous series of operations needed to build components for a finished product?

bill of materials

What term identifies the list of materials needed to produce one or more units of a finished good?

Receipt of a customer purchase order

Which action triggers sales order processing in the fulfillment process?

none of the above

Which element is not a part of the typical company code data in general ledger accounts?

Forecast- based planning, time- phased planning, reorder-point planning

Which of the following options represents categories of consumption- based planning?

financial accounting document

Which of the following records the impact of a transaction step on financial accounting?

Generate a transfer order, physically move the materials, retrieve the transfer order, confirm the movement

Which of the following represents a possible sequence of steps in the warehouse movement process?

Warehouse, storage type, storage section, storage bin

Which of the following represents the hierarchy of a warehouse?

Changing the material number of a material

Which of the following scenarios requires material-to- material posting?

A sales order must be created with reference to a quotation

Which of the following statements regarding the fulfillment process is NOT true?

the operations needed to produce a material

Which of the following does a routing identify on a production order?

reconciliation account

Which term is a general ledger account that consolidates data from a group of related sub- ledger accounts?

Changes to MRP elements

Which of the following is most likely to trigger the MRP process?

billing

Which of the following is not a step in the production process?

financial statement

Which of the following is used to report data needed to meet legal and regulatory requirements?

invoice verification

Which of the following is NOT a key step in the fulfillment process?

Accounts receivable accounting

Which of the following is a key process in financial accounting?

Stock requirement list

Which of the following is an important report in the production process?

picking is completed

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

A location where value- added work needed to produce a material is carried out

Which one of the following best describes a work center?

Pre-sales activity, sales order processing, inventory sourcing, shipping, billing, payment

Which one of the following represents the correct order of process steps for the fulfillment process?

component materials are moved from storage and prepared for use

Which one of the following best defines material staging?

Bank ledger accounting

Which process is concerned with recording data associated with bank statements?

All of the above (online lists, work lists, analytics)

Which reporting options does SAP ERP system support?

It involves issuing materials to the production order

Which statement about the production process is TRUE?