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