SAP Configuration

Which is NOT an overhead management method? a) Activity based accounting b) Profit center accounting c) Internal order accounting d) Cost center accounting

B) Profit Center accounting

A sales organization can be assigned to multiple company codes. T/F

False

A typical procurement process starts with the creation of a purchase order. T/F

False

Cost accounting needs to follow GAAP or IFRS. T/F

False

During Goods Receipt, only an FI document is created T/F

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. T/F

False

One company code can have only one sales organization assigned to it. T/F

False

Primary cost elements are created on the management accounting side of SAP. T/F

False

The system cannot be configured to automatically create storage location data if they do not exist T/F

False

Match the following: ____ Purchasing Organization ____ Purchasing Group ____ Plant ____ Storage Location 1. Negotiating terms with vendors 2. Day-to-day operational aspects (executing PO, tracking PO etc.) 3. Material stocks are stored 4. Valuation area defined

Match the following: __1__ Purchasing Organization __2__ Purchasing Group __4__ Plant __3__ Storage Location 1. Negotiating terms with vendors 2. Day-to-day operational aspects (executing PO, tracking PO etc.) 3. Material stocks are stored 4. Valuation area defined

Cost centers

Sometimes referred to as responsibility centers; responsible for containing accumulated costs.

A company code can be assigned to one and only one controlling area. T/F

True

A cost object is anything that can collect or receive costs T/F

True

A loading point is sub division of a shipping point. It is used to designate special handling that materials may require. One shipping point may have multiple loading points assigned to it. T/F

True

A purchasing group does not have the legal authority to enter into procurement transactions. T/F

True

A purchasing group is not assigned to any other organizational level. T/F

True

A purchasing organization has the legal authority to enter into procurement transactions. T/F

True

A sales area is a combination of distribution chain and division. T/F

True

A sales organization can only be assigned to one company code, but a company code can have many sales organizations. T/F

True

Access sequences define the mechanism the system uses to find valid data for a specific condition type. T/F

True

Automatic account determination is used by the ERP system to determine the account to be posted to when executing a transaction and also to determine whether the posting is a debit or a credit. T/F

True

Company code is the organizational unit representing the independent and legal accounting entity. T/F

True

Condition types represent a characteristic or variable that can be used in determining the price of a material. T/F

True

Direct allocation is an immediate flow-through of costs using activity types of the sender. T/F

True

Distribution rules are assigned to settlement rules. T/F

True

Document numbers are unique to each controlling area. T/F

True

For Plant level valuation - Material in each plant can have different material price and value T/F

True

If some plants in the enterprise are liable for tax while others are not due to prevailing tax regulations, two different tax indicators can be defined so that appropriate taxes can be determined based on the plant involved in a transaction. T/F

True

In a sales document, all line items must belong to the same distribution channel.

True

Internal order settlement provides a mechanism to transfer the costs that have been tracked in the internal order back to financial accounting. T/F

True

Invoice verification happens with Three-way or Two-way match. T/F

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. T/F

True

Master data can be defined at the company code level permitting a sales organization to have its own set of customer and material master data. T/F

True

Master data can be defined at the sales organization level permitting a sales organization to have its own set of customer and material master data. T/F

True

Material types classify materials based on how they are used in a company. T/F

True

One controlling area can be assigned to multiple company codes. T/F

True

Only purchasing organizations can issue purchase orders, purchasing groups cannot. T/F

True

Overhead costs are costs that cannot be directly assigned to products or services. T/F

True

Pricing procedures are used to calculate the selling price of a material based on various conditions. T/F

True

Settlement happens when costs from the management accounting side of SAP (also known as controlling (CO) needs to transfer to financial accounting.

True

Shipping point determination is done at the line item level in a sales order. T/F

True

Statistical objects only receive postings from primary cost elements for management reporting purposes. T/F

True

Terms of payment determine whether an invoice amount is to be divided into partial amounts with different due dates. T/F

True

The access sequence has a big impact on pricing since it impacts the order of computation. T/F

True

The controlling area currency is the currency the SAP system uses for cost accounting. T/F

True

The controlling area must be set up first, then the standard hierarchy. T/F

True

The costs of production include direct materials, direct labor, and factory overhead. T/F

True

The material master for the Procure-to-Pay process is defined at plant level. T/F

True

The operating chart of accounts is the chart of accounts that is used for the daily posting of transactions to the company code. T/F

True

The standard hierarchy provides the specific enterprise structure for cost center accounting. T/F

True

The tax version has to be configured for every company code. T/F

True

The use of purchasing groups is optional. T/F

True

Valuation area must be set to the plant level in order to use the production planning component and/or the costing component. T/F

True

Vendor account numbers can be assigned from the specified range by the system or by the user at the time of creation of the vendor master. T/F

True

Distribution Channels are defined at the ____ level. a) Client b) Distribution chain c) Sales organization d) Sales area

a) Client

Tolerance groups are defined for each ____. a) Company code b) Release code c) Tax code d) Group code

a) Company code

Which of the following is the steps to the Order to Cash process? a) Receive purchase order > Create sales order > Prepare and send shipment > Send invoice > Receive payment b) Receive purchase order > Create sales order > Send invoice > Prepare and send shipment > Receive payment c) Create sales order > Receive purchase order > Prepare and send shipment > Send invoice > Receive payment d) Create sales order > Receive purchase order > Send invoice > Prepare and send shipment > Receive payment e) Create sales order > Receive purchase order > Send invoice > Receive payment > Prepare and send shipment

a) Receive purchase order > Create sales order > Prepare and send shipment > Send invoice > Receive payment

Which of the following statements correctly describe the role of a tax version? a) The tax version is used to define the number of tax codes and tax rates when entering a vendor invoice b) The tax version identifies the tax authorities in the country where payment is received c) The tax version specifies the procedure to use when calculating taxes

a) The tax version is used to define the number of tax codes and tax rates when entering a vendor invoice

Once a tolerance groups is defined, it must be assigned to . a) Vendor master data b) Company code c) Material master data d) Group code

a) Vendor master data

Below are some features of Managerial Accounting, please match them to the correct accounting method: (4 correct answers) a) For Internal Users b) Consists mostly of historical data c) Flexible d) No Strict compliance requirement e) Compliance Required f) Consists of historical as well as forward looking data

a) For internal users c) Flexible d) No strict compliance requirements f) Consists of historical as well as forward looking data

Which is NOT the key process of management accounting? a) Cost element accounting b) Product costing c) Profitability accounting d) Overhead management

a) cost element accounting

Secondary cost elements

are not associated with general ledger accounts and are used to transfer data within management accounting.

Primary cost elements

associated with general ledger accounts and are used to transfer data between financial accounting and management accounting.

For Cross Company Code or enterprise level, _____ Purchasing Organization is assigned to _____ plants and ____ company code. a) M-M-0 b) 1-M-0 c) 1-M-1 d) M-M-1

b) 1-M-0

A distribution chain is a valid combination of sales organization and ____ reflecting how a sales organization distributes materials and services. a) Company codes b) Distribution channel c) Divisions d) Sales areas

b) Distribution channel

After setting up Tolerance Limit for Goods Receipt, in the case of Quantity Variance in which of the scenarios is an error generated and further transaction processing stopped. a) Under Deliveries: out of Tolerance b) Over Delivery: out of Tolerance c) Over Delivery: within Tolerance d) Both A and B

b) Over Delivery: out of Tolerance

The ______ is a temporary account that is cleared at period end closing to other appropriate accounts based on the company's accounting practices. a) Variance Account b) Price Difference Account c) Quantity Difference Account d) All of the above

b) Price Difference Account

____ is based on the location to which goods are shipped in the USA and it determines tax rates that are used to compute taxes. a) Tax code b) Tax jurisdiction c) Tax indicator d) Tax account

b) Tax jurisdiction

All plants that have the same account determination rules are assigned to the same ____. a) Valuation class b) Valuation group code c) Account Category Reference d) Grouping of Valuation areas

b) Valuation group code

Which of the following modules mostly reflects the managerial accounting side of SAP? a) HR b) CO c) FI d) SD e) HCM

b) CO

What is the key integration of financial accounting to controlling? a) Primary Cost Center b) Primary Cost Element c) Primary Controlling Element d) Primary Integration Center e) Primary Profit Center

b) Primary Cost Element

Which of the following activities result in a credit to inventory? a) Sales order b) Sales quote c) Post goods issue d) Billing e) Payment receipt

c) Post goods issue

All sales documents are created at the ____ level. a) Client b) Sales organization c) Sales area d) Distribution chain

c) Sales area

Which of the following is an optional enterprise structure element for a sales transaction to be entered? a) Distribution channel b) Division c) Sales office d) Sales organization

c) Sales office

____ is the link between the material and the general ledger account. a) Material Valuation Level b) Material Master c) Valuation Class d) Transaction Key

c) Valuation Class

A periodic allocation method that deals with the allocation of both primary and secondary costs is: a) Reposting b) Periodic reposting c) Assessment d) Distribution

c) Assessment

Which step has a material and financial impact in the General Ledger? a) Vendor Payment b) Purchase Order c) Goods Receipt d) Purchase Requisition

c) Goods Receipt

Which focuses on the classification, analysis and management of costs on a more temporary basis? a) Cost center accounting b) Activity based costing c) Internal order accounting d) Profitability accounting

c) Internal order accounting

Cost Center Accounting

costs are tracked by the organizational unit that is most responsible for controlling the costs. These areas of responsibilities are called cost centers.

The Order to Cash process needs which of the following master data? a) Material master data b) Customer master data c) Vendor master data d) A and B is correct e) B and C is correct

d) A and B is correct

Which of the following activities impact accounting? a) Send shipment b) Receive purchase order c) Send invoice d) A and C e) B and C

d) A and C

From a business standpoint, purchasing or sourcing can be done at the ____ level. a) Enterprise b) Company code c) Plant d) All above

d) All above

Shipping point determination is done based on ____. a) Shipping conditions b) Loading group from the material master c) Delivering plant d) All above

d) All above

The enterprise structure elements associated with the procurement processes include: a) Purchasing organizations b) Purchasing groups c) Valuation area d) All above

d) All above

____ is used to ensure that the goods can be delivered by the requested delivery date specified for each schedule line item in a sales order. a) Shipping conditions b) Shipment Cost c) Shipping point determination d) Availability check

d) Availability check

____ defines a mechanism for getting goods and services to customers. a) Shipping point b) Sales area c) Sales organization d) Distribution channel

d) Distribution channel

The _____ process is concerned with activities related to pre-sales, sales, delivery, billing and payment in an organization. a) Purchasing b) Procurement c) Production d) Fulfillment

d) Fulfillment

Shipping conditions are entered in the customer master at the ____ level. a) Sales organization b) Distribution chain c) Client d) Sales area

d) Sales area

The ____ is the part of a company from where goods are shipped out. Shipping points are responsible for processing outbound deliveries. a) Sales area b) Distribution channel c) Sales organization d) Shipping point

d) Shipping point

Business rules associated with the procurement process include all of the following, except: a) Taxes b) Automatic account assignments c) Tolerance limits d) Storage location parameters e) All above are business rules

d) Storage location parameters

____ provides the information necessary to calculate the sales or use tax. a) Tax account b) Tax code c) Tax jurisdiction d) Tax indicator

d) Tax indicator

Which one is not the view of Material master data? a) Purchasing Data b) Storage Data c) General data d) Valuation Data e) Accounting Data

d) Valuation Data

Assigning company code to controlling area is one of the most important connections of financial accounting to controlling. This enables all financial transactions to flow over to controlling for internal management accounting purposes. This enables the company to complete : a) Cost center accounting b) Product costing c) Internal orders and more d) All of the above

d) All of the above

Which of the following is a feature of secondary cost elements? a) They are created in both managerial and financial sides of SAP b) Secondary cost elements exist only in managerial accounting c) They help with internal control d) Both B and C

d) Both b and c

What are the two main cost allocation methods in SAP? a) Distribution and Delivery; Settlement of Dispute b) Assessment and Analysis; Special Cost Allocation c) Cost Center Allocation; Cost Element Allocation d) Distribution and Assessment; Settlement of Costs

d) Distribution and Assessment; Settlement of Costs

Configuration steps for overhead management includes which of the following step? a) Basic enterprise structures b) Business rules and parameters c) Master data d) All of the above

d) all of the above

Which of the following activities does not impact accounting? a) Create sales order b) Prepare and send shipment c) Receive purchase order d) Send invoice e) A and C

e) A and C

Valuation Area can be defined at which level in SAP? a) Plant b) Client c) Company Code d) Only A and C e) All of the above

e) All of the above

Which of the following is a master data for controlling? a) Cost Element b) Cost Centers c) Cost Center Groups d) Primary Cost Elements e) All of the above

e) All of the above

Cost Elements

master data in management accounting that are used to transfer costs between financial accounting and management accounting and within management accounting.