Chapter 4

Which of the following are account assignment categories? (multi-answer) a. Asset b. Order c. Cost center d. Sales order e. Project

A, B, C, D, E: Asset, order, cost center, sales order, and project

Which of the following are key documents in purchasing? (multi-answer) a. Material documents b. FI documents c. CO documents d. Purchase order e. Invoice

A, B, C, D, E: Material documents, FI documents, CO documents, purchase order, and invoice.

SAP can utilize which of the following forms of media to communicate with a vendor? (multi-answer) a. Print b. E-mail c. EDI d. Web services e. Fax

A, B, C, D, E: Print, email, EDI, Web services, and fax

Which organizational processes interact with procurement? (multi-answer) a. Project management b. Material planning c. Fulfillment (sales) d. Management accounting e. Financial accounting

A, B, C, D, E: Project management, material planning, fulfillment (sales), management accounting, and financial accounting

Which of the following are consequences of the goods receipt step in the procurement process? (multi-answer: 4) a. A material document is created b. An accounting document is created c. The purchase order history is updated d. The document flow is updated e. The material master is updated

A, B, C, E: A material document is created, an accounting document is created, the purchase order history is updated, and the material master is updated.

Which of the following are material types? (multi-answer: 4) a. Consumable material b. Raw material c. Packaging d. Consignment material e. Non-valued material

A, B, C, E: Consumable material, raw material, packaging, and non-valued material

Which of the following are master data that are related to the purchasing process? (multi-answer: 3) a. Material master b. Vendor master c. Vendor info records d. Purchasing organization e. Customer master

A, B, C: Material master, vendor master, and vendor info records

Which transaction documents are included in a purchase order? (multi-answer: 3) a. Requisition b. RFQ c. Quotation d. Conditions e. Vendor

A, B, C: Requisition, RFQ, and quotation

Which G/L accounts are impacted by the invoice verification step of the procurement process? (multi-answer: 3) a. Accounts payable b. Goods receipt / invoice receipt account c. Inventory account d. Vendor account e. Bank account

A, B, D: Accounts payable, goods receipt / invoice receipt account, and vendor account

To complete a vendor payment, which of the following types of data must be included on the vendor master? (multi-answer: 3) a. Payment terms b. Payment method c. Date d. Payment address e. Amount

A, B, D: Payment terms, payment method, and payment address.

A purchase order can be created with reference to which of the following? (multi-answer: 3) a. Purchase order b. Purchase requisition c. Purchase info record d. RFQ e. Sales order

A, B, D: Purchase order, purchase requisition, and RFQ.

Which of the following data categories are included in a purchasing info record? (multi-answer: 3) a. Freight b. Discounts c. Material number d. Vendor address e. Texts

A, B, E: Freight, discounts, and texts

What are key stock types (statuses) utilized in purchasing, based on usability of materials? (multi-answer: 3) a. Unrestricted use b. Stock in transit c. Stock on order d. Stock in storage e. Blocked stock

A, B, E: Unrestricted use, stock in transit, and blocked stock

Which of the following statements about storage locations are true? (multi-answer: 3) a. A storage location must be assigned to a plant b. A storage location can be assigned to more than one plant c. A client can have more than one storage location d. A plant can have more than one storage location e. A storage location can hold only materials with a stock status of unrestricted use

A, C, D: A storage location must be assigned to a plant, a client can have more than one storage location, and a plant can have more than one storage location.

Which of the following documents are required for the invoice verification step of the procurement process? (multi-answer: 3) a. Vendor invoice b. Purchase requisition c. Purchase order d. Material document e. Material master

A, C, D: Vendor invoice, purchase order, and material document

Which of the following tasks are performed during the payment step? (multi-answer: 3) a. Selecting method of payment b. Updating master data c. Selecting invoice items d. Verifying an invoice e. Calculating the payment amount

A, C, E: Selecting method of payment, selecting invoice items, and calculating the payment amount.

A purchase order can be sent to which of the following? (multi-answer: 2) a. A vendor b. A customer c. A plant d. A purchasing organization e. A purchasing group

A, C: A vendor, a plant

Which of the following statements about purchasing organizations are correct? (multi-answer: 2) a. They negotiate conditions of purchase with vendors b. They can purchase only for one company c. They can purchase for multiple plants d. They can purchase for multiple plants, but they must be within the same company code e. They identify a buyer or a group of buyers

A, C: They negotiate conditions of purchase with vendors, and they can purchase for multiple plants.

Which of the following statements about a plant is not true? a. A plant can be assigned to more than one company code b. A company code can have more than one plant c. A plant is a key organizational element in purchasing d. A plant can be assigned to only one company code e. A plant must have at least one storage area

A: A plant can be assigned to more than one company code - is not true.

Within the plant-level purchasing organization, also known as a plant-specific purchasing org., a. Each plant has its own purchasing organization b. One purchasing organization is responsible for multiple plants c. Only one purchasing organization for all plants d. One purchasing organization is responsible for all company codes in the enterprise e. Two or more purchasing organizations are responsible for each plant

A: Each plant has its own purchasing organization.

Purchasing information systems are a component of which system? a. Logistics info systems b. Business intelligence systems c. Financial info systems d. Human resource info systems

A: Logistics info systems

A company can use which of the following to select a vendor from a list of potential suppliers? a. Source list b. Company code c. Vendor master d. Material master e. None of the above

A: Source list

Which of the following is a form of invoice verification? a. Three-way match b. Quality management c. Inspection lot d. Warehouse management e. None of the above

A: Three-way match

Which of the following data are needed for invoice verification? (multi-answer: 4) a. Company code b. Purchase order c. Material document d. Invoice e. User input

B, C, D, E: Purchase order, material document, invoice, and user input.

Which of the following organizational data are required when creating a purchase order? (multi-answer: 4) a. User input b. Purchase requisition c. RFQ d. Quotation e. Purchase order

B, C, D, E: Purchase requisition, RFQ, quotation, and purchase order

Material documents consist of a header and an items section. Which of the following are included in the items section? (multi-answer: 3) a. Document number b. Movement type c. Material number d. Storage location e. Document date

B, C, D: Movement type, material number, and storage location

Data for source determination are obtained from: (multi-answer: 3) a. A purchase order b. Purchase info records c. A source list d. Contracts and agreements e. The vendor master record

B, C, D: Purchase info records, a source list, and contract and agreements.

Data from which of the following sources are automatically included in a purchase order? (multi-answer: 3) a. Vendor info record b. Purchasing info record c. Material master d. Vendor master e. Purchasing organization

B, C, D: Purchasing info record, material master, and vendor master.

Which G/L accounts are impacted by the goods receipt step of the procurement process? (multi-answer: 2) a. Accounts payable b. Goods receipt / invoice receipt account c. Inventory account d. Vendor account e. Bank account

B, C: Goods receipt / invoice receipt account, inventory account

Materials designated as _____ can be withdrawn only for sampling or for scrap. (multi-answer: 2) a. Goods movement b. In-quality inspection c. Blocked stock d. Material document e. Purchase info record

B, C: In-quality inspection, blocked stock

Standard reporting tools in the transaction system are used to generate which of the following? (multi-answer: 2) a. Picking lists b. Online lists c. Work lists d. Inventory lists

B, C: Online lists, work lists

Which of the following organizational data are required when creating a purchase requisition? (multi-answer: 3) a. Sales organization b. Company code c. Storage location d. Purchasing organization e. Purchasing group

B, D, E: Company code, purchasing organization, and purchasing group

Which of the following are methods of valuing materials? (multi-answer: 2) a. Actual price b. Standard price c. Purchasing price d. Moving (average) price e. Selling price

B, D: Standard price, moving (average) price

Which of the following are organizational elements in purchasing? (multi-answer: 2) a. Shipping point b. Company code c. Vendors d. Materials e. Plant

B, E: company code, plant

An FI document includes a header and an items section. Which of the following data are included in the items section? a. Document number b. Account c. Storage location d. Document date e. Document currency

B: Account

Which of the following account assignment categories is used when the company acuires a fixed asset? a. Cost center b. Asset c. Order d. Sales order e. Project

B: Asset

A purchasing group is an individual or group of individuals who are responsible for all of the following except _____ a. Creating purchase requisitions b. Negotiating contracts and agreements c. Requesting quotations from vendors d. Creating and monitoring purchase orders e. Planning for material requirements

B: Negotiating contracts and agreements.

Which of the following is an intersection or combination of material data and vendor data? a. Condition type b. Purchasing info record c. Stock transfer d. Third-party order e. Search term

B: Purchasing info record

Which of the following facilitates the integration between vendor master data and financial accounting? a. Vender account number b. Reconciliation account c. Accounts payable number d. Material number e. Accounts receivable number

B: Reconciliation account

Which element of the requirements determination process involves creating the requisition? a. Data b. Task c. Trigger d. Outcomes e. None of the above

B: Task

The key data in the purchasing view of the material master are _____ a. The purchasing org., the goods receipt processing time, and the delivery tolerances b. The purchasing group, the goods receipt processing time, and the delivery tolerances, c. The purchasing group, the invoice, and the delivery tolerances d. The purchasing group, the material master, and the delivery tolerances e. The price, the storage location, and the delivery date

B: The purchasing group, the goods receipt processing time, and the delivery tolerances.

Which item category would you use to have your vendor ship goods directly to your customer? a. Consignment b. Third-party c. Stock transfer d. Standard e. Transfer posting

B: Third-party

Which term is included in the header of a purchase order? a. Order quantity b. Vendor c. Delivery date d. Price e. None of the above

B: Vendor

What is a storage location? The place... a. where raw materials are received b. within a plant where materials are kept until needed c. where materials are collected for staging and inspection d. within a plant where machines are installed for production purposes e. within a plant where finished goods are kept for sale

B: within a plant where materials are kept until needed.

Which of the following are organizational elements in purchasing? (multi-answer: 2) a. Sales organization b. Purchasing area c. Plant d. Vendor e. Storage location

C, E: Plant, storage location

Which of the following is not a model of the purchasing organization? a. Enterprise level b. Company level c. Client level d. Plant level e. Cross-plant

C: Client level

Which of the following is not one of the data types that are relevant to purchasing process? a. Material master b. Vendor master c. Sales master d. Purchasing info records e. Conditions

C: Sales master - is not part of purchasing process

Which steps are involved in converting a purchase requisition into a purchase order? (multi-answer: 2) a. Source list b. Outline purchase agreement c. Storage location d. Request for quotation e. Quotation

D, E: Request for quotation (RFQ), quotation

Which organizational element(s) control(s) the entry of accounting data in the vendor master? a. Purchasing organization b. Client c. Company code d. Client and company code e. Client and purchasing organization

D: Client and company code

Materials that are acquired to be used within the organization are referred to as _____ a. Stock materials b. Transfer materials c. Vendor materials d. Consumable materials e. None of the above

D: Consumable materials

A purchasing organization is involved in all of the following operations except _____ a. Negotiating contracts and agreements b. Negotiating pricing and vendors c. Evaluating and identifying vendors d. Determining storage locations within the plant

D: Determining storage locations within the plant - is not an operation of a purchasing organization.

Which element of a purchase order includes communicating with the vendor? a. Trigger b. Data c. Task d. Outcome e. None of the above

D: Outcome

General data in a vendor master contain all of the following except: a. Name b. Address c. Communication d. Payment terms and conditions e. Search term

D: Payment terms and conditions - are not included in vendor master data.

Which of the following document types is not utilized during the purchasing process? a. Material documents b. FI documents c. CO documents d. Picking document e. Invoice

D: Picking document - is not utilized during purchasing process.

Which element of the payment step includes selecting a bank? a. Trigger b. Data c. Outcome d. Task e. None of the above

D: Task

Which of the following goods movements need not involve a physicial movement of materials? a. Goods receipt b. Goods issue c. Stock transfer d. Transfer posting e. None of the above (all involve physical movement of materials)

D: Transfer posting - is used to change the stock type or status of material.

SAP can utilize which of the following media to communicate with a vendor? a. Web services b. EDI c. Fax d. Print e. All of the above

E: All of the above - Web services, EDI, Fax, Print

Which of the following is(are) a form of data within the goods receipt step? a. Material ordered b. Quantity delivered c. Verification d. Storage location e. All of the above

E: All of the above - material ordered, quantity delivered, verification, storage location

Data in the vendor master are grouped into which 3 segments? a. General data, storage data, and purchasing data b. General data, storage data, and inventory data c. Storage data, accounting data, and purchasing data d. Storage data, accounting data, and pricing data e. General data, accounting data, and purchasing data

E: General data, accounting data, and purchasing data.

Which of the following is not a type of organizational data that is utilized in the procurement process? a. Client b. Company code c. Storage location d. Purchasing organization e. Manufacturing plant

E: Manufacturing plant - is not a type of organizational data used in procurement process.

A plant can belong to more than one company code.

False: A company code can have multiple plants.

A plant-to-plant movement of goods does not generate an accounting document.

False: A plant-to-plant movement of goods will generate an accounting document to account for inventory changes for each plant.

A purchasing group is an internal group that is responsible for executing the procurement process.

False: A purchasing group is an individual or group of individuals who are responsible for purchasing activities for a material or a group of materials.

A purchasing info record is an intersection or combination of material and accounting data.

False: A purchasing info record is an intersection or a combination of material and vendor data.

A purchasing organization is involved only in negotiating prices with vendors.

False: A purchasing organization evaluates and identifies vendors, and it negotiates contracts and agreements, pricing, and other terms.

A purchasing organization is an individual or a goup of individuals who are responsible for purchasing activities for a material or group of materials.

False: A purchasing organization is the unit within an enterprise that performs strategic activities related to purchasing for one or more plants.

A requisition represents a legal obligation to make the purchase.

False: A requisition is a document that is used for internal purposes—namely, to request needed materials. It is not a commitment to purchase the materials or service.

A stock transfer does not involve a change in storage location.

False: A stock transfer involves a change of inventory from one location within the same organization to another.

A transfer posting is used to move materials from one storage location to another.

False: A stock transfer is used to move materials from one location to another.

A goods movement is not required when changing the status of material from "in quality inspection" to "unrestricted use."

False: A transfer posting changes a material's status or type and may or may not involve the physical movement of materials from one location to another.

A transfer posting does not generate a material document.

False: A transfer posting generates a material document to record the status change.

Accounting data related to a vendor are accessible to all clients in a company code.

False: Accounting data are maintained separately for each company code with which the vendor had dealings.

Materials cannot be moved from one company code to another because each company code uses a different set of books.

False: Materials can be transferred between storage locations, between plants within the same company codes, and between plants across company codes.

Materials ordered in multiple purchase orders must be delivered in multiple shipments.

False: Materials ordered in multiple purchase orders can be delivered in one shipment.

Purchasing data related to a vendor are accessible to all purchasing organizations.

False: Purchasing data are defined at the purchasing organizational level and are applicable only to that organization.

Requirements for materials must be created manually.

False: Requirements for materials are usually triggered by an event from another process.

SAP cannot utilize any media except Web services to communicate a purchase order to a vendor.

False: SAP utilizes a variety of media, including print, e-mail, EDI, Web services, and fax.

The company-level purchasing organization is the most centralized model.

False: The company-level purchasing organization is a single purchasing organization responsible for multiple plants in one company code.

There can only be one storage location within a plant.

False: There can be multiple storage locations within a plant.

A goods movement is a transaction that causes a change in stock value or status.

True

A goods receipt cannot be accomplished without a movement type.

True

A storage location is a key organizational element in purchasing.

True

A transfer posting changes the stock status of a material and need not involve a physical movement of goods.

True

Consumable materials are acquired to be used within an organization.

True

Different material types have different required material views.

True

General data related to a vendor are accessible to all company codes in a client.

True

Item categories in a purchase order determine the process steps used to procure materials.

True

Material master data can be defined differently for different organizational levels.

True

Storage locations are places within a plant where materials are kept until they are needed.

True

The data needed to create a purchase requisition are the item category, quantity, desired delivery date, and desired delivery location or receiving plant.

True

The enterprise-level purchasing organization is also known as the cross-company code purchasing organization.

True

The enterprise-level purchasing organization is the most centralized model.

True

The header section of a purchase order contains information such as purchase order number, vendor, currency, dates, and payment terms.

True

The material master is updated after the invoice verification step of the procurement process has been completed.

True

The method used to value material is defined in the material master.

True

The most decentralized model of purchasing organization is the plant-specific purchasing organization.

True

The primary task of the order processing step is to create and send the purchase order to the vendor.

True

Typically, there are 3 models of purchasing organizations: enterprise-level, company-level, and plant-level

True

Vendor master data include the data needed to conduct business with a vendor and to execute transactions related to the procurement process.

True

When purchasing consumable materials, an account assignment category and specific account assignment objects must be provided when the purchase order is created.

True