Final CSCI 4757

The production scheduling profile is created at the _________ level and normally assigned to the material master. Cost center Charter of accounts Controlling area Plant

Plant

Which one is the most decentralized model of purchasing where a separate purchasing organization is responsible for purchasing for each plant? Enterprise level model Cross plant level model Decentralized model Plant specific model

Plant Specific model

_______________ identifies the periods that are available for posting. Calendar Period Variant Posting Period Variant Reporting Year Variant Fiscal Year Variant

Posting Period Variant

(A2) Within the procurement process, goods receipt may come before or after invoice receipt/verification. This is the reason why a GR/IR account is needed.

TRUE

(A6) Business Areas are a relevant organizational level in FI reporting as it allows financial reporting in a manner separate from standard financial reporting.

TRUE

Which of the following master data is NOT associated with production? Activity type Work center Material Capacity All of the above are master data associated with production.

All of the above are master data associated with production.

From a business standpoint, purchasing or sourcing can be done at the _________ level. Enterprise Company code Plant All of the above

All of the above.

Shipping point determination is done based on ______________. Shipping conditions Loading group from the material master Delivering plant All of the above

All of the above.

An ____________ identifies the type and source of costs to be included, the method of settlement, and valid types of receivers. allocation structure activity structure assignment structure element structure

Allocation Structure

Which production is often characterized by an order-based process, which the desired quantity is specified? Process Discrete Project Repetitive

Discrete

"The US East Sales organization, and the wholesale distribution channel" is an example of which of the following enterprise structure elements? Division Distribution chain Loading group Credit control area Sales area

Distribution Chain

__________ defines a mechanism for getting goods and services to customers. Shipping point Distribution channel Sales Area Sales organization

Distribution Channel

A ______________ specifies a receiver, an amount, and the timing of the settlement. distribution rule settlement rule movement rule

Distribution Rule

The five generic types of general ledger accounts are assets expenses equity Period closings Cost of Goods sold Taxes liabilities revenue

Assets, Expenses, Equity, Liabilities, and Revenue

______________ represents an organization's business practices. Enterprise Structure Transaction Data Business Rules and Parameters Unit Data Master Data

Business Rules and Parameters

(A7) Partner Functions are most closely associated with the procurement process.

FALSE

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 only one loading point assigned to it.

FALSE

A purchase requisition represent a legal obligation to make a purchase.

FALSE

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

FALSE

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

FALSE

All general ledger accounts can use line item display to observe all activities on that account.

FALSE

Assets is the difference between equity and liabilities.

FALSE

Functional testing ensures the system is able to accommodate the expected volume of transactions or process steps in an efficient manner.

FALSE

It is not possible to have multiple company codes in one geographic region.

FALSE

Item categories determine the process used to procure materials.

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

Management accounting is concerned with tracking costs and revenues for external purposes.

FALSE

Raw material and WIP (Work-in-Process) are the typical materials that are used in the fulfilment process.

FALSE

Storage locations identify areas within a plant where equipment (e.g., machines) is stored and activities completed.

FALSE

The most common data in an ERP system is master data, which reflects the financial and business impacts of executing a process step.

FALSE

The subledger is a part of the general ledger

FALSE

The tax version does not have to be configured for every company code.

FALSE

The trigger for the procurement process is the creation of a planned order.

FALSE

The trigger for the production process is the creation of a production order.

FALSE

When looking at controlling objects, both real and statistical objects can further allocate costs by being a sender of costs.

FALSE

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

Fulfillment

A plant cannot be ________. Floor in a building Product Warehouse Manufacturing facility

Product.

Which of the following is not something that would typically be associated with NetWeaver? People Integration Project Integration Application Platform Information Integration Process Integration

Project Integration

(A10) The term "document" is most closely associated with transactional data.

TRUE

The relationship between company code to sales organization is: 1:01 1:M M:1

1:M

Which of the following is NOT true for work centers? Work center is where production takes place. A work center can only be assigned to one plant. A plant can only have one work center. Work center is linked to a cost center. All of the above are true.

A plant can only have one work center.

Where is Valuation Class defined in Material Master? Purchasing Data Accounting Data Storage Data Valuation Data

Accounting Data

__________ tracks obligations for goods or services that the company will pay off in less than one year. Accounts Owed Accounts Receivable Accounts Paid Accounts Payable

Accounts Payable

Production activity control involves of the production order during the production process. Releasing Scheduling Monitoring All of the above

All of the above

Which of the following enterprise structure elements is related to the production process? Plant Cost center Work center location Valuation area All of the above

All of the above

___________ is a list of accounts that can be used to create the general ledger. balance sheet income statement chart of accounts journal

Chart of Accounts

____________ represents a legal entity for financial accounting purposes. Plant Company Code Client Enterprise

Company Code

____________ is selecting desired options and specifying parameters to ensure that processes are executed as desired. Implementation Customization Configuration Modification Enhancements

Configuration

A _________________ is a key enterprise structure element in management accounting in which all management accounting costs are allocated. general ledger company code controlling area client

Controlling Area

________________ are organizational units that are most responsible for controlling the costs. Cost Centers Profit Centers Debt Centers Loss Centers

Cost Centers

____________ is changing the delivered software through adding new programming code or modifying the existing programming code. Customization Modification Implementation Enhancements Configuration

Customization.

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

FALSE

What is included on the balance sheet? Equity Assets Expenses Liabilities Revenue

Equity, Assets, and Liabilities.

_____________ allows us to determine if a field is required or optional Field Status Field Status Group Field Status Variant Fields

Field Status

Common types of assets include liquid assets fixed assets current assets inventory

Fixed and Current Assets

____________ is the techniques or methods employed by an organization to determine which capabilities it wishes to include in the ERP system, set up the ERP system, and train the users in the organization to properly utilize the system.Modification Customization Implementation Enhancements Configuration

Implementation

________________ is a method in which costs are allocated from a cost center to other controlling objects based on work or activity performed by the cost center. Periodic allocation distributive allocation internal activity allocation

Internal Activity Allocation

_________________ accounting is used to manage temporary costs that are typically associated with an activity that has a finite life. Internal Order Project management Periodic order Temporary

Internal Order

In _____________, one product can be manufactured from alternative combinations of materials depending on the quantity to be produced. There is no difference between the Finished Products. Simple BOM Variant BOM Multiple BOM Material BOM

Multiple BOM

Which of the following represent a typical production process? Planned order > Production order > Order confirmation > Goods issue > Goods receipt Planned order > Order confirmation > Goods issue > Production order > Goods receipt Planned order > Production order > Goods issue > Order confirmation > Goods receipt Planned order > Order confirmation > Production order > Goods issue > Goods receipt Planned order > Goods issue > Production order > Order confirmation > Goods receipt

Planned order > Production order > Goods issue > Order confirmation > Goods receipt

Which manufacturing often involves mixing and blending of ingredients to create the final product? Project Discrete Process Repetitive

Process

Once a _________ is sent to a vendor, it becomes a binding commitment to purchase the specified materials from the vendor under the stated terms. Valuation Class Purchasing Group Purchase Order Purchase Requisition

Purchase Order

The enterprise structure elements associated with the procurement processes EXCEPT: Purchasing groups Valuation area Purchasing info record Purchasing organizations

Purchasing Info Record

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

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

The summary of the subledger is reflected in a/an line-item account co account general account reconciliation account

Reconciliation Account

What is included on the income statement? Revenue Expenses Equity Liabilities Assets

Revenue Expenses

Which of the following is NOT necessary for a sales transaction to be entered? Distribution channel Sales office Company code Division Sales organization

Sales Office

All sales documents are created at the ________ level. Sales area Distribution chain Client Sales organization

Sales Organization

A distribution chain is a valid combination of _________ and distribution channel reflecting how a sales organization distributes materials and services. Company codes Sales areas Divisions Sales organizations

Sales Organizations

Which of the following activities impact accounting? Send shipment Receive purchase order and send invoice Receive purchase order Send shipment and send invoice Send invoice

Send shipment and send invoice

A ___________ defines numerous settlement parameters that are then assigned to an internal order. settlement order source structure settlement profile assessment cost element

Settlement Profile.

A ________________ indicates how the costs accumulated in the internal order will be allocated among the various receivers. settlement rule distribution rule movement rule portion rule

Settlement Rule

Business rules associated with the procurement process include all of the following, except: Taxes Automatic account assignments Tolerance limits Storage location parameters

Storage location parameters

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 can be changed or deleted most of the time with no impact on the system.

TRUE

A sales area is a combination of distribution chain and division

TRUE

A transfer posting can change the stock status of an item, and need not involve the actual physical movement of goods.

TRUE

All line items in a sales document can only be associated with one sales organization.

TRUE

An MRP Controller is a person or a group of people who are responsible for planning for materials in production and for ensuring that the needed materials are available when needed.

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.

TRUE

Consumable materials may have a material master, but one is not required.

TRUE

Information Systems (Information Technology) departments are considered overhead costs.

TRUE

Invoice verification happens with a three-way match.

TRUE

Make-to-stock 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.

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.

TRUE

Master data is the core data of the organization and its business processes.

TRUE

One company code can have more than one sales organization assigned to it.

TRUE

The order settlement process in production involves having the actual cost of the production order being settled in cost accounting.

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 purpose of G/L accounting is to capture and record all the data generated by the execution of business process steps that have a financial accounting impact.

TRUE

The subledger can be used to track individual customers, vendors, and assets.

TRUE

The system can be configured to automatically create storage location data if they do not exist.

TRUE

The trigger for the fulfillment process is the receipt of a customer order.

TRUE

We assign tolerance groups for employees to limit the amounts that an employee can enter in financial accounting.

TRUE

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

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

(A4) We have just created a purchase order for trading goods. What FI postings result from this action? there is no FI impact for this event debit the appropriate inventory account credit the appropriate inventory account debit the appropriate vendor account credit the appropriate vendor account

There is no FI impact for this event.

Which of the following is a form of invoice verification? quality management three-way match warehouse management inspection lot

Three-way match

Which of the following is NOT a type of data in an ERP system? Unit Data Business Rules and Parameters Transaction Data Enterprise Structure Master Data

Unit Data

(A4) We just shipped a customer order. What is the FI impact of this shipment? there is no FI impact for this event debit the appropriate inventory account(s) credit the appropriate inventory account(s) debit the COGS account credit the COGS account debit the revenue account credit the revenue account

credit the appropriate inventory account(s) debit the COGS account

Cost of goods manufactured = ________________ + direct labor cost + indirect costs. direct material costs indirect cost of sales direct cost of sales indirect material costs

direct material costs

(A4) Goods have just been received from a vendor in response to an order we placed. What is the FI impact of this receipt? there is no FI impact the appropriate inventory account is debited the appropriate inventory account is credited the GR/IR account is credited the GR/IR account is debited

the appropriate inventory account is debited the GR/IR account is credited