studyguide

The relationship between company code to sales organization is:

1:M

Which detail is generally not included in the Purchase Requisition?

Amount

Which is NOT one of the three most important master data elements in production?

Capacity

Tolerance groups are defined for each .

Company Code

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

Discrete

"The US East Sales organization, and the wholesale distribution channel" is an example of which of the following enterprise structure elements?

Distribution chain

____________ defines a mechanism for getting goods and services to customers.

Distribution channel

Which of the following enterprise structure elements is NOT related to the production process?

Division

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

Fales

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 cannot be changed or deleted.

False

A sales organization can be assigned to multiple company codes.

False

A sales organization is a combination of distribution chain and division.

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

Make-to-stock is when the production order is connected directly to an order for the finished product.

False

Pricing procedures are used to calculate the purchasing price of a material based on various conditions.

False

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

False

The access sequence has no impact on pricing and the order of computation.

False

The customer group identifies groups of customers. It is used to apply different settings to a set of customers with different characteristics.

False

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

Fulfillment

Which step has a material and financial impact in the General Ledger?

Goods Recipt

At which stage does posting of finished goods to FI occurs?

Goods receipt

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.

Multiple BOM

Which of the following represent a typical production process?

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

Which of the following is NOT true about planned and production order?

Planned order authorizes production

Which of the following activities does NOT impact CO?

Planned production

Organizational unit where a company carries out some of its business activities are configured in system the system as a _____________?

Plant

Valuation Area can be defined at which level in SAP?

Plant, Client, Company Code

Which of the following activities result in a credit to inventory?

Post goods issue

Which of the following activities does NOT impact FI?

Production order

_______ serves an important role in connecting a material master with a vendor master, and containing specific information about this relationship between the vendor and material

Purchasing Info Record

The enterprise structure elements associated with the procurement processes EXCEPT:

Purchasing info record

What type of inventory is not associated with the Purchase to Pay process.

Raw material

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

Under which form of production process the quantity of finished product is produced is predetermined rate?

Repetitive

______________ is a combination of a distribution chain and a division.

Sales area

Which of the following is NOT necessary for a sales transaction to be entered?

Sales office -- necessary for a sales transaction to be entered (Company code, Sales organization, Distribution channel, & Division)

A distribution chain is a valid combination of _______________ and distribution channel reflecting how a sales organization distributes materials and services.

Sales organization

_________ define the shipping strategy for shipping goods to a customer.

Shipping conditions

The ________________ is the part of a company from where goods are shipped out.

Shipping point

_______ is used to propose a shipping point when a delivery is to be done.

Shipping point determination

Which price control is used for valuing material produced in house, such as finished goods and semi-finished goods?

Standard Price

Business rules associated with the procurement process include all of the following, except:

Storage location parameters

__________ is based on the location to which goods are shipped in the USA and it determines tax rates that are used to compute taxes.

Tax jurisdiction

The transportation group is used to group together materials with similar __________.

Transportation requirements

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.

True

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

True

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

True

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

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

Condition types are defined for a specific discount or surcharge for a specific material.

True

Delivery type defines the various types of business transactions for processing deliveries.

True

Discrete production is used for manufacturing a single item or unit.

True

Each sales area can include only one sales organization.

True

Finished goods and trading goods are the typical materials that are used in the fulfillment process.

True

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

True

In production, activity types are used to logically separate the activities of the work center (cost center) so that costs can be properly allocated to the activity for both control and planning.

True

Make-to-order is when the production order is connected directly to an order for the finished product.

True

Material of all types (raw material, semi-finished goods or finished goods) requires different sets of data in the material master.

True

Material types are used to segregate materials into different groups. Material types classify materials based on how they are used in a company.

True

Order settlement records the difference between planned cost and actual cost of production.

True

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

True

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

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 vendor master for the Procure-to-Pay process is defined at purchasing organization level.

True

Whereas in discrete production the desired quantity is specified, in repetitive production the desired rate is specified.

True

Which one is not the view of Material master data?

Valuation Data --- The view of Material master data (Accounting Data, Storage Data, Purchasing Data, & General Data)

Which of the following master data does not included in the Order to Cash process?

Vendor master data