SAP Study Guide
In the fulfillment process, a plant is
-A manufacturing facility only -A facility from which the company delivers only services to its customers -A facility from which the company delivers products and services to its customers -A storage area -A facility from which the company provides after-sales support A plant is an organizational element that performs several functions and is relevant to several processes. It is essentially a facility in which the following functions are performed: -products & services are created -materials are stored and used for distribution
Which of the following statements regarding the fulfillment process is NOT true? -An accounting document is created when a goods issue is posted. -A sales order must be created with reference to a quotation. -One delivery document can be created from multiple sales order documents. -A quotation can generate multiple sales orders.
-An accounting document is created when a goods issue is posted. -A sales order must be created with reference to a quotation. -One delivery document can be created from multiple sales order documents. -A quotation can generate multiple sales orders.
Organizational data
-Client -Company code -Organizational level (plant) -Profit center -Storage locations -Sales organization
Business process
-Sequence of tasks or activities that take a set of inputs and convert them into desired outputs- 3 Main Processes ---buy (procurement) ---make (production) ---sell (fulfillment)
Account information can be displayed at which levels:
-Vendor Account Number -Balance (account balance display) -Original FI Document -Customer Account Number -Line Item -Bank Name
In a business, there are internal and external operations that make a successful flow. Each any every business in the supply chain want to be efficient. In this class, we focus and take a these critical following sets of ERP operations pertinent to every business in a supply chain
-buy, make, move, sell, vendors, customer, accounting -returns, accounting, buy, make, move, sell, -buy, make, move, sell, accounting, IT -returns, buy, make, move, sell, IT -returns, customers, buy, make, move, vendors, sell
Buy Side Primary Documents (3 Way Match)
1. Purchase order 2. Goods receipt 3. Invoice receipt -does the order match what we paid for -match good received to purchase order
A sequence of tasks or activities that takes a set of inputs and converts them into desired outputs/outcomes is called:
A business process
When are material documents & accounting documents created?
A goods movement will always result in the creation of a material document. A financial accounting document is created if the movement results in a change of valuation
Which of the following statements about a plant is not true?
A plant can be assigned to more than one company code (A plant can only be assigned to one company code)
Which system supports business processes end to end?
Accounting System Document System Enterprise System Management System Functional Structure
The data associated with assets includes information concerning:
Acquisition Depreciation Retirement
What document is NOT created during the billing step of the fulfillment process if profitability analysis is active?
An invoice A material document A CO document An FI document CO is: -Management accounting or controlling (CO). track internal stuff FI is: Financial accounting (FI). tract external reporting stuff A material document is created after a Post Goods Issue Also, its a document that records data after the process steps have been completed
The three types of financial statements are:
Balance Sheet Income Statement Statement of Cash Flows
Which one of the following is not a type of organizational data that is utilized in the procurement process?
Client Company Code Storage Location Purchasing Organization Manufacturing Plant
What are the three organizational data associated with financial accounting?
Client Company code Business area
Organizational elements essential to the fulfillment process
Client, company code, sales area, plant, storage location, shipping point, credit control area Ones unique to fulfillment: sales organization, shipping point, credit control
Which of the following is an example of master data? Data about:
Company Codes Customers Purchase Orders Sales Organizations
Which of the following is an intersection or combination of material data and vendor data?
Condition type Purchasing info record Stock transfer Third-party order Search term
A purchasing group is an individual or a group of individuals who are responsible for all of the following except
Creating purchase requisitions Negotiating contracts and agreements Requesting quotations from vendors Creating and monitoring purchase orders Planning for material requirements Negotiating contracts and agreements is done by sales organization A purchasing group is an individual or a group of individuals responsible for purchasing activities for a material or a group of materials. These activities include planning, creating purchase requisitions, requesting quotations from vendors, and creating and monitoring purchase orders.
Which term refers to business processes that are not executed by a single group or function?
Cross-Functional
Pre-sales activity includes all of the following except
Customer purchase orders Mailing campaigns Customer inquiries Quotations Tracking customer contacts CRM light - establishing and maintaining customer relationships Activities include: -Creating and tracking customer contacts -Mailing campaigns -Responding to customer inquiries and request for quotation -Quotations -Outline agreements (Contracts, Scheduling agreements) Presales activities are optional and are designed to identify and develop customer relationships
Accounts Receivable Accounting is concerned with _______, while Accounts Payable Accounting is concerned with ________.
Customers; vendors
Which of the following types of data is NOT included in a billing document?
Data from the delivery document Data from the sales order Data from the customer master Pricing conditions Organizational data
Within the plant-level purchasing organization, also known as a plant-specific purchasing Organization,
Each plant has its own purchasing organization One purchasing organization is responsible for multiple plants Only one purchasing organization for all plants One purchasing organization is responsible for all company codes in the enterprise Two or more purchasing organizations are responsible for each plant
What does the acronym 'ERP' stand for?
Enterprise Resource Planning
Which term represents a set of tasks or activities that produce desired outcomes?
Enterprise Resource Planning Trigger Business Process Outcome No answer is right
Which one of the following is not a model of the purchasing organization?
Enterprise level Company level Client level Plant level or Cross-plant Enterprise: one purchasing org. Highly centralized Company-level: multiple purchasing orgs Plant level (AKA cross-plant): Each plant has its own Purchasing Organization. Highly decentralized
A plant-to-plant movement of goods does not generate an accounting document.
False
In a manual (paper-based) process, information is communicated between functional areas using an enterprise system.
False
The silo effect refers to the integrated and the cross-functional nature of business processes.
False
A requisition represents a legal obligation to make the purchase.
False A purchase requisition is a request that is made to the purchasing organization to procure a certain list of materials. It is an internal document and remains within the organization. Purchase requisition needs approval from the purchasing organization.
A shipping point is a location in a plant at which inbound deliveries are received.
False A shipping point is a physical location from which outbound deliveries are sent
There can only be one storage location within a plant.
False It must have AT LEAST one
A company code must have at least two sales organizations.
False It must have at least one
Purchasing data related to a vendor are accessible to all purchasing organizations.
False Purchasing data are specific to one purchasing organization
Which term refers to a system in which workers complete their tasks in separate departments without regard to the consequences for the other components of the process?
Functional Structure Silo Effect ERP Effect Cross-Functional Enterprise Systems
The master data associated with the FICO Module are:
General Ledger Accounts Chart of Accounts Subsidiary Ledgers General Ledger Accounts: Balance sheet accounts, Income statement accounts, Reconciliation accounts) Chart of Accounts: Ordered listing of accounts that comprise a company's general ledger Subsidiary Ledgers: AR(customers), AP (vendors), Assets
The five key processes in financial accounting are:
General ledger accounting Accounts receivable accounting Accounts payable accounting Asset accounting Bank ledger accounting
Modern business platforms center around the ideas of the 3-tier system managing information and technology. Each tier system is technically linked to form a 'network'. What is this typically called?
Globalization Business process An ERP system R/3
Which of the following goods movements need not involve a physical movement of materials?
Goods receipt Goods issue Stock transfer Transfer posting None of the above (all involve physical movement of materials)
Which of the following is not an aspect involved in overhead calculation?
Includes indirect costs Pricing Accumulated in cost centers Includes direct costs Periodically allocated to production orders based on predetermined rules Overhead only includes indirect costs
Which of the following is not a key aspect of Management Accounting?
Internally focused Legal reporting Used to manage and allocate costs Defined by management needs Management accounting is internally focused thus it's not reported for legal purposes
In which of the following documents is the price of the materials not relevant?
Invoice Purchase Requisition Good Receipt Document Packing List Purchase Order
In which of the following documents is the price of the materials relevant?
Invoice Purchase Requisition Good Receipt Document Packing List Purchase Order
Which of the following is NOT a key step in the fulfillment process?
Invoice verification Sales order processing Pre-sales activity Inventory sourcing Shipping
The two production strategies below are
Make-to-stock Make-to-order Forecast Material Requirements Planning Master Production Schedule Make-to-stock: Build inventory before Make-to-order: You have materials but don't make the product until the customer orders
Which of the following is an example of organizational data? Data about:
Material Sales Organizations Customers Vendors
Which of the following terms refers to materials with similar characteristics?
Material Group
Bill of Materials are used in:
Material Planning Procurement Buying process Pricing Product costing Production -BOM Identifies the components needed to make the material -A component can have its own BOM to creates a multi- level BOM -BOMs are used in: --Material planning --Production --Procurement --Product costing
General data in a vendor master contain all of the following except:
Name Address Communication Payment terms and methods Search term
The acronym OTIFNE means:
On Track, In Full, No Exceptions On Track, Is Final, Next Event On Time, In Full, No Exceptions On Time, In Full, Next Event
How many company codes can a plant belong to?
One
What are the three types of chart of accounts?
Operative COA Country-specific COA Group COA COA = chart of accounts Operative COA: Used to record the financial impact of a org's day-to-day transactions Country-specific COA: companies create these alternative accounts to meet special country-specific reporting requirements Group COA: contains group accounts that multiple companies within an enterprise use to consolidate their financial reporting
The shipping step concludes with _________
Packing Picking Goods receipt Goods delivery Goods issue
Which of the following document types is not utilized during the purchasing process?
Picking document
HR Assignment data include all the followings except
Positions Qualifications Compensation People It includes all of these
Which master data do companies use to determine the prices of their products?
Pricing conditions Price comparison Selling price Wholesale price Tax allowances
All the following is true except Process manufacturing does not produce individual units Discrete manufacturing produces different materials over time Process manufacturing produces tangible products Repetitive manufacturing produces same or similar product again and again
Process manufacturing does not produce individual units Discrete manufacturing produces different materials over time Process manufacturing produces tangible products Repetitive manufacturing produces same or similar product again and again Process manufacturing: Not manufactured in individual units Gallons, pints, liters Paint, soft drinks Discrete & repetitive manufacturing: Tangible products Manufactured in individual units Skateboards, bicycle Repetitive manufacturing: Same or similar products are produced over a period of time A specified quantity is produced over a period of time Discrete: Batches of different materials over time
The fulfillment process is integrated with all of the following processes except
Procurement Asset management Material planning Inventory and warehouse management
Which of the following processes is triggered when someone in the company determines that a specific quantity of a certain material is needed?
Procurement Process (AKA Buy)
Which system connects a company's ERP system to those of its customers?
Product Lifecycle Management (PLM) Customer Relationship Management (CRM) Application Platform Enterprise Solution No answer is right
Which of the following processes involves making products in-house?
Production Process Hiring Process Procurement Process Fulfillment Process
A measure of how many units of a material a plant can produce within a given timeframe
Production capability
There is only one official way in a company to officially buy. What document is the primary official tool?
Purchase Order (PO) A purchase order is a formal communication to a vendor that represents a commitment to purchase the indicated materials under the stated terms.
Which action triggers sales order processing in the fulfillment process?
Receipt of goods from a vendor Delivery of goods to the customer Receipt of a customer purchase order Receipt of payment from customer Picking goods for shipment
Which of the following organizational levels is associated with the method used to distribute materials to a customer?
Sales area Sales group Sales organization Distribution channel Division
Which term relates to the technical capabilities that allow systems to connect with one another through standardized interfaces called Web services?
Service-Oriented Architecture
All of the following are key organizational elements for which material master data are defined for the fulfillment process except
Shipping point Sales organization Distribution channel Plant Client
What is a storage location?
The place where raw materials are received The place within a plant where materials are kept until they are needed The place where materials are collected for staging and inspection The place within a plant where machines are installed for production purposes The place within a plant where finished goods are kept for sale
Which of the following statements about business processes is true? They involve multiple steps. They are executed across multiple functions. They are initiated by some type of trigger. All answers are right No answer is right
They involve multiple steps. They are executed across multiple functions. They are initiated by some type of trigger. All answers are right No answer is right
Information needs to be
Timely, accurate, right kind, visible
A customer material information record is comprised of master data specific to one customer and one material.
True
A goods movement is a transaction that causes a change in stock value or status.
True
A one-to-many relationship exists between a sales area and plants.
True
A sales organization is responsible for negotiating terms and conditions of sales for a particular market.
True
Material master data can be defined differently for different organizational levels
True
Multiple orders can be combined into one delivery if certain conditions are met.
True
Organizational elements essential to the fulfillment process include client, company code, sales area, and plant.
True
SAP is an example of an ERP software system
True
The material master is updated after the goods receipt step of the procurement process has been completed?
True
The silo effect refers to be losing sight of the big picture of the process and being narrowly focused on a task.
True
Accounts payable accounting is associated with the procurement process.
True Accounts payable accounting is associated with the procurement process and companies use this to record and manage money owed to vendors for the purchase of materials and services. Accounts receivable accounting is associated with the fulfillment process and used to manage money owed by customers for goods and services sold to them.
Organizational Data
Used to represent the structure of enterprises -3 Levels ---Client: highest level organization with many subsidiaries ---Company code: separate legal entity/company within the org ---Plant: Org element that performs multiple functions
Which of the following is used to integrate several client-server applications and create enterprise mash-ups, or composite applications?
Web Services
The organizational data that is associated with Production Process are:
ceo client storage location company code bins plant
The three most critical flows that help integrate business internally and externally are:
physical, information, network financial, physical, supply chain SRM, CRM, Client information, financial, physical
