Is a material master record required to create a purchase requistion?

Correct Answer: No, but you must enter a description, a unit of measure and a material group.

What documents can be created from purchase requisitions? Correct Answer:

RFQ Outline agreement Purchase order

What are the effects of invoice verification? Correct Answer:

Material document is created Accounting document is created Vendor subledger is credited and GR/IR is debited Adustments to quantity and value in material master are made if necessary Adjustments to moving average price in material master are made if necessary PO history is updated

What organizational levels are relevant for procurement? Correct Answer: 1. 2. 3. 4. 5. 6. Client Company Code Plant Storage Location Purchasing Organization Purchasing Group

You've transferred 100 items of a material from quality inspection to unrestricuted use. Afterwards you determine the quantity should have been 200. You're boss asked you to edit the material document to change the quantity. Explain to your boss what the correct procedure is. Correct Answer: You cannot edit the quantity, material, movement type or organizational level once a goods movement has been posted. You will first have to cancel the previous movement and then create a new one with the correct values.

List the steps in the procurement process. Correct Answer: 1. 2. 3. 4. 5. 6. 7. 8. Determination of requirements Source of supply determination Vendor selection Purchase order handling Purchase order monitoring Goods receipt Invoice verification Handling of payments

Is an accounting document created by a transfer posting? Correct Answer: Only if it is valuation relevant such as a material-to-material posting.

What documents are created by invoice verification? Correct Answer: Material document
Records the quantity being charged for which quantity of material.

Accounting document Records the payable - credit to the vendor subledger and debit to GR/IR

Which stock types are relevant for MRP? Correct Answer:

Unrestricted use Quality inspection

A material that is procured directly for an account assignment object (not inventory) is called: Correct Answer: A consumable

What type of goods movements occurs when a material is moved from quality inspection to unrestricted use (stock-tostock)? Correct Answer: Transfer posting

Which transaction displays material stocks by organizational level? Correct Answer: The stock overview

How does the system know what company code a purchasing document applies to? Correct Answer: The plant is assigned in the document and since plants must be unique in the client and assigned to only one company code, the company code is determined from the plant.

Where can conditions be entered in procurement? Correct Answer:

Purchasing info records Outline agreements (contracts, scheduling agreements) Purchase orders - specific to only one purchase order Quotations General conditions that apply at the vendor level

What are the two options for purchasing a consummable when using a material master record? Correct Answer: 1. No quanity or value. 2. Inventory is tracked on a quantity basis but not on a value basis

A document created to be transmitted to a vendor is called a: Correct Answer: Message

Assume you've decided to purchase some of your raw materials from international suppliers and you want to create a new number range so it will be identify these vendors. How would you do it? Correct Answer: Create a new account group

In the material masters, data such as alternative units of measure, material short descriptions and consumption values are stored in: Correct Answer: Additional data

This represents a buyer or group of buyers who is/are responsible for purchasing activities. Correct Answer: Purcashing group

How is the purchasing group assigned in the enterprise structure? Correct Answer: It is not assigned.

What are the effects of a goods receipt? Correct Answer: 1. A material document in created 2. An accounting document is created for valuated materials 3. The stock quantity and value in the material master is updated for valuated materials 4. The moving average price is updated in the material master 5. The purchase order history is updated 6. A goods receipt slip is created (optional) 7. Stock or consumption account is debited and the GR/IR account is credited 8. If quality management is active a quality inspection lot is created 9. If warehouse management is active, a transfer requirement is created

Assume you are using plant-specific purchasing. One of your plants wants to purchase from a vendor that another plant has already purchased from. What changes have to made in the system? Correct Answer: Since with plant-specific purchasing each plant is associated with a unique purchasing organization, a new purchasing view will have to be created for the vendor. If the plants are both assigned to the same company code, a new accounting view will not be necessary.

What field in the purchasing document must be set in order to purchase a consummable? Correct Answer: Account assignment object

Which organizational unit procures materials or services, negotiates conditions of purchase with vendors and assumes responsibility for these transactions Correct Answer: Purchasing organization

What data is stored in a purchasing info record? Correct Answer:

Current and future prices and conditions Delivery data Vendor data such as the contact person Vendor specific data about the material such as the vendor's description of th ematerial Number of the last purchase order (but not a full history Texts

What methods are available to create purchase requisitions? Correct Answer:

Manually SAP SCM SAP SRM Automatically by almost any logistical process

What value is used to differentiate between goods movements and is key in determining which accounts will be updated? Correct Answer: Movement type

What master data represents the link between a vendor and a material? Correct Answer: Purchasing info record

Inventory management on a quantity basis is carried out at the: Correct Answer: storage location

What list display will show what vendors supply a given material? Correct Answer: List of purchasing info records

What documents can be used to create purchase orders? Correct Answer:

No reference document Purchase order Purchase requisition Quotation Contract

Can a plant be assigned to more than one company code? Correct Answer: No

What are the three variants of purchasing and what assignments are made in the organizational structure for each? Correct Answer: o o o Plant-specific A unique purchasing organization is assigned to each plant and each purchasing organization is assigned to the company code. Cross-plant Several plants from one company code are assigned to the same purchasing organization and the purchasing organization is assigned to the company code. Cross-Company code Several plants from more than one company code are assigned to the same purchasing organization and the purchasing organization is not assigned to a company code. The company code must be entered when a purchasing document is entered.

What are the three SAP stock types? Correct Answer:

Unrestricted use In quality inspection Blocked stock

Agreements with vendors about prices, surcharges and discounts. Correct Answer: Conditions

What can provide conditions for purchasing orders? Correct Answer:

Outline agreements Quotations Purchasing info records Purchase orders

What are the three views of the vendor master data and at which organizational units are they relevant? Correct Answer:

General -Client Accounting - Company code Purchasing - Purchasing org.

When a goods receipt is performed, what two documents are created? Correct Answer: Materials document
This document records the quantity and storage location where the material was received to.

Acounting document This document records the value of the goods received in the proper accounts.

What operations are performed by the automatic payment program in procurement? Correct Answer:

Posts payment documents Clears open items Prepares data for printing of payment media

Which organizational unit subdivides an organization from the point of view of production, procurement and materials planning Correct Answer: Plant