Formative 2 (M3-4)

Reconciliation Account

Reconciliation Account

It is a general ledger account assigned to the business partner master record to record all transactions in the sub ledger.

True

Purchase Order has no impact on Financial Accounting (FI)? T/F

False

Purchasing information record can be created in four ways? T/F

Company Code

The smallest org unit for which you can maintain a legal set of books.

Material Master Data

It contains all the information a company needs to manage a material.

True

In purchasing information record allows buyers to quickly determine which vendors have offered or supplied specific materials? T/F

True

The purchasing information record serves as default for purchase orders? T/F

Framework for Purchase Order

It contains the relationship between a vendor and a material.

Payment to Vendor

The last step procure-to-pay process.

Goods Receipt

Goods movement in which we accept goods into the system.

Outline Agreement

Requisitions can be satisfied through existing longer-term purchasing agreements.

Quotation From Vendor

The quotation received by your company is a legally binding offer, should decide to do business with the vendor, containing price’s and conditions for the materials specified in the RFQ for a predefined period of time.

True

Invoice receipt is the amount owed is assigned and transferred to vendor accounting payable? T/F

Vendor Evaluation once Indentified

It supports a maximum of 99 main criteria and 20 sub criteria for each main.

True

A purchase order is a formal request to a vendor for a specific material or service under the stated conditions? T/F

False

Contracts is nullify an items defining the individual materials, material groups, or services with prices? T/F

Scheduling Agreement

The total quantity of material is spread over a certain period in a delivery schedule, consisting of line items indicating quantities and their planned delivery date.

Contracts

It consists of items defining the individual materials, material groups, or services with prices?

Purchase Requisition

1st step on procure-to-pay process

True

Purchasing information record can be created in three ways? T/F

True

Variable material is referring to sheet of steel? T/F

True

There are two level of Bill of Materials? T/F

Product Group

Aggregate planning that group together materials or other product groups (Product Families).

Periodic

The groups net requirements together from multiple periods.

60

Planning with Planning Material.

Availability Check

This is to determine whether the component, production resource tools, or capacities in an order are available.

True

Accurate forecasts are essential in the manufacturing sector? T/F

30

Production by Lot Size strategy

561

A code for initial entry of stock.

False

Independent demand is the source of demand resides at another level? T/F

Terms of Payment

This are conditions agreed between business partners for the payment of invoices.

Vendor Evaluation

A precondition for the use of this evaluation is that you previously specify in customizing the criteria by which your vendors are to be evaluated, and how which aspects of their performance are to be rated.

True

Every vendor MUST have a master record? T/F

Purchase Order

Target quantity & target price.

Purchasing Group

The key that represents the buyer or group of buyers who are responsible for certain purchasing activities.

Inventory Management

It includes planning, entry, and keeping records of all the movements of goods.

Sales and Operations

It is Flexible forecasting and planning tool

Product Group

It is a Multi-or Single-Level Product Groups.

Client

An independent environment in the system.

False

In Product Group, the highest level must always consist of materials? T/F

False

Accurate forecasts are optional in the manufacturing sector?

True

Forecasting is the foundation of a reliable SOP?

False

Forecasts are ALWAYS RIGHT?

Purchase Order

A request or instruction to a vendor for a material or service at a specific time.

Planning Strategies

These processes has Multiple types of planning strategies based upon environment.

Shop Floor Documents

These are printed upon release of the Production Order.

Master Production Scheduling

It allows a company to distinguish planning methods between materials that have a strong influence on profit or use critical resources and those that do not.

True

Independent Demand  is the Original source of the demand?

10

Net Requirements Planning strategy

Purchase Requisition

Internal Document requesting the purchasing department to procure a specific good or service for a specified time.

Invoice Processing

When an invoice is verified, it matches with the liability that was posted during the goods receipt and creates a new entry to pay the supplier.

Material Movements

When a goods movement takes place it is represented by a Movement Type.

Purchasing Information Record

It serves as default information for Purchase Orders.

Purchasing Group

Channel of communication for vendors.

Purchase Organization

The one who Negotiates conditions of the purchase with the vendors.

Vendor Evaluation

Purchasing information record report.

103

A code for goods receipt into GR blocked stock.

Confirmation

These are used to monitor and track the progression of an order through its production cycle.

Material Requirement Planning

It is used to ensure the availability of materials based on the need generated by MPS or the Demand Program.

Requisition Sourcing

Once the requisition has been assigned a source of supply it can be released for processing.

231

A code for consumption for a sales order.

Effects of a Goods Receipt

When a Goods Movement for the receipt of goods takes place a series of events occur.

Invoice Processing

If discrepancies arise between the purchase order or goods receipt and the invoice the system with generate a warning or an error.

Outline Agreement

It consists of items defining the individual materials, material groups, or services with prices?

Request for Quotation

If nothing exists in the system we may need to submit a request for quotation to our vendors. An RFQ is an invitation to a vendor by a Purchasing Organization to submit a bid for the supply of materials or services.

Invoice Processing

Actual Quantity

Scheduling Information

It refers to the Queues and Move Times (interoperation), Formula Keys.

Routing

These are used as a template for production orders and run schedules.

True

In Product Group, the lowest level must always consist of materials?

Purchase Order

It can be used for a variety of purposes, the item category (procurement type) defined in the PO will dictate the use of the order and the process that the order will follow.

False

Outline agreement are divided into 3 parts?

Goods Receipt

Actual Quantity

Purchase Order

It is a formal request to a vendor for a specific material or service under the stated conditions.

101

A code for goods receipt into warehouse.

True

Variant bill of materials is referring to several products with a large proportion of identical parts?

Routing

These are also used as a basis for product costing.

Basic Data

It refers to the Person Responsible, Location of Work Center.

Master Data

Work Centers capture and use the following resource related data except

Costing Data

It refers to the Cost Center, Activity Types.

Work Center Location

An organizational unit that defines where and when an operation is performed.

Work Center Location

An Activities performed are valuated by charge rates, which are determined by cost centers and activity types.

Purchase Order Output

Once a Purchase Order has been created the vendor needs to be notified.

True

Work center locations are activities performed are evaluated by charge rates, which are determined by cost centers and activity types?

Capacity Planning

It refers to the Available Capacity, Formulas, Operating Time.

Inventory Management

It deals with the management of stock, either on value or quantity basis.

True

Contracts is consists of items defining the individual materials, material groups, or services with prices?

True

Storage Location is an organizational unit allowing differentiation between the various stocks of a material in a plant?

Storage Location

An organizational unit allowing differentiation between the various stocks of a material in a plant.

False

Intra item is referring to place holder?

False

In Product Group, the highest level must always consist of materials?

Default Data

Control Key, Standard Text Key.

False

The purchasing information record serves as default for purchase Information?

False

Every vendor MUST not have a master record?

Routing

It enables you to plan the production of materials (products).

Personnel Data

It refers to the People, Positions, Qualifications.

Work Center Location

This can be machines, people, production lines or groups of craftsmen.

Vendor Master Data

It contains all the necessary information needed to business with an external supplier.

Demand Management

The results of this process called the Demand Program, it is generated from the independent requirements.

Vendor Evaluation

It supports you in procuring both materials and external services, by making use of data from MM, from the Logistics Information System (LIS info structure S013), and from quality management.

20

Make to Order Production strategy