TRAINING COURSE

MM Review Topics

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MM Review Topics
General / Organizational Elements Data .....................................................................3 Purchasing Condition Technique.................................................................................4 Source Determination, Optimizing, Condition Technique ..........................................6 External Services, Release (Approval) Strategy..........................................................7 Customizing including Message Determination..........................................................8 Materials Planning / Forecasting .................................................................................8 Inventory Management (Incl. Special Procurement) / Physical Inventory................12 Effects of Basic Data and Purchasing on Inventory Management (Special Procurement / Quantity Flow / Value Flow) .............................................................15 Invoice Verification (Incl. Customizing)...................................................................16 Account Determination / Valuation...........................................................................17

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General / Organizational Elements Data

What is meant by a client in the SAP R/3 System? Name the essential organizational elements in Materials Management and explain how they are used. Explain how views (i.e. user departments) are used in the material master. What do you have to take into account with regard to the function or transaction to be chosen it you want to create a view (that is, data for a particular user deportment) in the material master for different organizational units (e.g. for different plants)? What Importance does the purchasing organization have for the material master? (None) Explain how purchasing organizations are used in the SAP R/3 System. Explain how purchasing groups are used in the SAP R/3 System. What types of master data use account groups? What does an account group determine? (Number assignment field control, partner schema (also known as partner determination procedure), vendor sub-range, one-time data) What does a material type determine? (Field selection. indirect number assignment views (that is, user departments) to be maintained, quantity management and/or value management procurement types, indirect account determination etc.) What does on industry sector determine in a material master record? (Field selection) Name the price controls available in the SAP R/3 System and explain how they are used. How can the numbers of material master records be assigned? How is the type of number assignment defined? At what levels can you manage vendor master data? At what level is general data for vendors (such as the address) managed? What user department is responsible? How are the numbers of vendor master records assigned? What is the function of a reconciliation account? (G/L accounting: total payables of all vendors (parallel to sub1edger accounting for each vendor)). What is meant by a one-time vendor (sundries account)? How do you define that a vendor master record is used as a onetime vendor? (Account group). What function is used to show different ordering addresses, goods suppliers, and payees? (Partner roles (also known as partner functions)). Do you require a separate vendor master record for a different ordering address? (Yes) In the vendor master, do you require the Accounting view for a different ordering address? (No) What views have to be maintained in the vendor master to be able to create purchase orders? (General, Purchasing) What views have to be maintained for a material master record to create purchase orders? (Basic Data, Purchasing, Accounting) What determines whether a material can be posted to stock? (Material type (quantity management). account assignment category of the purchase order item) What is a valuation class and how is it used? 3 of 19

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How can you define the use of specific valuation classes for each material type? (Account class reference). Describe how field selection can be controlled in the material master. Is it possible to configure the maintenance dialog (screen layout, order of the views, etc.) in the material master by user? (Yes)

Purchasing Condition Technique

Explain the basic structure of purchasing documents! What is the special feature of purchase requisitions? (Requisition has no header). Which control parameters are located at the item level of purchasing documents? (Item category, account assignment category, GR indicator, IR indicator, non-valuated GR indicator, ...) When can you use the item categories M (material unknown) and W (material group) and what do they mean? (M: quantify/value contract - material not specified until time of release order, W: value contract - material and price not specified until time of release order) What does the account assignment category U (unknown) stand for? When can you use this account assignment category? (Contract requisition purchase order for external services. blanket purchase order) What does it mean when a non-valuated goods receipt is recorded? When does valuation take place in this case? Give an example of when a goods receipt - for which due provision has previously been made - must be recorded on a non-valuated basis. (Multiple account assignment) What must you take into account or determine in the case of multiple account assignment? (Specification as a percentage or by quantity. whereby the sum total must equal 100% or the quantify ordered, debiting of account assignment object is carried out on a "progressive fill-up" basis or proportionally, no GR or nonvaluated GR) Which special forms of procurement can you replicate in the R/3 System? Which parameters do you use to determine whether and which form of special procurement is used? (Item category) How can you assign different delivery dates to a purchase order item? (Delivery schedule) Why may this be advisable? (Phased delivery) Explain the procurement process using out1ine purchase agreements. What are the basic differences between a contract and a scheduling agreement? Which time zones can be defined in scheduling agreements? What do they signify? Which types of release documentation can be used in conjunction with scheduling agreements? Which factors determine which types can be used? (Forecast delivery schedule + optional: JIT delivery schedule, specification per material and plant in material master record) 4 of 19

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In which ways can a purchase requisition be created (sources)? (Manually or automatically: materials planning or other module: plant maintenance, sales order. production order) What is the purpose of the collective number for RFQs? (Grouping of RFQs, e.g. for analyses, matchcode searches, price comparison list) How do you enter a vendors quotation? (Maintenance of RFQ) With which functionality can you compare quotations submitted by different vendors? Which principal functions does the quotation price comparison list offer? (Comparison of quotations. determination of the lowest quotation per item and overall, determination of the minimum and average price, saving of prices as the market price (master condition), branching to quotation with the option of updating info record and activating rejection letter (rejection indicator) At which organizational levels is info record data kept? (Client and purchasing organization or Client and purchasing organization and plant) How can you create info records? (Manually or from the purchasing documents quotation, "purchase order, "outline agreement). How do you determine the organizational levels at which info records are kept? (Customizing: permissible organizational levels, Manually: specification of desired organizational level(s). Purchasing documents: update indicator) In which case are no conditions adopted from a purchasing document when an info record is created? (Purchase order) How is the price determined without conditions when purchase orders are created without reference to other purchasing documents and a suitable info record exists? (The info record shows the last purchase order. The system reads the Price from the latter) What do you conclude if the price field on the purchase order overview screen is not ready to accept input despite the facts that the user is authorized to carry out changes and the screen control for the change transaction is correct? (Conditions exist so that the net price differs from the gross price. Maintenance only via conditions.) What determines whether you can change the "GR", "GR nonvaluated", and "IR" indicators in the purchase order? (Transaction, Item category, Account assignment category, receipt of goods or invoices) At which level Is the purchase order history kept? (PO item) Which entry aids are available to the user when he or she creates purchasing documents? (Referencing/copy functions. default values for Item fields can be maintained on the initial screen, user Parameters) How do you ensure that a reminder that goods are to be delivered is issued to the vendor 10 days prior to the agreed delivery date? (You enter -10 days as the reminder date in the purchase order (at the latest) and maintain a message record for the message type MAHN)

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In which of the following cases can you define scales for the condition type? Purchase order No Contract Yes (master condition) Info record Yes (master condition) Vendor Yes (extended master condition) Quotation Only if defined as master condition in Customizing Scheduling agreement Only if defined as master condition in Customizing

Source Determination, Optimizing, Condition Technique

Which master data must you maintain for a quota arrangement? ("Quota arrangement" indicator in material master record, quota arrangement for each material with weighting and source of supply) What does the "Quota arrangement field in the material master record determine? (Whether a quota arrangement is possible for this material and which documents are applied for the quota arrangement) At which levels can you define a source list requirement? (Plant, material) You have defined a source list requirement neither in the plant nor for a certain material. Can you create a source list for this material (Yes) In which ways can a source list be created? (Manually, outline agreement: here also for material groups, info record, automatic generation) Specify the priorities in the source determination process. (1. Quota arrangement, 2. Source list, 3. Outline agreement/info record) In which ways can a source be assigned to a purchase requisition? ("Assign source flag on the initial screen during creation of requisition. by invoking the Source determination" function when creating or maintaining the requisition. Purchasing Assign Purchasing Assign and process") How does the system react during the source determination process if there are several possible sources? How can you ensure automatic source assignment despite the existence of several sources in the system? (If a quota arrangement exists, a unique source is determined and assigned. Without a quota arrangement but with a unique source, source assignment is ensured via the Source List: assignment of this source (MRP indicator in source list necessary for MRP). Without a quota arrangement and without a source list, but with a regular vendor active for the plant and flagged in info record: assignment of info record flagged as regular vendor. In the event of several alternatives (no quota arrangement, no source list, source list with several simultaneously valid entries, no regular vendor): no source assignment but when the assignment process is initiated manually, the system presents the alternatives to the user so that the latter can choose and assign the desired source.) What is the main purpose of the "Assign requisitions" function? (Manual assignment of a source of supply or automatic source assignment: if unique, fully automatic, otherwise choice from alternative sources)

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What are the main purposes of the "Assign and process requisitions" function? (Manual source assignment or automatic assignment: if unique, fully automatic, otherwise choice from alternative sources. Assigned requisitions can be converted into purchase orders: non-assigned requisitions can be flagged for the issue of an RFQ and then converted into an RFQ) What is the main purpose of the "Process assigned requisitions" function? (Assigned requisitions can be converted into purchase orders) Which preconditions must be satisfied (in terms of data) for the automatic creation of purchase orders? (Indicators set in vendor master record and in the material master record (if one exists), source has been assigned) What are the preconditions for automatically generated delivery schedule lines? (Entry in source list with "automatic schedule line" indicator, MRP run with schedule lines generally or within opening horizon, materials planning active/planning file entry). How do you determine that the "source assignment" flag is set on the initial screen when a purchase requisition is created? (Maintain default values for buyers in Customizing, User parameter (EVO).) How do you determine whether purchasing documents appear on the overview screen In 1 - or 2 - line display format? (Maintain default values for buyers in Customizing, User parameter (EVO).

External Services, Release (Approval) Strategy

Explain the advantages of external services procurement (Item category "D") in comparison with procuring services by means of a standard purchase order with account assignment (text or material type DIEN). How do you make it possible to accept external services that are not covered by a purchase order or exceed the scope of services covered by a purchase order? You are using the release (approval) procedure with classification for purchase orders. Which release procedures can you use for requisitions? (For all requisitions with classification or for all requisitions without classification - the release procedure for purchase orders has no influence on the release procedure for requisitions) What does the release strategy determine? (Which release points/codes effect release (signify approval), sequential dependencies between the points/codes, when which release status is reached) What do you determine with the release statuses for a requisition? (Whether RFQs or purchase orders may be created, whether or not the requisition is fixed, screen control) What do you determine with the release statuses for a purchase order? (Whether or not it can be outputted, e.g. printed) At which level are purchase requisitions released? What does this depend on? (Item level. If you are using the procedure with classification you have the alternative of releasing at document level. It depends upon whether the procedure with classification is being used. If so, it additionally depends on the document type.)

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At which level are other purchasing documents (other than requisitions) released? (Header = document level)

Customizing including Message Determination

What does the item category determine? (Special procurement detail screens, required entries, GR necessary/allowed, etc) What does the account assignment category determine? (Account assignment object, field selection, account grouping, default or fixed values for GR, IR and non-valuated GR indicators) Can you define further item categories? (No) Which settings can you make for the item category? (Language dependent identifier, allowed combinations with account assignment category. In relation to document type: which item categories are allowed.) Can you define further account assignment categories? (Yes) What does the document type determine with regard to purchasing documents? (Number assignment, permissible combination of item and account assignment categories, which texts are printed. In the case of purchase requisitions: level of strategy determination/blocking/release. In the case of quotations: time-dependent condition. thus also scale. In the case of scheduling agreements: time - dependent condition (scale); release documentation.) Which parameter is used to differentiate between the output (as messages) of a newly created or changed purchase order and a reminder or urging letter (expediter) relating to the PO? (Message type) How can you ensure that the choice of the printer to be used for printing out purchasing documents depends on the purchasing group? (Partner determination "Purchasing group" activated in message type, no printer defined in message record, printer defined as output device for purchasing group).

Materials Planning / Forecasting

What is carried out first in the planning run, the net requirements calculation or the lot-size calculation? (Net requirements calculation = basis for lot-size calculation.) What is carried out first in the planning run, scheduling or the lot-size calculation? (Lot-size calculation, scheduling is carried out for the earliest date on which the lot is required.) How can you instruct the system to create a stock transfer requisition (item category U) for a requirement in one plant in your company? (In the material master record: Define a special procurement key for stock transfer from the appropriate plant, maintain a sufficient opening period if required, In Customizing: Enter the issuing plant in the special procurement key. 8 of 19

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In the planning run: Always create a purchase requisition or only in the opening period.) Where and at which level do you define the MRP procedure? (Material master record at plant level.) What effect do sales orders, planned independent requirements, reservations, and so on have in consumption-based planning? (In the planning run: according to Customizing settings, where in standard there is no effect in the planning run. During forecasting, forecasting requirements are consumed by sales order, etc., in the standard system (Customizing settings).) On what information are the various consumption based planning procedures based? Name the consumption-based planning procedures. (Reorder point: Manual and automatic reorder point planning. Forecast requirements: Forecast-based Planning and time-phased materials planning) Which consumption-based planning procedures use the forecast and how? (Automatic reorder point planning: Reorder point and safety stock are calculated on the basis of the forecast. . Forecast-based planning: The forecast determines forecast requirements and the safety stock. Time-phased materials planning: Same as forecast-based planning but Planning only carried out at certain times.) You need one piece of two components to produce one assembly. One of the two components is planned using MRP and other using manual reorder point planning. You must procure both components because no stock is available. The reorder point of the component planned with reorder point planning is 5, the lot size procedure used for both components is EX (lot-for-lot order quantity). For how many pieces will the system create order proposals if a planned order for 10 pieces exists for the assembly? Which of these settings should be corrected for a better result? (MRP components: 10 pieces Consumption based planning components: 5 pieces. Change lot-size procedure for consumption-based planning material: add the rounding value or minimal lot-size or change to Io-.size FX (fixed lotsize)) Name the 3 planning run types (NEUPL Regenerative planning NETCH Net change Planning NETPL Net change Planning in the planning horizon) What information is recorded in the planning file? (It contains all materials relevant to the planning run at plant level. For the material and plant it also contains information on whether changes relevant to the planning run have occurred (NETCH planning indicator/total change indicator) and whether these affect the planning period (NEWL planning indicator/net change planning indicator) Explain the 3 planning run types. (NEUPL: Planning is carried out for all materials to be planned (all materials in the planning file) and the system deletes the NETCH planning indicator and the NEWL planning indicator. NETCH: Planning is only carried out for materials with NETCH planning indicators (materials with changes since the last planning run that are relevant to MRP). Both planning file entries are deleted for this planning type. NETPL: The system only plans materials with the NETPL planning indicator (that is, materials that have undergone a change relevant to the planning run in the planning horizon). Here, the system only deletes the NETPL planning file entries.) 9 of 19

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When using the NETPL procedure, what must you bear in mind regarding the range of materials to be planned? (The system ignores any requirements outside of the planning horizon. Even if these materials later fall into the planning horizon, they are not token into account, until changes occur which affect the planning horizon. From time to time, one of the two procedures (NETCH or NEUPL) must toke place! Which changes relevant to planning made to materials after the planning run was carried out can you see in the MRP list? (None, the MRP list shows the planning status directly otter the planning run is carried out.) Can you make changes to MRP elements in the MRP list or in the current stock/requirements list? If yes, in which of the two lists? (Yes, in both lists but changes are only visible in the current stock/requirements list.) What determines whether a material is to be included in the total planning run? (Planning has been activated for the plant, the planning file has been set up, MRP data has been maintained in the material master record, depending on the planning type: whether the appropriate planning file entry/indicator is set in the planning file.) What determines whether the system creates MRP lists, planned orders and purchase requisitions in the planning run? (If the material is included in the planning run on setting for MRP list creation, the Procurement type, settings for purchase requisition creation and the opening period, if applicable.) What are the prerequisites for the system automatically assigning a source of supply for external procurement to a receipt element created during the planning run? (Either a source list must exist with a uniquely identified source of supply for each MRP indicator, or a quota arrangement.) How can you recognize that procurement elements should be rescheduled in the MRP screen (rescheduling proposals)? (Exception messages and additional date displayed in the MRP list or in the stock/requirements list,) How can you find out for which procurement elements the system proposes rescheduling in the planning run? (Collective display of MRP list filters by the exception message groups.) How con you recognize whether a planned order is firm and what is meant by this? (Asterisk(*) to the right of the planned order in the MRP list or in the stock/requirements list. If a planned order is firm, it means that it wl11 not be changed automatically in the following planning runs.) How can you find out which MRP lists are still to be checked/processed? You especially want to exclude those MRP lists that you have already checked/processed. (Collective display of MRP list, filter by MRP group and other Parameters, in Particular, you should set the 'all unprocessed MRP lists' indicator provided you have manually set the processing indicator in all MRP lists processed (when processing the MRP lists) Which times does the system toke into account when scheduling for external procurement and where are they entered? (Goods receipt processing time: Material master record Planned delivery time: Material master record/Source of supply (if it is assigned and if the customizing setting allows use of info record/outline agreements) Purchasing department processing time: Customizing for plant Parameters/MRP group, Opening period: Material master record/Customizing scheduling margin key) 10 of 19

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At which levels can you plan? (Plant, moreover, you can plan storage locations separately, or you can exclude storage locations from the planning run.) At which level is the forecast carried out? (Plant). How many receipt elements are created and which quantities are procured if a requirement of 160 pieces exists. 10 pieces are available and the following conditions exist: a) lot-for-lot order quantity: 150 pc (1) b) Fixed lot size 100: 2 x 100 pc (2) c) lot-for-lot order quantity with rounding value 100: 200 pc (1) d) lot-for-lot order quantity with minimum lot size 50: 750 pc (1) e) lot-for-lot order quantity with minimum lot size 200: 200 pc (1) f) lot-for-lot order quantity with maximum lot size 100: 100+50pc (2) g) Replenishment up to maximum stock level 500: 490 pc (1) The above lot-sizing procedures can be grouped together. What is the generic term given to this group of lot-sizing procedures? (Static lot sizes) Which costs are taken into account by the optimum lot-sizing procedures? (Order costs and warehouse costs) Why can't the optimum lot-sizing procedures produce 100 % results? (They are heuristics. which means that they are based on assumptions. which more or less match the reality.) Can you assign several lot sizes to a material in one plant? (Yes, although depending on periods - short-term, long-term) Explain the terms MRP controller, MRP group, MRP profile. Are firmed order proposals considered available in the calculation of the shortage situation? (Yes) Which forecast model would you use if your sales of ice cream are on the increase, but are also dependent on the season? (Seasonal trend model) Which methods are available for carrying out the forecast model selection? (Manual or automatic) When can the system not calculate a safety stock? (Service level = 0) Can you change the forecast values manually? (Yes) How do you prevent certain forecast values from being changed by subsequent forecasts? (Firming) You want to manage your consumption and forecast values monthly but you want weekly requirements. How can you do this? (period indicator: month, Splitting indicator: week) How do you instruct the system to create subcontracting purchase requisitions in the planning run in a plant for a certain material and dependent requirements for provided materials? (Subcontractor material: Special procurement key 'Subcontracting', BOM with the provided components Components / provided materials: MRP) How do you determine the procurement type? Are you able to change the procurement type? (Material type: internal or external procurement possible, with warning possible, not possible. You are able to change the procurement type in 11 of 19

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material master only if internal and external procurement is allowed.) For which elements can you set the planning period and the rescheduling period? (Plant (parameter), MRP group) What are the priorities for determining parameters that can be maintained in the MRP group and in the plant parameters? How does the system determine the validity of an MRP group for a material, and how does this affect the order of priority? 1. MRP group assigned to material, 2. MRP group assigned to material type, 3. Plant parameters. 4. Only for creation indicator in the planning run initial screen data (or, in the case of a background job, the respectively assigned variant for the initial screen). Is the safety stock available? (You can set the percentage of the safety stock to be available, Standard: 0). You are implementing SAP and want to carry out a total planning run weekly in the plant. Which preconditions do you have to fulfill? (You must activate MRP in the plant, the planning file has to be setup, you must have maintained the plant parameters, MRP controllers have been maintained for the relevant materials, if necessary, you have defined background jobs.)

Inventory Management (Incl. Special Procurement) / Physical Inventory

If you do not have the QM (Quality Management) module, you specify whether the quantity is posted to unrestricted-use, quality inspection or blocked stock when you post the goods receipt. Which presettings can you carry out and how? (You can set the quality inspection indicator in the material master. The indicator for posting to GR stock is then set at GR, but you can overwrite this manually.) What is the difference between blocked stock and GR blocked stock? (GR blocked stock has been accepted with certain reservations and still belongs to the vendor. It does not belong to valuated plant stock but is displayed in the stock overview at plant level. GR blocked stock can be posted to the company's own stock. In this case, it is valuated and placed in storage. Blocked stock is part of the company's own stock. It is managed in the warehouse, but is not for unrestricted use, for example, due to quality defects.) What is the difference between planned and unplanned consumptions? (Goods movements can be planned in advance using reservations. In this process, the system is aware of these movements or requirements in advance. The movements are posted with reference to the reservation (directly or with reference to the initiator. for example, production order). The details of the posting (material, quantity. account assignment ...) are already contained in the reservation, therefore, whenever you post a goods movement you only have to choose the reservation items that are to be posted and, if necessary, correct quantity variances. You can make several partial postings. The system updates the reservation when goods are posted. In contrast unplanned consumptions are posted as an issue to the account assignment object (for example, order) without reference. The system does

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not register these consumptions until after the goods issue has been posted. You must specify all required parameters during posting.) According to the bill of material, a production order requires 10 pieces of a material. But only 8 pieces are requested for the issue date and the remaining 2 pieces are no longer needed, because they are already available from previous orders. What are the implications of this? What needs to be done? (A reservation for 10 pieces was created using the production order. You must post 8 pieces to the demand source with reference to the reservation or to the order (planned consumption posting). The reservation is updated accordingly, but is still open due to the two remaining pieces. You must therefore close the reservation.) What problems arise when you carry out an unplanned consumption posting when a reservation exists? (The system does not update the reservation and the full amount in the reservation remains open. The system therefore registers unrealistic requirements and this may result in this material being procured. In the production order, the withdrawal is listed as unplanned and therefore as an additional withdrawal.) Can goods receipts be planned in advance using reservations? (Yes) In which cases are reservations appropriate for goods receipts? (For GR without purchase orders or other receipt elements, so that the planned receipts are in the system) What options do you have to carry out goods movements between different plants within your group? (One-step transfer posting plant to plant. two-step transfer posting plant to plant requisition using stock transport order at the supplying plant and GR for purchase order without SD (goods issue in issuing plant using separate movement type in MM) requisition using standard purchase order and GR for purchase order with SO without billing requisition using standard purchase order and GR for purchase order with SO and billing) Can you book out a quantity that is greater than the quantity in stock according to the system? (Yes, but only if negative stocks are allowed) Which entry tool at Goods Issue facilitates the determination of storage locations with stocks? (You enter an asterisk (*) for the storage location.) You want to send material for subcontracting to the subcontractor. Which posting do you carry out? (Transfer posting to stock with subcontractor) When do you make a consumption posting for materials that are in use at the subcontractor? (At GR of the material manufactured by the subcontractor and, if necessary, at subsequent adjustment) How many items does a material document contain when it is used to make a transfer posting for on individual material from quality inspection to unrestricted-use stock? (2 items) Under which circumstances can you set the "delivery completed'" indicator (manually). (When entering the GR only. After posting, you can only do this in the purchasing document, but not in the material document). You have posted the wrong quantity at GR. How do you rectify this? (You reverse the GR with reference to the original material document and re-enter the GR with the correct quantity). What is the difference relevant to valuation between reverse postings with and without reference to the material document that is to be 13 of 19

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cancelled? (With reference: reversal is carried out at the same value as the original movement, without reference: reversal is carried out at the current price contained in the material master) How do you post different stocks (for example, blocked, unrestricteduse stock) with reference to an individual purchase order item within one material document? (You reference the purchase order item several times and then change the quantity and the stock indicator for the individual items in the material document.) Can you reference different purchase orders in one material document? (Yes. you can reference each purchase order more than once and can reference different purchase orders within one material /document.) Can you use different movement types in one material document? (Yes. you can change the movement type. for example, using the Process default values function) In the purchase order you have specified a purchase order price unit which is different from the order unit. What should you do at goods receipt? (At GR the quantity is required in both units of measure. If you do not enter the quantity for both units of measure, the system calculates the quantity in the second unit of measure from the conversion of the quantity that has been specified, but you must check this value and, if necessary, correct it.) In which unit of measure are stocks valuated if a different purchase order price unit is used during procurement? (The quantity is always valuated in the base unit of measure.) How do you transfer stocks from the legacy system? (You use the appropriate movement type, whereby you can import the data via batch input.) You receive a message "On the <date> only 0 pieces available", although stock is available in the storage location in question. What do you conclude from this? (There are reservations for which stock is required.) How are goods movements documented in MM? (Material documents) How are goods issues that are posted by sales and distribution (SD) documented? (Also by material documents. The SD function uses an MM movement type for posting.) What are the effects of a goods receipt? (Material document and, maybe, accounting document, if required printing of document, maybe, update of G/L accounts, maybe, update of stock quantities and values, maybe, update of production orders, purchase order history, maybe, mail to buyer) When is no accounting document created for a goods movement? (When a value flow does not occur, for example, transfer posting to stock of material provided to vendor, GR for consignment or for delivery free of charge or to GR blocked stock, goods Issue of a non-valuated material). At which level is physical inventory carried out in Inventory Management? (Material/plant/storage location/stock type) Describe the physical inventory process! Why is, normally, the goods receipt of a material belonging to material type UNBW (non-valuated) not a delivery free of charge? (The material is managed using the value 0, but procurement of the material

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is, normally, not free of charge.) What happens to the costs of a material belonging to material type UNBW (non-valuated)? (At goods receipt these are posted to the consumption account to which the purchase order item has been assigned.)

Effects of Basic Data and Purchasing on Inventory Management (Special Procurement / Quantity Flow / Value Flow)
Describe the quantity and value flows for materials that are managed on 0 quantity and value basis (for example, material type ROH) (Quantity and value are posted to stock (inventory posting) or to consumption (consumption account/account assignment object). Describe the quantity and value flows for materials that are managed on a quantity basis, but not on a value basis (for example, UNBW). (The quantity is posted to stock with the value 0 but the value of the material is posted to consumption. An account must be assigned to the purchase order. The issue of the material is 0 valued.) Describe the quantity and value flow for materials that are managed neither on a quantity nor on a value basis (for example, NLAG). (Quantity and value are posted to consumption. The purchase order must be assigned to an account.) Can you post a greater quantity than is stated in the purchase order item for a GR for purchase order (open quantity)? (Yes, but only if the purchasing value key allows unlimited overdelivery or a sufficient overdelivery tolerance). Briefly explain the process of subcontracting! Briefly explain the process of transferring stock from plant to plant. Briefly explain the process of consignment. When is the '"delivery completed" indicator automatically set at GR? (When automatic setting is activated in Customizing and the total GR quantity entered is within the tolerance interval.) Can you enter a goods receipt for a material for which the storage location view of the material master concerned has not yet been created? (Only if the "Create storage location automatically'" function is activated) For which levels or parameters must the '"Create storage location automatically" function be activated? (Plant and movement type) For which levels do you define that negative stocks are allowed? (Valuation area, storage location)

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Invoice Verification (Incl. Customizing)

In which cases would the stock or consumption account be credited with the cash discount amount? (Net posting at GR or IR) When is the cash discount amount deducted in cases where both GR and IR are posted gross? (In the FI payment run) How can you assign unplanned delivery costs to an account? (Distribute them in proportion to the amounts posted so far; You can enter them after the original invoice has been posted using the subsequent debit/credit indicator and assign them to a material (stock account) or a G/L account (consumption account)). Which variances lead to on invoice being blocked? (Price, quantity, date, order price quantity) When does a price variance not lead to an invoice being blocked? (When the variance is within a tolerance or if the price invoiced is lower than the price in the purchase order.) If, in an invoice, an item for $ 100 is blocked, and 2 further items for a total of $ 200 are not blocked, how much is the vendor paid in the next payment run (without tax)? (Nothing. since there is a blocking indicator in the vendor line and the whole Invoice is blocked for payment.) Why is the message issued by the system about a payment block not on error message? (You would not be able to post the invoice.) What is a stochastic block? (A certain percentage of all invoices in excess of a predefined amount are randomly blocked for payment.) Which blocking reason always leads to a payment block when the invoice is posted before the goods receipt? (Quantity block) An invoice is entered before the goods receipt is posted and is blocked due to quantity variance. The goods receipt is then entered for the quantity invoiced, invalidating the blocking reason. How does the system react? (The block remains as it is. You can either release the invoice manually or have it released automatically by the system by selecting the "automatic release" function. If the invoice does not contain any other block, it is released for Payment.) Which options do you have for releasing on invoice manually? (Individual release or col1ective release) Can invoices be blocked manually? (Yes) Can you post on invoice if the balance is not zero? (No, you can only park it) What must be considered if you enter an invoice before the goods receipt is Posted? (There are no default quantities or values. Block is set for quantity variance where there is purchase order reference.) You defined good-receipt-based Invoice Verification, but the invoice arrives before the goods receipt. Can you enter the invoice? (Yes, but you con only park it. After the goods receipt is posted, you can correct the invoice if required and then post it.) To which documents can you refer to when entering an invoice for which goods-receipt-based Invoice Verification has been defined? (Delivery note, GR material document, purchase order document)

Can you delete a posted invoice? (No, you can only cancel the transaction by creating another document that reverses it) Can you delete a parked invoice? (Yes) How do you enter a credit memo that does not result in the quantity invoiced being changed? (You enter a credit memo selecting the subsequent credit indicator and enter the value and also the quantity to which the value change refers.) How do you enter a credit memo that results in the quantity invoiced being changed? (You enter a credit memo without selecting the subsequent credit indicator. The total quantity and value invoiced are set as defaults. If the credit memo does not refer to the full quantity, you must change the quantity and the value.) Which system-side requirements must be fulfilled before you can use evaluated receipt sett1ement (ERS)? (ERS Indicator selected in the vendor master, material not excluded from ERS in the info record) When do price and quantity variances occur during the ERS run? (Never, since the quantity and price are always taken from the purchase order or goods receipt.)

Account Determination / Valuation

On which levels can you valuate materials? (Company code or plant level, valuation types) For what periods are stocks and values managed in the material master'? (Current period, previous period, last period of the previous year) What is the function of the period closing program? (Converts the current period, switches the current period to the previous period, transfers the data for the current period to the previous period (and also to the previous year when there is a change in fiscal year) You want to carry out a posting for a goods movement that was carried out 3 months ago, but has not yet been posted. Which posting date do you use? (As postings can only be carried out in the current or usually the previous period, you can no longer enter the posting for that date, but can only use a posting date from those two periods.) Which parameters are used to control the account determined for each accounting transaction? (Valuation grouping code, valuation class, (general) account grouping (code), (debit/credit) How do you control which of the parameters mentioned are used? Which preconditions have to be met? (Working with valuation grouping codes has to be activated. As far as the parameters used for each accounting transaction are concerned you use rules to control which of the parameters are actually used for account determination) What is the purpose of the account grouping code? (Valuation areas are grouped together so that account determination is the same for them, thus reducing the volume of data to be maintained.) Can you assign more than one valuation class to a single material master record? (Yes, you assign a valuation class to every valuation area, or in the case of

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split valuation, to every valuation type.) Can you assign materials of different material types the some valuation class? If so, how do you do this? (Yes, by assigning the material types the some account category reference.) What is a valuation class? How is it used? What is the purpose of the (general) account grouping code? (To distinguish between account determination of certain accounting transactions: offsetting entries (such as consumption and inventory), price differences.) Which parameter is used to find and control (general) account grouping? (Valuation type and account assignment category. Account grouping is only allowed for certain accounting transactions, such as offsetting entries, price differences.) Which parameter controls which accounting transactions are possible for each movement type? (Value string) Can account determination be configured if no accounts exist? (Yes, but a warning message is displayed.) Which problems can occur in conjunction with field control of G/L accounts? (Inconsistencies with the field control of the movement type.) Why can stock accounts only be posted to automatically and not manually? (Auditing reasons/they must match up with the value of the Postings and accounting documents.) Why can you not change the valuation price of a material manually in the material master? (Every change in value must be documented by an accounting document; the difference amount is assigned to an account.) How do you change the stock value of a material? (Separate transactions (price change, debit and credit, future price). Balance sheet valuation methods (lowest value, LIFO, FIFO). Product costing, material ledger closing) Under which circumstances can a goods issue lead to a price change? (When a goods issue is posted and an amount is entered In the 'local currency' field that differs from the valuation price and the material is valuated at a moving overage price.) You post a goods issue for a material valuated at a standard price and enter a value In the 'local currency' field that does not match the value according to the standard price (quantity * standard price). What happens to the difference between the value that you entered at the time of posting (local currency) and the value according to the standard price (quantity * standard price)? (The difference account is posted to) Under which circumstances does a goods receipt for a purchase order for materials posted to stock lead to a change in the value of the valuated stock? (Only If MAP is used: valuation price differs from the order price or price in invoice) Under which circumstances does on invoice receipt for a purchase order for materials posted to stock lead to a change In the value of the valuated stock?

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(Only if MAP is used: invoice price differs from valuation price and the GR is posted before the IR.) Under which circumstances is a posting mode to a difference account when a goods receipt for a purchase order is posted to stock? (Standard price: valuation price differs from order price or invoice price) Under which circumstances is a posting mode to a difference account when an invoice is received for a purchase order for materials posted to stock? (Standard price: valuation price differs from invoice price; MAP: valuation price differs from invoice price, stock (or at least a part of it) already issued (GR before IR) Are accounting documents usually created for the following postings? Transfer posting from material to material Yes (stock) Material type ROH, GR for PO posted to stock Yes (stock) Material type UNBW, GR for PO to stock Yes, but with account assignment Transfer posting from plant to plant in one step Yes (stock) Transfer posting from plant to plant in two steps: removal from stock Yes (stock) Transfer posting from plant to plant in two steps: Putaway No (already in plant stock) GR for PO with account assignment, GR not valuated No (only at IR) GR for PO with account assignment, GR valuated Yes (Consumption) GI of a raw material (ROH) Yes (stock) GI of a non-valuated material (UNBW) Yes (value=0) What are the problems involved in posting a goods receipt without a purchase order reference despite the existence of a purchase order? (PO history; LIS and EIS; dunning procedures; GR/IR account is not posted to; when invoice arrives referencing PO, GR/IR account is posted but cleared by unrealistic posting to stock or difference account.) What are the problems involved in entering a wrong price in a purchase order (for example, $ 0.01)? (It the goods receipt is valuated, it is valuated at the wrong price. If goods are issued before the invoice arrives, the issue is also valuated at the wrong price and is not corrected. When you enter the invoice, the invoice is blocked for payment due to a price difference.)

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