Chapter 4The Procurement Process
True-False Questions
1. Storage locations are places within a plant were materials are kept until they are needed.
Answer: True Difficulty: Easy Page Reference: 2Section: Storage Location Practice:
2. There can only be one storage location within a plant.
Answer: False Difficulty: Easy Page Reference: 2Section: Storage Location Practice:
3. A storage location is a key organizational element in purchasing.
Answer: True Difficulty: Medium Page Reference: 2Section: Storage Location Practice:
4. A purchasing organization is involved only in negotiating prices with vendors
Answer: False Difficulty: Difficult Page Reference: 3Section: Purchasing Organization Practice:
5. Typically, there are three models of purchasing organizations: enterprise-level, company-level, and plant-level.
Answer: True Difficulty: Medium Page Reference: 4Section: Purchasing Organization Practice:
6. The enterprise‐level purchasing organization is also known as the cross‐company code purchasing organization.
Answer: True Difficulty: Medium Page Reference: 4Section: Enterprise-Level Purchasing Organization Practice:
7. The company-level purchasing organization is the most centralized model.
Answer: False Difficulty: Medium Page Reference: 4Section: Company -Level Purchasing Organization Practice:
8. The enterprise-level purchasing organization is the most centralized model.
Answer: True Difficulty: Medium Page Reference: 4Section: Enterprise-Level Purchasing Organization Practice:
9. A plant can belong to more than one company code.
Answer: False Difficulty: Medium Page Reference: 4Section: Company-Level Purchasing Organization Practice:
10. The most decentralized model of purchasing organizations is the plant‐specific purchasing organization.
Answer: True Difficulty: Easy Page Reference: 5Section: Plant-Level Purchasing Organization Practice:
11. A purchasing group is an internal group that is responsible for executing the procurement process.
Answer: False Difficulty: Medium Page Reference: 6Section: Purchasing Group Practice:
12. A purchasing organization is an individual or a group of individuals who are responsible for purchasing activities for a material or group of materials.
Answer: False Difficulty: Medium Page Reference: 7Section: Purchasing Group Practice:
13. Vendor master data include the data needed to conduct business with a vendor and to execute transactions related to the procurement process.
Answer: True Difficulty: Medium Page Reference: 9Section: Vendor Master Practice:
14. The method used to value material is defined in the material master.
Answer: True Difficulty: Medium Page Reference: 8Section: Material Master Practice:
15. Different material types have different required material views.
Answer: True Difficulty: Medium Page Reference: 7Section: Material Master Practice:
16. General data related to a vendor are accessible to all company codes in a client.
Answer: True Difficulty: Easy Page Reference: 10Section: Vendor Master Practice:
17. Purchasing data related to a vendor are accessible to all purchasing organizations.
Answer: False Difficulty: Easy Page Reference: 11Section: Vendor Master Practice:
18. Material master data can be defined differently for different organizational levels.
Answer: True Difficulty: Medium Page Reference: 11Section: Vendor Master Practice:
19. A purchasing info record is an intersection or combination of material and accounting data.
Answer: False Difficulty: Medium Page Reference: 12Section: Purchasing Info Record Practice:
20. Accounting data related to a vendor are accessible to all clients in a company code.
Answer: False Difficulty: Medium Page Reference: 11Section: Vendor Master Practice:
21. Item categories in a purchase order determine the process steps used to procure materials.
Answer: True Difficulty: Easy Page Reference: 13Section: Item Categories Practice:
22. Consumable materials are acquired to be used within an organization.
Answer: True Difficulty: Easy Page Reference: 14Section: Account Determination Practice:
23. When purchasing consumable materials, an account assignment category and specific account assignment objects must be provided when the purchase order is created.
Answer: True Difficulty: Medium Page Reference: 16Section: Account Determination Practice:
24. A goods movement is not required when changing the status of material from “in quality inspection” to “unrestricted use”.
Answer: False Difficulty: Difficult Page Reference: 17Section: Goods Movement Practice:
25. A plant-to-plant movement of goods does not generate an accounting document.
Answer: False Difficulty: Medium Page Reference: 18Section: Goods Movement Practice:
26. A goods receipt cannot be accomplished without a movement type.
Answer: True Difficulty: Medium Page Reference: 18Section: Goods Movement Practice:
27. A stock transfer does not involve a change in storage location.
Answer: False Difficulty: Difficult Page Reference: 18Section: Goods Movement Practice:
28. A transfer posting changes the stock status of a material and need not involve a physical movement of goods.
Answer: True Difficulty: Easy Page Reference: 19Section: Goods Movement Practice:
29. A goods movement is a transaction that causes a change in stock value or status.
Answer: True Difficulty: Medium Page Reference: 17Section: Goods Movement Practice:
30. Materials cannot be moved from one company code to another because each company code uses a different set of books.
Answer: False Difficulty: Difficult Page Reference: 18Section: Goods Movement Practice:
31. A transfer posting is used to move materials from one storage location to another.
Answer: False Difficulty: Easy Page Reference: 19Section: Goods Movement Practice:
32. A transfer posting does not generate a material document.
Answer: False Difficulty: Medium Page Reference: 19Section: Goods Movement Practice:
33. Requirements for materials must be created manually.
Answer: False Difficulty: Difficult Page Reference: 21Section: Requirement Determination Practice:
34. The data needed to create a purchase requisition are the item category, quantity, desired delivery date, and desired delivery location or receiving plant.
Answer: True Difficulty: Medium Page Reference: 22Section: Requirement Determination Practice:
35. A requisition represents a legal obligation to make the purchase.
Answer: False Difficulty: Medium Page Reference: 22Section: Requirement Determination Practice:
36. The header section of a purchase order contains information such as purchase order number, vendor, currency, dates, and payment terms.
Answer: True Difficulty: Medium Page Reference: 26Section: Order Processing Practice:
37. The primary task of the order processing step is to create and send the purchase order to the vendor.
Answer: True Difficulty: Easy Page Reference: 27Section: Order Processing Practice:
38. SAP cannot utilize any media except Web services to communicate a purchase order to a vendor.
Answer: False Difficulty: Easy Page Reference: 28Section: Order Processing Practice:
39. Materials ordered in multiple purchase orders must be delivered in multiple shipments.
Answer: False Difficulty: Medium Page Reference: 29Section: Goods Receipt Practice:
40. The material master is updated after the invoice verification step of the procurement process has been completed.
Answer: True Difficulty: Easy Page Reference: 36Section: Invoice Verification Practice:
41. The material master is updated after the goods receipt step of the procurement process has been completed.
Answer: True Difficulty: Difficult Page Reference: 32Section: Goods Receipt Practice:
42. Tolerances for price variations among purchase orders, invoices, and goods receipts are allowed, but tolerances for quantity variances are not.
Answer: False Difficulty: Difficult Page Reference: 33Section: Invoice Verification Practice:
43. Invoice verification authorizes payment of the invoice to the vendor.
Answer: True Difficulty: Easy Page Reference: 36Section: Invoice Verification Practice:
44. Payments must be made automatically through a payment program.
Answer: False Difficulty: Medium Page Reference: 37Section: Payment Processing Practice:
45. Electronic payments are sent automatically.
Answer: True Difficulty: Medium Page Reference: 38Section: Payment Processing Practice:
46. Work lists display lists of master data and documents that are generated during the execution of a process.
Answer: False Difficulty: Difficult Page Reference: 41Section: Work Lists Practice:
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