Procurement Cycle consists of Determination of requirements Determination of source of supply Vendor Selection Purchase order handling Purchase order monitoring Goods Receipt Invoice Verification Payment Processing Purchase order creation.
Procurement involves Procurement cycle Stock transfer with stock transfer order stock transfer order subcontracting consignment.
Price Comparisons makes it easier to select vendors select customers select vendor partners Rejection letters are sent automatically to vendors who are not selected.
When we enter inbound deliveries in system we refer to Associated purchase orders Associated purchase requisition Subcontracting Purchase History.
why do we check inbound deliveries with associated PO It allows the amount of entries that needs to be made It allows you to check whether the goods and quantities delivered matches the PO it updates the po history of PO It checks the amount of entries that needs to be made.
when entering invoices for invoice verification we refer to Previous PO PO Goods Receipt Previous goods receipt.
Vendor debts are paid using payment program invoices good receipt purchase order.
with stock transfer with stock transport orders goods are procured and delivered in one company goods are procured i one company nand can be delivered in different company in a client goods are procured in one company and delivered in different company only goods are procured in one company and delivered in a different plant The plant that requires the materials orders the materials from other plant that can supply materials It involves not only inventory management but also purchasing in a different plant.
In STO the stock is managed in Special Stock Material Stock Special Item Category Special Item.
We can only use inventory management functions to map stock transfers of materials between plants w/o STO True False.
With subcontracting we We order material from external vendor or subcontractor We provide the subcontractor with some or all components for production of material We order an end product with a subcontract PO The components provided to the subcontract are not physically available in the plant but are managed in stock The components provided to the subcontract are not physically available in the plant and are not managed in stock The information shown under special stock type is Stock Of Material Provided To Vendor.
During subcontracting when the subcontractor has completed the service He deliveres the finishe or refined material The GR is also entered with reference to Subcontract Order The receipt of end products and consumption of components provided to vendor are correctly posted subcontractor finally writes the invoice for service rendered There is no GR entered with reference to Subcontract Order.
wrt vendor consignment which one is correct Vendor provides us material that we store , but we do not need to pay for it The vendor remains the owner of the material until we remove them from consignment store. We control the procurement process with a purchase order using special indicator called item category A credit memo is produced and an appropriate message is generated to the vendor We control the procurement process with a purchase order using special stock indicator L We control the procurement process with a purchase order using special stock indicator K.
Levels of organizational process Client Company Code Plant Storage Location Purchase Organization or Purchase Group Purchase Group.
Smallest organization unit of external accounting Company Code Plant Storage Location Client Vendor Subcontractor.
Access Authorization is assigned on Client Specific basis User Specific basis Plant Specific basis Company Specific basis.
A company code is defined b 4 character alpha numerickey unique in client 3 character alpha numerickey unique in client 3 character alpha numerickey 4 character alpha numerickey.
An organization unit that subdivides an enterprise wrt production,procurement,plant maintenance, and materials planning Plant Company Client Storage Location.
The organizational unit that facilitates the differentiation of stocks of materials within a plant Plant Storage Location defined by 4 character aphanumeric key Company Client Storage Location defined by 3 character aphanumeric key.
wrt organization levels and their assignment to each other A key of a plant is unique in a client A plant can only belong to one company code A plant can only belong to one storage Location A plant can only belong to client directly.
Choose the correct statement wrt organisational levels A client can contain several company codes A company code can contain several plants Several storage locations can be assigned a plant, but a plant can be assigned only one storage location A plant cantain many storage locations.
A unit in logistics that divides the enterprise according to purchasing requirements Purchase Organization Purchase Group Vendor Schema Purchase Department.
Purchasing can be Centralised Decentralised Locationwise Plant wise.
Choose the correct statement wrt Purchase Organization We can assign several purchase organiztion to one company code However a specific pur org can only belong to one company code. we can assign several plants to one purchase organisation we can assign one plant to several purchase organisations.
A formal request to a vendor to supply us with goods or sevices with conditions stated Purchase Order Purchase Requisition Production Order RFQ.
The GR and Invoice Verification are carried out on the basis of PO Purchase Requisition RFQ Vendor Selection.
We can minimize our data entry time by creating PO with reference to existing PO,purchase requisition,quotation , or contract True False.
You can issue message by printing,EDI,Fax Immediately Issue Later Issue in intermittent intervals Never issue at all.
When we go to customizing for print/transmit message, the processing status 0 means Not Processed Processed Partially processed Cannot be processed at all.
In customizing for messages when we select processing status 0 The system displays all those messages that have not been issued The system displays all those messages that have been issued The system displays all those messages that cannot be issued The system displays all those messages that will be issued later.
When Goods are delivered against PO It is important to enter GR The system suggest all open items from PO Fecilitation of both entry and checking of incoming goods It is important to enter IR.
The checks during GR against PO facilitates the following The right materials is delivered The right qty is delivered and whether there is an over or under delivery Perishable goods are within SLED The right materials is delivered at right time.
wrt Material Document , choose the correct statement It is generated when we post GR It contains info on Material Delivered and Relevant Qty Relevant storage location in which material is placed in storage or put away. It is generated when we post IR.
If GR is valuated Accounting document is generated in addition to Material document Material document is generated Both Material and Accounting document is generated It contains accounting effects of material document.
If a purchasing organisation wants to procure materials and services for several plants of a company code then We can set up cross plant Purchase organisation within a same company code We can set up cross plant Purchase organisation within a different company codes. We can set up cross plant Purchase organisation within a same plants We can set up cross plant Purchase organisation within different storage locations.
If a purchasing organisation wants to procure materials and services for several plants of different company codes then We cannot set up cross company Purchase organisation within a same company code We can set up cross plant Purchase organisation within a different company codes. We can set up cross plant Purchase organisation within a same plants We can set up cross plant Purchase organisation within different storage locations.
when entering a goods movement we must indicate a Movement Type PO document material number RFQ Number Transaction Type Transaction Code.
The movement type is Three Character Key It is used to differentiate between goods movements like GR , GI, Transfer Postings It plays a central role in automatic account determination Affects the screen layout for document entry or updating the quantity fields Four Character Key It plays a central role in automatic material determination.
Goods receipts happen in a single screen transaction True False.
Goods receipt is divided into Overview Tree Header Data Item Overview and Item Detail Grouped tab information in header and Item detail views Grouped tab information in Item overview and Item detail views.
The entering of invoice completes the procurement process which comprises PO and GR True False.
Logistics invoice verification is a part of Materials Management Invoicing management Goods management Invoice Receipt Management Goods Receipt Management.
We use logistics invoice verification for Entering Invoices and Credit Memos for Check Invoices and Credit Memos for arithmetical correctness for Make sure that right price for right material or service is charged for Entering Invoices and Goods receipts Not for payment and evaluation of open liabilities Creating a link between materials management and external or internal accounting.
When invoice is posted Data from invoice is saved in system Invoice document is generated Accounting document is generated The saved data data is updated in Materials Management (PO history) and Financial Accounting Only Accounting Data from invoice is saved in system.
Descrepencies between PO and GR is handled with a warning message Blocks the invoice depending on system settings so that it cannot be paid is handled with a Error message goes ahead witht invoice depending on system settings.
In invoice verification we enter Vendors Invoice such as gross amt,VAT,Invoice Date Reference Terms of payment Vendors name and address.
Invoice Entry consists of Transaction and header data Assignment for proposing the invoice items to be processed Invoice Items and Vendor Data Balance and PO structure Items Details and Overview screen.
The BOOKING OK indicator in invoice transaction is like Item OK indicator of GR is not like Item OK indicator of GR selects already checked and processed items has no effect whether or not the item is taken into account when the invoice is posted Effects surface when the invoice is posted.
A plant can be assigned to several company codes True False.
Which procurement process normally end with GR and not with Invoice date Procurement from other plant in company using STO Stock transfer of materials using subcontracting Normal purchase of material from vendor without provision of components Procurement of material by consignment.
Organizational levels relevant for procurement process Client Company Code Plant Storage Location Purchasing Organization Purchasing Group.
A purchasing organization can act for several plants True False.
A purchasing group must always assigned to purchasing organization True False.
A purchasing organization must always be assigned to a company code True False.
You can create a PO with reference to Pur.Req True False.
List 4 screens in PO transaction Header Item overview Item detail Document overview and Help Item Data screen.
Which Organization levels do you have to indicate while making a PO Client Plant Storage Location Purchasing organization Purchasing Group company code.
Possible output messages Print EDI Fax Telephone.
Effects of GR against PO in system The PO is deleted An Accounting document is generated Material document is generated for each item The PO history is updated for each item of PO A material document is generated A credit memo is automatically generated for vendor for the amount of delivery value.
We cannot enter a goods movement without indicating a Movement Type Transaction Type Amount Transaction Code Items OK Indicator.
Pieces of info that we can find in a vendor invoice Invoicing Party The Reference The Invoice Date Terms of pmt Invoice Amt. tax rate tax amt Qty of individual item Amount of individual item.
what can we enter in MIRO Subsequent Delivery Subseqent Debit Invoice Subsequent Adjustment Credit Memo Transfer posting.
Which settings can be made for account assignment categories? The field selection for all fields of a purchase order item can be
defined based on the account assignment category. The field selection for the account assignment fields of a
purchase order item can be defined based on the account
assignment category. New account assignment categories can be created in
customizing The field selection for all fields of the purchase order header can
be defined based on the account assignment category.
Which of the following objects can you reference when you enter an invoice in Logistics Invoice Verification? A material document A vendor delivery note A purchase order A different invoice from the vendor A service entry sheet.
What do you have to take into account regarding keys for organizational levels? You can use the same keys for storage locations in each plant You must use numeric keys You must use different keys for plants and company codes You can use the same keys for plants in each company code.
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