Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ERP > Ch. 4 > Flashcards

Ch. 4 Flashcards

1
Q

It is also known as purchasing or requisition-to-pay process.

A

Procurement Process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

3 types of procurement process

A

Direct procurement
Indirect procurement
Service procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Defined as a strategic process to streamline an organization’s operations to ethically purchase quality goods and services from suppliers to realize business objectives of saving cost, reducing time, and improving profitability.

A

Procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Acquisition of goods, materials, and/or services for manufacturing purposes.

A

Direct procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sourcing and purchasing materials, goods, or services for internal use.

A

Indirect Procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Procuring and managing the contingent workforce and consulting services

A

Service Procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Subtypes of procurement process

A

Standard
Subcontracting
Consignment
Stock transfer
External Service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Getting finished material from the vendor.

A

Standard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Providing raw materials to the vendor and getting finished materials.

A

Subcontracting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Procuring material that is kept in the company’s premises and paying to the vendor for that.

A

Consignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Getting material from within the organization.

A

Stock transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Getting services like maintenance from a third-party vendor.

A

External service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Determine what kind of materials and services are required by a company and the proper source (vendor) of supply that fulfills our requirements.
Asking Approval of Purchase Requisition.
Materials
Services
Required delivery date
Quantity needs to be prepared

A

Purchase Requisition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Is a document issued by the purchasing department to the vendor which describes the interest of a buyer to buy a certain quantity of a material at a certain price from a specific vendor. This is created with a reference to the purchase requisition documents.

A

Purchase Order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Major organizational levels associated with the procurement process.

A

Client
Company Code
Plant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Three additional organizational data that are relevant to purchasing

A

Storage location
Purchasing Organization
Purchasing Group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

These are places within a plant where materials are kept until they are needed.

A

Storage location

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Unit within an enterprise that performs strategic activities related to purchasing for one or more plants.

A

Purchasing Organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Three models of Purchasing Organization

A

Enterprise level (Cross Company Code)
Company level (Crossplant Model)
Plant level (Plant Specific)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The most centralized model.
Purchasing Organization is responsible for overall enterprise.

A

Enterprise level (Cross Company Code)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Less centralized than the enterprise-level model.
Purchasing organization is responsible for multiple plants in one company code.

A

Company level (Crossplant Model)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

most decentralized model. Each plant has its own purchasing Organization.

A

Plant level (Plant Specific)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

a hybrid model that some enterprise adopted that consists of one centralized purchasing organization that can evaluate needs and opportunities for the entire enterprise and negotiate global contracts, which purchasing organizations then use across the enterprise

A

Reference Purchasing Organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

an individual or a group of individuals who are responsible for purchasing activities for a material or a group of materials. These activities include planning, creating purchase requisitions, requesting quotations from vendors, and creating and monitoring purchase orders.

A

Purchasing Group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

4 types of Master Data

A

Material master
Vendor master
Purchasing Info Records
Conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Key elements in material master

A

Financial data
Purchasing data
Plant data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Key elements in Financial Data in material master

A

Valuation Currency
Valuation Class
Price Control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

is the currency that the materials will be priced in, such as U.S. dollars or euros.

A

Valuation Currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Identifies the general ledger accounts associated with the material.
Provides an important integration point between purchasing and financial accounting because it allows the system to automatically make postings to appropriate stock or inventory accounts in the general ledger.

A

Valuation class

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

identifies the method that is used to value the materials.

A

Price control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

The two options for price control are

A

moving average price and standard price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

T/F
Both options of price control define the price per total of materials in stock.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

T/F
In the standard price option, the total value of the materials is divided by the quantity in stock to determine the average price per unit.

A

False, moving average price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

the total value of the materials is divided by the quantity in stock to determine the average price per unit.
This price is called “moving” because it is updated each time a process step affects the price; it represents an average price of the materials in stock.

A

Moving average price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

T/F
standard price is constant for a specified period of time and does not fluctuate, even when an event occurs that causes the value of the materials to change.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

T/F
The standard price is updated periodically.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

is constant for a specified period of time and does not fluctuate, even when an event occurs that causes the value of the materials to change.

A

standard price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Key elements in purchasing data in material master

A

Purchasing Group
Goods receipt processing time
Delivery Tolerances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

is responsible for purchasing the materials.

A

Purchasing group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

An estimate of this time is included in the material master. The ERP system utilizes this estimate in planning activities.

A

Goods receipt processing time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

In the material master, specify how much over delivery and under delivery the ordering party will accept.

A

Delivery tolerances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

includes data that are needed to properly store materials.

A

Plant Data/Storage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

include the data needed to conduct business with a vendor and to execute transactions related to the purchasing process.

A

Vendor Master Data

44
Q

Data in the vendor master are grouped into three segments:

A

general data, accounting data, and purchasing data.

45
Q

Includes Name, Addresses, Contacts or any basic information of a vendor. Set at a client level.

A

General Data

46
Q

Includes tax, bank info, reconciliation account, etc. Set at a company code level.

A

Accounting Data

47
Q

Determineprices, creating PO, verifying invoices, etc. Set at purchasing Organization level.

A

Purchasing Data

48
Q

An intersection between material master and vendor master

A

Purchasing Info Records

49
Q

Key elements of Purchasing Info Records

A

General Data
Purchasing Data

50
Q

contains data specific to one vendor and one material or material group.
It includes some data that are in the vendor master and the material master, as well as data that are valid for the specific combination of vendor and material.

A

Purchasing Info Records

51
Q

These data are very similar to the conditions discussed in the section on purchasing info records, and they are used to determine the appropriate prices, discounts, taxes, freight, and so on for the materials.

A

Conditions

52
Q

are not defined for a specific combination of vendor and material. Rather, they are based on the overall agreements and contracts in place with vendors.
The company uses these to determine pricing when it creates purchase orders.

A

Conditions

53
Q

The info record typically defines a number of different of these, including gross price, discounts and surcharges, taxes, and freight.

A

condition types

54
Q

Key Concepts:
What are the six item categories?

A

Standard
Subcontracting
Consignment
Third-party order
Stock transfer
Services

55
Q

items are goods and invoices can be received.

A

Standard

56
Q

it pays the vendor only when it uses or sells the materials. For this category of materials, therefore, there is no invoice receipt step.

A

Consignment

57
Q

refers to items that the vendor ships directly to a customer.

A

Third-party order

58
Q

arrangement, a company sends materials to a vendor, who uses them to create semi-finished products. The vendor then sends these products back to the company that initiated the process.

A

Subcontracting

59
Q

such as janitorial or landscaping services — generally do not involve receiving materials. Instead, a mechanism to record services performed – a service sheet - is necessary.

A

Services

60
Q

the process whereby the system determines which general ledger accounts to use in a given situation — is automatic and is based on data contained in the material master, particularly the valuation class.

A

Account Determination

61
Q

What are the four account determination?

A

Stock materials
Consumable materials
Account assignment object
Account assignment category

62
Q

materials that is available in stock and can be reserved by the system using a reservation

A

Stock materials

63
Q

these are materials that are acquired to be consumed by or used within the organization.

A

Consumable materials

64
Q

identifies the bearer of the cost of the purchase and is the entity for which the materials were purchased.

A

Account assignment
object

65
Q

Determine the specific accounting Data needed.

A

Account Assignment Category

66
Q

What are the 5 Account assignment category?

A

Asset
Cost Center
Order
Sales Order
Project

67
Q

A company uses this category when it acquires a fixed asset, such as a car or land.

A

Asset (A)

68
Q

Companies use this category when they purchase materials for different types of orders.

A

Order (F).

69
Q

When a company purchases materials for consumption, then the purchase order must include both the cost center to be charged and the appropriate general ledger expense account number

A

Cost Center (K)

70
Q

When the purchase is associated with a specific sales order, then the sales order number and a general ledger account number must be provided.

A

Sales Order (C)

71
Q

When the purchase is related to a project, then the project number and a general ledger account number must be specified.

A

Project (P)

72
Q

determine the usability of materials— that is, how the company can use the materials in its various processes.

A

stock types or statuses

73
Q

Four common stock types are:

A

unrestricted use;
in quality inspection;
blocked stock, and;
stock in transit.

74
Q

can be used in any manner that management feels will benefit the enterprise.

A

unrestricted use

75
Q

A company uses this status when the goods it receives from a vendor must undergo inspection before being released for consumption.

A

in quality inspection

76
Q

is typically used for materials that are damaged or unusable for some reason, such as the when the vendor delivers the wrong materials.

A

Blocked stock

77
Q

when materials are being moved from one plant to another, they are classified as ___________.

A

stock in transit.

78
Q

is associated with receiving materials from a vendor, shipping them to a customer, or otherwise “moving” them from one location within the company to another.

A

goods movement

79
Q

The four common goods movements are :

A

goods receipt
goods issue
stock transfer
transfer posting.

80
Q

is used to change the stock type or status of or to reclassify the material into a different material type.

A

transfer posting

81
Q

records the receipt of materials into storage, which results in an increase in inventory quantity.

A

goods receipt

82
Q

when materials are removed from storage, in which case inventory is reduced.
(a) ships materials to a customer,
(b) uses them for internal consumption

A

goods issue

83
Q

Is used to move goods from one location to another within the organization.

A

stock transfer

84
Q

records data related to a goods movement, such as the receipt of goods from a vendor.

A

material document

85
Q

Determines which Category of movement is being executed

A

Movement types

86
Q

What are the data needed to create a purchase requisition in requirements determination?

A

item category, quantity, desired delivery date, and desired delivery location

87
Q

What is the task in requirements deternation?

A

to create the purchase requisition using the specified data.

88
Q

What is the outcome of requirements determination?

A

Purchase requisition

89
Q

company selects a vendor from a list of potential suppliers

A

SOURCE LIST

90
Q

The requisition can be satisfied through this which are longer-term agreements between an organization and a vendor.

A

OUTLINE PURCHASE AGREEMENTS

91
Q

An invitation to vendors by an organization to submit a quote for the supply of the materials or services.
A quotation is legally binding on the vendor for a specified period.

A

Request for Quotation (RFQ)

92
Q

is a communication sent to a vendor in which a company commits to purchasing the specified materials under the stated terms.

A

purchase order

93
Q

Data included in order processing are

A

data from several master records, such as material master, vendor master, info records, and conditions.

94
Q

The primary task in order processing is

A

to create and send the purchase order to the vendor.

95
Q

The main document created in order processing is

A

purchase order

96
Q

which records the receipt of the materials from the vendor.

A

goods receipt

97
Q

also known as a packing list—that identifies the materials included in the delivery and the purchase order.

A

delivery document

98
Q

The essential task in the goods receipt step is

A

to verify and record the materials included in the shipment in the goods receipt document.

99
Q

The most common method of invoice verification is

A

three-way match

100
Q

It is a method between the purchase order, the goods receipt or delivery document, and the invoice.

A

Three-way match

101
Q

A method between a purchase order and the goods receipt document. This method is not very common, and it requires a high degree of trust and cooperation between partners.

A

two-way match

102
Q

display work that is to be completed.

This figure shows a list of purchase requisitions that are open.

A

Work lists

103
Q

can be manipulated using the various functions of the list viewer or grid control.

A

Online lists

104
Q

is one of the components of the logistics information system.

A

Purchasing information system (IS)

105
Q

Purchasing IS provides two analysis capabilities:

A

standard and flexible analysis capabilities.

106
Q

the characteristics are organizational levels and master data relevant to the procurement process.

Key figures includes
quantities, such as the amount of a material ordered or delivered;
value, such as the value of material ordered or delivered; and
counts, such as the number of purchase orders.

A

standard analysis

107
Q

enables the user to define the content and format of the analysis.
In this analysis, characteristics and key figures can be combined as needed.

A

Flexible analysis

ERP (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions