CH3 Purchasing Process

Question 1

___ is the process that ensures the company has a steady supply of goods that can be sold to customers or materials that can be used for production

Answer 1

Purchasing

Question 2

In SAP Business One, the ___ or procurement process starts with Purchase Order and continues with the rest of the purchasing document such as Goods Receipt PO and A/P Invoie

Answer 2

Purchasing

Question 3

What are the two types of key master data needed in purchasing

Answer 3

vendor and item master data

Question 4

The ____ data identifies who is supplying the goods and services and the user can search for the appropriate vendor in any purchasing docuyment but can also create a new vendor while creating a purchasing document.

Answer 4

Vendor

Question 5

The _____ data identifies what are being purchased

Answer 5

Item Master

Question 6

The advantage of using an ____ in SAP Business One is that the information can be copied into any document in the puchasing, sales, production, MRP, inventory, and services modules.

Answer 6

Item Master Data

Question 7

What are the 2 addresses that are important in the purchasing process

Answer 7

1. Ship-to Address
2. Pay-to Address

Question 8

Indicates the address where the purchased item will be send

Answer 8

Ship-to Address

Question 9

shows the address that would be printed on the check when the payment is issued

Answer 9

Pay-to Address

Question 10

What is the basic four-part process

Answer 10

Ordering, receiving, and paying for goods or services

Question 11

Contains the vendor data and delivery dates

Answer 11

Header

Question 12

Where all specific information about the ordered items or service is entered

Answer 12

Contents tab

Question 13

Contains the details about the payment and where the items or services are to be sent

Answer 13

Logistics Tab

Question 14

Indicates the relevant general ledger account information for the purchase

Answer 14

Accounting Tab

Question 15

Contains the calculated totals for the purchase, including freight costs and tax

Answer 15

Footer

Question 16

___ is the first document in the procurement process

Answer 16

Creating a Purchase Order (PO)

Question 17

The ____ is a commercial document that is issued by a buyer to a seller specifying the items, materials or services that are being purchased, including agreed-to quantities and prices.

Answer 17

Purchase Order

Question 18

Target data when the items need to be delivered

Answer 18

Delivery Date

Question 19

Identifies from whom the items or services are being brought

Answer 19

Vendor

Question 20

Defines if the order is for an item or a service

Answer 20

Item/Service Type

Question 21

Shows what item(s) are needed to be purchased

Answer 21

Items

Question 22

Indicates the number or quantity that is being purchased

Answer 22

Quantity

Question 23

The ___ is the only purchasing document that can be amended after it has been added

Answer 23

PO

Question 24

The order quantities are listed in ____

Answer 24

inventory management

Question 25

The ____ is the document that denotes the delivery or receipt of goods from a vendor or supplier to the company

Answer 25

Goods Receipt PO(GRPO)

Question 26

The ____ is used to update the quantity and values in the inventory.

Answer 26

GRPO

Question 27

A ____ GRPO can be created new by selecting the document name in the module menu, or it can be built from an existing PO

Answer 27

GRPO

Question 28

Unlike the Purcahse Order, ____ cannot be amended after it has been added because it triggers both inventory and accounting transactions.

Answer 28

GRPO

Question 29

What are the two methods of copying the original document or base document to another document or target document

Answer 29

Copy to and Copy From

Question 30

The user can copy a document to the next document in sequence by using the ___ button

Answer 30

Copy To

Question 31

All items are copied to the new document and there are no options on how items are copied.

Answer 31

Copy To

Question 32

The ___ button allows the selction of a base document or the document from which a new document would be created

Answer 32

COPY FROM

Question 33

Displays the current stock level of the itsm

Answer 33

In Stock

Question 34

items that are reserved for customers and for internal use (production_

Answer 34

Committed

Question 35

Displays the quantity ordered from external vendors plus the quantity that is being produced and that will enter the warehouse by a certain date

Answer 35

Ordered

Question 36

Represents the result after the quantity in stock - Committed + Ordered

Answer 36

Available

Question 37

The ___ increases the quantity on the ordered column

Answer 37

Purchase Order

Question 38

T or F | When the GRPO created is referenced or based on the PO, it increases the quantity in the In Stock Column and reduces the quantty on the Ordered Column

Answer 38

True

Question 39

T or F | As long as A/P invoice is referenced by the GRPO, the stock levels remain unchanged and will not be affectred

Answer 39

True

Question 40

T or F | There are instances when the suppler or vendor do not deliver the exact number of items as orere or may have sent a different item than that of the original order

Answer 40

True

Question 41

T or F | In cases there are no more subsequent or additional deliveries, then the PO cannot be closed manually

Answer 41

False. It can be closed manually so that the open purchased order quantity is reduced.

Question 42

A ___ does not appear in the purchase analysis report, whereas a closed one will appear.

Answer 42

Cancelled purchase order

Question 43

T or F | Sometimes the vendor delivers items that are of larger quantity than what was ordered.

Answer 43

True

Question 44

The _____ is the document into which accounts payable enters the vendor's invoice information and sets up the payment

Answer 44

A/P invoice

Question 45

_____ triggers a payment to the vendor

Answer 45

A/P Invoice

Question 46

T or F | The accounts payable clerk usually creates the PO that is required to request payment for the vendor.

Answer 46

False. A/P invoice not PO

Question 47

T or F | Once the A/P invoice is posted, it cannot be changed, as it is the legal accounting document that generates entries in the general ledger

Answer 47

True

Question 48

T or F | The posted A/P invoice also updates the related vendor accounts in accounting

Answer 48

True

Question 49

T or F | The A/P invoice does not create journal entry to update the vendor's balance to show the amount due

Answer 49

False. It creates a journal entry

Question 50

T or F | There are times when the company need to get an item immediately that the purchasing process needs to be streamlined or be simplified.

Answer 50

True

Question 51

T or F | You can't streamline the purchasing process using a standalone A/P invoice

Answer 51

False. You can

Question 52

What are the two main documents in SAP Business ONe that are designed to remove an item from inventory and give a credit in the general ledger

Answer 52

Goods Return and A/P credit Memo

Question 53

The ___ is used when the issue is discovered after goods are received into inventory but before an A/P invoice has been entered

Answer 53

Goods Return

Question 54

It is used whenever part or all of the goods are received are returned to the vendor because the items are found to be defective or otherwise not acceptable

Answer 54

Goods Return

Question 55

is used to reverse partially or completely the quantity and value-based changes made when the items were received

Answer 55

Goods Return

Question 56

The _____ is designed to simplify the handling of items returned at any point in the purchasing process

Answer 56

Goods Return Request

Question 57

It can be created based on either a Goods Receipt PO or an A/P invoice

Answer 57

Goods Return Request

Question 58

This document will help users to determine whether an A/P invoice has been entered into the system since the ____ automatically choose the correct document for posting the inventory movement and credit

Answer 58

Goods Return Request

Question 59

The _____ works like a clearing account for the Goods Receipt PO

Answer 59

GOods Return

Question 60

The ____ in SAP Business One is used to reverse in part or entirely the inventory or accounting transactions posted by an A/P invoice in the case that items are returned later or a mistake was made while entering data in previous related purcahsing documents that have not been corrected

Answer 60

A/P credit memo

Question 61

An ____ is created by using the A/P invoice as the base document

Answer 61

A/P credit memo

Question 62

T or F | you can create an A/P credit memo without a base document

Answer 62

True

Question 63

T or F | The A/P credit memo have the different effect as Goods Return

Answer 63

False. It has the same effect

Question 64

T or F | The credit memo updates the stock quantities and corrects the values in accounting

Answer 64

True

Question 65

T or F | There is an option to create a credit memo without reducing stock accounts.

Answer 65

True

Question 67

Another option besides creating Goods Returns or Credit Memo documents is to ____ the original document

Answer 67

Cancel

Question 68

The ___ is a report for monitoring and managing open marketing documents, such as open purchase orders open goods receipt PO's and so on

Answer 68

Opens Item List

Question 69

The ___ can be used for locating documents for processing quickly

Answer 69

Open Items list