ch4

Question 1

basic procurement process steps

Answer 1

1-crease purchase requisition
2-send purchase order
3-create and send product
4-send invoice

Question 2

company code

Answer 2

entity id of which you need to keep organization accouting

Question 3

storage locations

Answer 3

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

Question 4

purchasing organization

Answer 4

unit within enterprise that deals with purchasing for one or more plants. three models:
1-enterprise level
2-company level
3-plant level

Question 5

enterprise level purchasing organization

Answer 5

AKA cross company code. one organization buys for all plants in enterprise.

Question 6

company level purchasing organization

Answer 6

single organization responsible for all plants in your company code

Question 7

plant level purchasing organization

Answer 7

each plant has their own purchasing organization

Question 8

reference purchasing organization

Answer 8

hybrid of global and local level

Question 9

purchasing group

Answer 9

individual or group responsible for purchasing materials. sometimes buyer agents external to organization

Question 10

purchase order

Answer 10

formal communication to vendor that represents commitment to purchase indicated materials

Question 11

financial accounting data

Answer 11

1-valuation currency
2-valuation class
3-price control

Question 12

valuation class

Answer 12

answers where material will appear on the ledger

Question 13

price control

Answer 13

method that is used to value the materials. two options
1-moving average price(weighted avg)
2-standard price (what you paid)

Question 14

good receipt processing time

Answer 14

unbox and inspect materials takes time

Question 15

delivery tolerances

Answer 15

how much above and below the shipment quantity can be when checked

Question 16

vendor master data types

Answer 16

data needed to conduct business w/ a vendor
three types:
1-general data
2-accounting data
3-purchasing data

Question 17

general data

Answer 17

contact info

Question 18

accounting data

Answer 18

company code payment info

Question 19

purchasing data

Answer 19

various info. seems subjective and determined only by the purchasing group. often based on agreements

Question 20

reconciliation account

Answer 20

reconcile differences in accounting structure for the different company codes

Question 21

purchasing info record

Answer 21

combination of material and vendor data

Question 22

general purchase data

Answer 22

same for all purchasing groups

Question 23

condition types

Answer 23

things that can affect the price

Question 24

gross price

Answer 24

price before any discounting

Question 25

conditions

Answer 25

conditions based on contracts, not product specific

Question 26

item categories

Answer 26

determine which process steps and data are needed when a company purchases materials . standard, consignment, and third-party

Question 27

consignment

Answer 27

pay vendors only when you use material

Question 28

third party

Answer 28

your vendor will ship directly to your customer

Question 29

subcontracting

Answer 29

send your materials to vendor and then get them back. like a paint job on a bike

Question 30

stock transfer

Answer 30

obtain materials from another plant within same organization

Question 31

stock materials

Answer 31

aquiring raw materials for later use in the production process

Question 32

account determination

Answer 32

determine general ledger accounts to use in a given situation. based on material master

Question 33

consumable materials

Answer 33

materials that are used up like office supplies

Question 34

account assignment object

Answer 34

determines who bears the cost of a purchase. example: organize cost by who uses it

Question 35

cost center

Answer 35

cost object used to collect costs for a department

Question 36

cost assignment category

Answer 36

what type of object are you assigning costs too
SAP abbvs:
A-asset
F-order
K-cost center
C-sales order
P-project

Question 37

stock type

Answer 37

determine usability of materials

Question 38

unrestricted use

Answer 38

can be used in any manner management sees fit

Question 39

in quality inspection

Answer 39

can only be used for sampling

Question 40

stock in transit

Answer 40

materials being moved from one plant to another

Question 41

goods movement

Answer 41

materials chaning physical location

Question 42

goods receipt

Answer 42

record materials, location moved, and type of transportation

Question 43

goods issue

Answer 43

when materials removed from storage

Question 44

stock transfer

Answer 44

produced when goods moved internally

Question 45

transfer posting

Answer 45

change a materials status (example from sampling to unrestricted use) OR type

Question 46

material document

Answer 46

records data related to goods movement

Question 47

movement types

Answer 47

documentation that answers questions about movement

Question 48

source list

Answer 48

list of potential vendors

Question 49

outline purchase agreements

Answer 49

longer-term agreements over time to supply

Question 50

contract

Answer 50

quantity is locked in, products delivered when needed

Question 51

scheduling agreements

Answer 51

quantity is locked in, products delivered periodically

Question 52

request for quotations (RFQ)

Answer 52

invitation to submit a quote for your products

Question 53

purchase order

Answer 53

communication sent to vendor in which a company commits to purchase materials

Question 54

invoice verification

Answer 54

make sure invoice is accurate. look for three way match between purchase order, goods receipt, and invoice