MCQ 3 AD - Material Management Questions PDF

1. What is the procedure of verifying discrepancies in fast moving items called? B. Cycle counting 2. Identify correct option for special stock from the given ones E. All of the options 3. The below figure indicated which type of invoice based verification? C. PO based inv...

1. What is the procedure of verifying discrepancies in fast moving items called? B. Cycle counting 2. Identify correct option for special stock from the given ones E. All of the options 3. The below figure indicated which type of invoice based verification? C. PO based invoice verification 4. If “Gr based IV “is not ticked which two options will be applicable? A. System will compare the PO and the invoice documents C. Invoice document can be posted before the GR is posted 5. If the project stock is not valuated, it is managed by? A. cost centre /cost collector 6. What is the maximum quantity you can credit by using a credit memo? C. The quantity that has been invoiced 7. What is a credit memo from the given options? C. Reversal of invoice 8. What are the two prerequisites for Transfer posting for material to Material? B. Both materials must be kept in the same basis for all conversation D. A material master record must already exist for the receiving material 9. Which GL accounts are updated for stock material after GR? Stock account –material (BSX): Debit GR/IR clearing –material (WRX): Credit 10. In the below figure the special procurement option is available in which view of the material C. MRP2 11. What is the option through which a good receipt can be created without reference? D. Others 12. For which stock type Goods receipt cannot be posted? D. Scrapping 13. What are the two methods used for managing stock? B Management of stock by quantity D. Management of stock by value 14. What is the process of paying total values of the Po in partial increments throughout the duration of the project? B. invoice planning. 15. Choose the two correct options about blanket purpose orders in SAP A. Which have a validity period and limits for material or services D. Blanket purchase orders have item category B and document type FO 16. Choose the two correct options when a sales order stock is used? A. During sales order creation C. When there is an order from the customer? 17. From the given options which updates are made after Goods Issue? D. All of the options 18. What is the right option to choose when By-products are entered in the subcontract order C. Negative Quantity 19. What are the two advantages ERS gives? A. Purchasing transactions are closed more quickly C. There are no price and quantity in invoice verification. 20. If the vendor consumes greater or smaller quantity of components against what was planned; how it can be addressed? Subsequent adjustment 21. From which stock type you can NOT scrap material Inventory 22. Identify the correct movement type from the given options Goods Receipt Goods issue 23. Which is not a “Planned goods receipt “from the given options? C. Planned goods receipts using internal consumption 24. An invoice contains the information about which two options? A. Who issued the invoice? C. How much tax to be paid on the goods 25. Which STO from the options, do we create accounting documents? And how many. D. Different Company code 2 accounting documents 26. What are the three important steps involved in physical inventory? A. Preparation B. Count of delivery D. Inventory Check 27. What is the option through which a GR can be settled without an invoice? D. Evaluated receipt settlement 28. What time do we use Subsequent credit and debit? D. When invoice had charges which are either too high or too less 29. Identify the two movement types in physical inventory 701- Goods receipt for unrestricted stock 704- Goods issue for quality inspection stock 30. What are the three different ways to carry out a return to vendor? Posting a return Delivery with reference to the material document Posting a return Delivery with reference to the Purchase order Posting a new goods receipt with reference to a return delivery. 31. Please identify, what happens during one-step stock transfer from the given options. A. Material is removed from storage of the sending plant B. Material is added into storage location of the receiving plant 32. What are the two types an invoicing plans available in SAP MM? C. Periodic invoicing plan D. Partial Invoicing plan 33. What are the correct levels at which batch management can be activated? B. Material level C. Client level (plant level also) 34. What are the different accounting entries for goods receipt document? (BSX) Stock A/c of Assembly – Debit (FRL) Subcontracting Charges – Debit 35. What are the two methods of doing a physical inventory? Reference to PI document Without Reference to PI document 36. Identify the correct flow of Subcontracting PO? Purchase order with item category L -> Good Issue -> Goods Receipt 37. What are the correct statements for a pipeline material A. The vendor liability that must be settled periodically in a similar way to the C. The pipeline withdrawal has no effect on existing warehouse stock or on the availability 38. What does the below figure indicate from the given options? Stock at batch level. 39. Used for entering a stock transfer posting from stock to stock 301 Transfer posting plant to plant in one step. (303,305,309,321,323,325,411,415) 40. What is the process after the physical inventory PI document created? Counting of physical inventory. 41. If “Gr based IV “is ticked. Which two options will be applicable? System will compare the data between PO, GR and invoice document. Posting of the gr document is mandatory before we can post the invoice. 42. In the below figure which STO flow represents the inter company STO? -228 D. St. Trnsp.ord.with billing 43. What is the menu path for the below STO setting shown in figure? IMG -> Material Management -> Purchasing -> Purchase Order -> Setup Stock Transport Order -> Define Shipping data for plants 44. From the given options what correctly defines a Goods movement? Physical or logical movement of materials leading to a change in stock levels or resulting 45. What is required for child components of a finished material for a sub-contracting PO? -203 Bill of material 46. In the below figure what does V and S stand for? V=moving average price S=Standard price 47. What are the correct options to carry out a stock transfer? Stock transfer using stock transport order Stock transfer using the 2 step procedure (1 step procedure ) 48. Batches with classification are maintained in which view? - pg : pdf 313 Classification view 49. What are the three levels, where stock transfer is possible? Stock transfer from plant to plant (company to company ) Stock transfer from storage location to storage location (in the plant) 50. In which tab Batch number is entered while doing GR? Batch 51. When a goods issue takes place, what are the two correct options? Real time stock update Decrease in warehouse stock 52. Invoice reduction is used when we are paying for? Vendor sends acknowledgement of payment 53. For checking the components in a sub-contracting Po ….. Material data 54. In which document ERS (evaluated receipt settlement) activation is flagged? In Purchase order. 55. What are the two types of Automatic reservation? Reservations for orders networks and Wbs elements Stock transfer reservations 1. What is the special stock indicator used for sales order stock? E 2. What is the special stock indicator used for Project stock? Q 3. How many physical inventory documents are created when we need to count material M1 for all the stock types(1-unrestricted,2-Quality,3-Bblocked) One 4. When Is zero count indicator is set” Material with stock value 0. 5. When is posting block set during Inventory count unblocked? Before Difference is posted 6. During Recount a new Physical inventory document is created? Yes 7. Cycle counting indicator is set based on? B. Material Usage 1. batch management can be defined as ? tagging an alphanumeric or a number code to the material produced or procured. 2. What are different levels where batch management can be activated ? plant level,, material level ,client level 3. Batches with classification is maintained in? material master classification view 4. batch management is activated in which view purchasing 5. what is the option through which good receipt can be settled without invoice? ERS. 6. ERS has three advantages that are purchasing transactions are closed more quickly. communication errors are avoided there is no price and quantity variance in invoice verification. 7. Where do we flag ERS? Purchase Order Item 8. what are the requisites for ERS?. vendor must be flagged as being subject to ers in vendor master. Tax Code must have been maintained in Purchase Order Item good receipt must refer to a purchase order. Good receipt based invoice verification must be defined for the purchase order item 9. what are the two types of invoicing plans can be divided into ? periodic invoicing plan, partial invoicing plan 10. what is the process of paying total value of the PO in partial increment throughout the duration of the project? Invoice planning 11. what are the two methods of managing stock? Stock by quantity, stock by value 12. to which option do we have moment types? goods receipt ,goods issue 13. what is not a planned good receipt from given option? Planned good reset using internal consumption 14. what are the stock type to which good receipt can't be posted ? scrapping. 15. After good receipt to which accounting entries stock is posted.? stock account material (BSX): debit GR/ IR clearing material(WRX):credit 16. what is the option through which good receipt can be created without reference? Others 17. what are the following updates made after the good issue? Update of GL Account ,,consumption update, reservation update, order update 18. to which stock type you will not scrap the material? inventory 19. what are the options that are applicable after the scrapping of goods? Relevant stock is reduced. Value of the scrapped material is posted from the stock account to the scrap account the cost of scrapped material are assigned to the cost centre specified. 20. When a Good issue takes place it leads to the following? decrease in warehouse stock. Stock is updated real time at the time of posting of goods issue. Accounting doc is created if the goods moment is relevant for accounting. 21. Goods moment can be defined as ? physical and logical moment of material leading to change in stock level. 22. Which of the following options are applicable for inventory management? It is a process of monitoring the flow of goods in and out in the plant store or warehouse. It keeps track of quantity and value of the material. 23. What is the most suitable option to define invoice verification? invoice from vendor is forwarded to finance team for payment to vendor 24. GR based IV is sticked what are the two possible options? System will compare the data between PO,GR & invoice document. posting of the GR document is mandatory before we can post the invoice 25. an invoice contains the information about which three options ? who issued the invoice which transaction does the invoice refer to? How much tax do you have to pay? 26. What are the blanket Pos in SAP? which has validity period and limits set for simplified procurement of material or services. A long term Blanket Purchase Order enables you to procure different materials or services from a vendor up to a specified maximum value. Blanket POS have the item category B and document type FO. 27. tolerance keys are used to maintain which limits? upper and lower tolerance limits. 28. Invoice reduced is used when we are paying for? gr quantity 29. what are the three important steps involved in physical inventory? Preparation , Count of Inventory , Inventory Check. 30. what are the different physical inventory procedures ? periodic inventory, sampling inventory. cycle counting, continuous inventory. 31. what are the three important fields in physical inventory document? posting block , Freeze book of inventory. Physical Inventory number. 32. what are the three different fields to select when creating multiple PI? material, plant and material type. 33. Which of The following option, the physical inventory document can be charged changed for? change planned count date,, set or remove posting block,, freeze book inventory balance ,, change physical inventory number  34. after the PI document created what is the process carried out counting of physical inventory. 35. What are the two methods of doing physical inventory count to be entered? reference to PI document ,, without reference to PI document 36. the material which has to be zero stock while value need to be set with? zero stock indicator 37. identify the three different movement types in physical inventory 701,702, 704. 38. procedure of verifying discrepancies in fast moving items in called? cycle counting 39. what are the different special stock type for given option consignment stock,, Pipeline stock ,, third party sales stock ,, returnable transport packaging stock ,, sales order stock,, project stock,, subcontracting stock,, stock transport order. 40. in RTP, who is the owner of container and pallets? Vendor 41. in third party process a company forward SO to whom? external supplier 42. in sub contracting process the vendor receives ? components 43. before ordering a material for consignment stock you maintain the consignment prICE for vendor in which option? info record 44. which three options take place in pipeline material? The vendor liability that must be settled periodically in a similar way like the management of consignment stock. A consumption history is kept. The pipeline withdrawal has no effect on existing warehouse stock or on the availability of the material 45. Choose the correct option when sales order stock is used ? during sales order creation when there is ordered by customer. 45. If project stock is not valuated it is managed by? cost collector and WBS. 46. Which of the following option apply for transfer posting. ? It signifies transfer of goods from one stock type to other no physical movement of goods. It involves stock quantity update. 47. What are three levels stock transfer takes place.? Company code to company code. plant to plant storage locations to storage location 48. what are the advantages of two step transfer posting.? It monitors the stock in transit 49. what happens during one step transfer from falling options ? an item for the removal from storage at the issuing point an item for placement into storage at the receiving point. 50. One step transfer posting for material is carried out material to material in which industries ? Pharmaceutical and Chemical 51. For split valued material plant to plant transfer is posting via ? one step procedure 52. what movement type is used for transfer posting from plan to plant? 301 53. What are the two types for automatic reservation? reservation for orders networks WBS elements stock transfer reservation 54. what are the three different ways to carry and return to vendor? posting a return delivery with reference to the material document posting a return delivery with reference to the purchase order. Posting a new gr with reference to return delivery. 55. reservation for the required material are achieved through ? MRP 56. two prerequisite for transfer posting from material to material? material master record must exist for the receiving material. Both material must be kept in the same base unit of measurement 57. what do we create for component for subcontracting purchase order. BOM( Bill of Material ) 58. if a vendor consume great or small quantity of component to what was planned it can be addressed by ? subsequent adjustment. 59. What is the right option to choose when by products are entered in subcontract as component? negative quantity 60. for checking the subcontracting PO we will go to which tab? material data 61. what are the different accounting entries for goods receipt Document? BSX,, BSV,, FRL,, WRX 62. What are correct options to carry out stock transfer? All of the above. 63. what is the maximum quantity you can create using credit memo? quantity that has already been invoiced 64. What is a credit memo? It is the reversal of goods receipt 1: What Configuration checks to be done to avoid mention error "Material not subjected to inventory management in plant 1000"? B. Plank level External and internal procurement flag. C. Plant level valuation control. D. All of the above. Answer:- D 2. In Material Type configuration, which is the controlling parameter controls field selection. A. Field Selection group. B. Procurement type C. C.Price Control D. d.Valuation update. Answer : A 3.what setting defaults the value as standard price or Moving average price in material master · A. quantity update / value update B. b. Static Control C. Price Control D. d. G/L account E. e. None Answer:- C. 4. which material type can contain purchasing & sales data, but is managed neither on a quantity nor on a value basis A. A.UNBW B. b. NLAG C. C.HAWA D. D.DIENS Answer:- B 5.For trading goods material, what are the views are mandatory A. Purchasing view B. Sales view C. warehouse management view D. Basic view E. classification view. Answer: A, B, D. 6. which of the following is the link between valuation class and Material type? choose the most appropriate option. A. Account Category reference. B. Account assignment category C. Account group.  D. valuation grouping code. Answer: A. 7. what is the standard material type code for "finished goods" in SAP? A. HALB B. HAWB C. LIEH D. FERT Answer:- D 8.what is/are the influencing factor(s) to configuration of account determination ? choose the most appropriate option? A. chart of accounts. B. Material type C. Movement type D. all of the above Answer : 9.which of the below statement is true with respect to valuation class? A. valuation classes are allowed for a material type. B. valuation classes are allowed for Account group. C. valuation classes are group of materials with different Account determination. D. Valuation classes are entered in the costing view of Material master. Answer :- A 10. state what are the correct attributes of Material type? A. Number range assignment, Field selection, Quantity, value basis, valuation group and Price control B. Number range assignment, Field Selection, Quantity, value basis, Valuation group and tolerance. C. Number range assignment, Field Selection, Quantity of value basis, Price Control. D. Account group, Field Selection, Quantity & value basis, Price Control. E. All the above. Answer:-C 11.Your client team wants to Automate their PO creation and process and wants your support to setup the Same. what are the pre-requisites for the same? 1: For Automatic Po Creation, what purchase into record must have? a.Net Price b. delivery Time C. Conditions d. Item Category. Answer- A 12.Please find the below screen This is which master data? Control data ☑ EGR-Based Inv- Venf ABC indicator ☑ AutoEval Gr setmt Del By VSR A. Material master B. Vendor master C. Purchase info record D. source list. Answer- B. 13. Please check the given figure, what’s the process happening here? Assign Automatically Assignments Assignment Material Short text Requsn Item Requested Qty Un.delivery date SCR OTy.IA ordered Qty Un.Release date 5542 10018399 00100 LAK1 N R NB. A. PR Display B. PR deletion C. PR creation. D. Assignment of source of supply to PRs. Answer: B. 14. What are the benefits of Automatic PO creation? A. we can get discounts from vendor. B. Cycle time will be reduced. C. No need to receive materials in SAP. D. Sourcing effect will get reduced in a source of item. E. No need of account assignment. Answer: B,D. 15. what are some common errors during automatic Po creation? A. Please check the posting period. B. b. Source not included in list despites source list requirement C. c. Please check the delivery date. D. d. Unknown account assignment not defined for use here. Answer: B, D. 16. Please refer to given figure. The screen is in which master. Control. Pl.Deliv Time – 30 Days Tax Standard Qty-1 Min Qty -0 Max Qty Conditions Net Price Effective price A. Material master B. Vendor master C. Purchase Info record D. None. Answer: C. 17. what are the various sources which can be assigned to PR? Select all that apply A. Desired Vendor B. PO. C. Fixed vendor d. RFQ e.Central Contract Answer: A,B,E. 18.The purchaser can assign: Fixed Vendor, PIR, Contract etc. of PR these are maintained? A. Material Data B. b.valuation C. Source of supply. D. status. Answer: C.