Chapter 5 6 &7 enterprise systems

46. Organizational elements essential to the fulfillment process include client, company code, sales area, and plant.
Answer: True
47. A company code is divided into several sales organizations, each of which is responsible for the sale and distribution of goods and services for a particular geographical area.
Answer: True
48. A sales organization is responsible for negotiating terms and conditions of sales for a particular market.
Answer: True
49. A company code must have at least two sales organizations.
Answer: False
50. A distribution channel is the means by which a company delivers its goods and services to its customers.
Answer: True
51. A sales organization must have at least two divisions.
Answer: False
52. A sales area can be assigned to only one company code.
Answer: True
53. In the case of products, a plant is typically an office building.
Answer: False
54. A shipping point is a location in a plant at which inbound deliveries are received.
Answer: False
55. A plant must have at least one shipping point, which must be physically located in that plant.
Answer: False
56. Sales plant data include details on how the material will be shipped from the plant.
Answer: True
57. Customer master data include data needed to conduct business with customers and to execute transactions that are related specifically to the fulfillment process.
Answer: True
58. A customerÔÇÉmaterial information record is comprised of master data specific to one customer and one material.
Answer: True
59. Pre-sales activity is often triggered by a communication from a customer such as a purchase order.
Answer: False
60. An inquiry is a request for information regarding a potential order that the customer places with the company.
Answer: True
61. The final step in the fulfillment process is the receipt of payment from the customer.
Answer: True
62. Customer master data are used in the fulfillment process for generating an invoice for materials or services..
Answer: True
63. In addition to the organizational data, material master data is necessary in the payment step.
Answer: False
64. Open items are items in the payment step for which payment from the customer has been received.
Answer: False
65. The fulfillment process acts as a stand-alone process and cannot be integrated with other processes within an organization.
Answer: False
66. A sales area can be assigned to multiple company codes.
Answer: False
67. A distribution channel can be assigned to multiple company codes.
Answer: False
68. A distribution channel can be assigned to multiple sales areas
Answer: True
69. A sales area can have many distribution channels.
Answer: False
70. Distribution channels can be used to differentiate between wholesale, retail, and Internet sales strategies.
Answer: True
71. A sales organization is used to divide a market based on geographic characteristics.
Answer: True
72. A one-to-many relationship exists between a sales area and plants.
Answer: True
73. A customer info record is an intersection of customer data and sales data.
Answer: False
74. A quotation can result in multiple sales orders.
Answer: True
75. Multiple quotations can be combined to create one sales order.
Answer: True
76. A line item in a sales order can include multiple schedule lines.
Answer: True
77. Multiple orders can be combined into one delivery if certain conditions are met.
Answer: True
35. A bill of materials identifies the finished goods that are to be shipped to a specific customer.
Answer: False
36. An active bill of materials can be used in the production of a material, but an inactive BOM cannot.
Answer: True
37. A work center is a location where materials are placed immediately before they are shipped.
Answer: False
38. All operations must be performed in some type of sequence, and many operations can be completed in a variety of sequences.
Answer: True
39. Fixed time elements represent the time needed to produce one unit of material.
Answer: False
40. Variable time elements are independent of how many units of material are produced.
Answer: False
41. Material staging is the process in which component materials are moved from storage and prepared for use.
Answer: True
42. Component assignment is a technique that assigns components in a BOM either to a routing or to a specific operation within the routing.
Answer: True
43. Production resource tools are movable resources that are shared among different work centers.
Answer: True
44. Typically a production order does not include any references to the BOM, routing, or work centers.
Answer: False
45. Capacity split is a strategy that is used to determine how the production work is to be distributed among machines and/or people
Answer: True
46. After production has been completed, a goods receipt against the production order is used to pick the goods and ship them to the customer
Answer: False
47. If the bill of materials and the routing data are changed after the production order has been created, the system must be manually instructed to reenter the data
Answer: True
48. A time ticket is used to record the amount of time required to complete various operations
Answer: True
49. Material staging is a technique that is used to automatically record the goods issue when an order is confirmed
Answer: False
51. Overhead allocation, work in process determination, and order settlement are all included in periodic processing
Answer: True
52. A technically complete status for a production order means that even though the main material is complete, other production processes may be needed to complete smaller components of the material
Answer: False
51. A storage location is a key organizational level associated with inventory management.
Answer: True
52. The most relevant category of master data in inventory management is the plant.
Answer: False
53. A goods receipt cannot be posted without reference to an order.
Answer: False
54. Planned receipts occur when a reference document, such as a purchase order or a production order, does not exist.
Answer: False
55. A goods issue results in the creation of appropriate material, FI, and CO documents.
Answer: True
56. A goods issue, unlike a goods receipt, can be posted without reference to an order.
Answer: False
57. A goods issue, unlike a goods receipt, results in a decrease in inventory.
Answer: True
58. A transfer posting always involves an actual movement of materials.
Answer: False
59. To change a material number you need to create a change request.
Answer: False
60. In a consignment scenario, when raw materials are consumed in the production process, the status of the materials is changed from warehouse stock to consignment.
Answer: False
61. A stock transfer involves physically moving materials.
Answer: True
62. One-step procedure, two-step procedure, and stock transport order are strategies for moving materials.
Answer: True
64. During the one-step procedure, two material documents are created.
Answer: False
63. A material document is created during both the one-step and two-step procedures.
Answer: True
65. Moving materials between two storage locations within the same plant or different plants is known as storage location-to-storage location transfer.
Answer: False
66. One-step procedure is possible only when the materials are in unrestricted use at the supplying location.
Answer: False
67. When transferring materials between storage locations in the same plant, if quantities are valued in the same way, then no FI document is created.
Answer: True
68. In plant-to-plant transfer in the two-step method, the FI document is created at the time of receipt.
Answer: False
69. A movement of materials between two plants in different company codes is called a company code-to-company code transfer.
true
70. Stock transport orders with delivery include the invoice verification step.
Answer: False
71. In stock transport orders with delivery and billing, valuation is based on the purchase price in the STO.
Answer: True
72. Inventory management keeps track of the quantity of materials in storage location, but it cannot determine their exact location.
Answer: True
73. A storage location can be linked to only one warehouse.
Answer: True
74. A storage type is a division of a storage section that
is based on the characteristics of the space, materials, or activity.
Answer: False
75. Storage sections represent the physical links between IM and WM.
Answer: False
76. Shelf storage is an example of a storage type
Answer: True
77. Lightweight materials are designated as fast-moving materials.
Answer: False
78. A picking area groups materials with the same material type.
Answer: False
79. Storage bins are the smallest unit of space in a warehouse.
Answer: True
80. Transfer requirements can be created manually as well as automatically.
Answer: True
81. Transfer orders are used to execute warehouse movements.
Answer: True
82. Transfer orders can only be created automatically.
Answer: False
83. Target quantities, destination storage type, bin, and quant are examples of line item data in a transfer order.
Answer: True
84. Transfer orders in the execute warehouse management step can be created with or without a reference document.
Answer: True
85. One of the steps of the inventory management process related to procurement is post goods issue.
Answer: False
86. Inventory management in the production process involves a goods issue and a goods receipt.
Answer: True
87. A stock transfer from a storage bin in one warehouse to a storage bin in another warehouse is a possible scenario under which warehouse movements can occur.
Answer: False