Chapter 5 6 &7 enterprise systems – Flashcards
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46. Organizational elements essential to the fulfillment process include client, company code, sales area, and plant.
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Answer: True
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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.
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Answer: True
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48. A sales organization is responsible for negotiating terms and conditions of sales for a particular market.
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Answer: True
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49. A company code must have at least two sales organizations.
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Answer: False
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50. A distribution channel is the means by which a company delivers its goods and services to its customers.
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Answer: True
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51. A sales organization must have at least two divisions.
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Answer: False
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52. A sales area can be assigned to only one company code.
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Answer: True
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53. In the case of products, a plant is typically an office building.
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Answer: False
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54. A shipping point is a location in a plant at which inbound deliveries are received.
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Answer: False
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55. A plant must have at least one shipping point, which must be physically located in that plant.
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Answer: False
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56. Sales plant data include details on how the material will be shipped from the plant.
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Answer: True
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57. Customer master data include data needed to conduct business with customers and to execute transactions that are related specifically to the fulfillment process.
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Answer: True
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58. A customer‐material information record is comprised of master data specific to one customer and one material.
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Answer: True
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59. Pre-sales activity is often triggered by a communication from a customer such as a purchase order.
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Answer: False
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60. An inquiry is a request for information regarding a potential order that the customer places with the company.
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Answer: True
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61. The final step in the fulfillment process is the receipt of payment from the customer.
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Answer: True
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62. Customer master data are used in the fulfillment process for generating an invoice for materials or services..
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Answer: True
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63. In addition to the organizational data, material master data is necessary in the payment step.
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Answer: False
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64. Open items are items in the payment step for which payment from the customer has been received.
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Answer: False
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65. The fulfillment process acts as a stand-alone process and cannot be integrated with other processes within an organization.
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Answer: False
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66. A sales area can be assigned to multiple company codes.
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Answer: False
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67. A distribution channel can be assigned to multiple company codes.
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Answer: False
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68. A distribution channel can be assigned to multiple sales areas
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Answer: True
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69. A sales area can have many distribution channels.
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Answer: False
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70. Distribution channels can be used to differentiate between wholesale, retail, and Internet sales strategies.
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Answer: True
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71. A sales organization is used to divide a market based on geographic characteristics.
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Answer: True
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72. A one-to-many relationship exists between a sales area and plants.
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Answer: True
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73. A customer info record is an intersection of customer data and sales data.
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Answer: False
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74. A quotation can result in multiple sales orders.
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Answer: True
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75. Multiple quotations can be combined to create one sales order.
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Answer: True
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76. A line item in a sales order can include multiple schedule lines.
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Answer: True
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77. Multiple orders can be combined into one delivery if certain conditions are met.
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Answer: True
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35. A bill of materials identifies the finished goods that are to be shipped to a specific customer.
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Answer: False
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36. An active bill of materials can be used in the production of a material, but an inactive BOM cannot.
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Answer: True
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37. A work center is a location where materials are placed immediately before they are shipped.
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Answer: False
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38. All operations must be performed in some type of sequence, and many operations can be completed in a variety of sequences.
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Answer: True
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39. Fixed time elements represent the time needed to produce one unit of material.
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Answer: False
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40. Variable time elements are independent of how many units of material are produced.
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Answer: False
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41. Material staging is the process in which component materials are moved from storage and prepared for use.
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Answer: True
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42. Component assignment is a technique that assigns components in a BOM either to a routing or to a specific operation within the routing.
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Answer: True
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43. Production resource tools are movable resources that are shared among different work centers.
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Answer: True
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44. Typically a production order does not include any references to the BOM, routing, or work centers.
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Answer: False
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45. Capacity split is a strategy that is used to determine how the production work is to be distributed among machines and/or people
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Answer: True
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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
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Answer: False
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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
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Answer: True
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48. A time ticket is used to record the amount of time required to complete various operations
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Answer: True
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49. Material staging is a technique that is used to automatically record the goods issue when an order is confirmed
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Answer: False
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51. Overhead allocation, work in process determination, and order settlement are all included in periodic processing
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Answer: True
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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
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Answer: False
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51. A storage location is a key organizational level associated with inventory management.
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Answer: True
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52. The most relevant category of master data in inventory management is the plant.
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Answer: False
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53. A goods receipt cannot be posted without reference to an order.
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Answer: False
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54. Planned receipts occur when a reference document, such as a purchase order or a production order, does not exist.
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Answer: False
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55. A goods issue results in the creation of appropriate material, FI, and CO documents.
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Answer: True
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56. A goods issue, unlike a goods receipt, can be posted without reference to an order.
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Answer: False
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57. A goods issue, unlike a goods receipt, results in a decrease in inventory.
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Answer: True
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58. A transfer posting always involves an actual movement of materials.
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Answer: False
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59. To change a material number you need to create a change request.
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Answer: False
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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.
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Answer: False
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61. A stock transfer involves physically moving materials.
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Answer: True
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62. One-step procedure, two-step procedure, and stock transport order are strategies for moving materials.
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Answer: True
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64. During the one-step procedure, two material documents are created.
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Answer: False
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63. A material document is created during both the one-step and two-step procedures.
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Answer: True
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65. Moving materials between two storage locations within the same plant or different plants is known as storage location-to-storage location transfer.
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Answer: False
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66. One-step procedure is possible only when the materials are in unrestricted use at the supplying location.
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Answer: False
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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.
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Answer: True
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68. In plant-to-plant transfer in the two-step method, the FI document is created at the time of receipt.
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Answer: False
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69. A movement of materials between two plants in different company codes is called a company code-to-company code transfer.
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true
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70. Stock transport orders with delivery include the invoice verification step.
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Answer: False
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71. In stock transport orders with delivery and billing, valuation is based on the purchase price in the STO.
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Answer: True
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72. Inventory management keeps track of the quantity of materials in storage location, but it cannot determine their exact location.
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Answer: True
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73. A storage location can be linked to only one warehouse.
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Answer: True
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74. A storage type is a division of a storage section that is based on the characteristics of the space, materials, or activity.
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Answer: False
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75. Storage sections represent the physical links between IM and WM.
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Answer: False
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76. Shelf storage is an example of a storage type
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Answer: True
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77. Lightweight materials are designated as fast-moving materials.
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Answer: False
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78. A picking area groups materials with the same material type.
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Answer: False
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79. Storage bins are the smallest unit of space in a warehouse.
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Answer: True
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80. Transfer requirements can be created manually as well as automatically.
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Answer: True
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81. Transfer orders are used to execute warehouse movements.
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Answer: True
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82. Transfer orders can only be created automatically.
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Answer: False
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83. Target quantities, destination storage type, bin, and quant are examples of line item data in a transfer order.
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Answer: True
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84. Transfer orders in the execute warehouse management step can be created with or without a reference document.
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Answer: True
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85. One of the steps of the inventory management process related to procurement is post goods issue.
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Answer: False
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86. Inventory management in the production process involves a goods issue and a goods receipt.
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Answer: True
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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.
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Answer: False
