CFC ERP Systems & Financial Technology 2 — Questions and Answers
Question 1: Which ERP module is primarily responsible for managing accounts payable, accounts receivable, and the general ledger?
- Supply Chain Management
- Financial Accounting (FI) (Correct answer)
- Human Capital Management
- Production Planning
Correct answer: Financial Accounting (FI)
The Financial Accounting (FI) module handles core accounting functions including AP, AR, and the general ledger.
Question 2: A company is implementing a new ERP system and wants to ensure financial data integrity across modules. Which approach BEST achieves this?
- Maintaining separate databases for each department
- Using real-time integration between modules with a single source of truth (Correct answer)
- Exporting data to spreadsheets for manual reconciliation
- Running parallel legacy systems indefinitely
Correct answer: Using real-time integration between modules with a single source of truth
ERP systems achieve data integrity by integrating all modules around a unified database, eliminating redundant data entry.
Question 3: In ERP implementation methodology, what does a 'fit-gap analysis' identify?
- Hardware requirements for the new system
- Differences between standard system functionality and business requirements (Correct answer)
- Employee training needs for the new software
- Budget variances during the implementation project
Correct answer: Differences between standard system functionality and business requirements
A fit-gap analysis compares the ERP system's standard functionality against the organization's specific business requirements to identify gaps requiring customization.
Question 4: Which of the following BEST describes the role of a Chart of Accounts in an ERP financial system?
- A list of authorized users and their system permissions
- A structured list of all general ledger account codes used to classify transactions (Correct answer)
- A schedule of accounts payable payment due dates
- A report showing the status of open customer invoices
Correct answer: A structured list of all general ledger account codes used to classify transactions
The Chart of Accounts is the foundational structure that categorizes all financial transactions into the appropriate GL accounts.
Question 5: What is the primary risk of extensive ERP customization during implementation?
- Reduced software licensing costs
- Difficulty upgrading to future software versions (Correct answer)
- Faster system deployment timelines
- Improved alignment with industry best practices
Correct answer: Difficulty upgrading to future software versions
Heavy customization creates technical debt and makes future upgrades costly and complex because custom code must be retested and re-integrated with each new version.
Question 6: A controller notices that inventory values in the ERP's warehouse module differ from the general ledger balance. What is the MOST likely cause?
- The ERP vendor changed the software pricing
- An integration or posting error between the inventory and financial modules (Correct answer)
- Currency fluctuation affecting inventory valuations
- Unauthorized access to the vendor master file
Correct answer: An integration or posting error between the inventory and financial modules
Discrepancies between sub-ledgers and the GL typically result from failed or incomplete postings in the module integration layer.
Question 7: In an ERP system, what is the function of 'period-end closing' procedures?
- Archiving old user accounts and deactivating expired licenses
- Locking completed accounting periods to prevent retroactive changes and running period reports (Correct answer)
- Backing up the ERP database to offsite storage
- Transferring data from legacy systems into the new ERP
Correct answer: Locking completed accounting periods to prevent retroactive changes and running period reports
Period-end closing locks the accounting period after all adjustments are posted, ensuring historical records remain immutable and accurate.
CFC ERP Systems & Financial Technology 2
Which ERP module is primarily responsible for managing accounts payable, accounts receivable, and the general ledger?