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Business Processes Flashcards

7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Processes flashcards as text

  1. Which ERP process ensures that financial postings are automatically generated when a goods issue is recorded for a delivery?

    Answer: Automatic account determination

    Automatic account determination links inventory movements in logistics to the correct general ledger accounts without manual intervention.

  2. A retail company uses ERP to manage seasonal demand spikes. Which planning approach uses historical sales data and statistical models to forecast future demand?

    Answer: Demand planning with statistical forecasting

    Demand planning with statistical forecasting uses historical data patterns and algorithms to predict future customer demand.

  3. In ERP terminology, a 'plant' typically represents:

    Answer: An organizational unit where production, storage, or procurement activities occur

    In ERP systems like SAP, a plant is an organizational unit representing a physical or logical location where goods are produced or stored.

  4. What is the purpose of a 'material master' record in an ERP system?

    Answer: To store all data relevant to a material across procurement, production, sales, and accounting

    The material master is a central repository of all information about a material used across all functional modules of the ERP.

  5. Which type of ERP process redesign approach implements the system's best-practice processes with minimal customization?

    Answer: Vanilla implementation

    A vanilla implementation adopts the ERP vendor's standard best-practice processes with little to no custom modifications.

  6. In ERP financial processes, what is the function of 'period-end closing'?

    Answer: Finalizing all financial transactions for a period to produce accurate financial statements

    Period-end closing ensures all transactions are posted, accounts reconciled, and financial statements accurately reflect the period's activity.

  7. A company's ERP flags a purchase requisition as exceeding budget. This control is an example of:

    Answer: Commitment management

    Commitment management tracks planned expenditures against budget before actual invoices arrive, preventing overspending.