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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.

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  1. Which ERP business process is triggered when a manufacturer identifies a shortage of components needed to fulfill a production order?

    Answer: Material Requirements Planning (MRP) run

    MRP analyzes production requirements against stock levels and generates procurement or production proposals to cover shortfalls.

  2. In an ERP system, 'workflow' automation in business processes primarily helps organizations by:

    Answer: Routing tasks to the right people and enforcing approval hierarchies automatically

    ERP workflow automation routes tasks, documents, and approvals to designated users based on predefined rules, ensuring process consistency.

  3. What distinguishes a 'make-to-order' (MTO) production strategy from 'make-to-stock' (MTS) in an ERP context?

    Answer: MTO production is triggered by a specific customer order, while MTS produces to forecasted demand

    In MTO, each production order is tied to a specific customer sales order, while MTS produces inventory in anticipation of demand.

  4. A 'chart of accounts' in an ERP system serves as:

    Answer: A structured list of general ledger accounts used to record all financial transactions

    The chart of accounts defines all G/L accounts available for posting financial transactions within a company code.

  5. In ERP human resources processes, what is 'organizational management' responsible for?

    Answer: Defining the company's reporting structure, positions, and job roles in the system

    Organizational management in ERP HR defines the hierarchy of organizational units, positions, and reporting relationships.

  6. Which ERP process concept describes the end-to-end flow from identifying a business need to purchasing goods and paying the supplier?

    Answer: Procure-to-Pay (P2P)

    Procure-to-Pay encompasses the full purchasing cycle from requisition creation through supplier payment.

  7. When implementing ERP, 'data migration' refers to:

    Answer: Transferring master data and transactional history from legacy systems into the new ERP

    Data migration involves extracting, transforming, and loading existing business data from old systems into the ERP before go-live.