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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. In ERP systems, 'cross-docking' as a business process means:

    Answer: Moving incoming goods directly from receiving to shipping without storing them in a warehouse

    Cross-docking is a logistics process where goods received from a supplier are immediately transferred to outbound shipments without warehousing.

  2. A company uses ERP to track actual costs against planned costs for a production order. This comparison is called:

    Answer: Variance analysis

    Variance analysis in production compares planned (standard) costs to actual costs incurred, identifying inefficiencies or savings.

  3. Which ERP functionality allows a sales representative to check whether requested goods can be delivered by a promised date?

    Answer: Available-to-Promise (ATP) check

    ATP checks real-time inventory, open orders, and planned receipts to confirm if a quantity can be committed for a specific delivery date.

  4. In ERP business process management, 'exception handling' refers to:

    Answer: Defining how the system responds when a process step falls outside normal parameters

    Exception handling in ERP defines automated or manual workflows triggered when business rules or thresholds are breached.

  5. What is the role of 'intercompany processes' in a multi-entity ERP environment?

    Answer: Managing transactions between different legal entities within the same corporate group

    Intercompany processes handle buying and selling transactions between subsidiaries of the same parent company within the ERP, ensuring both sides are accurately recorded.

  6. A business analyst discovers that the same customer data is stored in three different formats across ERP modules. This is an example of:

    Answer: Data inconsistency due to poor master data governance

    Inconsistent customer data across modules indicates a failure in master data governance, which ERP systems are designed to prevent through a single source of truth.

  7. In ERP project management, what is 'scope creep' and why is it especially risky during business process design?

    Answer: Uncontrolled expansion of project requirements that delays go-live and inflates costs

    Scope creep occurs when new requirements are added without formal change control, often causing budget overruns and delayed ERP implementations.