ERP Business Processes 2

Question 1

In ERP systems, which business process is responsible for converting a customer purchase order into a delivery and invoice?

Accepted Answer

Order-to-Cash (O2C)

Answer

The Order-to-Cash process spans receiving a customer order through fulfillment, invoicing, and collecting payment.

Question 2

A company wants to automate three-way matching in its ERP. Which three documents are compared?

Accepted Answer

Purchase order, goods receipt, and vendor invoice

Answer

Three-way matching compares the purchase order, goods receipt, and vendor invoice to validate payment accuracy.

Question 3

Which ERP module typically manages the routing and work center assignments used during manufacturing execution?

Accepted Answer

Production Planning (PP)

Answer

The Production Planning module controls routings, work centers, and shop floor execution in manufacturing.

Question 4

What is a 'business blueprint' in the context of an ERP implementation?

Accepted Answer

A document capturing how the company's business processes will be configured in the ERP

Answer

A business blueprint documents the agreed-upon design of business processes and their configuration in the ERP system.

Question 5

In an ERP environment, 'process integration' between the SD and MM modules is most evident when:

Accepted Answer

A sales order triggers a material requirements check and potential replenishment

Answer

When a sales order is created in SD, the ERP checks stock availability in MM and can trigger replenishment, demonstrating cross-module integration.

ERP - Management Practice Test