ERP Materials 4

Question 1

Which ERP process is used when a vendor delivers the wrong quantity and the company needs to formally send back excess items?

Accepted Answer

Return delivery to vendor

Answer

A return delivery to vendor is the ERP transaction that formally sends back excess or incorrect goods and reverses the inventory increase from the original goods receipt.

Question 2

In ERP procurement, what is 'spend analysis'?

Accepted Answer

Examining historical purchasing data to identify savings opportunities and supplier consolidation

Answer

Spend analysis aggregates and categorizes purchasing data to reveal trends, maverick spending, and opportunities to negotiate better terms or consolidate suppliers.

Question 3

What is an 'info record' (purchasing info record) in SAP-style ERP systems?

Accepted Answer

A master data record storing conditions, prices, and lead times for a specific material-vendor combination

Answer

A purchasing info record stores the agreed price, lead time, and conditions for a specific combination of material and vendor, automatically populating purchase orders.

Question 4

What does 'available-to-promise (ATP)' checking in ERP materials management do?

Accepted Answer

Verifies whether enough unreserved inventory and supply exists to fulfill a customer order by its requested date

Answer

ATP checking calculates available inventory minus existing commitments plus planned receipts to determine if a new customer order can be confirmed for a specific delivery date.

Question 5

Which ERP inventory valuation approach records all inventory at a predetermined cost regardless of actual purchase prices?

Accepted Answer

Standard price (standard cost)

Answer

Standard price valuation assigns a fixed predetermined cost to every unit of a material, and any difference from the actual purchase price is posted to a price variance account.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Materials 4