Order-to-cash Business Process Test Quiz

29 Questions | Total Attempts: 2336

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Order-to-cash Business Process Test Quiz

Order-to-Cash is a business process that ensures that once an order is placed, arrangements should be made to provide the goods or services the customer requested. This process relies heavily on proper documentation like invoicing. Take up this quiz to test your understanding of this process. All the best!


Questions and Answers
  • 1. 
    Organizational levels of a company correspond to its structure, representing the legal and organizational views of a company. The sales and distribution (SAP SD) application of the SAP ERP system uses several organizational levels that can only represent sales and distribution processes. These are... (4 correct answers)
    • A. 

      Sales organization

    • B. 

      Client

    • C. 

      Distribution channel

    • D. 

      Plant

    • E. 

      Divisions

    • F. 

      Shipping point

    • G. 

      Company code

  • 2. 
    A sales organization is an organizational level in logistics that groups the company according to sales and distribution requirements. Which of the following statements are true regarding sales organizations? (3 correct answers)
    • A. 

      Sales conditions are defined on the Sales Organization level.

    • B. 

      A sales organization is uniquely assigned to one company code.

    • C. 

      You can assign exactly one sales organization to one company code.

    • D. 

      For using the SD application in SAP ERP implementation, you must create at least one sales organization and one plant.

    • E. 

      In sales statistics, a plant is the highest aggregation level

  • 3. 
    Sales areas are a particularly important organizational unit in SAP ERP and especially in the SAP SD application. Which of the following statements are true regarding sales areas? (3 correct answers)
    • A. 

      A sales area is a unique combination of sales organization, distribution channel and division.

    • B. 

      A sales area is a unique combination of sales organization, distribution channel and shipping point.

    • C. 

      Each SAP SD document is assigned to exactly one sales area upon the creation of the SD document.

    • D. 

      A sales area is assigned to exactly one sales organization.

    • E. 

      A sales area is assigned to exactly one company code.

    • F. 

      A sales area is assigned to exactly one plant.

  • 4. 
    Plant and storage location are organizational units for inventory management, in Materials Management. In sales and distribution, the plant is the location from which materials and services are distributed.. Which of the following statements are true regarding plants? (3 correct answers)
    • A. 

      For using the SD application in SAP ERP implementation, you must create at least one sales organization and one plant.

    • B. 

      A plant can be assigned to multiple company codes.

    • C. 

      A plant is uniquely assigned to a sales organization.

    • D. 

      If a plant is used as a delivery plant, it must have been assigned to a sales organization and a distribution channel in the system's customizing.

    • E. 

      The plant is required for determining shipping points if it is used as delivering plant

  • 5. 
    The customer master in SAP SD contains all data about the customer. Which of the following statements are true regarding the customer master data? (4 correct answers)
    • A. 

      When creating a customer, the general data view is always created. The data in this view is valid for the whole client.

    • B. 

      When creating accounting data in the customer's master data, you must specify the sales area this data is valid for.

    • C. 

      When displaying the customer's master data in transaction XD03, you do not need to enter a particular sales area to see the sales area data, if the sales area data were created beforehand.

    • D. 

      A customer master data record can be maintained for different sales areas. Hence, a customer can order materials in different sales areas.

    • E. 

      Data on the general data view of a customer's master data are only valid for the company code specified upon master data creation.

    • F. 

      A customer master data record is an account in the sub-ledger Accounts Receivable at the same time.

    • G. 

      The company code specific data of the customer master data record contains the reconciliation account of General Ledger.

  • 6. 
    You want to define a customer-specific sales price for the material. Which of the following statements are true regarding pricing in the SAP SD application? (3 correct answers)
    • A. 

      To define pricing conditions, you must have maintained the Purchasing data view in the material master.

    • B. 

      Customer-specific pricing conditions are maintained on the sales area level.

    • C. 

      Customer-specific pricing conditions are maintained on the company code level.

    • D. 

      To define pricing conditions, you must have maintained the Sales Organization data views in the material master.

    • E. 

      A Pricing condition for a customer can be maintained for multiple sales areas, as long as the customer master data record is maintained for these sales areas.

    • F. 

      You cannot sell material to a customer if no customer-specific pricing condition was created beforehand.

  • 7. 
    Which of the following are documents created in the SAP SD application? (6 correct answers)
    • A. 

      Sales order

    • B. 

      Quotation

    • C. 

      Purchase requisition

    • D. 

      Purchase order

    • E. 

      Production order

    • F. 

      Delivery

    • G. 

      Quotation

    • H. 

      Billing document

    • I. 

      Billing request

    • J. 

      Payment document

  • 8. 
    When a customer orders goods or services, the SAP system records the customer's request in a sales order. Which of the following statements are true regarding sales orders in SAP SD? (3 correct answers)
    • A. 

      You can create a sales order from one multiple quotations.

    • B. 

      Sales orders can also be created for a customer that has no sales area level data maintained.

    • C. 

      Since the entry of a customer in a sales order is mandatory, a customer-specific pricing condition for the materials to be sold must exist beforehand, before you can create the sales order.

    • D. 

      Sales orders must be assigned to a sales area.

    • E. 

      Sales orders can only be assigned to sales areas the customer belongs to.

    • F. 

      A Sales order does not have to be assigned to a particular division.

  • 9. 
    Which of the following functions can be executed automatically in a sales order? (4 correct answers)
    • A. 

      Availability check

    • B. 

      Cancellation service

    • C. 

      Customer service call

    • D. 

      Credit limit check

    • E. 

      Billing document creation

    • F. 

      Pricing

    • G. 

      Shipment scheduling

  • 10. 
    Sales orders and delivery documents are structured into different document levels. Which of the following document levels in those SAP SD documents? (3 correct answers)
    • A. 

      Sales orders consist of a header, an item, and an item schedule line level.

    • B. 

      Delivery document items correspond to sales order document items.

    • C. 

      Delivery documents consist of a header, an item, and an item schedule line level.

    • D. 

      Delivery documents consist of a header and an item level.

    • E. 

      Delivery document items correspond to sales order document item schedule lines.

  • 11. 
    It is the responsibility of the procurement and warehouse management department to ensure that the production and purchasing departments are advised of inadequate stock quantities and, thus, ensure that goods can either be produced or ordered on time. What role does a sales order play in integrating SAP SD with SAP MM? (3 correct answers)
    • A. 

      When running availability check in a sales order the system determines material availability based on planning and forecasting in SAP MM.

    • B. 

      Availability checks are controlled by the availability check type set in the sales order.

    • C. 

      For materials with procurement type in-house production, a sales order creates planned orders in SAP MM.

    • D. 

      For materials with procurement type externally procured, a sales order creates transfers requirements and transfers them to SAP MM.

    • E. 

      Requirements in SAP MM are transferred to purchase requisitions or planned orders during the MRP run.

  • 12. 
    The shipping process in SAP ERP consists of several steps. Which of the following steps is mandatory? (1 correct answer)
    • A. 

      Packing

    • B. 

      Picking and confirming

    • C. 

      Goods issue posting

    • D. 

      Planning and monitoring of transport

  • 13. 
    After the goods issue posting, the shipping activities are completed and the customer is billed. Which of the following actions are performed upon billing document creation? (3 correct answers)
    • A. 

      The billing document creates a debit posting on the customer receivables account.

    • B. 

      The billing document creates a credit posting on the revenue account.

    • C. 

      An accounting document is created only if controlling is involved in this posting.

    • D. 

      A controlling document is created in any case.

    • E. 

      A profit controlling document is always created.

  • 14. 
    SAP ERP provides a function that allows displaying all documents from the Order-to-Pay process in one structured list. This function is called... (1 correct answer)
    • A. 

      List overview

    • B. 

      Process list

    • C. 

      Document overview

    • D. 

      Document flow

  • 15. 
    The sales and distribution component in the SAP ERP system features several information systems. Thereby, worklists play a central role. What kind of worklists are available in SAP ERP? (4 correct answers)
    • A. 

      Delivery worklist

    • B. 

      Picking worklist

    • C. 

      Output worklist

    • D. 

      Goods receipt worklist

    • E. 

      Goods issue worklist

    • F. 

      Stock transfer worklist

    • G. 

      Billing worklist

  • 16. 
    Payment is the last step in the order-to-cash business process. Which of the following statements are true regarding the payment in SAP ERP? (2 correct answers)
    • A. 

      Payment is initiated through the billing document and carried out in SAP FI. The payment debits the cash account.

    • B. 

      The payment credits the customer receivables account.

    • C. 

      The payment does not create an accounting document.

    • D. 

      The billing document is cleared by the payment document.

  • 17. 
    Which field in a delivery document is updated, if a transfer order is completed? (1 correct answer)
    • A. 

      Picked quantity

    • B. 

      Delivered quantity

    • C. 

      Reserved quantity

  • 18. 
    What documents are created due to the integration of SAP ERP Logistics and SAP ERP Financial Accounting as the effect of billing of a sales order? (1 correct answer)
    • A. 

      CO-PA-document, Business area-document, and accounting documents are created.

    • B. 

      Accounting documents, material documents, and CO-PA-document are created.

    • C. 

      Besides the billing document a CO-PA-document, accounting document, and Profit center document are created.

  • 19. 
    What is the highest organizational element that is responsible for deliveries? (1 correct answer)
    • A. 

      Purchasing organization

    • B. 

      Company code

    • C. 

      Distribution channel

    • D. 

      Shipping point

  • 20. 
    Organizational units display the structure of a company. Which of the following statements are valid for organizational units of distribution? (2 correct answers)
    • A. 

      A sales organization can belong to several company codes.

    • B. 

      A division is a channel that is used to provide customers with materials and services.

    • C. 

      A plant can have multiple shipping points assigned.

    • D. 

      The assignment of the sales organization to plants has not to be a of type 1:1

  • 21. 
    How does system integration affect customer master records? The customer master records... (2 correct answers)
    • A. 

      ... contains groups of FI and MM views.

    • B. 

      ... contains groups of FI and SD views.

    • C. 

      ... are applied if documents are created in customer accounting directly.

    • D. 

      ... can be managed in production planning.

  • 22. 
    What enables access to the history and current status of your sales processes and is displayed as a symbol (icon) in a sales order? (1 correct answer)
    • A. 

      Order history

    • B. 

      Protocol

    • C. 

      Document flow

    • D. 

      Change documents

  • 23. 
    You are explaining the Sales Order Management business in SAP ERP to a colleague. Which Sales Order Management process transaction, in SAP ERP, creates a financial accounting document? (1 correct answer)
    • A. 

      Create a sales order

    • B. 

      Release a sales order

    • C. 

      Calculate cost on a sales order

    • D. 

      Create a billing document

  • 24. 
    In SAP ERP, Sales Order Management Process, a billing document is created. When a billing document is saved, in SAP ERP, what integration points occur? (3 correct answers)
    • A. 

      The customer's credit account is updated.

    • B. 

      On hand inventory is decreased.

    • C. 

      Actual demand is reduced.

    • D. 

      An open item is posted on the customer's account.

    • E. 

      Revenue is increased.

  • 25. 
    In SAP ERP Sales Order Management, you have created and saved a sales order. You are now reviewing the order's schedule lines. (2 correct answers)
    • A. 

      Contains delivery quantities and delivery dates.

    • B. 

      The same schedule line can belong to multiple sales line items.

    • C. 

      Partial deliveries are represented by multiple schedule lines.

    • D. 

      The schedule line determines if a sales line item is free of charge.

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