Order-to-cash Business Process Test Quiz
You need to take this Order-to-Cash business process test quiz if you wish to learn more about it and maybe even refresh your memory if you already have prior existing knowledge about this topic. 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!
- 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
Correct Answer(s)
A. Sales organization
C. Distribution channel
E. Divisions
F. Shipping pointExplanation
The correct answer is sales organization, distribution channel, divisions, and shipping point. These organizational levels are specific to the sales and distribution processes within a company. The sales organization represents a specific unit responsible for sales activities, the distribution channel represents the different channels through which products are distributed, divisions represent different divisions or segments within the company, and shipping points represent specific locations where products are shipped from. These organizational levels help to define and structure the sales and distribution processes within the company.Rate this question:
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- 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
Correct Answer(s)
A. Sales conditions are defined on the Sales Organization level.
B. A sales organization is uniquely assigned 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.Explanation
Sales conditions are defined on the Sales Organization level because sales conditions are specific to the sales organization and are used to determine pricing and discounts for customers. A sales organization is uniquely assigned to one company code to ensure that sales activities are properly accounted for and tracked within the company's financial system. For using the SD application in SAP ERP implementation, at least one sales organization and one plant must be created because the sales organization is responsible for managing sales processes and the plant is responsible for managing the physical inventory and production.Rate this question:
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- 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.
Correct Answer(s)
A. A sales area is a unique combination of sales organization, distribution channel and division.
C. Each SAP SD document is assigned to exactly one sales area upon the creation of the SD document.
E. A sales area is assigned to exactly one company code.Explanation
Sales areas in SAP ERP and SAP SD are unique combinations of sales organization, distribution channel, and division. This means that each sales area represents a specific combination of these three elements. Additionally, each SAP SD document is assigned to one sales area upon creation, ensuring that the document is associated with a specific sales area. Furthermore, a sales area is assigned to one company code, meaning that it is linked to a specific organizational unit within the company.Rate this question:
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- 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
Correct Answer(s)
A. For using the SD application in SAP ERP implementation, you must create at least one sales organization and one plant.
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 plantExplanation
The first statement is true because in order to use the sales and distribution (SD) application in SAP ERP, you need to have at least one sales organization and one plant. The second statement is also true as a plant can be assigned to multiple company codes. The third statement is false as a plant is not uniquely assigned to a sales organization. The fourth statement is true because if a plant is used as a delivery plant, it must be assigned to a sales organization and a distribution channel in the system's customizing. The fifth statement is true as the plant is required for determining shipping points if it is used as a delivering plant.Rate this question:
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- 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.
Correct Answer(s)
A. When creating a customer, the general data view is always created. The data in this view is valid for the whole client.
D. A customer master data record can be maintained for different sales areas. Hence, a customer can order materials in different sales areas.
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.Explanation
The customer master data in SAP SD includes a general data view that is created when a customer is created. The data in this view is valid for the entire client, meaning it applies to all sales areas. Additionally, a customer master data record can be maintained for different sales areas, allowing a customer to order materials in different sales areas. Furthermore, the customer master data record serves as an account in the sub-ledger Accounts Receivable. Lastly, the company code specific data of the customer master data record contains the reconciliation account of General Ledger.Rate this question:
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- 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.
Correct Answer(s)
B. Customer-specific pricing conditions are maintained on the sales area 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.Explanation
The first statement is false because to define pricing conditions, you must have maintained the Sales Organization data views in the material master, not the Purchasing data view. The second statement is true because customer-specific pricing conditions are indeed maintained on the sales area level. The third statement is false because customer-specific pricing conditions are not maintained on the company code level, but on the sales area level. The fourth statement is true because to define pricing conditions, you must have maintained the Sales Organization data views in the material master. The fifth statement is true because 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. The sixth statement is false because you can still sell material to a customer even if no customer-specific pricing condition was created beforehand.Rate this question:
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- 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
Correct Answer(s)
A. Sales order
B. Quotation
F. Delivery
G. Quotation
H. Billing document
I. Billing requestExplanation
The documents created in the SAP SD application include sales order, quotation, delivery, billing document, billing request. These documents are used in the sales and distribution processes of the SAP system. The sales order is created when a customer places an order, the quotation is created to provide pricing information to the customer, the delivery document is created to track the shipment of goods, the billing document is created to invoice the customer, and the billing request is created to initiate the billing process.Rate this question:
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- 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.
Correct Answer(s)
A. You can create a sales order from one multiple quotations.
D. Sales orders must be assigned to a sales area.
E. Sales orders can only be assigned to sales areas the customer belongs to.Explanation
The first statement is true because in SAP SD, a sales order can be created from multiple quotations. This allows the customer to choose from different options before placing the final order.
The second statement is true because even if a customer does not have sales area level data maintained, a sales order can still be created for them. This allows for flexibility in the system.
The third statement is false because it states that a customer-specific pricing condition must exist beforehand to create a sales order. In reality, the pricing condition can be determined during the sales order creation process.
The fourth statement is true because sales orders must be assigned to a sales area. This helps in the organization and management of sales orders.
The fifth statement is true because sales orders can only be assigned to sales areas that the customer belongs to. This ensures that the sales order is processed correctly for the specific customer.
The sixth statement is false because a sales order must be assigned to a particular division. This helps in categorizing and tracking sales orders within the system.Rate this question:
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- 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
Correct Answer(s)
A. Availability check
D. Credit limit check
F. Pricing
G. Shipment schedulingExplanation
The functions that can be executed automatically in a sales order are availability check, credit limit check, pricing, and shipment scheduling. These functions are typically automated processes within a sales order system that help ensure that the products are available, the customer's credit limit is not exceeded, the correct pricing is applied, and the shipment is scheduled efficiently. These automated functions help streamline the sales order process and reduce manual effort.Rate this question:
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- 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.
Correct Answer(s)
A. Sales orders 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.Explanation
Sales orders and delivery documents in SAP SD are structured into different document levels. The correct answers are as follows:
1. Sales orders consist of a header, an item, and an item schedule line level. This means that a sales order can have multiple items, and each item can have multiple schedule lines indicating the delivery schedule for that item.
2. Delivery documents consist of a header and an item level. This means that a delivery document can have multiple items, but it does not have the concept of schedule lines like the sales order.
3. Delivery document items correspond to sales order document item schedule lines. This means that each item in the delivery document corresponds to a specific item schedule line in the sales order, indicating which schedule line is being delivered.
Therefore, the correct document levels in sales orders and delivery documents are as mentioned above.Rate this question:
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- 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.
Correct Answer(s)
A. When running availability check in a sales order the system determines material availability based on planning and forecasting 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.Explanation
The sales order plays a role in integrating SAP SD with SAP MM by performing several functions. Firstly, when running an availability check in a sales order, the system determines material availability based on planning and forecasting in SAP MM. This ensures that the necessary materials are available for production or procurement. Secondly, for materials with procurement type externally procured, a sales order creates transfer requirements and transfers them to SAP MM. This helps in initiating the procurement process for externally procured materials. Lastly, requirements in SAP MM are transferred to purchase requisitions or planned orders during the MRP run, which helps in initiating the procurement or production process based on the stock requirements.Rate this question:
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- 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
Correct Answer
C. Goods issue postingExplanation
Goods issue posting is a mandatory step in the shipping process in SAP ERP. This step involves the actual removal of goods from the warehouse or inventory, indicating that they have been issued and are ready for shipment. Without this step, the shipping process cannot be completed as the goods would not be officially recorded as being taken out of inventory.Rate this question:
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- 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.
Correct Answer(s)
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.
D. A controlling document is created in any case.Explanation
Upon billing document creation, the billing document creates a debit posting on the customer receivables account, indicating that the customer owes the company money for the goods or services provided. Additionally, the billing document creates a credit posting on the revenue account, recognizing the revenue earned from the sale. A controlling document is created in any case, which helps track and monitor the costs and revenues associated with the billing process.Rate this question:
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- 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
Correct Answer
D. Document flowExplanation
SAP ERP provides a function called "Document flow" which allows displaying all documents from the Order-to-Pay process in one structured list. This feature provides an overview of the entire process, showing the sequence and relationship between different documents involved in the process. It helps users to track and monitor the progress of the process, ensuring smooth and efficient execution.Rate this question:
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- 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
Correct Answer(s)
A. Delivery worklist
B. Picking worklist
E. Goods issue worklist
G. Billing worklistExplanation
The sales and distribution component in the SAP ERP system features several worklists to facilitate different processes. The delivery worklist is used to manage the delivery of goods to customers. The picking worklist helps in organizing the picking of items from the warehouse for delivery. The goods issue worklist is used to track the movement of goods out of the warehouse. The billing worklist is used to manage the invoicing process for the delivered goods. These worklists are essential in ensuring smooth and efficient sales and distribution operations in the SAP ERP system.Rate this question:
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- 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.
Correct Answer(s)
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.Explanation
The payment process in SAP ERP is initiated through the billing document and carried out in SAP FI. This means that the payment is recorded and processed in the financial accounting module of SAP. Additionally, the payment debits the cash account, indicating that money is being withdrawn from the company's cash reserves. Furthermore, the payment credits the customer receivables account, indicating that the customer's outstanding balance is being reduced.Rate this question:
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- 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
Correct Answer
A. Picked quantityExplanation
When a transfer order is completed, the picked quantity field in the delivery document is updated. This means that the quantity of items that have been physically picked from the warehouse for delivery is recorded in the document. The picked quantity field helps to track and manage the inventory accurately, ensuring that the correct amount of items are delivered to the customer.Rate this question:
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- 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.
Correct Answer
C. Besides the billing document a CO-PA-document, accounting document, and Profit center document are created.Explanation
When a sales order is billed in the integration of SAP ERP Logistics and SAP ERP Financial Accounting, several documents are created. These include a CO-PA document, an accounting document, and a Profit center document. These documents are created in addition to the billing document itself.Rate this question:
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- 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
Correct Answer
D. Shipping pointExplanation
The shipping point is the highest organizational element that is responsible for deliveries. It is the specific location within a plant or warehouse where goods are loaded for transportation to the customer. The shipping point determines the shipping activities and is responsible for coordinating the delivery process, including packing, loading, and shipping the goods to the customer. The other options listed, such as the purchasing organization, company code, and distribution channel, are not directly responsible for deliveries.Rate this question:
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- 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
Correct Answer(s)
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 1:1Explanation
The first statement is valid because a plant can indeed have multiple shipping points assigned. This means that a single plant can have multiple locations from which it ships its products.
The second statement is also valid because the assignment of the sales organization to plants does not have to be a one-to-one relationship. This means that a sales organization can be assigned to multiple plants, or multiple sales organizations can be assigned to a single plant.Rate this question:
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- 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.
Correct Answer(s)
B. ... contains groups of FI and SD views.
C. ... are applied if documents are created in customer accounting directly.Explanation
System integration affects customer master records by including groups of FI and SD views, as well as applying the records if documents are created directly in customer accounting. This means that the integration allows for the inclusion of financial and sales and distribution views in the customer master records, and also ensures that the records are applied when relevant documents are created in customer accounting.Rate this question:
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- 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
Correct Answer
C. Document flowExplanation
The correct answer is "Document flow". Document flow enables access to the history and current status of sales processes and is displayed as a symbol (icon) in a sales order. It allows users to track the progression of documents related to the sales order, providing a visual representation of the flow of information and actions taken.Rate this question:
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- 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
Correct Answer
D. Create a billing documentExplanation
The process in Sales Order Management in SAP ERP that creates a financial accounting document is creating a billing document. This document is generated when a sales order is ready to be invoiced and includes all the relevant financial information such as pricing, taxes, and payment terms. It serves as a basis for the accounting department to record the revenue and update the financial records of the company.Rate this question:
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- 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.
Correct Answer(s)
A. The customer's credit account is updated.
D. An open item is posted on the customer's account.
E. Revenue is increased.Explanation
When a billing document is saved in SAP ERP, the customer's credit account is updated, an open item is posted on the customer's account, and revenue is increased. These integration points occur because the billing document represents the financial aspect of the sales order management process. Updating the customer's credit account ensures that their credit limit is adjusted based on the amount billed. Posting an open item on the customer's account helps track the outstanding payment, and increasing revenue reflects the financial impact of the sales transaction.Rate this question:
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- 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.
Correct Answer(s)
A. Contains delivery quantities and delivery dates.
C. Partial deliveries are represented by multiple schedule lines.Explanation
The schedule lines in SAP ERP Sales Order Management contain delivery quantities and delivery dates, allowing for easy tracking of when and how much will be delivered. Additionally, partial deliveries are represented by multiple schedule lines, ensuring accurate representation of the order fulfillment process.Rate this question:
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- 26.
The Sales Information System (SIS) in SAP ERP standard analyses provides extensive functions to create sophisticated presentations and reporting for the data. Within SIS, the data is stored using which of the following? (1 correct answer)
- A.
Information Providers
- B.
Information Work Areas
- C.
Information Cubes
- D.
Information Structures.
Correct Answer
D. Information Structures.Explanation
The correct answer is "Information Structures." In SAP ERP standard analyses, the Sales Information System (SIS) stores data using information structures. Information structures are predefined data models that organize and store data in a structured format, making it easier to analyze and report on sales information. These structures provide a framework for storing data related to sales, such as customer data, product data, and sales transaction data. By using information structures, the SIS can generate sophisticated presentations and reports based on the stored data.Rate this question:
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- 27.
Which transaction in the order-to-cash business process creates a financial accounting document? (1 correct answer)
- A.
Create a billing document
- B.
Create a sales order
- C.
Calculate cost on a sales order
- D.
Release a sales order
Correct Answer
A. Create a billing documentExplanation
Creating a billing document in the order-to-cash business process is the transaction that generates a financial accounting document. This document contains information about the sale, including the amount owed by the customer and the revenue earned by the company. It is used for financial reporting and recording the transaction in the company's accounting system.Rate this question:
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- 28.
A billing document is created in the order-to-cash business process. What integration business processes occur when the billing document is saved? (2 correct answers)
- A.
On-hand inventory is decreased.
- B.
Actual demand is reduced.
- C.
An open item is posted on the customer's account.
- D.
Revenue is increased.
Correct Answer(s)
C. An open item is posted on the customer's account.
D. Revenue is increased.Explanation
When a billing document is saved in the order-to-cash business process, two integration business processes occur. Firstly, an open item is posted on the customer's account, which means that a record is created to reflect the outstanding payment owed by the customer. This helps in tracking the customer's financial transactions. Secondly, revenue is increased as the billing document represents the sale of goods or services, and the revenue is recognized at this point. Both of these processes are crucial for maintaining accurate financial records and tracking the financial performance of the business.Rate this question:
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- 29.
How can you assign organizational levels in the order-to-cash business process? (3 correct answers)
- A.
You can assign many shipping points to a plant.
- B.
You can assign a sales area to only one company code.
- C.
You can assign a sales organization to multiple company codes.
- D.
You can assign more than one distribution channel to a sales organization.
- E.
You can assign a plant to only one sales organization.
Correct Answer(s)
A. You can assign many shipping points to a plant.
B. You can assign a sales area to only one company code.
D. You can assign more than one distribution channel to a sales organization.Explanation
In the order-to-cash business process, there are several ways to assign organizational levels. Firstly, you can assign many shipping points to a plant, allowing for flexibility in managing the shipping process. Secondly, a sales area can only be assigned to one company code, ensuring clear financial management and accountability. Lastly, it is possible to assign more than one distribution channel to a sales organization, enabling the organization to reach different customer segments effectively.Rate this question:
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Mar 27, 2023Quiz Edited by
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Sep 23, 2011Quiz Created by
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