SAP S/4HANA Sourcing and Procurement Exam Prep Test

The correct answer is D. Consignment. Consignment is a procurement process where the supplier delivers material to the buyer's warehouse, but the buyer is only obliged to pay the supplier once they have withdrawn the stock. In this process, the supplier retains ownership of the stock until it is sold or used by the buyer. This allows the buyer to have the material on hand without having to pay for it upfront.

In this scenario, the company will be procuring finished goods from a supplier who will manufacture the product using components shipped from the company. This process is known as subcontracting, where a company outsources a part of its manufacturing process to a third-party supplier. The supplier takes responsibility for manufacturing the product using the components provided by the company. This allows the company to focus on other aspects of its business while still ensuring the production of the required goods. Therefore, the correct answer is C. Subcontracting.

In inventory management, stock quantities can be differentiated within a plant by using storage locations. Storage locations are specific areas within a plant where materials are stored. By assigning different storage locations to different stock quantities, it becomes easier to track and manage inventory within the plant. This allows for better organization and control over stock levels, ensuring that the right materials are available when needed. Bin locations refer to specific spots within a storage location, storage area refers to a larger area where multiple storage locations may be present, and shipping points are locations where goods are shipped from, which are not directly related to differentiating stock quantities within a plant.

A blanket purchase order is the best suited purchasing document for procuring low-value material over a period of time up to a specific amount. It allows the buyer to establish a long-term agreement with a supplier to purchase goods or services as needed, without specifying the quantity or delivery schedule upfront. This provides flexibility and convenience in procuring materials over an extended period, while still ensuring that the total amount of procurement does not exceed a predetermined limit.

When you post a goods receipt for a valuated material, two documents are created. The first document is the accounting document, which records the financial impact of the goods receipt. This document is important for tracking the cost of the material and updating the inventory value. The second document is the material document, which provides information about the goods received, such as the material number, quantity, and storage location. This document is used for inventory management and tracking the movement of materials within the organization.

When entering a supplier invoice for a delivered purchase order, you can use the delivery note number as a reference to post the invoice. This number confirms that the goods have been received. Additionally, you can also use the purchase order number as a reference, which identifies the specific order that the invoice relates to. Lastly, the bill of lading number can be used as a reference, as it is a document that provides details about the shipment of goods.

The SAP Fiori launchpad allows for personalization in terms of selecting the design theme, which allows users to customize the visual appearance of the launchpad. Additionally, users can also personalize the language and region settings, enabling them to view the launchpad in their preferred language and adapt it to their specific region.

To have MRP live create planned orders for externally procured materials, you need to implement the BAdl PPH_MRP_SOURCING_BADI => SOS_DET_ADJUST. This BAdl allows for adjustments to the sourcing details, which includes the creation of planned orders for externally procured materials. Changing the procurement type of the material, setting the appropriate plant-specific material status, or setting the MRP indicator in the source list of the material to "Not relevant for planning" would not directly enable MRP live to create planned orders for externally procured materials.

The three lot-sizing procedures that are suitable for reorder point planning are replenish to maximum stock level, lot-for-lot order quantity, and fixed order quantity. Replenishing to the maximum stock level ensures that the inventory is always maintained at its maximum level, minimizing the risk of stockouts. Lot-for-lot order quantity involves ordering exactly the quantity needed to fulfill the demand, reducing excess inventory. Fixed order quantity involves ordering a predetermined quantity each time, which can help in achieving economies of scale. These procedures are specifically designed for reorder point planning and can effectively manage inventory levels.

The invoice verification clerks can use the automatic release function for invoices that are blocked due to variances. This means that if there are any discrepancies or differences between the invoice and the purchase order or goods receipt, the invoice will be blocked. The automatic release function allows the system to automatically release these blocked invoices once the variances have been resolved. This helps to streamline the invoice verification process and ensure that invoices are processed efficiently.

To ensure that consignment purchase orders have a different number range than other purchase orders, the correct approach is to customize a new document type and assign the item category for consignment only to this type. By creating a new document type, you can define specific settings and assign the item category exclusively for consignment orders, allowing for a separate numbering system. This customization ensures that consignment purchase orders are distinct from other types of purchase orders in terms of numbering.

The system searches for a valid source of supply in the following sequence when manually creating a purchase requisition with automatic source determination: Quota arrangement, Source list, Outline agreement item, and Info record.

When the system detects quantity differences that exceed the upper tolerance limit specified in Customizing, it issues a message. However, despite the message, you are still able to post the invoice. However, the system automatically blocks the invoice for payment. This means that the invoice will not be processed for payment until the quantity differences are resolved or further action is taken.

By using a reference purchasing organization, you can minimize the effort for price condition maintenance within a multinational corporation with multiple company codes and purchasing organizations. This means that instead of maintaining price conditions separately for each purchasing organization, you can use a reference purchasing organization to set up and maintain the price conditions. This allows for centralized management and reduces the effort required for maintaining prices across the organization.

To execute a procurement process, two business partner roles are required. The first role is the FI Vendor on company code level. This role is necessary to handle financial transactions and payments related to the procurement process. The second role is the Supplier on purchasing organization level. This role is responsible for providing the goods or services required for the procurement process. Both roles are essential for the smooth execution of the procurement process, ensuring proper financial management and the availability of necessary supplies or services.

Assigning a partner schema to relevant purchasing document types is a prerequisite to enable partner roles determination in purchasing documents. This means that before partner roles can be determined in purchasing documents, a partner schema needs to be assigned to the relevant purchasing document types. The partner schema defines the partner functions and their determination rules for specific document types. By assigning the partner schema to the purchasing document types, the system knows which partner functions are relevant and can determine the partner roles accordingly.

The correct answer is D. Plant - Purchasing Organization. This is because the procurement process involves purchasing goods or services for a specific plant within an organization. The purchasing organization is responsible for managing the procurement activities for that plant. Therefore, the assignment of a plant to a purchasing organization is mandatory for external procurement to ensure that the correct plant is associated with the appropriate purchasing organization.

When manually creating a purchase requisition, the system will display all the valid purchasing info records for the specific material in a list. The user will then need to manually select one from the list.

In SAP Materials Management, the release procedure used to process an approval of a purchase requisition can be done without classification. This means that classification is not required for the release process.

The item category is used to control the procurement process when creating a purchase order for procurement of a material. It determines how the material will be procured, such as whether it will be purchased externally or produced internally. The item category also determines the account assignment category, which is used to determine the general ledger account to which the costs of the material will be charged. Therefore, selecting the correct item category is crucial in controlling the procurement process.

When you park a supplier invoice related to a purchase order, two things occur. First, an MM invoice document is created. This document serves as a record of the invoice and contains all relevant information such as the vendor, invoice amount, and payment terms. Second, the purchase order history is updated. This update reflects the fact that an invoice has been received and parked for further processing. This allows for better tracking and management of the purchase order and invoice process.

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To get a procurement proposal for 1000 pieces for each supplier, you need to set a maximum lot size in the quota item and activate the lxindicator checkbox. This ensures that the system will not propose a quantity greater than the maximum lot size for each supplier. Additionally, you need to set a maximum quota quantity in the quota item to restrict the total quantity that can be allocated to the suppliers. This ensures that each supplier can only be allocated a maximum of 1000 pieces.

The document type controls which item categories you are allowed to use when creating new items in a purchasing document. The document type determines the specific characteristics and settings for a particular type of purchasing document, such as a purchase order or a purchase requisition. Each document type is associated with a predefined set of item categories that can be used within that document type. Therefore, the document type plays a crucial role in determining the available item categories for creating new items in a purchasing document.

To have flexible workflows for purchase order approval, the recipients for the flexible workflow need to be defined in the Manage Workflows for Purchase Orders SAP Fiori app (Option A). Additionally, the flexible workflow for purchase orders needs to be activated in customizing (Option B). Lastly, the preconditions for the flexible workflow must be set up in the Manage Workflows for Purchase Orders SAP Fiori app (Option E). These three actions are prerequisites for enabling flexible workflows for purchase order approval.

End users can perform the following actions with filtered report results in an SAP Fiori app:

A. Send via e-mail: This allows the user to send the filtered report results to others via e-mail.
B. Save as a new tile on the SAP Fiori launchpad: This enables the user to save the filtered report results as a new tile on the SAP Fiori launchpad for easy access in the future.
D. Share on SAP Jam: This option allows the user to share the filtered report results on SAP Jam, a collaboration platform, with other users.

The G/L account determination is influenced by the valuation area and the chart of accounts. The valuation area determines the accounting principle and the currency in which the valuation of assets and liabilities is carried out. The chart of accounts, on the other hand, defines the structure and organization of G/L accounts, providing a framework for recording financial transactions. Both the valuation area and the chart of accounts play a crucial role in determining the appropriate G/L account for a particular transaction.

The correct procedure for recording conditional goods receipt (GR) is to post a goods receipt to non-valuated GR blocked stock. This means that the goods will be received into a separate stock location that is not included in the inventory valuation until the conditions for accepting the delivery are met. This allows for better control and tracking of the goods before they are officially part of the inventory.

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To minimize the effort involved in account determination, you can group plants assigned to the same chart of accounts by using the valuation grouping code. This allows for easier management and organization of plants within the project, as plants with similar valuation requirements can be grouped together. By grouping plants based on the chart of accounts, you can streamline the process of determining the appropriate accounts for valuation.

MRP Live is a material requirements planning (MRP) system that helps in managing and planning the production and procurement of materials. It generates planned orders, purchase requisitions, and schedule lines based on the demand and supply data. However, it does not generate an MRP list. The MRP list is a report that provides an overview of the planned orders, purchase requisitions, and schedule lines generated by the MRP system. Therefore, the correct answer is B. MRP list.

Through material requirements planning (MRP), it is possible to automatically create a scheduling agreement delivery schedule. MRP is a system that helps in planning and managing the production and procurement of materials based on demand. By using MRP, the system can calculate the required quantities and delivery dates for the scheduling agreement, thus automatically creating the delivery schedule. This ensures that the materials are delivered in a timely manner according to the agreed-upon schedule.

The correct answers for this question are A, B, and D. A scheduling agreement item is always plant-specific, meaning that it is specific to a particular location or facility. A scheduling agreement can be used for a consignment process, where the supplier retains ownership of the goods until they are consumed or sold by the customer. A material master record is optional in a scheduling agreement item, allowing for flexibility in managing and tracking materials within the agreement.

SAP Fiori achieves the role-based design principle by providing end users with all the necessary information and functions they require for their daily work, without overwhelming them with unnecessary features. This ensures that users have a streamlined and efficient experience tailored to their specific roles. Additionally, Fiori decomposes complex transactions into multiple discrete apps that are specifically designed to suit the needs of each user role, further enhancing usability and productivity.

In order to configure the system to record confirmed quantities and dates in the purchase order item, a confirmation control key with a sequence of two confirmation types needs to be set up in Customizing. This allows for the suppliers to send both purchase order confirmations and shipping notifications, ensuring that all relevant information is recorded and tracked.

During reorder point planning, the forward scheduling procedure takes into account the planned delivery time, purchasing department processing time, and goods receipt processing time when calculating the availability date. These time elements are crucial in determining when the goods will be available for use or sale. The planned delivery time represents the time it takes for the goods to be delivered from the supplier. The purchasing department processing time includes the time required for the procurement process, such as placing the order and handling any necessary paperwork. The goods receipt processing time is the time needed to receive and inspect the goods upon arrival.

In this scenario, the correct answer is B. If the order quantity exceeds the target quantity, a warning message is issued. You can set this as an error message in Customizing to prevent release. This means that if the quantity in the release order exceeds the agreed target quantity, a warning message will be displayed to inform the user. Additionally, this warning message can be customized to be treated as an error message, preventing the release of the order if the quantity exceeds the target. This ensures that the purchasing organization does not exceed the agreed-upon quantity in the contractual agreement with the supplier.

Option A suggests using the Regular Supplier indicator in the info record, which is a record that contains information about a specific material and its suppliers. This indicator ensures that Supplier A is automatically proposed as the primary source for the material.

Option C suggests using the source list and marking the vendor (Supplier A) as fixed. The source list is a list of approved vendors for a particular material. By marking Supplier A as fixed, it ensures that Supplier A is automatically proposed as the primary source for the material.

Both options A and C provide ways to automatically propose Supplier A as the primary source for the material, making them both correct answers.

To implement split valuation functionality, two actions must be taken. First, additional material master accounting data needs to be created, which allows for the differentiation of valuation for different stock types. Second, customization of valuation categories and valuation types is required to define the criteria for splitting the valuation. These two actions together enable the system to assign different valuation types to different stock types and accurately determine the value of inventory.

The field selection in the material master is influenced by the material type, procurement type, and transaction code. The material type determines the specific characteristics and behavior of the material, which can impact the required fields. The procurement type determines the procurement process for the material, which can also affect the mandatory fields. The transaction code refers to the specific transaction or task being performed, and different transactions may have different field requirements. These factors collectively determine which fields must be filled in as mandatory during the initial creation of the material master.

Invoice verification clerks trigger the posting method by using an appropriate document type. The document type selected determines how the cash discount amount will be posted.

Material requirements planning (MRP) is a system used to manage and control the production and inventory of materials needed for manufacturing. It helps in determining the quantities and timing of materials required for production. The elements that can be generated by MRP include planned orders, purchase orders, purchase requisitions, and delivery schedule lines. These elements are essential for ensuring that the right materials are available at the right time and in the right quantities to meet production requirements.

The available SAP Smart Business key performance indicators (KPIs) for contracts include unused contracts, contract leakage, and value contract consumption. These KPIs help track and measure the effectiveness and efficiency of contract management processes. Unused contracts indicate the number of contracts that have not been utilized, while contract leakage measures the extent of contract violations or breaches. Value contract consumption measures the amount of value or resources consumed against the contract. These KPIs provide valuable insights into contract utilization, compliance, and resource allocation.

For each of the materials, you must set a special procurement key/type for consignment in the material master record. This will ensure that MRP creates consignment purchase requisitions assigned to a vendor instead of normal purchase requisitions. Additionally, you need to create at least one source of supply for consignment to specify the vendor from whom the materials will be procured on consignment.

You can personalize the Procurement Overview app by filtering the content of the cards, changing the position of the cards, and hiding an existing card. This allows you to customize the information displayed on the cards, rearrange their order, and remove unnecessary cards to suit your preferences and needs.

To set up an account determination that groups several material types on the same accounts, you need to assign the same account category reference to the material types. This means that all the material types will be categorized under the same account category reference, allowing them to be grouped together and assigned to the same accounts for accounting purposes. This ensures consistent and streamlined account determination for the material types.

The behavior of the account determination can be influenced based on the characteristics of the plant and the movement type. The plant is a key factor in determining the account to which expenses are posted, as different plants may have different expense accounts. The movement type is also important, as it determines the nature of the transaction and can impact the account determination.

The Create Supplier Invoice SAP Fiori app supports the functions of creating an invoice for multiple purchase order references, displaying the purchase order history, and entering unplanned delivery costs. These functions allow users to efficiently manage and track invoices, purchase orders, and delivery costs within the SAP system.

Analytical SAP Fiori apps provide direct access to information about unused contracts and expiring contracts. These apps allow users to analyze and track the status and duration of contracts, enabling them to identify contracts that are not being utilized and contracts that are nearing their expiration dates. This information can be valuable for organizations in managing their contract portfolio and ensuring optimal utilization of their contractual agreements.

The correct answers for this question are C and D. Option C states that entering the actual invoice values and posting will create an invoice with the actual values and possibly block it for payment. Option D states that entering the actual invoice values, using the reduction function, and posting will create a credit memo in addition to the actual invoice. Both options provide methods for creating the invoice with the correct values and potentially addressing any variances that may exist.