The Ultimate SAP Business One Certification Practice Test

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Shreyashah03
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The Ultimate SAP Business One Certification Practice Test - Quiz


Questions and Answers
  • 1. 

    Which of the following document types can you create header and footer text for?                                   

    • A.

      Sales Order

    • B.

      Business Partner master data

    • C.

      Item master data

    Correct Answer
    A. Sales Order
    Explanation
    You can create header and footer text for Sales Order documents.

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  • 2. 

    Your customer wants to set up an approval process for purchasing. What advice would you give them?    

    • A.

      All users who add purchasing documents will be subject to the approval process specified in the approval template.

    • B.

      You cannot mix predefined terms and user-defined queries in an approval template

    • C.

      You must first define the approvers for each stage of the process

    • D.

      You can include purchasing and inventory documents in the same approval template

    Correct Answer
    C. You must first define the approvers for each stage of the process
    Explanation
    In order to set up an approval process for purchasing, the first step would be to define the approvers for each stage of the process. This means identifying who needs to review and approve the purchasing documents at each step. Once the approvers are defined, the approval template can be created and applied to all users who add purchasing documents. This ensures that all purchasing documents go through the necessary approval process before being finalized.

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  • 3. 

    You want to see the accumulated assets and liabilities for the financial year to date. Which report can you use?                                   

    • A.

      Balance Sheet

    • B.

      Cash Flow Report

    • C.

      Profit and Loss Statement

    • D.

      General Ledger Report

    Correct Answer
    A. Balance Sheet
    Explanation
    The Balance Sheet provides a snapshot of a company's financial position by showing its assets and liabilities at a specific point in time. It summarizes the accumulated assets and liabilities for the financial year to date, making it the appropriate report to use in this scenario. The Cash Flow Report focuses on the inflows and outflows of cash, the Profit and Loss Statement shows the company's revenues, expenses, and net income, and the General Ledger Report provides a detailed record of all financial transactions.

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  • 4. 

    There are three types of balance sheet accounts. Which of the following are not among the balance sheet accounts?                                   

    • A.

      Assets

    • B.

      Equity

    • C.

      Liability

    • D.

      Revenue

    Correct Answer
    D. Revenue
    Explanation
    The balance sheet accounts include assets, equity, and liabilities. Revenue, on the other hand, is an income statement account. The balance sheet provides information about a company's financial position at a specific point in time, while the income statement shows the company's financial performance over a period of time. Therefore, revenue is not among the balance sheet accounts.

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  • 5. 

    Which of the following is correct concerning the Item master data?

    • A.

      A non-inventory item can only be changed to a inventory item and not vice versa.

    • B.

      An inventory item can be changed to a non-inventory item and vice versa when the total quantity of the item is zero or the item has no open document

    • C.

      An inventory item can be changed to a non-inventory item and vice versa only when the total quantity of the item is zero and the item has no open document

    • D.

      An inventory item cannot be changed to a non-inventory item irrespective of any condition

    Correct Answer
    C. An inventory item can be changed to a non-inventory item and vice versa only when the total quantity of the item is zero and the item has no open document
  • 6. 

    Which statements are false regarding issuing components to production order?

    • A.

      A production order must be released before components can be issued manually

    • B.

      By-products can be added to the components list in a production order with a negative quantity to indicate items that are to be put into stock after production

    • C.

      The list of components in a standard production order is created from the production bill of materials assigned to the finished product.

    • D.

      To issue each component individually as it is used, choose the backflush option

    Correct Answer
    D. To issue each component individually as it is used, choose the backflush option
    Explanation
    The backflush option allows for the automatic issuing of components as they are used in the production process, rather than manually issuing them.

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  • 7. 

    You reach an agreement with your customer to accept payments in three installments. What happens when you create an invoice for this customer?                                   

    • A.

      The system automatically splits the invoice amount into three equal payments and posts a journal entry for each payment with the relevant due date.

    • B.

      The system posts a single journal entry that contains a row for each installment. The due date is set to date of the final installment

    • C.

      The system posts three separate journal entries, one for each installment, each with the relevant posting date

    • D.

      The system posts a single journal entry that contains a row for each installment with the relevant due date

    Correct Answer
    D. The system posts a single journal entry that contains a row for each installment with the relevant due date
    Explanation
    When you create an invoice for a customer with an agreement to accept payments in three installments, the system will post a single journal entry that contains a row for each installment. Each row will have the relevant due date specified. This means that the invoice amount will be divided into three equal payments, and each payment will have its own due date.

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  • 8. 

    Which one of the following statements is true regarding the use of query print layouts in SAP Business One?                                   

    • A.

      You can include sub-sorts and sub-totals

    • B.

      You can add database fields to an existing query print layout

    • C.

      Each query print layout is automatically assigned to a query in the system

    • D.

      A query print layout can be based on several queries

    Correct Answer
    A. You can include sub-sorts and sub-totals
    Explanation
    Query print layouts in SAP Business One allow users to include sub-sorts and sub-totals in their reports. This means that users can organize and summarize their data in a more structured and meaningful way. By including sub-sorts, users can sort their data within different categories, while sub-totals allow them to calculate and display totals for each category. This feature enhances the usability and flexibility of query print layouts, allowing users to customize their reports according to their specific needs.

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  • 9. 

      Alternative item row type can be defined for which document type?

    • A.

      Sales Order

    • B.

      Goods Issue

    • C.

      Sales Quotation

    • D.

      Purchase Order

    Correct Answer
    C. Sales Quotation
    Explanation
    The alternative item row type can be defined for the Sales Quotation document type.

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  • 10. 

    You are implementing SAP Business One for a client. What is the minimum number of databases that should be created during the project implementation phase?

    • A.

      1

    • B.

      2

    • C.

      3

    • D.

      4

    Correct Answer
    C. 3
    Explanation
    During the project implementation phase of SAP Business One, a minimum of three databases should be created. This is because SAP Business One requires separate databases for production, testing, and development environments. The production database is used for live operations, the testing database is used for quality assurance and testing purposes, and the development database is used for customizations and enhancements. Having separate databases for each environment ensures data integrity and minimizes the risk of errors or issues affecting the live production environment.

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  • 11. 

    Approval procedures is not defined for which of the following documents?

    • A.

      Incoming Payment

    • B.

      Goods Receipt

    • C.

      Sales Order

    • D.

      Purchase Order

    Correct Answer
    A. Incoming Payment
    Explanation
    The approval procedures are not defined for the document "Incoming Payment". This means that there is no specific process or set of steps in place to review and authorize incoming payments. However, approval procedures may be defined for the other documents mentioned such as Goods Receipt, Sales Order, and Purchase Order, indicating that there are established protocols for approving these documents before further actions can be taken.

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  • 12. 

    You use Account Code Generator to create segments for your Chart of Accounts. True or False?

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The Account Code Generator is used to create segments for the Chart of Accounts. This tool allows you to generate unique codes for different account segments, such as departments, cost centers, or locations, within your Chart of Accounts. By using the Account Code Generator, you can easily organize and track financial data based on these segments. Therefore, the given answer "True" is correct.

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  • 13. 

    Janice has created a new payment method for outgoing checks. When she runs the Payment Wizard to pay her vendors, she does not see the new payment method. What did Janice forget to do?

    • A.

      She did not assign the new payment method to the vendor properties

    • B.

      She did not include the new payment method in the payment run defaults

    • C.

      She did not set up outgoing checks in the 'Payment Terms' for the vendor master data

    • D.

      She included the new payment method in the vendor master data

    Correct Answer
    B. She did not include the new payment method in the payment run defaults
    Explanation
    Janice forgot to include the new payment method in the payment run defaults. This means that when she runs the Payment Wizard to pay her vendors, the system is not configured to recognize the new payment method as an option. Therefore, it does not appear as a choice for Janice to select when making payments. To resolve this issue, Janice needs to go into the payment run defaults settings and add the new payment method so that it can be used during the payment process.

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  • 14. 

    Which of the following statements are false regarding sales orders?

    • A.

      You can create a purchase order based on a sales order

    • B.

      A sales order can be created from a quotation

    • C.

      A delivery date is optional when a sales order is first created

    • D.

      A sales order entered for a product will reduce the available stock for that item by the quantities entered in the sales order

    Correct Answer
    C. A delivery date is optional when a sales order is first created
    Explanation
    When a sales order is first created, a delivery date is not optional. A delivery date must be specified in the sales order to indicate when the product should be delivered to the customer. This allows for proper planning and scheduling of the order fulfillment process.

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  • 15. 

    When the system administrator assigns a professional license to a user, what databases can that user access in the system?

    • A.

      Log in to a second company database with a different user code without getting an error message

    • B.

      Log in with the same authorized user code to other company databases

    • C.

      Log in to any database with total access

    • D.

      Log in to the same database up to five times simultaneously

    Correct Answer
    B. Log in with the same authorized user code to other company databases
    Explanation
    When the system administrator assigns a professional license to a user, the user can log in with the same authorized user code to other company databases. This means that the user will have access to multiple company databases using their authorized user code without encountering any error messages.

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  • 16. 

    What is a typical reason to set up a user-defined field with Alphanumeric as the Type and Text as the Structure?

    • A.

      Allows the field to store rate, amount, and price types

    • B.

      Allows the field to store the date and hour structures

    • C.

      Allows the field to store a long description or notes

    • D.

      Allows the field to store hyperlinks or image files

    Correct Answer
    C. Allows the field to store a long description or notes
    Explanation
    A user-defined field with Alphanumeric as the Type and Text as the Structure allows the field to store a long description or notes. This means that the field can be used to input and store lengthy text-based information, such as detailed descriptions or additional notes related to a particular data entry. This type of field is not specifically designed to store rate, amount, price types, date and hour structures, hyperlinks, or image files.

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  • 17. 

    The sales manager, Vincent, would like to have seasonal prices discounted from the regular sales price. He would like to change all his products prices at the same time whenever the season changes. What is the most efficient way to do this?                                   

    • A.

      Create a price list for the regular sales price. Create a hierarchy called 'seasonal prices' which will be based on the regular sales price list and will give time-based discounts for the season based on a factor Vincent enters.

    • B.

      Create a price list called 'regular sales price list' to list the regular sales prices. Whenever Vincent wants to have a seasonal price list, he will use the 'regular sales price list' as the base price list and enter a discount factor

    • C.

      Create a price list called 'regular sales price list' to list the regular sales prices. Create another price list called 'seasonal price list'. Use the 'regular sales price list' as the base and set a factor by which to discount all the items. Whenever Vincent wants to change the prices on the seasonal price, he can change the factor without creating a new price list

    • D.

      Create a price list which will contain the regular sales prices. Define period and volume discounts for the seasonal prices which will contain both the validity periods for the discounts and a factor to calculate the discounts for all items

    Correct Answer
    C. Create a price list called 'regular sales price list' to list the regular sales prices. Create another price list called 'seasonal price list'. Use the 'regular sales price list' as the base and set a factor by which to discount all the items. Whenever Vincent wants to change the prices on the seasonal price, he can change the factor without creating a new price list
    Explanation
    The most efficient way to handle seasonal prices is to create a price list called 'regular sales price list' to list the regular sales prices. Then, create another price list called 'seasonal price list' and use the 'regular sales price list' as the base. Set a factor by which to discount all the items in the seasonal price list. This allows Vincent to easily change the prices on the seasonal price list by adjusting the discount factor, without the need to create a new price list each time.

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  • 18. 

    If you purchase 10 of product X at $10 and then purchase 10 of product X at $20, which statements below would be false using the different valuation methods?

    • A.

      The total value for the inventory of product X is $300 if you are using the moving average valuation method

    • B.

      The moving average cost of product X would be $30

    • C.

      Using FIFO method of inventory valuation, the current unit cost of sales for product X would be $10

    • D.

      You cannot determine the standard cost for this item with only the information given above

    • E.

      Using the moving average valuation method, the current unit cost of sales for product X would be $15

    Correct Answer
    B. The moving average cost of product X would be $30
    Explanation
    The moving average cost of product X would not be $30. This is because the moving average valuation method calculates the average cost of all units in inventory, taking into account the cost of both the previous and current purchases. In this case, the total cost of the 20 units of product X is $300, resulting in a moving average cost of $15 per unit. Therefore, the statement that the moving average cost of product X would be $30 is false.

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  • 19. 

      What affects the receipts quantity on the MRP recommendation?

    • A.

      Forecasts

    • B.

      Sales Orders

    • C.

      Purchase Orders

    • D.

      Min. inventory levels

    Correct Answer
    C. Purchase Orders
    Explanation
    Purchase orders affect the receipts quantity on the MRP recommendation because they represent the planned or confirmed orders for purchasing materials or products from suppliers. The MRP system takes into account the quantity and timing of these purchase orders to determine how much inventory needs to be received in order to meet demand and maintain optimal inventory levels. By considering purchase orders, the MRP system can accurately calculate the receipts quantity needed to fulfill customer orders and prevent stockouts or excess inventory.

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  • 20. 

    Chad of Blue Steel Inc. created a purchase order for steel tubes. After creating the order, he realized that he had ordered too large a quantity from his vendor. What advice would you give to Chad?

    • A.

      Since the purchase order cannot be changed or canceled in the system, he should create an Advance Goods Return for the excess quantity that he will receive from the purchase order

    • B.

      Since he cannot change the purchase order, he should contact the vendor and ask them to send a smaller amount than is shown on the purchase order, then change the status on the purchase order to closed once the smaller amount is received

    • C.

      He can reduce the quantity on the purchase order as longs as it has not yet been shipped and contact his vendor to let him/her know of the change.

    • D.

      Since the purchase order cannot be changed, he must cancel and re-create the purchase order for the correct amount

    Correct Answer
    C. He can reduce the quantity on the purchase order as longs as it has not yet been shipped and contact his vendor to let him/her know of the change.
    Explanation
    Chad should reduce the quantity on the purchase order as long as it has not yet been shipped and inform the vendor about the change. This allows him to adjust the order to the correct amount without canceling and re-creating the entire purchase order. By contacting the vendor, Chad can ensure that the vendor is aware of the change and can adjust their own records accordingly. This solution is practical and efficient, as it saves time and resources compared to canceling and re-creating the purchase order.

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  • 21. 

    Which statements are true about the opportunities pipeline report?

    • A.

      Since the purchase order cannot be changed or canceled in the system, he should create an Advance Goods Return for the excess quantity that he will receive from the purchase order

    • B.

      Since he cannot change the purchase order, he should contact the vendor and ask them to send a smaller amount than is shown on the purchase order, then change the status on the purchase order to closed once the smaller amount is received

    • C.

      He can reduce the quantity on the purchase order as longs as it has not yet been shipped and contact his vendor to let him/her know of the change

    • D.

      Since the purchase order cannot be changed, he must cancel and re-create the purchase order for the correct amount

    Correct Answer
    C. He can reduce the quantity on the purchase order as longs as it has not yet been shipped and contact his vendor to let him/her know of the change
    Explanation
    The correct answer is that the person can reduce the quantity on the purchase order as long as it has not yet been shipped and contact the vendor to inform them of the change. This means that the person can adjust the quantity of the items they ordered before they are shipped out, as long as they communicate this change to the vendor. This allows for flexibility in managing the purchase order and ensures that the correct amount of items is received.

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  • 22. 

    How does SAP Business On calculate the stock available in the warehouse?

    • A.

      Committed - Ordered

    • B.

      In Stock - Committed

    • C.

      Committed + In Stock + Ordered

    • D.

      In Stock + Ordered - Committed

    Correct Answer
    D. In Stock + Ordered - Committed
    Explanation
    SAP Business On calculates the stock available in the warehouse by adding the stock currently in the warehouse (In Stock) with the stock that has been ordered but not yet received (Ordered), and then subtracting the stock that has been committed to fulfill existing orders (Committed). This calculation takes into account both the stock that is physically present in the warehouse and the stock that is expected to arrive soon, while also considering the stock that has already been allocated to fulfill customer orders.

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  • 23. 

    How many concurrent same user access is possible on a SAP Business One company database?                                   

    • A.

      1

    • B.

      2

    • C.

      3

    • D.

      4

    Correct Answer
    B. 2
  • 24. 

    There are 2 types of income statement and they are ...?

    • A.

      Contingency & Capital

    • B.

      Revenue & Capital

    • C.

      Assets & Liability

    • D.

      Revenue & Expenses

    Correct Answer
    D. Revenue & Expenses
    Explanation
    The correct answer is Revenue & Expenses. An income statement is a financial statement that shows a company's revenues, expenses, and net income over a specific period of time. It helps to determine the profitability of a business by comparing the total revenue generated with the total expenses incurred. Therefore, revenue and expenses are the two types of items that are included in an income statement. Contingency and capital, assets and liability, and revenue and capital are not the correct types of income statements.

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  • 25. 

    How many levels are there in the Chart of Accounts                                   

    • A.

      5

    • B.

      4

    • C.

      3

    • D.

      6

    • E.

      7

    Correct Answer
    A. 5
    Explanation
    The Chart of Accounts is a financial organizational tool that categorizes and tracks a company's financial transactions. It is typically divided into different levels or categories to provide a structured framework for recording and reporting financial information. The correct answer of 5 suggests that there are five levels in the Chart of Accounts, which means that the accounts are classified into five main categories or levels, allowing for a more detailed and comprehensive analysis of financial data.

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  • 26. 

    Ted opens a Business Partner master record and notices that the Account Balance field contains asterisks instead of having a numeric value. What has happened?

    • A.

      Ted does not have general authorization to view Business Partner account balances

    • B.

      Ted is not the owner of this master data record

    • C.

      The account balance field is negative, therefore Ted must determine the reason why

    • D.

      Ted is not defined as a sales employee, therefore he has no access to account balances

    Correct Answer
    A. Ted does not have general authorization to view Business Partner account balances
    Explanation
    Ted does not have general authorization to view Business Partner account balances. This means that Ted does not have the necessary permission or access rights to view the account balances of Business Partners. As a result, when Ted opens the Business Partner master record, the Account Balance field appears as asterisks instead of a numeric value.

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  • 27. 

    In the Business Partner payment terms, you set the Due Date, which is calculated based on the posting date, starting from the beginning of the month plus 31 days. You create an A/R Invoice on May 10. Which Due Date will appear on the invoice?                                   

    • A.

      May 31

    • B.

      July 31

    • C.

      July 1

    • D.

      June 30

    • E.

      June 10

    Correct Answer
    C. July 1
    Explanation
    The Due Date on the invoice will be July 1. This is because the payment terms are calculated starting from the beginning of the month plus 31 days from the posting date. Since the A/R Invoice was created on May 10, the calculation would be May 1 + 31 days, resulting in a Due Date of July 1.

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  • 28. 

    You want to define a budget for the new financial year. What are your options?

    • A.

      You can enter the budget amounts manually, or you can base the amounts on another budget scenario

    • B.

      You do not need to define a budget scenario for the new fiscal year unless you want to produce projection reports for optimistic or pessimistic scenarios

    • C.

      You must always base your new budget scenario on the main budget from the previous year

    • D.

      You do not need to define a budget scenario for the new fiscal year

    Correct Answer
    A. You can enter the budget amounts manually, or you can base the amounts on another budget scenario
    Explanation
    The correct answer states that there are two options for defining a budget for the new financial year: entering the budget amounts manually or basing the amounts on another budget scenario. This means that the person has the flexibility to either input the budget figures themselves or use an existing budget scenario as a reference.

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  • 29. 

    Your customer wants to post an expense for 100 in this fiscal year and defer 25 to the expense to the next fiscal year. How can your customer do this?                                   

    • A.

      Post the deferred expense (75), then post a journal entry for the full amount, with a reversal date for next year

    • B.

      Post the full expense, then post a journal entry to credit the expense for 25, with a reversal date for next year

    • C.

      Post the full expense, then post a journal entry to credit the expense for 75, with a reversal date for next year

    • D.

      Post the deferred expense (25), then post a journal entry to debit the expense for 75, with a reversal date for next year

    Correct Answer
    B. Post the full expense, then post a journal entry to credit the expense for 25, with a reversal date for next year
    Explanation
    To achieve the customer's goal of posting an expense for 100 in the current fiscal year and deferring 25 to the next fiscal year, the customer should first post the full expense of 100. Then, they should post a journal entry to credit the expense for 25, with a reversal date for next year. This will effectively reduce the expense by 25 and defer it to the next fiscal year.

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  • 30. 

    One of your customers has a product you would like to purchase. What must you do to order this product from your existing customer?

    • A.

      Create a new vendor master record and create a purchase order for this vendor

    • B.

      Enter a purchase order for the product but enter the customer number in the vendor field

    • C.

      Use the A/P Invoice with a one-time vendor

    • D.

      In the customer master, tick the checkbox ;use as vendor', you can then use the customer code in a purchase order

    Correct Answer
    A. Create a new vendor master record and create a purchase order for this vendor
    Explanation
    To order a product from an existing customer, you need to create a new vendor master record and then create a purchase order for this vendor. This means that you will set up the customer as a vendor in your system, allowing you to order products from them. By creating a vendor master record, you establish the necessary information and details for the customer to be treated as a vendor. Then, by creating a purchase order, you can specify the product and quantity you wish to order from this customer-turned-vendor.

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  • 31. 

    Which one of the following statements is true for the correct sequence of the licensing process for SAP Business One?                                   

    • A.

      Copy the hardware key from the SAP Channel Partner Portal into the License Manager, and assign the license to a user in SAP Business One.

    • B.

      Copy the hardware key from the License Manager, request a license in the SAP Channel Partner Portal, import the license file into the License Manager, and then assign the license to a user in SAP Business One

    • C.

      Assign a license to a user in SAP Business One, then copy the hardware key, and send it to the SAP Channel Partner Portal, then notify the License Manager.

    • D.

      Assign the license to a user in SAP Business One, copy the hardware key from License Manager, and send it to the SAP Channel Partner Portal, then send the license file to the License Manager

    Correct Answer
    B. Copy the hardware key from the License Manager, request a license in the SAP Channel Partner Portal, import the license file into the License Manager, and then assign the license to a user in SAP Business One
    Explanation
    The correct sequence for the licensing process for SAP Business One is to first copy the hardware key from the License Manager. Then, request a license in the SAP Channel Partner Portal. After that, import the license file into the License Manager. Finally, assign the license to a user in SAP Business One. This sequence ensures that the necessary steps are followed in the correct order to successfully license SAP Business One.

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  • 32. 

    When an item is selected in a sales order, which type of prices does the system look for first?                                   

    • A.

      Prices based on a discount group linked to the Business Partner

    • B.

      Special prices set up for the customer

    • C.

      Quantity-based prices for an item valid for a given time period

    • D.

      Item prices from the price list linked to the Business Partner.

    Correct Answer
    B. Special prices set up for the customer
    Explanation
    The system looks for special prices set up for the customer first when an item is selected in a sales order. These special prices are specifically set up for the customer and may offer discounted rates or preferential pricing. This allows the system to prioritize customized pricing arrangements for individual customers before considering other types of prices such as discount groups, quantity-based prices, or item prices from the price list linked to the Business Partner.

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  • 33. 

    Your company sells furniture. One of your best selling products is an dinning room table that comes packaged with four chairs. You also sell the dinning room table and chairs separately. When you sell the package, you would like the sales order to show the package on the top line of the order, with the dinning room table and chairs also shown on separate lines. What is the best way to set this up?                                   

    • A.

      Set up the chair and dinning room table as separate items. You do not need an item for the package. Create a sales bill of materials for the package.

    • B.

      Set up the chair and dinning room table as separate items and create a relationship by using item properties. Enter the item properties into a production bill of materials

    • C.

      Set up the chair, dinning room table and package as single items. Create a sales bill of materials for the package.

    • D.

      Set up the chair, dinning room table and package as separate items. Create a production bill of materials to assemble the set for delivery

    Correct Answer
    C. Set up the chair, dinning room table and package as single items. Create a sales bill of materials for the package.
  • 34. 

      Which statements are true concerning the Goods Receipt PO document?

    • A.

      A journal entry for the increase in stock is created when a Goods Receipt PO is added when the perpetual inventory system is used.

    • B.

      The item quantity on the purchase order referenced by a Goods Receipt PO limits the quantity of the item that can be received on the Goods Receipt PO

    • C.

      Only one Purchase Order can be referenced by one Goods Receipt PO

    • D.

      A Goods Receipt PO document must always be created in reference to a Purchase Order

    Correct Answer
    A. A journal entry for the increase in stock is created when a Goods Receipt PO is added when the perpetual inventory system is used.
    Explanation
    When using the perpetual inventory system, a journal entry is created to record the increase in stock when a Goods Receipt PO is added. This means that the inventory is updated in real-time as goods are received. This statement is true and explains the process of how the perpetual inventory system works.

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  • 35. 

    It is not possible to change the language settings of your SAP Business One application. True or False?

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    It is possible to change the language settings of your SAP Business One application. This can be done by accessing the application's settings or preferences and selecting the desired language option.

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  • 36. 

    What happens when you define the opening balances function and the system currency differs from the local currency?                                   

    • A.

      The balances are converted automatically

    • B.

      It is not possible to enter opening balances when different system and local currencies are used in a company

    • C.

      An internal error message appears in red

    • D.

      You must manually convert the balances

    Correct Answer
    A. The balances are converted automatically
    Explanation
    When you define the opening balances function and the system currency differs from the local currency, the balances are automatically converted. This means that the system will automatically calculate and adjust the balances based on the exchange rate between the system currency and the local currency. Therefore, there is no need for manual conversion of the balances.

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  • 37. 

    Which of the following are true about the uses of user defined fields in SAP Business One?

    • A.

      It is a tool used to generate SQL statements

    • B.

      It is used for integration into document templates

    • C.

      It is used to format data records

    Correct Answer
    B. It is used for integration into document templates
    Explanation
    User defined fields in SAP Business One are used for integration into document templates. This means that these fields can be added to the templates for various documents such as sales orders, invoices, and purchase orders. This allows for customization and flexibility in capturing and displaying additional information specific to the business needs. By integrating user defined fields into document templates, businesses can enhance their reporting capabilities and streamline their processes by capturing and displaying relevant data in a structured manner.

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  • 38. 

    In SAP Business One Chart of Accounts levels 2 - 4 consist of active or title accounts. True or False?

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    In SAP Business One, the Chart of Accounts levels 2 - 4 indeed consist of active or title accounts. This means that these levels represent specific accounts that are either actively used for recording financial transactions or serve as titles for grouping related accounts. Therefore, the statement "True" accurately describes this characteristic of the Chart of Accounts in SAP Business One.

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  • 39. 

    Your company sells 10 different products in 20 different sales regions. If you are using account segmentation to track by region you would need ...?

    • A.

      100 segmented accounts

    • B.

      200 segmented accounts

    • C.

      20 segmented accounts

    • D.

      10 segmented accounts

    Correct Answer
    B. 200 segmented accounts
    Explanation
    If you are using account segmentation to track by region, you would need 200 segmented accounts. This is because there are 20 different sales regions and each region would require a separate segmented account. Therefore, to track all the regions, you would need 200 segmented accounts.

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  • 40. 

    As the stock keeper of your company, you want to get a report of items with no transactions in the report period. How will you achieve this?

    • A.

      Write a query by querying the null value column in the OITM table

    • B.

      Run the inventory audit report in SAP Business One

    • C.

      Use the built-in query wizard in SAP Business One

    • D.

      It is not possible to generate a report that displays items with no transactions

    Correct Answer
    B. Run the inventory audit report in SAP Business One
    Explanation
    By running the inventory audit report in SAP Business One, you will be able to generate a report that displays items with no transactions. This report will provide you with the necessary information as the stock keeper of your company.

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  • 41. 

    Which statements are true about password security levels in SAP Business One?

    • A.

      Up to three security levels may be set at one time

    • B.

      Only one security level can be set for all users, but it can be changed

    • C.

      There are five predefined password security levels

    Correct Answer
    B. Only one security level can be set for all users, but it can be changed
    Explanation
    The statement "Only one security level can be set for all users, but it can be changed" is true. In SAP Business One, you can only set one security level for all users, but you have the flexibility to change it if needed. This means that all users will have the same level of password security, but the level can be adjusted according to the organization's requirements. There are not multiple security levels that can be set simultaneously, and there are not specifically five predefined password security levels.

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  • 42. 

    A new sales employee has started at your company. You have created a user code for this employee. Why do you also need to create an employee master data record?                                   

    • A.

      For setting up approval procedures

    • B.

      For assigning sales commissions

    • C.

      For setting up data ownership exceptions

    • D.

      For managing sales territories

    • E.

      For assigning general authorizations

    Correct Answer
    C. For setting up data ownership exceptions
    Explanation
    The employee master data record is needed for setting up data ownership exceptions. This means that certain employees may have different access or ownership rights to specific data within the company. By creating an employee master data record, the company can define and manage these exceptions, ensuring that the new sales employee has the appropriate access and ownership rights to the relevant data.

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  • 43. 

    In SAP Business One, you can define banks and house banks. Why do you need to define house banks?

    • A.

      In order to define payment terms

    • B.

      In order to define Business Partner bank accounts

    • C.

      In order to deposit incoming checks

    • D.

      In order to define credit cards

    Correct Answer
    B. In order to define Business Partner bank accounts
    Explanation
    In SAP Business One, defining house banks is necessary in order to define Business Partner bank accounts. This allows for the establishment and management of bank accounts specifically associated with the business partners. By defining house banks, businesses can accurately track and record financial transactions related to their partners, ensuring efficient and accurate financial management within the system.

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  • 44. 

    Greg wants to be able to process customer payments even if they differ from the invoice amount by as much as $1. How would you advise Greg to set it up?                                   

    • A.

      Specify an under/overpayment amount under 'Document Settings' for the incoming payment document. At payment time, the system posts the difference to a predefined G/L account

    • B.

      Specify an under/overpayment amount under 'Payment Terms' in the customer master data. At payment time, the system posts the difference to a predefined G/L account

    • C.

      Select the 'Allow under/overpayment amount' checkbox in 'Company Details'. At payment time, the system posts the difference to a predefined G/L account

    • D.

      Define a maximum tolerance amount in the Business Partner tab of the 'General Settings'. At payment time, the system will post the difference to a predefined G/L account

    Correct Answer
    A. Specify an under/overpayment amount under 'Document Settings' for the incoming payment document. At payment time, the system posts the difference to a predefined G/L account
    Explanation
    To be able to process customer payments even if they differ from the invoice amount by as much as $1, Greg should advise to specify an under/overpayment amount under 'Document Settings' for the incoming payment document. This allows the system to post the difference to a predefined G/L account at payment time. This ensures that any overpayments or underpayments are properly accounted for and recorded in the system.

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  • 45. 

    On the manual internal reconciliation screen you see the following open items for a Business Partner: incoming payment for the amount 1000, invoice for 600, and invoice for 500. How can you reconcile these transactions using manual type internal reconciliation?

    • A.

      Select the three items and change the amount to reconcile on the payment. You can then reconcile all three transactions

    • B.

      Select the three items and change the amount to reconcile on one of the invoices. This invoice stays open with a balance due.

    • C.

      Select the three items. The system partially reconciles the transactions. The payment stays open with a negative balance due

    • D.

      Double-click the payment to see a list of recommended invoices. Select the invoices to reconcile all three items

    Correct Answer
    B. Select the three items and change the amount to reconcile on one of the invoices. This invoice stays open with a balance due.
    Explanation
    You can reconcile these transactions by selecting the three items and changing the amount to reconcile on one of the invoices. However, this invoice will remain open with a balance due.

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  • 46. 

    Which G/L accounts appear in the profit and loss statement?

    • A.

      Asset and liability accounts

    • B.

      Asset, sales and expenditure accounts

    • C.

      Sales and expenditure accounts

    • D.

      All accounts with a non-zero balance

    Correct Answer
    C. Sales and expenditure accounts
    Explanation
    The profit and loss statement, also known as the income statement, shows the revenue and expenses of a company during a specific period. Sales and expenditure accounts directly contribute to the calculation of net income or loss. Sales accounts represent the revenue generated from the sale of goods or services, while expenditure accounts represent the costs incurred to operate the business. Therefore, including sales and expenditure accounts in the profit and loss statement is essential to determine the company's profitability.

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  • 47. 

    Your customer has several rent and loan payments due each month. What can you recommend to post these payments quickly each month?                                   

    • A.

      Create a posting template for each payment, then use this template when you post each journal entry

    • B.

      Create a journal entry for each payment with the repeat checkbox selected, and set the frequency for each repeat posting

    • C.

      Batch the payments in a journal voucher, then you only need to post them once a month

    Correct Answer
    A. Create a posting template for each payment, then use this template when you post each journal entry
    Explanation
    To quickly post rent and loan payments each month, it is recommended to create a posting template for each payment. By using these templates, you can easily and efficiently post each journal entry without having to manually input all the details each time. This saves time and ensures accuracy in the posting process.

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  • 48. 

    Your customer, Speedy Flowers Ltd, has two delivery addresses they would like to use. How do you set this up?                                   

    • A.

      Activate the checkbox for multiple addresses in the customer master data, then specify a primary and a secondary delivery address

    • B.

      Add each new address on the address tab of the customer master data. After adding each new address, choose the option 'set as shipping address' to designate the address to be used for deliveries

    • C.

      On the address tab of the customer master data, choose 'define new' under 'ship to' in order to enter the two delivery addresses

    • D.

      Create two contact persons with different addresses for the customer

    Correct Answer
    C. On the address tab of the customer master data, choose 'define new' under 'ship to' in order to enter the two delivery addresses
    Explanation
    To set up two delivery addresses for Speedy Flowers Ltd, you need to go to the address tab of the customer master data and choose 'define new' under 'ship to'. This allows you to enter the two delivery addresses for the customer. By doing this, you can ensure that both addresses are saved and can be used for deliveries as needed.

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  • 49. 

    For which Business Partner types can a quotation be created?

    • A.

      All leads

    • B.

      All vendors

    • C.

      Only leads who have been used in sales opportunities

    • D.

      Only vendors whose Business Partners master is flagged with 'use as customer'

    Correct Answer
    A. All leads
    Explanation
    A quotation can be created for all leads. This means that any potential customer or prospect can receive a quotation for a product or service. It is not limited to only vendors or specific types of leads, such as those who have been used in sales opportunities or those whose Business Partners master is flagged with 'use as customer'.

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  • 50. 

    The finance manager, Louise Marsh, wants to be able to query the system and get a report that displays all the open invoices for a specific customer. How can this can be achieved?                                   

    • A.

      From the Business Partner master record, choose the account balance linking arrow. Then check the 'display un-reconciled transactions only' box.

    • B.

      Use the general ledger accounting report. In the selection criteria window, select the customer code; select the options to display not fully-reconciled transactions and only A/R invoices

    • C.

      Use the dunning history report. Enter the Business Partner code in the selection criteria

    • D.

      Use the trial balance report. Select the Business Partner on the left, choose to display only un-reconciled transactions and select A/R invoices

    Correct Answer
    B. Use the general ledger accounting report. In the selection criteria window, select the customer code; select the options to display not fully-reconciled transactions and only A/R invoices
    Explanation
    To achieve the desired result of displaying all the open invoices for a specific customer, the finance manager should use the general ledger accounting report. In the selection criteria window, they should select the customer code and choose the options to display not fully-reconciled transactions and only accounts receivable (A/R) invoices. This report will provide the necessary information and allow Louise Marsh to query the system and obtain the desired report.

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