SAP Certification Sample Test-1

1. With reference to the creation profile in scheduling agreements, which of the following are true?

a) It controls which event triggers the creation of a scheduling agreement release (changes involving the lines of the overall schedule and/or the reaching of the next transmission date),

b) It controls How the delivery dates are shown (aggregation and release horizon)

Ans: a and b

2. A distributed contract is used for procurement from different Vendors.

• True

• False

Feedback: Distributed Contracts are centrally agreed contract that are created in one ECC system and made available to other ECC systems for the issue of release orders. Data exchange between the systems is via ALE.

3. When creating a purchase order, entering the vendor number and material number will default data from the master records into the document. Some examples of such data are:

• Vendor address and  partner data

• Currency

• Material description, material group, unit of measure.

• Quantity

Feedback: Quantity is not defaulted into the purchase order.

4. The following documents are always created on posting an Invoice.

• An MM invoice document

• An FI accounting document

Feedback: An MM invoice document and an FI accounting document.

5. Is it possible to have info records for materials without a material master record?

• True

• False

Feedback: Yes, the info record is created for the material group.

6. What can be the relationship between the valuation area and the valuation grouping code?

• 1 to 1

• 1 to many

• Many to 1

• Many to many

Feedback: Under the menu option "Val. area grouping", you assign valuation areas to a valuation grouping code.

The valuation grouping code makes it easier to set the automatic account determination. Within the chart of accounts, you assign the same valuation grouping code to the valuation areas you want to assign to the same account.

Valuation grouping codes either reflect a fine distinction within a chart of accounts or they correspond to a chart of accounts.

7. What can be the relationship between valuation class and material type?

• 1 to 1

• Many to many

• Many to 1

• 1 to many

Feedback: You group together different materials with similar properties into valuation classes so that you do not have to manage a separate stock account for every material.

Which valuation class a material can be assigned to depends on the material type. You can define the following assignments in Customizing:

• All materials with the same material type are assigned to just one valuation class.

• Different materials with the same material type are assigned to different valuation classes.

• Materials with different material types are assigned to a single valuation class.

A material is assigned to a valuation class in the material master record. The system checks whether the material type allows the material to be assigned to the valuation class specified.

The system refers to the valuation class of a material to determine which stock account to post to when a posting is made for this material.

8. What highlights the relationship between material types and G/L accounts?

• All materials for a material type can be assigned to a G/L account.

• Different material types with all materials within them can be assigned to a G/L account

• Two different materials within the same material type can be assigned to different G/L accounts

• Group several material types and assign different G/L accounts to different materials within this group.

Feedback:The SAP system uses automatic account determination for accounting relevant transactions. This is used to identify the G/L accounts to which postings should be made. Automatic account determination can be set up in customizing such that any of the four scenarios described above are realized.

9. Material type NLAG is a special Material Type used for managing non-stock items. What are some of the properties of NLAG?

• Used for non-stock items (items that are not managed on a quantity or value basis).

• Useful for consumable materials that are purchased frequently.

• Mandatory to put an account assignment category on the purchasing document..

Feedback: All of the above are valid properties of NLAG

Material type NLAG stands for non-stock material. You can specify that neither quantities nor values are updated for this material type in customizing. This means that no accounting data is maintained in the material master record for materials of this material type, and stock values are therefore not updated. These materials can therefore only be procured with account assignments.

10. What are the special properties of material type UNBW?

• Type of material that is managed on a quantity basis but not on a value basis.

• Can be used for materials that have a low value but when stock quantities need to be managed e.g. brochures, samples, promotion give-away items.

• Mandatory to put an account assignment category on the purchasing document

Feedback: Material type UNBW stands for non-valuated material. You can specify that quantities are updated, but values are not for this material type in customizing. This means that no accounting data is maintained in the material master record for materials of this material type, and stock values are therefore not updated. These materials can therefore only be procured with account assignments.

11. The field on the material master that is used to determine which G/L account is to be updated upon a goods movement is the Valuation class (Accounting 1 view).

• True

• False

Feedback: The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials.

You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

12. Which of the following statements on price control in the ECC system are correct?

• Price control “S” allows only purchase orders with constant prices. Therefore, for purchased materials with price control “S”, you should arrange outline agreements to protect the constant price.

• Price control “V” is recommended for purchased materials. (correct answer)

• If a goods issue is posted between when you post the goods receipt and when you post the invoice, and this leads to the total stock being smaller that the quantity to be settled, the system posts any differences between the purchase order price and the invoice for the quantity consumed (stock shortage) to a price difference account, irrespective of the price control that the material is subject to. (correct answer, your response)

• The importance of price control “V” depends on whether the material ledger is active or not. If you are not working with the material ledger, price control “V” means that you are using the moving average price. This means that the value of the stock account and the price per price unit is adjusted for existing stocks. (correct answer)

• In the case of differences between the purchase order price and the valuation price in the material master, the difference is posted to a GR/IR clearing account at goods receipt if you are working with price control “S”. This is then cleared when the invoice is posted.

Feedback: The price control procedure set in the material master record determines the value used to valuate the goods receipt of a material. Material valuation can be carried out according to the standard price (S price) or the moving average price (MA price).

Standard price: During the valuation using the standard price, there are many stock postings to a price determined in the material master record, i.e. the standard price. Variances to this standard price are posted to the price differences accounts.

Moving average price: In valuation using the moving average price (price control ‘V’), the system valuated goods receipts with the purchase order price and goods issues with the current moving average price. Differences between the purchase order price and the invoice are posted directly to the relevant stock account if there is sufficient stock coverage.

The advantage of using the moving average price is that variances occurring for materials procured externally cause an update in the material price and the material stock value. Because the material price reflects the average procurement cost of a material, material issues could, in principle, be valuated with the current price.

Price control is preset as follows in the standard SAP R/3 System:

• moving average for materials procured externally

• standard for in-house produced materials

SAP’s recommendation is to use the preset controls.

13. In which of the following business scenarios might you look at split valuation functionality?

• You manufacture and procure the same materials.

• You have the same material but different quality levels

• Different batch stocks of a material have different valuation prices.

• You only do made to order manufacturing.

Feedback: In a scenario where you are only doing made-to-order manufacturing, you will not be using split valuation.

14. The partner function feature allows vendor organization to be mapped in SAP system e.g. different ordering addresses.

The above statement is True/False.

• True

• False

Feedback: The statement is true. Vendors are set up in SAP as partners, & different types of Vendors can be represented by different partner functions, e.g. One Time Vendors etc.

15. For one-time vendors, SAP offers a special partner function. How does a one-time vendor differ from a standard vendor?

• No address data or bank details.

• If using a one-time vendor, the system will prompt the user for the data required for that particular part of the process. (E.g. creating an RFQ the system will request the address data.)

• Cannot create an info record for a one-time vendor.

Feedback: All of the above are properties linked to one time vendors.

16. What must you take into account if you want to post an invoice before the goods receipt? What are the consequences of using this procedure?

• You must set the GR-based invoice verification indicator in the purchase order at the latest.

• Before you enter the invoice, you must set the GR-based invoice verification indicator in the vendor master record.

• The system cannot refer to the quantity to be settled and the corresponding amount. You must enter this information manually every time.

• The system identifies a quantity variance and blocks the invoice for payment (provided that the appropriate tolerance limits are exceeded).

17. What are the different ways a user can react to variances based on purchase order and purchase order history?

• Only park

• Accept or park with tolerances

• Accept

• Reduce.

Feedback: In case of variation, you have the following options, based on customizing and definition of processes:

Hold the Invoice: This saves the document in its current state. An MM invoice document is created, but no information is passed to Financial Accounting.

Park the Invoice: In this scenario, an MM invoice document is created, and the po history is updated. Information is also sent to Financial Accounting.

Save the document as complete: The same checks as for Parked document are carried out. This option is used when you do not want to make any more changes to the document, but do not want to post it yet.

18. Which statements regarding the release (approval) of purchase requisitions with classification are correct?

• The assignment of the release strategy is effected automatically via the values assigned to the class characteristics.

• The release status describes which follow-on actions are possible in connection with the purchase requisition (for example, release for issue of RFQs, release for issue of RFQs and PO).

• The purpose of the release strategy is to exercise control over the transmission of the purchase requisition.

Feedback: Transmission is controlled by the Message Determination and not by the release strategy.

19. In which way can you obtain information on purchase orders issued to a vendor that have not yet been invoiced?

• You make use of a list that displays all the purchase orders issued to a certain vendor. You limit the POs shown on the list to those that have not yet been invoiced by the appropriate definition of the Scope of List.

• You make use of a list that displays all the purchase orders issued to a certain vendor. You limit the POs shown on the list to those that have not yet been invoiced by means of the selection parameters.

• The selection parameters and list scopes are predefined by SAP and cannot be changed.

Feedback: You can access lists using the Menu path: Logistics ->Materials Management -> Purchasing -> Purchase Order -> List Displays

In the list you can use various selection parameters including ‘Purchase Orders Not invoiced’

20. In the purchase order on which the goods receipt is based, you defined a purchase order price unit that differs from the purchase order unit. What is the significance of the purchase order price unit and what should you take note of in the case of a goods receipt?

• The purchase order price unit is stored in the material master record or purchasing info record and defines the unit of measure in which the material is ordered.

• The system establishes the relationship between the purchase order price unit and the purchase order unit by unit conversion in the purchase order.

• At the time of goods receipt, both the quantity in the purchase order unit and the quantity in the purchase order price unit have to be entered, however, the quantity in purchase order price unit is calculated by the system. You have to change it, when the calculated quantity differs from reality.

• Both at the time of goods receipt and invoice verification, the material is valuated on the basis of the purchase order unit.

Feedback: If you specify a purchase order price unit for a purchase order item that is different from the purchase order unit, you have to enter the quantity in both units in both the goods receipt and the invoice verification. During the invoice verification, the system checks the invoice amount for variances and it verifies the quantity in the purchase order price unit as well as the quantity in the order unit.

21. Quotations are received from multiple Vendors. In order to decide on the best quotation, it is essential to compare them along various parameters. How is this achieved in ECC?

• By taking specific printouts of the quotations showing fields to be compared.

• By running a report in the BI system.

• By using the price comparison option

Feedback: By using the price comparison option the system ranks each item and the total quotation value. The system can take into account cash discounts, delivery costs and the effective price (this includes discount granted for early payment).

22 . At which level is physical inventory carried out in Inventory Management?

(Only one answer is correct)

A. At material level

B. At material/stock type level

C. At material/plant/stock type level

D. At material/plant/storage location/stock type level

Feedback:

The Physical inventory is carried out on the basis of stock management units. A stock management unit is a non divisible part of a stock of materials for which a separate book inventory exists. A stock management unit is uniquely defined by: Material, Plant, Storage Location, stock type, Valuation Type, Batch, Special Stock.

23. What options do you have after entering a physical inventory count for a raw material?

(More than one answer is correct)

A. You can initiate a recount.

B. You can print a list of differences to determine the materials you have to recount.

C. You can post an inventory difference, whereby a material document and an accounting

document are created in the background.

D. You can post the inventory difference, whereby only an accounting document is created in the background.

Feedback:

The physical inventory process consists of three phases: Creation of physical inventory

documents, Entry of Count, Posting of Inventory difference.If the results of a count seem doubtful, a recount can be done.When you post the inventory differences, the quantities and values of stocks are updated.

24. In your company, some materials have a large number of goods movement leading to possible errors in Inventory Management. You would like to inventory the stock several times each time using only a sample, but cover all stock units at least one every year.

Which of the following methods can be used?

A. Cycle Counting Method.

B. Difference Posting procedure

C. Sampling method

D. Live method

Feedback:

Cycle counting is an inventory procedure whereby selected materials are inventories several times. All stock units are inventoried at least once a year. The following types of stocks can be included: Unrestricted-use stock, Stock in Quality inspection, and Blocked stock.

25. You are tasked with determining the ‘Safety Stock’ for a material. Which of the following reports/factors would you take into account?

(More than one answer is correct)

A. Slow moving items

B. Range of coverage

C. Replenishment lead time

D. Demand forecast

Feedback: You typically would need to consider the following factors when calculating the safety stock:

• Demand forecast and demand forecast error

• Replenishment lead time (RLT) and RLT forecast error

• Service level

• Safety stock method

• Demand type

26. How do you replicate a delivery free of charge in R/3’s Materials Management?

A. You enter a purchase order with the purchase order price. Then, however, you post the

receipt with reference to the purchase order using a non-valuated movement type.

B. You enter a purchase order item, set its invoice indicator to blank and its purchase order

price to zero, and then post the goods receipt.

C. You do not enter a purchase order, but post the delivery free of charge using a specific movement type in Inventory Management.

D. You create the material with the material type UNBW and then post the goods receipt

without reference to the purchase order.

Feedback: Vendors can sometimes send you goods as bonus. These can be entered into the system as a free of charge delivery, as other good receipts using movement type 511.

Materials valuated at moving average price do not have any postings in FI.

However, materials valuated at standard price update the stock value as well as quantity.

27. Which of the following statements about movement types are true?

(More than one answer is correct)

A. The movement type influences the update of material stock account and consumption account.

B In the standard SAP system, you can enter per material document only goods movements

of one movement type.

C. Goods movements, that are created from other application areas (for example a delivery

in SD), are not described with movement types .

D. The movement type used controls field selection for the goods movement transaction.

E. If you use special stock indicators, you can create different stock and value updates of a material for one and the same movement type.

Feedback: Movement Types, among other things, control the following settings: Shelf Life Expiration Date Check, Automatic creation of storage location data in the material master record, Automatic generation of PO at time of goods receipt, Stock determination, Dynamic

availability check, Field selections.

All goods movement in the whole of ERP (SD, PP, PS etc) are represented by movement

types.

A material document can have multiple movement types.

28. Which of the following statements on procuring a material of material type NLAG are

correct?

(More than one answer is correct)

A. The purchase order must be account assigned.

B. The goods receipt must always be non-valuated.

C. When you enter an invoice, you can change the account assignment as long as the goods receipt was non-valuated.

D. When the material is for consumption, no document is ever created in Financial

Accounting.

Feedback: Material type NLAG is not value updated. Therefore, an account assignment object and a G/L account must always be specified in the order. The good receipt value for the valuated goods receipt is posted immediately to this account as a consumption.

29. Which of the following stock transfers/transfer postings are relevant to valuation?

(More than one answer is correct)

A. Stock transfer from storage location to storage location within the same plant.

B. Stock transfer from consignment stores of vendor XY to our unrestricted-use stock in storage location 0001.

C. Transfer posting from stock in quality inspection in storage location 001 to stock in quality inspection in storage location 0002 within the same plant.

D. Stock transfer of a material from storage location 0001 from plant 0001 to plant 0002.

The plants belong to the same company, however the valuation areas are different (valuation level is plant).

Feedback: The valuation area can correspond to a plant or a company code (And NOT to a storage location)