Chapter 4

The Procurement Process

True-False Questions
1. Storage locations are places within a plant were materials are kept until they are needed.
Answer: True
Section: Storage Location

Difficulty: Easy
Practice:

Page Reference: 2

2. There can only be one storage location within a plant .

Answer: False
Section: Storage Location

Difficulty: Easy
Practice:

Page Reference: 2

3. A storage location is a key organizational element in purchasing.

Answer: True
Section: Storage Location

Difficulty: Medium
Practice:

Page Reference: 2

4. A purchasing organization is involved only in negotiating prices with vendors

Answer: False
Difficulty: Difficult
Section: Purchasing Organization
Practice:

Page Reference: 3

5. Typically, there are three models of purchasing organizations: enterprise-level, companylevel, and plant-level.
Answer: True
Difficulty: Medium
Section: Purchasing Organization
Practice:

Page Reference: 4

6. The enterpriselevel purchasing organization is also known as the crosscompany code

purchasing organization.
Answer: True
Difficulty: Medium
Section: Enterprise-Level Purchasing Organization

Page Reference: 4
Practice:

7. The company-level purchasing organization is the most centralized model.

Answer: False
Difficulty: Medium
Section: Company -Level Purchasing Organization

Page Reference: 4
Practice:

8. The enterprise-level purchasing organization is the most centralized model.

Answer: True
Difficulty: Medium
Section: Enterprise-Level Purchasing Organization Practice:

Page Reference: 4

9. A plant can belong to more than one company code.

Answer: False
Difficulty: Medium
Section: Company-Level Purchasing Organization

Page Reference: 4
Practice:

10. The most decentralized model of purchasing organizations is the plantspecific purchasing
organization.
Answer: True
Difficulty: Easy
Section: Plant-Level Purchasing Organization

Page Reference: 5
Practice:

11. A purchasing group is an internal group that is responsible for executing the procurement
process.
Answer: False
Difficulty: Medium
Section: Purchasing Group Practice:

Page Reference: 6

12. A purchasing organization is an individual or a group of individuals who are responsible for
purchasing activities for a material or group of materials.
Answer: False
Difficulty: Medium
Section: Purchasing Group Practice:

Page Reference: 7

13. Vendor master data include the data needed to conduct business with a vendor and to execute
transactions related to the procurement process.
Answer: True
Section: Vendor Master

Difficulty: Medium
Practice:

Page Reference: 9

14. The method used to value material is defined in the material master.
Answer: True
Section: Material Master

Difficulty: Medium
Practice:

Page Reference: 8

15. Different material types have different required material views.

Answer: True
Section: Material Master

Difficulty: Medium
Practice:

Page Reference: 7

16. General data related to a vendor are accessible to all company codes in a client.
Answer: True
Section: Vendor Master

Difficulty: Easy
Practice:

Page Reference: 10

17. Purchasing data related to a vendor are accessible to all purchasing organizations.
Answer: False
Section: Vendor Master

Difficulty: Easy
Practice:

Page Reference: 11

18. Material master data can be defined differently for different organizational levels.
Answer: True
Section: Vendor Master

Difficulty: Medium
Practice:

Page Reference: 11

19. A purchasing info record is an intersection or combination of material and accounting data.
Answer: False
Difficulty: Medium
Section: Purchasing Info Record
Practice:

Page Reference: 12

20. Accounting data related to a vendor are accessible to all clients in a company code.
Answer: False
Section: Vendor Master

Difficulty: Medium
Practice:

Page Reference: 11

21. Item categories in a purchase order determine the process steps used to procure materials.
Answer: True
Section: Item Categories

Difficulty: Easy
Practice:

Page Reference: 13

22. Consumable materials are acquired to be used within an organization.

Answer: True
Difficulty: Easy
Section: Account Determination Practice:

Page Reference: 14

23. When purchasing consumable materials, an account assignment category and specific
account assignment objects must be provided when the purchase order is created.
Answer: True
Difficulty: Medium
Section: Account Determination Practice:

Page Reference: 16

24. A goods movement is not required when changing the status of material from in quality
inspection to unrestricted use.
Answer: False
Section: Goods Movement

Difficulty: Difficult
Practice:

Page Reference: 17

25. A plant-to-plant movement of goods does not generate an accounting document.

Answer: False
Section: Goods Movement

Difficulty: Medium
Practice:

Page Reference: 18

26. A goods receipt cannot be accomplished without a movement type.

Answer: True
Section: Goods Movement

Difficulty: Medium
Practice:

Page Reference: 18

27. A stock transfer does not involve a change in storage location.

Answer: False
Section: Goods Movement

Difficulty: Difficult
Practice:

Page Reference: 18

28. A transfer posting changes the stock status of a material and need not involve a physical
movement of goods.
Answer: True
Section: Goods Movement

Difficulty: Easy
Practice:

Page Reference: 19

29. A goods movement is a transaction that causes a change in stock value or status.
Answer: True
Section: Goods Movement

Difficulty: Medium
Practice:

Page Reference: 17

30. Materials cannot be moved from one company code to another because each company code
uses a different set of books.
Answer: False
Section: Goods Movement

Difficulty: Difficult
Practice:

Page Reference: 18

31. A transfer posting is used to move materials from one storage location to another.
Answer: False
Section: Goods Movement

Difficulty: Easy
Practice:

Page Reference: 19

32. A transfer posting does not generate a material document.

Answer: False
Section: Goods Movement

Difficulty: Medium
Practice:

Page Reference: 19

33. Requirements for materials must be created manually.

Answer: False
Difficulty: Difficult
Section: Requirement Determination
Practice:

Page Reference: 21

34. The data needed to create a purchase requisition are the item category, quantity, desired
delivery date, and desired delivery location or receiving plant.
Answer: True
Difficulty: Medium
Section: Requirement Determination
Practice:

Page Reference: 22

35. A requisition represents a legal obligation to make the purchase.

Answer: False
Difficulty: Medium
Section: Requirement Determination
Practice:

Page Reference: 22

36. The header section of a purchase order contains information such as purchase order number,
vendor, currency, dates, and payment terms.
Answer: True
Section: Order Processing

Difficulty: Medium
Practice:

Page Reference: 26

37. The primary task of the order processing step is to create and send the purchase order to the
vendor.
Answer: True
Section: Order Processing

Difficulty: Easy
Practice:

Page Reference: 27

38. SAP cannot utilize any media except Web services to communicate a purchase order to a
vendor.
Answer: False
Section: Order Processing

Difficulty: Easy
Practice:

Page Reference: 28

39. Materials ordered in multiple purchase orders must be delivered in multiple shipments.
Answer: False
Section: Goods Receipt

Difficulty: Medium
Practice:

Page Reference: 29

40. The material master is updated after the invoice verification step of the procurement process
has been completed.
Answer: True
Difficulty: Easy
Section: Invoice Verification
Practice:

Page Reference: 36

41. The material master is updated after the goods receipt step of the procurement process has
been completed.
Answer: True
Section: Goods Receipt

Difficulty: Difficult
Practice:

Page Reference: 32

42. Tolerances for price variations among purchase orders, invoices, and goods receipts are
allowed, but tolerances for quantity variances are not.
Answer: False
Difficulty: Difficult
Section: Invoice Verification
Practice:

Page Reference: 33

43. Invoice verification authorizes payment of the invoice to the vendor.

Answer: True
Difficulty: Easy
Section: Invoice Verification Practice:

Page Reference: 36

44. Payments must be made automatically through a payment program.

Answer: False
Difficulty: Medium
Section: Payment Processing Practice:

Page Reference: 37

45. Electronic payments are sent automatically.

Answer: True
Difficulty: Medium
Section: Payment Processing Practice:

Page Reference: 38

46. Work lists display lists of master data and documents that are generated during the execution
of a process.
Answer: False
Section: Work Lists

Difficulty: Difficult
Practice:

Page Reference: 41