Multiple Choice Questions (More than One Answer Can Be Correct)
1. Which of the following stock types can be counted through Physical Inventory procedure?
A) Unrestricted use stockB) Block stock
C) Quality Inspection stock
D) Vendor consignment stock
E) In-transit stock
Answer: A, B, C, D
Explanation: Physical Inventory can be carried out for Unrestricted use stock, Block stock, Quality Inspection stock, and Vendor consignment stock. These stock types are recognized and managed in inventory management, enabling adjustments through counting. In-transit stock cannot be directly counted during physical inventory as it is not physically present at the storage location.
2. Which of the following can possibly influence the valuation price of a moving average priced material?
A) Goods receipt for a purchase orderB) Goods Issue to a cost centre
C) Invoice verification against a purchase order
D) Stock transfer between two storage locations in the same plant
E) Transfer posting from unrestricted use stock to quality inspection
Answer: A, C
Explanation: The valuation price of a moving average material is updated based on incoming transactions. A Goods receipt for a purchase order (A) and Invoice verification (C) affect the value by introducing actual price data. Goods Issue (B), stock transfer (D), and transfer posting (E) do not change the valuation price.
3. In the SAP system a user can operate in the following hierarchies.
A) Service levelB) Application level
C) Main menu level
D) Month
E) Total stock value
Answer: D, E
Explanation: SAP allows operational hierarchy levels based on time (Month) and values (Total stock value). Other options like Service level, Application level, and Main menu level are either not SAP hierarchies or do not represent data structuring hierarchies.
Single Choice Questions (Only One Answer Is Correct)
4. Forecast model for fluctuating demand with upward trend?
A) The Constant modelB) The Constant trend model
C) The Seasonal trend model
D) The Fluctuating trend model
E) The Seasonal model
Answer: C – The Seasonal trend model
Explanation: A Seasonal trend model captures both trend (increasing demand) and seasonal fluctuations (tourist demand). Other models (like Constant or Trend-only) don’t factor in the seasonality, making option C the most suitable.
5. In the SAP system, the reference document used in the purchasing cycle is the:
A) Purchase requisitionB) Info record
C) Source list
D) Purchase Order
E) None of the above
Answer: D – Purchase Order
Explanation: The Purchase Order (PO) is the key reference document in the procurement cycle. It’s used for goods receipt, invoice verification, and payment processing. Requisitions and info records are only preliminary or supporting documents.
True / False and Functional Questions
6. What purpose does invoice verification serve in materials management?
a) It allows invoice that do not originate in materials procurement to be processed.b) Completes the materials procurement process
c) Handles the payment
d) Allows credit memos to be processed
e) Handles the analyses of invoices.
Answer: b – Completes the materials procurement process
Explanation: Invoice Verification is the final step in the procurement cycle in MM. While other options describe functions related to Financial Accounting or extended roles, only B directly fits the MM cycle.
7. What are the tasks of invoice verification?
a) Entering invoices and credit memos received.b) Checking the accuracy of invoices
c) Executing the account posting resulting from invoice
d) Updating open items and material prices
e) Checking invoices that were blocked.
Answer: A, B, C, E
Explanation: Tasks include entering invoices/credit memos, validating accuracy, posting accounting entries, and checking blocked invoices. Updating open items/material prices (D) relates more to financial processes than core invoice verification.
8. What is the process of invoice verification?
a) Purchase order, service or GR referenced for incoming invoice.b) Invoice items suggested by the system against referenced document
c) Corresponding automatic account postings carried out.
d) Payment proposal list for vendor generated.
Answer: A
Explanation: Invoice verification starts with referencing a Purchase Order or Service Entry Sheet or Goods Receipt. The rest of the steps (B, C, D) are part of broader financial or follow-up procedures.
9. From where does the system pick the default quantity of an item when you post invoice receipt?
a) Invoiceb) Purchase order
c) Purchase order history
d) System settings
e) Vendor master
Answer: C – Purchase order history
Explanation: SAP picks the default quantity from PO history, specifically the Goods Receipt (GR) quantity already posted. It ensures the invoiced quantity matches what has been received.
10. During invoice verification the system picks the rate at which tax is calculated from the vendor master record.
TRUEFALSE
Answer: False
Explanation: The tax rate is determined based on
the tax code in the purchase order, not from the vendor master record.
The vendor master may influence tax-related fields, but it does not determine
the tax rate directly.
