SAP MM Online Quiz

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Q 1 - Which of the following is first step in Procurement life cycle?

A - Look for the suppliers who can fulfill the requirements.

B - Gathering information about product and its quantity.

C - Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services.

D - Performance of the products or services is evaluated and any follow up service support is analyzed.

Answer : B

Explanation

Requirement and Information Gathering

Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements.

Supplier Contact

After gathering requirements one will look for the suppliers who can fulfill the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them.

Background Review

Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.

Negotiation

Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc.

Order fulfillment

Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included.

Consumption, Maintenance and Disposal

As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analyzed.

Contract Renewal

Once the product or services are consumed or contract expires and needs to be renewed, or the product or service is to be re-ordered, company experience with vendors and service provider is reviewed. If the products or services are to be re-ordered, the company decides whether to order from previous supplier or think about new suppliers.

Q 2 - The Organizational Structure in MM consists of which of the following elements?

Answer : F

Q 3 - Storage location is an organizational unit which actually differentiates between different material stocks in a Plant?

A - True

B - False

Answer : A

Q 4 - Which of the following document types can appear in the purchase order history for a purchase order line item?

A - Invoice

B - Release Procedure

C - Purchase Order

D - All of the above

Answer : A

Q 5 - Which of the following category represents an account assignment category?

A - Release Order

B - G/L Account

C - Purchase Requisition

D - Sales Order

Answer : D

Q 6 - After processing of purchase order by vendor, material is delivered to ordering party and this process is called as goods receipt?

A - True

B - False

Answer : A

Q 7 - Total requirement of a material is distributed to different vendor’s i.e. quota is assigned to each source of supply and is known as?

A - Purchase Requisition

B - Quota Arrangement

C - Outline Agreement

D - RFD

Answer : B

Explanation

A particular material can be procured from different vendors depending upon the requirement. So, total requirement of a material is distributed to different vendor’s i.e. quota is assigned to each source of supply. This is known as quota arrangement.

Q 8 - A Contract can be made from a Purchase Order and vice a versa?

A - True

B - False

Answer : B

Q 9 - Withdrawing of material for sampling or returning the goods back to vendor is called?

A - Goods Receipt

B - Goods Issue

C - Goods Reversal

D - None of these above

Answer : B

Explanation

Goods issue means moving stock out of inventory that may be due to several reasons like withdrawing of material for sampling or returning the goods back to vendor. So, goods issue will result in decrease in quantity in warehouse.

Q 10 - You can make changes to Purchase Order once it is released?

A - True

B - False

Answer : A

Explanation

You can make changes to Purchase Order when it is released. When it is significant change it will retrigger approval cycle.

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