You are a purchasing agent. You have agreed on a purchase price with a supplier and create a purchase agreement. Which two tasks can you perform with the purchase agreement? Each correct answer presents part of the solution.
Create a release order when no commitment is defined for quantity of a product.
Create purchase agreement lines based on quality or weight.
Define a validity period for the purchase agreement.
Place purchase agreement on hold during the ordering process.
Item model groups allow users to define which of the following? (Select all that apply)
If an item is stocked or non-stocked
The costing method
What sites the item is available for sale in
The reservation type
Item groups can be used to associate items with the same posting profile together.
An item group must be specified on the item before the item can be used in transactions.
Which of the following options are valid to describe tracking dimensions? (Select all that apply)
Tracking dimensions are company specific
Items can have multiple tracking dimensions
It is possible to allow blank receipts and blank issues on storage dimension groups
The tracking dimensions can be unique for each warehouse
Serial number is a valid storage dimension group.
Product dimensions allow for the creation of different product variants based on configuration, color, size or style.
Select the following statements that are true. (Select all that apply)
The owner dimension is used for consignment inventory
The owner dimension is a storage group dimension
The owner dimension is used for subcontracting in production
The owner dimension can be used with the vendor portal
Released products contains the products available for a legal entity to transact upon, this list can be different across legal entities.
A Site is a grouping of business resources such as a warehouse and production units.
A single site can be shared by multiple legal entities.
What are the three types of warehouses? (select all that apply)
Transit
Quarantine
Storage
Default
A warehouse can be associated to many sites.
In the picking workbench profile, if the maximum orders field is left at zero, this assumes unlimited orders can be considered.
Which of the following parameters is used in the box definition setup to account for packing material that may be added?
Weight limit
Height
Depth
Maximum utilization
When setting up inventory journals, which options are available in the Reservation drop-down list? (Select all that apply)
Explosion
Manual
Automatic
On order
Offsetting general ledger accounts are selected in a movement journal.
Transfer journals should be used when in-transit inventory needs to be tracked.
What will be generated when a Bill of Material journal is posted? (Select all that apply)
An inventory receipt of the produced product
An inventory purchase request
An inventory issue of the used products
An inventory replacement request
Which of the following are true for counting journals? (Select all that apply)
Display the current on-hand for an item or groups of items.
Allow the user to post inventory counts and make the necessary adjustments to reconcile the inventory.
Allow the user to select the ledger account on each line to post the corrections to.
Which of the following does each warehouse item have? (Select all that apply)
Counting group
Inventory dimension
Inventory level
Transfer locations
What information must be registered on each tag in a tag count? (Select all that apply)
The tag number
The batch number
The item number
The item quantity
In what ways can inventory blocking be performed? (Select all that apply)
Periodic job
Manually
By creating a quality order
By using a process that generates a quality order
During inventory blocking, what items can be included in the blocking?
Inventory items on hand
Inventory items on order and on hand
Inventory items on hand and in transit
Inventory items within the system
Fill in the blank: If the Registration requirements flag on the Item model group for an item is marked then the product must be registered prior to ________.
Shipment
Invoicing
Arrival
Receipt
Which of the following do transfer orders provide? (Select all that apply)
The ability to transfer items across legal entities
The ability to specify a transport time for items
The ability to specify items that do not need to be received the same day as they are shipped
The ability to track item progress through the on-hand inventory for the transit warehouse
Fill in the Blank: Transfer orders are used to move items between warehouse within the same _________.
Legal entity
Site
Division
Geographical area
The Transfer orders form is used to process transfer orders that are manually created or to process orders that are created from firmed planned transfer orders generated by master scheduling.
A transit warehouse must be set up for the ‘To” warehouse.
Which of the following are ABC classification codes? (select all that apply)
Revenue
Inventory
Carry cost
Margin
You cannot manually update ABC classification codes. The ABC classification periodic job must be run for the items’ classification codes to be updated.
The Inventory aging report uses what algorithm to calculate how old inventory is?
FIFO
LIFO
FILO
LILO
The inventory close process is a process of settling issue transactions with receipt transactions based on an item’s inventory valuation method. Where is the inventory valuation selected?
Item group
Storage dimension group
Tracking dimension group
Item model group
An inventory recalculation will make adjustments but will not make settlements to inventory transactions.
