Wave 4 SCM Training Course Assessment

A purchase order is a widely used document in business transactions that serves as a formal communication between a buyer and a supplier. It outlines the details of the purchase, including the quantity, description, and agreed-upon price of the goods or services. By sending a purchase order, the buyer informs the supplier about their intention to purchase and provides necessary information for the supplier to fulfill the order accurately. Therefore, the statement "A Purchase Order is a document that is used to communicate a purchase to a supplier" is true.

A Purchase Requisition (PR) is a document that is created to identify and request specific items or services that are needed for a business. It serves as a formal request for the procurement department to initiate the purchasing process. By creating a PR, the business can ensure that the necessary items or services are identified and obtained in a timely and organized manner. Therefore, the statement that a PR is created to identify items or services required for the business is true.

The statement is true because the physical inventory process involves physically counting the materials in stock and comparing it to the quantity recorded in the system. This is done to ensure that the system's on-hand quantity is accurate and matches the actual physical count of materials. By conducting regular physical inventory checks, discrepancies can be identified and corrected, helping to maintain inventory accuracy and prevent stockouts or overstocking.

Goods Receipt refers to the process of receiving and recording the physical inbound movement of goods or materials. It involves checking the quantity and quality of the goods against the purchase order or delivery note. This step is crucial for inventory management and accounting purposes as it helps in updating stock levels and verifying the accuracy of the received goods. Therefore, the statement "Goods Receipt refers to the physical inbound movement of goods or materials" is true.

A Purchase Order can be released individually or collectively through multiple selection, meaning that a user can choose to release a single purchase order or select multiple purchase orders and release them all at once. This provides flexibility and convenience for users managing purchase orders, allowing them to release orders based on their specific needs and preferences.

The statement is true because confirming a Reman order before marking it as Technically Complete ensures that all necessary checks and verifications have been done to ensure the order is accurate and complete. This helps to prevent any errors or issues that may arise if the order is marked as Technically Complete without proper confirmation. By confirming the order first, any potential mistakes or missing information can be identified and addressed before finalizing the order.

Reman in SAP refers to the Remanufacturing module, which is designed to capture the entire process and costs involved in repairing a product. This includes tracking the steps taken during the repair process and recording all associated costs such as labor, parts, and any other expenses. Therefore, the statement that Reman in SAP captures the steps and costs associated with the repair is true.

The explanation for the given correct answer is that a Stock Transport Order (STO) is indeed used to perform stock transfers between two plants within the same Company Code/Legal Entity. This allows for efficient movement of goods within the organization, ensuring that the correct inventory is available at the right location when needed.

Transactional data refers to the information that is generated during the course of business transactions, such as sales orders, invoices, or customer payments. This data is dynamic and constantly changing as new transactions occur. On the other hand, master data represents the core entities of a business, such as customers, products, or suppliers. Once master data is loaded into a system, it typically remains unchanged unless there is a need for updates or modifications. Therefore, the statement that "transactional data changes with each transaction; master data rarely changes after being loaded" is true.

Moving equipment to SLoc 6000 denotes that the equipment is in repair. SLoc 6000 is likely a specific location or storage area designated for equipment undergoing maintenance or repairs. This helps to track and manage the equipment more effectively, ensuring that it is not mistakenly used or considered available for other purposes. By moving the equipment to SLoc 6000, it indicates that it is temporarily out of commission and undergoing necessary repairs before it can be used again.

The statement is true because STO (Stock Transport Order) is a process in which goods are physically transferred between two locations with delivery, but no billing is involved. This means that the goods are moved from one location to another without any financial transaction taking place.

The statement is false because in the event of staggered deliveries from a vendor for a purchase order (PO), multiple goods receipts can be entered for the PO. This allows for each delivery to be recorded separately and accurately reflects the actual receipt of goods.

Cycle count refers to the process of regularly scheduled inventory counts that cycle through the inventory. This means that instead of conducting a full inventory count all at once, the inventory is divided into smaller sections and counted at different intervals throughout the year. By scheduling these counts, businesses can ensure that all items in the inventory are regularly checked for accuracy and discrepancies can be identified and resolved in a timely manner.

The correct answer is IW31. This transaction code in SAP is used to create a work order.

Goods Issue reversal would increase stock in the warehouse.

A work order is a document that instructs workers on what tasks need to be completed and provides details on the quantity of material that needs to be produced. It also includes a pre-defined timeframe within which the work needs to be completed. Additionally, a work order helps in capturing the costs associated with the production process. Therefore, the statement that a work order is an order to produce a specific quantity of material within a pre-defined timeframe and capture the costs associated with the process is true.

The correct answer is D. All of the above. This means that all of the steps mentioned in options A, B, and C are valid steps in the ReMan process. These steps include executing the job, creating a ReMan order and plan, and completing the ReMan order.

Physical Inventory documents are created/printed in the first stage of the Physical Inventory process. This means that at the beginning of the process, the documents necessary for conducting the physical inventory are generated. These documents could include inventory count sheets, tags or labels for labeling items, and any other necessary paperwork. By creating and printing these documents first, it ensures that the physical inventory can be conducted accurately and efficiently. Therefore, the statement "Physical Inventory documents are created/printed in the first stage of the Physical Inventory process" is true.

A work center is where an operation or activity for a work order is carried out within a plant. It is a designated area or location where specific tasks related to the work order are performed. This could include assembling, manufacturing, or processing goods, as well as any other activities required to complete the work order.

A delivery is created for a Stock Transport Order (STO). This is because an STO is a type of order used to transfer goods from one plant or storage location to another within the same company. When an STO is created, a delivery is generated to move the goods from the supplying plant to the receiving plant. This allows for better tracking and management of the goods during the transfer process.

A work center can represent both a person or group of people and a machine or group of machines. A work center is a specific location or area where work is performed. It can refer to a physical space where people work, such as an office or a factory floor, and it can also refer to the equipment or machinery used in the work process. Additionally, a work center can also represent a collection of tasks that are performed in a specific area or by a specific group of people or machines.

Accounting document is created only for valuated stock.

A purchase requisition is a formal request made by an organization to its purchasing department to procure goods or services. Once the requisition is released, it is processed as a purchase order. A purchase order is a legally binding document that outlines the details of the requested purchase, including the quantity, price, and delivery terms. It serves as a contract between the buyer and the supplier, ensuring that both parties are aware of their obligations. Therefore, the correct answer is Purchase Order.

The Goods Issue process is used to post the scrapping of material when there is a need to dispose of or write off damaged or obsolete goods. It is also used to post the issue of goods to a cost center, which involves allocating goods to a specific department or project for internal use. Additionally, the Goods Issue process is used to post the shipment of goods to the customer, indicating that the goods have been delivered and ownership has transferred to the customer.