Exam 4: C: The Procurement Process

Item categories in a purchase order determine the process steps used to procure materials.

The material master is updated after the invoice verification step of the procurement process has been completed.

Material master data can be defined differently for different organizational levels.

The primary task of the order processing step is to create and send the purchase order to the vendor.

Invoice verification authorizes payment of the invoice to the vendor.

A purchasing organization is an individual or a group of individuals who are responsible for purchasing activities for a material or group of materials.

Electronic payments are sent automatically.

A purchasing info record is an intersection or combination of material and accounting data.

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

A storage location is a key organizational element in purchasing.

A purchasing group is an internal group that is responsible for executing the procurement process.

The most decentralized model of purchasing organizations is the plant‐specific purchasing organization.

There can only be one storage location within a plant.

When purchasing consumable materials,an account assignment category and specific account assignment objects must be provided when the purchase order is created.

A goods movement is not required when changing the status of material from "in quality inspection" to "unrestricted use".

A transfer posting is used to move materials from one storage location to another.

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

A transfer posting changes the stock status of a material and need not involve a physical movement of goods.

A plant can belong to more than one company code.

Accounting data related to a vendor are accessible to all clients in a company code.