Question 21: What is Release Procedure?
A: Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to define separate release procedures for different groups of materials for which different departments are responsible, and to define separate procedures for investment goods and consumption goods.
Question 22: If you have a multi-lineitem PO, can you release the PO item by item?
A: No, a PO is released at the header level meaning a total release or “With Classification”. PRs, on the other hand, have two release procedures possible. “With Classification” as described above, and “Without Classification” where it is only possible to release the PR item by item.
Question 23: What is a Material Type?
A: A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house.
Question 24: What is a price comparison?
A: Perform a price comparison using ME49 and one may compare quotations from different vendors.
Question 25: What is a Source List?
A: The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, it will ID both the source of supply and the time period. The Source List facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to select the proffered source during the source determination process.
Question 26: What are the various “steps” in the MM Cycle from material creation through invoice?
A: The following creates a rough picture of the MM Cycle. Create material, create vendor, assign material to vendor, procure raw material through PR, locate vendor for certain material, processing GR, goods issue, and invoice verification.
Question 27: Give some examples of the information relating to a material’s storage/warehousing?
A: Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also,there are various Storage Strategies information and options.
Question 28: What are the various features of Consignment Stocks?
A: Consignment Stocks remain the legal property of the Vendor until the organization withdraws the material from the consignment stores. The invoice can be due at set periods of time, for example monthly, and it is also a configuration possibility that the organization will take ownership of the stock after a certain period of time. Consignment Stock is allocated to the available stock because the Consignment Stock is managed under the same material number as your company’s stock. The most important characteristic of Consignment Stock is that it isn’t valuated. When the material is withdrawn, it is valuated at the price of the respective vendor. Before procuring the stock, consideration should be given if one consignment is coming from multiple vendors. If so, we can manage all of them independently at the price of the individual vendors. In the Info Record, we will maintain three different prices for the same material for three different vendors.
Question 29: What is a Quotation?
A: Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens.
Question 30: What is the Source List?
A: The Source List identifies preferred sources of supply for certain materials. If the Source List has been properly maintained, it will identify both the source of a material and the period of time in which you can order the material from the source.
Question 31: What is an Invoice Verification?
A: The Invoice Verification component completes the material procurement process and allows credit memos to be processed. Invoice Verification includes entering invoices and credit memos that have been received, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which differ too much from the original PO).
Question 32: What are the different types of Invoice Verification?
A: Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of the items of a purchase order can be settled together, regardless of whether or not an item has been received in several partial deliveries. All of the deliveries are totaled and posted as one item. Invoices based on Goods Receipts. With goodsreceipt- based Invoice Verification, each individual goods receipt is invoiced separately. Invoices without an order reference. When there is no reference to a PO, it is possible to post the transaction directly to a Material Account, a G/L Account, or an Asset Account. You can park Invoices that reference POs and GRs as well as Invoices with no reference in the system. When you park a document or change a parked document, neither substitution nor validation is supported. The system only carries out these functions after you actually post a parked document.
Question 33: Why would an organization need to allow Negative Stocks?
A: Negative Stocks are necessary when Goods Issues are entered necessarily (business process reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.
A: Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to define separate release procedures for different groups of materials for which different departments are responsible, and to define separate procedures for investment goods and consumption goods.
Question 22: If you have a multi-lineitem PO, can you release the PO item by item?
A: No, a PO is released at the header level meaning a total release or “With Classification”. PRs, on the other hand, have two release procedures possible. “With Classification” as described above, and “Without Classification” where it is only possible to release the PR item by item.
Question 23: What is a Material Type?
A: A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house.
Question 24: What is a price comparison?
A: Perform a price comparison using ME49 and one may compare quotations from different vendors.
Question 25: What is a Source List?
A: The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, it will ID both the source of supply and the time period. The Source List facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to select the proffered source during the source determination process.
Question 26: What are the various “steps” in the MM Cycle from material creation through invoice?
A: The following creates a rough picture of the MM Cycle. Create material, create vendor, assign material to vendor, procure raw material through PR, locate vendor for certain material, processing GR, goods issue, and invoice verification.
Question 27: Give some examples of the information relating to a material’s storage/warehousing?
A: Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also,there are various Storage Strategies information and options.
Question 28: What are the various features of Consignment Stocks?
A: Consignment Stocks remain the legal property of the Vendor until the organization withdraws the material from the consignment stores. The invoice can be due at set periods of time, for example monthly, and it is also a configuration possibility that the organization will take ownership of the stock after a certain period of time. Consignment Stock is allocated to the available stock because the Consignment Stock is managed under the same material number as your company’s stock. The most important characteristic of Consignment Stock is that it isn’t valuated. When the material is withdrawn, it is valuated at the price of the respective vendor. Before procuring the stock, consideration should be given if one consignment is coming from multiple vendors. If so, we can manage all of them independently at the price of the individual vendors. In the Info Record, we will maintain three different prices for the same material for three different vendors.
Question 29: What is a Quotation?
A: Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens.
Question 30: What is the Source List?
A: The Source List identifies preferred sources of supply for certain materials. If the Source List has been properly maintained, it will identify both the source of a material and the period of time in which you can order the material from the source.
Question 31: What is an Invoice Verification?
A: The Invoice Verification component completes the material procurement process and allows credit memos to be processed. Invoice Verification includes entering invoices and credit memos that have been received, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which differ too much from the original PO).
Question 32: What are the different types of Invoice Verification?
A: Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of the items of a purchase order can be settled together, regardless of whether or not an item has been received in several partial deliveries. All of the deliveries are totaled and posted as one item. Invoices based on Goods Receipts. With goodsreceipt- based Invoice Verification, each individual goods receipt is invoiced separately. Invoices without an order reference. When there is no reference to a PO, it is possible to post the transaction directly to a Material Account, a G/L Account, or an Asset Account. You can park Invoices that reference POs and GRs as well as Invoices with no reference in the system. When you park a document or change a parked document, neither substitution nor validation is supported. The system only carries out these functions after you actually post a parked document.
Question 33: Why would an organization need to allow Negative Stocks?
A: Negative Stocks are necessary when Goods Issues are entered necessarily (business process reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.
