SAP Exam 116 Questions with Verified Answers
SAP - CORRECT ANSWER an ERP, which is a very integrated system that provides:
(1) seamless flow of
... [Show More] information across organizational boundaries
(2) standardized environment that keeps data separate from applications
5 modules of SAP - CORRECT ANSWER MM, PP, SD, FI, CO
all are very integrated
Management assertions - CORRECT ANSWER occurence, completeness, authorization, accuracy, cutoff, classification
Control activities - CORRECT ANSWER policies and procedures to mitigate risks
two types of control activities - CORRECT ANSWER preventative
detective
two types of technology controls - CORRECT ANSWER general controls
application controls
technological infrastructure, security management, technology acquisition and maintenance, passwords, things that Diaz couldn't do - CORRECT ANSWER general controls
field check, completeness check, limit check, range check, reasonableness check, sign check, size check, validity check/closed loop verification, zero balance test - CORRECT ANSWER application controls
client - CORRECT ANSWER highest level in SAP instance. self-contained unit with own set of master records and configuration
>>my identifier number (115)
>>an instance can have more than one client
company code - CORRECT ANSWER independent legal accounting entity. Client can have more than one
chart of accounts - CORRECT ANSWER list of all accounts in GL for a company code
how many chart of accounts can a company have - CORRECT ANSWER only ONE!
can more than one company have the same COA? - CORRECT ANSWER Yes. some COA come preconfigured and the companies can just add and delete accounts as needed
Roles & Profiles - CORRECT ANSWER >Roles - specify the tasks that can be performed by a particular user
>profiles - entered into the the master record and accomplish the same function
what is the purpose of roles and profiles - CORRECT ANSWER restrict authorization and ensure separation of duties
session - CORRECT ANSWER each time logged into the system
configuration - CORRECT ANSWER customization of SAP system to meet customer requirements
types of data in the SAP system - CORRECT ANSWER control/configuration
master data
transaction data
control/configuration data - CORRECT ANSWER system/technical functions of the SAP system. drive logic
master data - CORRECT ANSWER represent internal and external entities in the system and can be accessed by any business process that needs it
transaction data - CORRECT ANSWER describe business event or result of business process
AIS components - CORRECT ANSWER people, data, information, formal and documental procedures, software, IT infrastructure, internal control
>>inter-related. failure of one component will lead to failure of entire system
3 basic objectives - CORRECT ANSWER 1. collect/process data from economic/financial events
2. generate info for decision makers
3. provide internal control over data collection and processing
>>also all interrelated
Internal control objectives from the COSO framework - CORRECT ANSWER 1. Reliable financial reporting
2. Efficient and Effective operations
3. Compliance with laws and regulations
transaction related control objectives for reliable financial reporting - CORRECT ANSWER particular transaction is: properly authorized
valid
recorded
recorded accurately
(also helps efficiency and effectiveness because prevent theft of assets)
the most important internal control component - CORRECT ANSWER proper control environment (tone at the top of the organizations)
control activities - CORRECT ANSWER bank reconciliation
audit trail
segregation of duties
preventative controls - CORRECT ANSWER deter errors or fraud from occuring
corrective controls - CORRECT ANSWER identify errors/fraud that have already occured
general control - CORRECT ANSWER extend over entire org and AIS (disaster recovery)
application control - CORRECT ANSWER more specific to particular transaction. help transaction AND master data
completeness check - CORRECT ANSWER check all data is entered before transaction recorded
*ensure recorded and recorded accurately
field check - CORRECT ANSWER check characters in field are proper type
*ensure recorded accurately
limit check - CORRECT ANSWER test numerical amount against upper/lower values
*ensure properly authorized (credit limit check)
*ensure recorded accurately
Range check - CORRECT ANSWER similar to limit check, but tests upper/lower limit on field
*Ensure properly authorized
Reasonableness check - CORRECT ANSWER determine correctness/logic of a relationship between 2+ items before transaction recorded/updated
*ensure recorded accurately
sign check - CORRECT ANSWER GL values
ensure recored accurately
size check - CORRECT ANSWER data will fit into assign field (zip code= 5 digits)
*ensure recorded accurately
validity check - CORRECT ANSWER compare data to that in field of other master record (enter in last name starting with z, but no such record exists. therefore the data is not valid)
*ensure recorded accurately
Closed loop verification - CORRECT ANSWER sim to validity, but takes it one step further. retrieves/displays other data related to the date that has been entered
*ensure recorded accurately
END GENERAL// BEGIN MM (PROCUREMENT LOGISTICS) - CORRECT ANSWER END GENERAL// BEGIN MM (PROCUREMENT LOGISTICS)
Master data used during MM (standing data) - CORRECT ANSWER 1. Vendors (TurndSpindles...etc)
2. Materials
>RM: pure, to make something else (Woodkit)
>Trading Goods: buy finished good from vendor to put in rocker but could also be sold separate (the cushion)
>Finished goods: were assembled
Vendor Master Record - CORRECT ANSWER ex = TurndSpindles
identify by vendor number
Can have contracts, scheduling agreement (contract w/ delivery schedules), Quota arrangement if you wish to buy material from multiple vendors
Vendor Number - CORRECT ANSWER primary key
also A/P number in FI module
Material Master Record - CORRECT ANSWER most integrated data record within SAP
>RM: pure, to make something else (Woodkit)
>Trading Goods: buy finished good from vendor to put in rocker but could also be sold separate (the cushion)
>Finished goods: were assembled
documents used during MM - CORRECT ANSWER Bill of Materials (recipe for FG)
Purchase Order
Goods Receipt
Invoice
Procurement Logistics transaction Flow - CORRECT ANSWER purchase requisition --> create purchase order --> receipt of goods into inventory --> receipt of invoice for acquisition --> payment of invoice
Purchase Requisition - CORRECT ANSWER internal doc that tells purchasing to start buying mat/procuring service by certain date
Purchase Order - CORRECT ANSWER legally binding instruction from purchasing organization to vendor to deliver something at a certain time at an agreed-upon price
Invoice Verification - CORRECT ANSWER >>link between MM and FICO
>>looks at variances between PO and Goods Receipt - must be within certain limits
>>does NOT handle payment, just checks and enters data into system
control objectives accomplished by invoice verification - CORRECT ANSWER TCO recorded accurately
ICO: efficient and effective operations
Tolerance Limits - CORRECT ANSWER variance between PO and Goods Receipt must be within certain tolerance limits
>>TCO: recorded accurately
>>ICO: efficient and effective operations
difference between SAP and GL bootcamp - CORRECT ANSWER SAP updates in real time (bc of processing speed of computers)
What was I trying to accomplish in MM01-MM08? - CORRECT ANSWER creating the master data
-reconciliation account
-vendor master data
-material master data
*like vendor to material*
How does master data enable efficiency? - CORRECT ANSWER don't have to keep re-entering//only have to update once
reconciliation account - CORRECT ANSWER works like a sub ledger
check flag for double invoices or credit memos <-- what does this not accomplish? - CORRECT ANSWER >>does not help to see if anything has been left out
>>does not help to ensure that things are complete
END MM//BEGIN PP - CORRECT ANSWER END MM//BEGIN PP
how do companies treat costs when making a product? - CORRECT ANSWER aggregate production costs for each item to compute inventory costs --> turns into COGS when sold
Use job order costing or process costing
job order costing - CORRECT ANSWER costs are tracked by job or batch
process costing - CORRECT ANSWER large batches of homogenous products
average cost per product computed
costs assigned to products - CORRECT ANSWER RM,
DL,
OH (can be allocated)
Primary element in PP - CORRECT ANSWER Materials Requirement Planning (MRP)
Production Planning
main function of MRP and Production Planning - CORRECT ANSWER guarantee material availability by monitoring stocks and creating procurement proposals
(MRP tries to strike balance between optimizing service level and minimizing costs)
Demand Management component of MRP - CORRECT ANSWER have to define the required quantities and dates for a finished product.
Planning strategy: decide if FG will be made to order or made to stock
use sales forecasts to help determine quantities
Master Data in PP - CORRECT ANSWER >>Material Master Data: update with "MRP" view
>>create BOM and Routing for the rocker
BOM - CORRECT ANSWER recipe of a finished good. contains numbers, parts, quantities, etc
ROutings - CORRECT ANSWER description of operations (what to do with the material, where, and how long it will take)
Four things specified in a routing - CORRECT ANSWER production line, assembly center,
certain employees, machine/machine groups
work centers - CORRECT ANSWER where operations are carried out
used for scheduling, capacity planning, costing
planned order for material produced internally v. procured externally - CORRECT ANSWER internal - PO created, turns into production order
external - controller chooses PO, turns into purchase requisition
Planned order - CORRECT ANSWER MRP request for certain material at a certain time
**simply an internal planning element. triggers no production**
can be created manually or automatically
do Planned Orders trigger production? - CORRECT ANSWER No. simply internal planning element. production only triggered upon conversion to purchase requisition or production order
what happens when a planned order is created automatically? - CORRECT ANSWER use BOM to create MRP list, then compare MRP list to stock/ requirements
Production order - CORRECT ANSWER specifies material to be processed, location, time, and work required
What other interfaces does a production order link to? - CORRECT ANSWER SD, MM, and CO
what happens once the production order is created? - CORRECT ANSWER >routing selected,
>BOM exploded and transferred to the order
>reservations for in-house material
>planned costs
>capacity requirements for work centers
calculation of planned costs for production orders - CORRECT ANSWER once the production order is created, system calculates planned costs and and assigns them to cost elements
settlement of production order - CORRECT ANSWER once the production order is settled, actual costs are settled to one or more receiver objects
What did I do in PP? - CORRECT ANSWER entered the master data, and produced the goods
What did I do in SAP to produce the goods during PP? - CORRECT ANSWER 1. Run the MRP
2. convert planned order to production order
3. issue goods to production floor (RM, trading)
4. confirm production complete
5. issue FG to inventory
6. settle costs
END PP//BEGIN SD - CORRECT ANSWER END PP// BEGIN SD
what activities does Sales and Distribution consist of? - CORRECT ANSWER order processing
outbound logistics
billing
What other modules is SD integrated with - CORRECT ANSWER MM (finished product delivery)
FI (AR due date data)
Organizational Structure of SD - CORRECT ANSWER ALL under sales area:
primary element is the sales organization, under a single company code. within sales org, it is divided according to distribution channel
Master data in SD - CORRECT ANSWER Customer Master Record
Material master record (finished goods, trading goods)
Partner functions (parties) defined in the system - CORRECT ANSWER sold-to-party
ship-to-party
bill-to-party
payer
^^each has its own customer master record
sold to party - CORRECT ANSWER can also be ship, bill, or payer.
>>if the customer receives the good, invoice, and settles the bill, then only need 1 customer master record as the sold to party
ship-to party - CORRECT ANSWER receives good
bill-to party - CORRECT ANSWER receives invoice
payer - CORRECT ANSWER settles the bill
sales inquiry - CORRECT ANSWER no obligation, just and information request
get final price including discounts, etc
item proposal - CORRECT ANSWER template for sales orders, can be used over and over
documents used during SD - CORRECT ANSWER -item proposals
-inquiries
-sales orders
-outbound delivery/picking request
-billing document
goods issue - CORRECT ANSWER created when goods transferred to carrier for actual shipment
point at which the sale can be recognized
document flow - CORRECT ANSWER audit trail to access all documents generated in the transaction process
What did I do in SD01-SD10? - CORRECT ANSWER 1. create reconciliation account
2. create customer master data
3. create SD view for trading and finished goods (MM)
4. create conditions (prices and discounts)
What did I do in SD11-SD22? - CORRECT ANSWER item proposal
inquiry
sales order
check stock availability
goods issue (delivery)
bill customer
END SD// BEGIN FICO - CORRECT ANSWER END SD//BEGIN FICO
financial acct - CORRECT ANSWER external acct, GAAP
organizational structure of financial acct - CORRECT ANSWER company code - where all the accounts are
credit control area - where customer credit is awarded and monitored
master data used for financial accounting - CORRECT ANSWER customer MD
vendor MD
GL
GR/IR
GR/IR clearing account - CORRECT ANSWER when: goods are received prior to invoice receipt & wanna enter it into MMS
allows record receipt of materials and enter it into materials mgmt system, but suspend the amount owed until the actual invoice is received
reconciliation account for FICO - CORRECT ANSWER link between subsidiary ledgers and GL
>> there is one for AP and AR
>> automatically updated when transactions recorded in subsidiary ledger
controlling (cost accounting) - CORRECT ANSWER internal, info for decision making
organizational structure in controlling - CORRECT ANSWER controlling area: linked to company code to provide greater integration of data for cost accounting
profit center: mgmt can analyze the results of the center they are responsible for
Cost center: represents defined location of cost occurrence
cost centers - CORRECT ANSWER organizational unit - accumulates costs grouped together
Master Data in Controlling - CORRECT ANSWER cost element
primary costs
secondary costs
cost element - CORRECT ANSWER classify an organization's valueated consumption of various production factors within controlling area
primary costs - CORRECT ANSWER straight from GL
originate OUTSIDE company
Rent Expense, Utilities expense - which type of cost are these? - CORRECT ANSWER primary
secondary costs - CORRECT ANSWER not match in GL
originate INSIDE company
two methods of cost allocation - CORRECT ANSWER distribution
assessment
distribution - CORRECT ANSWER primary costs are allocated to cost centers.
Entire amount usually added to one cost center, then spread out periodically
assessment - CORRECT ANSWER can assess primary and secondary costs, but only in a lump sum, so detail is not available
What did I do in the FICO exercises? - CORRECT ANSWER 1. create GL account and look at chart of accounts
2. create primary cost elements
3. create vendor master record
4. enter transactions, review entries
5. create distribution cycle and review report
6. create assessment cycle and review report [Show Less]