1.    What is dunning?

The process of notifying customers/vendors that they have overdue items.  There are varying levels that can be used by the client depending upon the business relationship with their customer.

2.    What determines how often a customer can be dunned?  Where is this configured?

Once an account has been dunned at a certain level, it must meet the criteria at the next level before it can be dunned again.  These settings are configured in the dunning area and linked in the customer master.
Continue Reading …

1.    Explain the purpose of the payment advice functionality.

Payment advice notes are early notices containing detailed information about incoming payments.

Payment advice notes can be used for automatically finding and allocating open items for clearing.  Instead of enterig selection criteria and processing the open items, all you have to do with this method is specify the payment advice number.

2.    List the payment advice types delivered by the system.

•    Lockbox advice
•    Advice from an account statement
•    Advice created during manual clearing
•    Manually entered advice
•    Bank advice
•    EDI advice
Continue Reading …

1.    For what is credit management used?

Credit management is used to set and control customer credit limits.

2.    Is credit management an integration point? If yes, with which module.

Yes, with the SD and FI modules.

3.    What is a credit control area?

A credit control area is the organizational unit used to set and control credit limits for customers
Continue Reading …

1.    The level at which valuation should take place should be determined early in the project.  Once the level is set, it cannot be changed.

True or False

2.    Which is not an example of Valuation Class?

(a) Finished Products
(b) High priced labor
(c) Raw Materials
(d) Semi-Finished Products

3.    The _________ results in the creation of an invoice sent to the customer.

Billing Document
Continue Reading …

1.    What are the five steps in the Sales Cycle and what Modules do they originate from?

• Sales Order : SD Module
• Deliver Note : SD Module
• Goods Issue : MM Module
• Billing Document : SD Module
• Receive Payment: FI Module

2.    Of the five steps listed above, which ones generate accounting documents and what are they?

• Goods Issue: Debit COGS and Credit Inventory
• Billing Document: Debit Accounts Receivable and Credit Sales/Revenue
• Payment Receipt: Debit Cash and Credit Accounts Receivable

3.    What are all the activities in the Sales Cycle?
Inquiries, Quotations, Sales Order Processing, Credit Management, Delivery Processing,  Goods Issue Processing, Billing Document Processing, Incoming Payment Processing, Automated General Ledger Update
Continue Reading …