1.    Invoice verification provides a link between which modules?

Invoice verification provides a link between Materials Management and the Financial Accounting, Controlling and Asset Accounting modules.

2.    What are the two ways to enter taxes on invoices?

(a)    Manually enter it in the Tax field
(b)    Leave the Tax Amount field blank and turn on the Calculate Tax indicator to have the system calculate the tax based on the Tax Code.

3.    When a Vendor invoice is posted in the system, what 5 things happen?

•    An Invoice Receipt document is created
•    The Material Master record is updated when appropriate.
•    The Purchase Order History is updated when appropriate.
•    Entries are posted to the appropriate General Ledger Accounts
•    The Vendor account (Sub-ledger) is updated.
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1.    Name the five major activities (in the order they occur) in the Procurement Cycle.

•    Purchase Requisition (MM)
•    Purchase Order (MM)
•    Goods Receipt (MM)
•    Invoice Verification (MM)
•    Vendor Payment (FI)

2.    What is a Purchase Requisition?

A Purchase Requisition is a document that identifies an organization’s demand for a product or service from an outside vendor.  It is an internal document (i.e., it is not visible to the vendor or any other outside organization).

3.    What are the two ways a Purchase Requisition can be created?

•    Automatically as a result of a Materials Requirements Planning (MRP) run.
•    Manually by a user.
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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.
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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
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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
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