The Procurement ProcessTrue-False QuestionsA purchasing group is an internal group that is responsible for executing the procurement process.A stock transfer does not involve a change in storage location.A transfer posting changes the stock status of a material and need not involve a physical movement of goods.A goods movement is a transaction that causes a change in stock value or status.A transfer posting is used to move materials from one storage location to another.A transfer posting does not generate a material document.Requirements for materials must be created manually.Chapter 4The Procurement ProcessTrue-False Questions1. Storage locations are places within a plant were materials are kept until they are needed. Answer: True Difficulty: Easy Page Reference: 2Section: Storage Location Practice:2. There can only be one storage location within a plant. Answer: False Difficulty: Easy Page Reference: 2Section: Storage Location Practice:3. A storage location is a key organizational element in purchasing.Answer: True Difficulty: Medium Page Reference: 2Section: Storage Location Practice:4. A purchasing organization is involved only in negotiating prices with vendors Answer: False Difficulty: Difficult Page Reference: 3Section: Purchasing Organization Practice:5. Typically, there are three models of purchasing organizations: enterprise-level, company-level, and plant-level. Answer: True Difficulty: Medium Page Reference: 4Section: Purchasing Organization Practice:6.The enterprise‐level purchasing organization is also known as the cross‐company code purchasing organization. Answer: True Difficulty: Medium Page Reference: 4Section: Enterprise-Level Purchasing Organization Practice:7. The company-level purchasing organization is the most centralized model.Answer: False Difficulty: Medium Page Reference: 4Section: Company -Level Purchasing Organization Practice:8. The enterprise-level purchasing organization is the most centralized model. Answer: True Difficulty: Medium Page Reference: 4Section: Enterprise-Level Purchasing Organization Practice:9. A plant can belong to more than one company code.Answer: False Difficulty: Medium Page Reference: 4Section: Company-Level Purchasing Organization Practice:10.The most decentralized model of purchasing organizations is the plant‐specific purchasing organization.Answer: True Difficulty: Easy Page Reference: 5Section: Plant-Level Purchasing Organization Practice:11. A purchasing group is an internal group that is responsible for executing the procurement process.Answer: False Difficulty: Medium Page Reference: 6Section: Purchasing Group Practice:12. A purchasing organization is an individual or a group of individuals who are responsible for purchasing activities for a material or group of materials. Answer: False Difficulty: Medium Page Reference: 7Section: Purchasing Group Practice:13. Vendor master data include the data needed to conduct business with a vendor and to executetransactions related to the procurement process.Answer: True Difficulty: Medium Page Reference: 9Section: Vendor Master Practice:14. The method used to value material is defined in the material master.Answer: True Difficulty: Medium Page Reference: 8Section: Material Master Practice:15. Different material types have different required material views.Answer: True Difficulty: Medium Page Reference: 7Section: Material Master Practice:16. General data related to a vendor are accessible to all company codes in a client.Answer: True Difficulty: Easy Page Reference: 10Section: Vendor Master Practice:17. Purchasing data related to a vendor are accessible to all purchasing organizations.Answer: False Difficulty: Easy Page Reference: 11Section: Vendor Master Practice:18. Material master data can be defined differently for different organizational levels.Answer: True Difficulty: Medium Page Reference: 11Section: Vendor Master Practice:19. A purchasing info record is an intersection or combination of material and accounting data.Answer: False Difficulty: Medium Page Reference: 12Section: Purchasing Info Record Practice:20. Accounting data related to a vendor are accessible to all clients in a company code.Answer: False Difficulty: Medium Page Reference: 11Section: Vendor Master Practice:21. Item categories in a purchase order determine the process steps used to procure materials.Answer: True Difficulty: Easy Page Reference: 13Section: Item Categories Practice:22. Consumable materials are acquired to be used within an organization.Answer: True Difficulty: Easy Page Reference: 14Section: Account Determination Practice:23. When purchasing consumable materials, an account assignment category and specific account assignment objects must be provided when the purchase order is created.Answer: True Difficulty: Medium Page Reference: 16Section: Account Determination Practice:24. A goods movement is not required when changing the status of material from “in quality inspection” to “unrestricted use”.Answer: False Difficulty: Difficult Page Reference: 17Section: Goods Movement Practice:25. A plant-to-plant movement of goods does not generate an accounting document.Answer: False Difficulty: Medium Page Reference: 18Section: Goods Movement Practice:26. A goods receipt cannot be accomplished without a movement type.Answer: True Difficulty: Medium Page Reference: 18Section: Goods Movement Practice:27. A stock transfer does not involve a change in storage location.Answer: False Difficulty: Difficult Page Reference: 18Section: Goods Movement Practice:28. A transfer posting changes the stock status of a material and need not involve a physical movement of goods.Answer: True Difficulty: Easy Page Reference: 19Section: Goods Movement Practice:29. A goods movement is a transaction that causes a change in stock value or status.Answer: True Difficulty: Medium Page Reference: 17Section: Goods Movement Practice:30. Materials cannot be moved from one company code to another because each company code uses a different set of books.Answer: False Difficulty: Difficult Page Reference: 18Section: Goods Movement Practice:31. A transfer posting is used to move materials from one storage location to another.Answer: False Difficulty: Easy Page