Thursday, 5 February 2015

SAP SD Frequently Asked Questions - ERP Operations (Part6)

51. What is a Bill of material?
i. A bill of material is a complete, formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items. A bill of material can only refer to a quantity of at least 1 of an object.

52. Is the BOM used in the PP module only?
i. No. Also used in SD.

53. Explain what a routing is?
i. Routing contains the operations required in production, and the production resources/tools, material components, and test equipment required to produce the product.

54. What is a work center?
i. A work center is an organizational unit where a work step is carried out, producing an output. The work center defines where and by whom an operation is to be
carried out. A cost center is assigned to each work center in the work center master record. The work center has a particular available capacity. The activities performed at or by the work center are valuated by charge rates, which are determined by cost centers and activity types. Work centers can be: Machines, People, Production lines, Groups of craftsmen .
ii. IN Personnel Planning and Development (PD) work centers are the physical locations where tasks are carried out. A work center can represent anything as general as a geographic location, for example, the New York branch office. Or work centers can be very precisely defined. For example, a work center could represent a specific workstation, with specific tools and equipment, on a specific floor, of a specific building.
iii. IN Workflow Management a work center is a particular place which has been set up specifically so that employees can perform their duties within the corporate work system using working materials.

55. What does the account group of the customer /vendor control?
i. A collection of properties of accounts which determine the creation of master records.
ii. The account group determines the data that is relevant for the master record and a number range from which numbers are selected for the master records.
iii. Each master record must be assigned to an account group.
iv. Changes to the account group and the accompanying partner functions can only be made from a lower level to a higher level. For example, this means that a sold-to party cannot be assigned the function of a payer as fields which have already been maintained for this sold-to party would have to be masked. However, you can assign the sold-to party function to a payer.
v. The account group ensures that for the different partner functions of a customer only the necessary screens and fields are displayed for input.

56. What are the two possible ways of control for the cost of a material in the material master record?
i. Standard Price, Moving Average Price.

57. What is a valuation class?
i. Allocation of a material to a group of G/L accounts.
ii. Along with other factors, the valuation class determines the G/L accounts to be updated as a result of a valuation-relevant transaction (for example, a
goods movement).
iii. Which valuation classes are valid depends on the material type. Several valuation classes can be valid for one material type. A valuation class can be valid for several material types.

58. A customer master record in SD is also an A/R(accounts receivables)in FI. When you create a customer master record you also have to specify the reconciliation account. For what is the reconciliation account used?
i. Account in G/L accounting, to which automatic entries are posted during a business activity. It is generally the case that several subledger accounts post to a common reconciliation account. This ensures that the developments in the subledger accounts are accurately reflected in the general ledger (i.e. in line with balance sheet conventions). You can set up a reconciliation account for, say, all overseas customers.

59. Briefly describe the types and structure of the sales document and give examples of data that you find on the different levels.
i. Sales-related business transactions are recorded in the system as sales documents. There are, broadly speaking, four different groupings of sales documents:
ii. Sales queries, such as inquiries and quotations
iii. Sales orders
iv. Outline agreements, such as contracts and scheduling agreements
v. Customer problems and complaints, such as free of charge deliveries and credit memo requests.
vi. Header Data
vii. The general data that is valid for the entire document is recorded in the document header. This data includes the:
viii. number of the sold-to party
ix. number of the ship-to party and the payer
x. document currency and exchange rate
xi. pricing elements for the entire document
xii. delivery date and shipping point
xiii. Item Data
xiv. Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and
includes the:
xv. material number
xvi. target quantity for outline agreements
xvii. number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item)
xviii. plant and storage location specifications
xix. pricing elements for the individual items
xx. Schedule Line Data
xxi. An item consists of one or more schedule lines. The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 pieces of a material and you enter this as an item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month. In other words, you need to schedule two deliveries. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. In sales documents where
delivery data is not relevant -for example: contracts, credit and debit memo requests - the system does not create any schedule lines.
xxii. Data recorded in the schedule lines includes the:
xxiii. schedule line quantity
xxiv. delivery date
xxv. confirmed quantity

60. What is the difference between an inquiry and quotation ?
i. Inquiry: Request made to a vendor for a quotation for required materials or services.
ii. No availability check is done for inquiry.
iii. Quotation: Offer from a vendor to a purchasing organization regarding the supply of materials or performance of services subject to predefined terms and conditions.
iv. A quotation consists of a number of items, in which the total quantity and delivery date of an offered material or service are specified.
v. The total quantity can be subdivided into several partial quantities with different delivery dates in the lines of a delivery schedule.
More Questions & Answers :-
Part1  Part2  Part3  Part4  Part5  Part6  Part7  Part8  Part9

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