Question no 4247 : PR with a Source generated by a MRP run

In SAP S/4, the last MRP run generated the PR in the red box with a Vendor Assignment, what setting(s) can produce the following results ?

(more than one answer)

A)  Automatic Sourcing indicator in the Purchasing Info Record.

B)  Regular Vendor in the Purchasing Info Record.

C)  Single Sourcing indicator in the Material MRP 2 data view.

D)  Only one PIR exist for the Material, Vendor, Plant, Pur.Org combination.

E)  MRP Relevancy indicator "1" in the Source List.

.

Answer: A, E

As of S/4 1610, if only one PIR as "Automatic Sourcing" for found for a Material, MRP run will pick the PIR vendor as a Source in the MRP run (without a Source List)

The MRP Relevancy indicator "1" if found for a single source in the Source List will also do the same. 

Question no 4246 : ME05 "Generate Source List"

In SAP S/4, the function of transaction code ME05 "Generate Source List" does which of the following ?

(more than one answers)

A)  Include or Exclude Outline Agreements in the Source generation.
B)  Set the "Fixed" indicator.
C)  Set the "MRP" indicator.
D)  Select Sources to be updated.
E)  Select to "Block" a source before final updating to the Source List.
.

Answer: A, B, C, D, E

Question no 4245 : Source Determination

In SAP S/4, Source Determination can be executed in which of the following ?

(more than one answers)

A)  ME51N.
B)  MD01N.
C)  ME21N.
D)  ME25.
E)  ME59N.
.

Answer: A, B, D

C) ME21N when creating a Purchase Order, either enter Vendor or Supplying Plant manually or the document to convert from (like PR, Quotation, Contract) must already have a Source.

E) ME59N is Automatic PO Generation where of course the input Purchasing document ie Purchasing Requisition must have been assigned with a valid Source.

Source Determination can be done in:

ME51N (manual or Automatic)
ME52N (manual or Automatic)
ME56 (Assign)
ME57 (Assign and Process)
ME25 (Create PO without Vendor)
MRP run including MD01, MD01N, MD02, MD03 etc (with Source List MRP relevancy indicator set as "1")

The following is ME25 using Source Determination and end with a PO.

 

Question no 4244 : Item Category "W" in the Contract

 In SAP S/4, select the CORRECT statements that describes the Contract item highlighted below ?

(more than one answers)

A)  The PO item can have any unit price different from the Contract

B)  The Material Group need not be the same as the Contract item.

C)  The UOM of the PO item must be the same as the Contract item.

D)  An Account Assignment PO item is possible.

E)  Stock scenario PO item is not allowed.

.

Answer: A, B, D

Characteristics of "Material Group Contract" with Item Category "W" are:

   PO items UOM can be different

   PO items unit price need not be the same

   Material Group must be the same

   Stock scenario is allowed

   Consumable scenario is allowed

   Only available Value based Contract of doc type "WK"

Question no 4243 : Item Category "M" in the Contract

In SAP S/4, select the CORRECT statement regarding the Contract item 10 below ?

(only one answer)

A) Item Category "M" can be implemented for both Quantity and Value Contract.

B) The PR item must have the same net price of 2 EUR as the Contract.

C) The PR item's UOM must be the same as in the Contract.

D) The PR item's Material Group in the PO item need not be the same to the Contract. 

E)  The PR item can be an Account Assignment item.

.

Answer: A, D, E

Characteristics of Item Category "M" (material Unknown)

    It can be used in "MK" or "WK" Contracts

    the UOM need not be the same as long as conversion factors are set

    the Material Group need not be the same in the PO item vs the Material Unknown Contact

    the Price need not be same in the PO item vs the Contract price

    Both Stocks and Consumable PRs are allowed

Question no 4242 : Reference Purchasing Org

In SAP S/4, what is the purpose of this Configuration ?

(more than one answers)

A)  The scenario is used for PO release for Central Contract with different Purchasing Organizations  than the Purchase Order's Purchasing Organization.

B)  The scenario is used for PO release for Central Contract and Central Scheduling Agreements with different Purchasing Organization than the Purchase Order's Purchasing Organization.

C)  The configuration allows to control whether conditions in the Central Contract can be copied to the Purchase Order.

D)  The configuration determines if the Purchasing Organization for the Purchase Order can be used to Release PO for the Scheduling Agreement by the Central Purchasing Organization.

E)  The configuration determines if the Purchasing Organization for the Purchase Order can be used to Release PO for the Contract by the Central Purchasing Organization.

Answer: A, C, E

IMG > Enterprise Structure > Assignment > Material Management > Assign Purchasing Organization to Reference Purchasing Organization

A reference purchasing organization can make favorable conditions or contracts available to other purchasing organizations. A reference purchasing organization can negotiate a comprehensive contract that can be used by other purchasing organizations.
 The purchasing organizations responsible for procurement in the individual plants can issue release orders against this centrally agreed contract, thus availing themselves of its more favorable terms and conditions.
When you assign purchasing organizations to a reference purchasing organization, the conditions of the reference organization can be used by other purchasing organizations for price determination.
You can assign several purchasing organizations to one reference purchasing organization, but a single purchasing organization should not be assigned to multiple reference purchasing organizations.

Question no 4241 : Info Record "Control" section data default

In SAP S/4, note the Purchasing Organization Data 1 "Control" data section, select the correct statement about the Source of the fields contents ?

(more than one answers)

A) The "Planned Delivery time" is from the MRP2 data view of the Material Master.
B) The "GR-Based IV" is from the Purchasing data view of the Material Master.
C) The "Standard Qty" is from the MRP1 data view in the Material Master.
D) The "Ackn.Rqd" (Acknowledgement Required) indicator is from the Purchasing data view of the Material Master
E) The "Auto Sourcing" indicator is from the Purchasing data view of the Material Master.
.

Answer: A, D

Material Master to the Info Record

Planned Delivery Time              (Material Master Purchasing data view)

Purchasing Group                      (Material Master Purchasing data view)

Under Delivery Tolerance         (Material Master Purchasing data view)

Over Delivery Tolerance           (Material Master Purchasing data view)

Unlimited                                   (Material Master Purchasing data view)

Acknowledgement Required     (Material Master Purchasing data view)

Shipping Instruction                  (Material Master Purchasing data view)

Planned Delivery Time              (Material Master MRP2 data view)

Remaining Shelf Life                (Material Master Plant/Data Storage 1 data view)

Vendor Master

Planned Delivery Time              (Purchasing Organization data view) 

GR-Based IV                              (Purchasing Organization data view)        

Purchasing Info Record

Standard Quantity                     (Only in the Purchasing Info Record)

Auto Sourcing                           (Only in the Purchasing Info Record)

Question no 4240 : Time-Dependent RFQ/Quotation

In SAP S/4, the following is the Condition entry screen of "Maintain Quotations", and note the Validity dates entry possible. Which configuration determine if Time-Dependent Condition records can be entered here in the Quotation ?

(only one answer)

A)  Calculation Schema settings

B)  Purchasing Organization settings

C)  Document Type settings

D)  Plant Parameter settings

E)  Info Record update settings

.

Answer: C

The "Time-D.C" field in the RFQ Document Type Indicates whether time-dependent or time-independent conditions can be specified.

IMG > Material Management > Purchasing > RFQ/Quotations > Define Document Types

Question no 4239 : Calculation/Pricing Schema Determination

In SAP S/4, the Calculation/Pricing Schema in the Purchase Order item is determined by which of the following ?

(more than one answers)

A) Schema Group assigned to the Vendor Purchasing Data
B) Schema Group assigned to the Plant.
C) Schema Group assigned to the Condition Group.
D) Schema Group assigned to the Document Type.
E) Schema Group assigned to the Purchasing Organization
.

Answer: A, E

Step 1: Define and Assign Schema Group to the Vendor

IMG > Material Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group > Define Schema Group for Suppliers

In the Business Partner, Role 'FLVN01" for the Purchasing Organization of the Vendor, in the "Purchasing Data" TAB, "Additional Purchasing Data" segment, assign the Schema Group to the field "Schema Grp Supp"

Step 2: Define and Assign Schema Group to the Purchasing Organization

IMG > Material Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group > Define Schema Group for Purchasing Organizations

IMG > Material Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group > Assign Schema Group for Purchasing Organizations

Question no 4237 : Partner functions determination in the Purchase Order

  In SAP S/4, in what manner the Partner functions are determined in the Purchase Order ? 

(only one answer)

A) Partner Schema assigned to the Account Group
B) Partner Schema assigned to the Plant
C) Partner Schema assigned to the Transaction code ME21N
D) Partner Schema assigned to the Document Type.
E) Partner Schema assigned to the Business Grouping.
.

Answer: D

IMG > MM > Purchasing > Partner Determination > Partner Settings in Purchase Orders > Define Partner Schemas

IMG > MM > Purchasing > Partner Determination > Partner Settings in Purchase Orders > Assign Partner Schemas to Document Types

Question no 4236 : Info Record creation

 In SAP S/4, Purchasing Info Record can be created in which of these scenarios ? 

(more than one answers)

A) Vendor + Material Group (without Purchasing Org, without Plant)
B) Vendor + Material Group + Purchasing Org (without Plant)
C) Vendor + Material + Plant (without Purchasing Org)
D) Vendor + Material + Purchasing Org (without Plant)
E) Vendor + Material (without Purchasing Org, without Plant)
.

Answer: B, D

The following combinations are possible
Vendor + Material Group + Purchasing Org (without Plant)
Vendor + Material Group + Purchasing Org + Plant
Vendor + Material + Purchasing Org (without Plant)
Vendor + Material + Purchasing Org + Plant

* Vendor is always Mandatory in the Info Record.

* Purchasing Organization is always Mandatory in the Info Record.

* When Material not entered in the Info Record, then a Material Group can be entered.

* Plant is optional based on standard Info Record creation scenario.

Question no 4234 : Automatic Invoice creation

In SAP S/4, the Pre-requisites for Automatic Invoice Generation via MRRL are which of the following ?

(more than one answers)

A) GR-Based IV.
B) Automatic Invoice in the Vendor Purchasing data.
C) Automatic Invoice in the Material Master Purchasing data.
D) Tax code in the Purchase Order.
E) Automatic Evaluation and Receipt Settlement indicator in the PO item detail.
.

Answer: A, D, E

Automatic Invoice based on Goods Receipt pre-requisites (in the PO item detail) (MRRL)

GR-Based IV
Tax code
ERS indicator (from Vendor master purchasing data)

Consignment and Pipeline Settlement (MRKO)

Tax code in the Info Record
Info Record for the Standard Purchasing Organization
Standard Purchasing Organization assigned to the Plant

Automatic Invoice based on Invoicing Plan (MRIS)

ERS indicator (from Vendor master purchasing data)
Tax code in the Purchase Order

Question no 4232 : the Purchasing Group in the Info Record

In SAP S/4 1909, when creating the Purchasing Info Record using this FIORI App, the Purchasing Group default from ____________________________ .

(more than one answer)

A) For Info Record without Material, the system finds the Purchasing Group from the Business Partner Purchasing data.
B) For Info Record without Material, the system finds the Purchasing Group assigned to the Plant in the Customizing.
C) For Info Record with Material, the system first locate if there is Purchasing Group assigned to the Material at the Plant level and if not found will check if there is a Purchasing Group in the Business Partner's Purchasing data segment.
D) For Info Record with Material, the system first locate if there is Purchasing Group in the Business Partner's Purchasing data segment and if not found will check if there is a Purchasing Group in the Material Master Purchasing data view at the Plant level.
D) For Info Record with Material, the system first locate if there is Purchasing Group in the Business Partner's Purchasing data segment and if not found will check if there is a Purchasing Group assigned to the Plant in the Customizing.
.

Answer: A, D

Scenario: without Material
    Purchasing Group from Business Partner Purchasing data
Scenario: with Material
    Purchasing Group from Business Partner Purchasing data (Priority 1)
    Purchasing Group from Material Master Purchasing data view at the Plant level (Priority 2)
Scenario: with Material without Plant
    Always from Purchasing Group from Business Partner Purchasing data

    Since no Plant, the Purchasing Group in the Material at Plant level of Purchasing view cannot be 

    found anyway

Question no 4231 : "Manage Source of Supply" FIORI App features

In SAP S/4 HANA 2023, the "Manage Source of Supply" FIORI App can create which of the following

(only one answer)

A) Info Record, Contract, Scheduling Agreement, Source List
B) Info Record, Contract, source List, Quota Arrangement
C) Info Record, Vendor, Source List, Quota Arrangement
D) Info Record, Contract, Scheduling Agreement, MPN
E) Infor Record, MPN, Approved Vendor List, Source Lis
.

Answer: B

"Manage Source of Supply" FIORI App S/4HANA 2023 can create
    Contract
    Info Record
    Quota Arrangement
    Scheduling Agreement (pending verification)

    Source List

It can also Simulate SOS Assignment

Question no 4203 : GR non-valuated indicator

In SAP S/4HANA Material Management, which of the following can in the Purchasing Document item can control how the GR non-valuated indicator is default?

(only one answer)

A)  Purchasing Document Type

B)  Item Category.

C)  Combination of Purchasing Document and Account Assignment.

D)  Combination of Purchasing Document, Item Category, and Account Assignment.

E)  Account Assignment.

.

Answer: B, E

IMG > Material Management > Purchasing > Account Assignment > Maintain Account Assignment Categories

In the above IMG, 

Flagged for GR indicator, GR non-valuated indicator, and Invoice indicator can be defaulted

Also set the Flagged indicators as display only.

...

Note that

IMG > Material Management > Purchasing > Define External Representation of Item Categories, 

there are indicators for GR non-valuated indicator (one or flag selectable and another for firming); however, the settings are provided by SAP which cannot be changed by the user. 

Note: as at S/4 1909, Item Category "L" ,"K", "C" have "GR Non Val.Firm" as delivered by SAP but the "GR non-valuated" is not delivered as flagged. 

...

As the above is the SAP documentation, perform appropriate testing as the ABAP program logic finally decides the field behavior. 

Question no 4192 : Product Type Group in the PR and PO

In SAP S/4 1909, Note the "Product Type Group" in the "Material Data" TAB in the PO item detail, select the correct statements describing the Product Type Group ? 

(more than one answers)

A) The Product Type Group is assigned to the Material Type.
B) The Product Type Group is an alternative to the Material Group and only use for grouping of materials for reporting purpose.
C) The Product Type Group can be set in the Material Master Basic 1 data view.
D) The Product Type Group cannot be changed in the Purchase Order item detail screen.
E) The Product Type Group can be set in the Purchase Order item detail screen.
.

Answer: A, E

A) You can find the Product Type Group assigned to the Material Type in OMS2 (top right corner) of the IMG screen. Either "Blank", "1 Material", "2 Service or "3 Subscription".

B) The Product Type Group define the procurement process to be different for materials and services. For example, you can only maintain the field Service Performer when you purchase a service. In S/4, a new Material type "SERV" is provided which is configured with Product Type Group "2 Service"; you will find that when creating a Material Master using "SERV", there will be minimum fields to be entered for this Service Material. Note the MIGO and ML81N is not possible for this kind of Material, and you will have to use a dedicated FIORI App to complete to Service Completion of the PO.

C) You sill not be able to find the Product Type Group in the Material Maser basic 1 data view, and it does seem that the field is not defaulted from the Material Type to the Material Master.

D) In standard SAP, for Purchase Order with Material created using "SERV", the system default the Product Type Group "2" in the PO item (Material data TAB) as DISPLAY field. However, if the Material Type is configured with "Blank" Product Type Group and the Material is a "ROH" material where MIGO is expected; the system will default the Product Type Group "1" in the PO item (Material data TAB) as DISPLAY field. Nevertheless, try creating a PO without a Material Master, and the "Product Type Group" field will be an ENTRY field in the PO item detail for the user to decide as "1 Material " (GR via MIGO or in case of Item Category "D" via ML81N), or "2 Service" (Service Completion via a FIORI App).

E) It is interesting to note that the Product Type Group field is always open for maintenance whether with or without Material Master entry in the Purchase Requisition. However, the system will still check the validity of the Product Type Group entry of "1" or "2" depending on the Material Master entered. For example, a Material with "SERV" (standard SAP) was entered in the PR but the user set the "Product Type Group" to "1 Material" will be an ERROR. Likewise, a Material with "ROH" (standard SAP) was entered in the PR but hte user set the "Product Type Group" to "2 Service) will be an ERROR. The last case of creating a PR without Material entry, similar to the PO case where user can decide as "1 Material " (GR via MIGO or in case of Item Category "D" via ML81N), or "2 Service" (Service Completion via a FIORI App).

Question no 4191 : Configurable fields in the Purchase Order

In SAP S/4 1909, which of the following for Purchasing Document are not configurable (in this case cannot be user defined) ?

(more than one answers)

A) Account Assignment category.
B) Item category.
C) Purchase order document type.
D) Confirmation control key.
E) Stock type to be posted into for the PO item.
.

Answer: B, E

A) Account Assignment category can be user defined (although it is a single alpha-numeric key). The IMG is MM > Purchasing > Account Assignment > Maintain Account Assignment Categories or t-code OME9.

B) Item category can be configured in IMG > MM > Purchasing > Define External Representation of Item Categories; however SAP item categories are delivered as "internal Category keys" such as "0" for Standard and what is configurable is just the External item category to be selected in the PO creation screen. And user can create a new Item Category.

 

C) Purchase order document type can be configured in IMG > MM > Purchasing > Purchase Order > Define Document Types, a new PO doc type can be create with a 4 alphanumeric key.

 

D) Confirmation Control key at the PO item can be configured in IMG > MM > Purchasing > Confirmations > Setup Confirmation Control and a user-defined Confirmation control key can be created.

E) The Stock type in the Delivery TAB at the PO item detail level is delivered as "Unrestricted use", "Blocked stock", or "Quality Inspection" and they cannot be user-defined.

Question no 4190 : Error message in Purchase Order creation

In SAP S/4 1909, when creating a Purchase Order and the message "ME047" is prompted with ERROR and saving the PO is not possible, what are the possible measure to be taken ?

(more than one answers)

A) MM01 to extend the Material Master with Purchasing data view.
B) MM01 to extend the Material Master with Accounting data view.
C) MMSC to extend the Material Master with Storage Location data.
D) Decide if it is an Accounting assignment Purchase Order and choose a Plant without Value update for the Material Type of the Material Master in the Purchase Order.
C) Storage Location was not entered in the Purchase Order line item.
.

Answer: B, D

If the user decides that the Purchasing scenario is Stock scenario, then next step is to extend the Material Master with Accounting data view.
If the user decides that the Purchasing scenario is Non-Stock /Non-valuated scenario, there will be 2 possible:

a) still extend the Material master with Accounting data view and re-create the PO but now enter also the Account assignment category. 

b) decide for the Material Master's Material Type for that Plant in PO creation should always be Account Assignment PO case and then request configuration of the Material Type/Plant combination in OMS2 to be set without "Value Update".

 

Question no 4134 : Discount-in-Kind in MM Purchase Order

In SAP Material Management as at S/4 HANA 2023, what are the prerequisites for "Free Goods" (Discount-in-Kind) in Purchase Order ?

(more than one answers)

A) set "Grant Free Goods" in the General data view of the Purchasing Info Record.
B) set "Grant Free Goods" in the Purchasing Organization data view of the Business Partner Vendor. 
C) set "Grant Free Goods" in the Source List for the Vendor and Material combination in the Source List. 
D) set "Grant Free Goods" in the Plant data view of the Material Master. 
E) Set "Grant Free Goods" in the Plant Parameter in the Configuration. 
.

Answer: B, D

Question no 4131 : Effective Price Calculations

In SAP Material Management as at S/4 1909, Effective Price Calculation in "Info Record List Display Report (Transaction code 1E1M" includes/considers which of the following?

(more than one answers)

A) Freight costs.
B) Discounts.
C) Customs and Duties (Taxes).
D) Surcharges
E) All of the above.
.

Answer: A, B, C, D, E

Effective price calculation in SAP MM determines the actual procurement cost of a material by adjusting the gross price with discounts, surcharges, freights, and taxes. It serves as the baseline for evaluating price variances against the Material Master and drives accurate accounting entries at Goods Receipt. 

Key Price Tiers:

• Gross Price: The base price of the material before any deductions or additions.
• Effective Price: The resulting price after deducting all discounts (cash, quantity, special) and adding surcharges.
• Net Price: The final payable amount. Calculated by taking the Effective Price and adding delivery costs (freight), packaging costs, and relevant taxes.

Price Calculations example:

• Purchase Order for a Material with Quantity of 100 units
• Gross Price: $10.00 per unit 
• Standard Discount (2%): -$20.00 (2% x $1,000)
• Surcharge: +$70 fixed amount
• Freight Charge: +$50.00 fixed amount
• Tax: 10% based on Gross Value
• Payment Term Cash Discount (2% in 30 Days)

• Gross Value: Gross Price × Quantity 
• Gross Value: $10.00 per unit x 100 units 
• Gross Value: $1,000.00 (or $10.00 per unit)

• Net Value: (Gross Price × Quantity) - Discounts + Surcharges
• Net Value: ($10.00 per unit x 100 units) - (2% of $1,000) + ($70)
• Net Value: $1050.00 (or $10.50 per unit)

"Info Record List Display Report (Transaction code 1E1M" offers the calculation of "Effective Price" calculation as follow:

• Effective Value: Gross Value - Standard Discounts + Surcharges + Freight + Taxes - Cash Discount
• Effective Value: $1,000 - $20 + $70 + $50.00 + (10% x $1,000) - (2% of $1050)
• Effective Value: $1,179.90 ($11.79 per unit)

Payment Term Cash Discount via standard condition type SKTO condition type (based on the Payment Term agreed with the Vendor) for cash discounts is included in the pricing schema on a purely statistical basis. It calculates the discount amount for informational purposes but does not alter the actual net price, effective price, or inventory value. Payment Term Cash Discounts are (usually) only considered when actual payment to the Vendor is done within the Payment term stipulated Days to enjoy that Cash Discount; therefore only effectively "Gain" at the point of Actual payment. 

Important Note: in SAP MM Condition calculations in the PURCHASING DOCUMENTs, the Calculation Schema (Pricing Procedure) dictates how the system computes the final procurement price. It defines the exact sequence of conditions (such as gross price, discounts, freight, and taxes), the mathematical operations (addition or subtraction), and the subtotals required to arrive at the final net or effective price. Therefore, the derivation of price values are configurable based on the company requirements. In this context paragraph, the Payment Term Cash Discount is often designed to be STATISTICAL in Standard SAP.