SAP MM Online Test

In an SAP MM implementation for a manufacturing company, you are tasked with setting up the procurement process for raw materials, ensuring accurate valuation and account determination for financial reporting. The company uses a standard costing method for inventory valuation and has a complex organizational structure with multiple plants and company codes. During the procurement process, a purchase order is created for raw material X, which is categorized under material type ROH (Raw Material) and has a material master record with a standard price of $100. The purchase order quantity is 50 units at a price of $110 per unit due to market fluctuations. Upon goods receipt, the system should post the inventory and update the financial accounts accurately according to the company's accounting principles.

Given the scenario, how should the system handle the valuation and account determination at the time of goods receipt, assuming the configuration settings are appropriately set for the material and financial accounting integration?

A: The system valuates the inventory at the purchase order price, posts the difference to a price difference account, and the stock account is credited with the standard price.
B: The system valuates the inventory at the standard price, posts the difference to a price difference account, and the stock account is credited with the purchase order price.
C: The system valuates the inventory at the standard price, and the stock account is credited with the standard price. No price difference account is involved.
D: The system valuates the inventory at the purchase order price, and the stock account is credited with the purchase order price. No price difference account is involved.
E: The system valuates the inventory at the purchase order price, posts the difference to a variance account, and the stock account is credited with the standard price.
F: The system valuates the inventory at the standard price, posts the difference to a price difference account if the purchase order price is higher than the standard price, and the stock account is credited with the purchase order price.

In SAP MM, an automatic purchase order can be created directly from a purchase requisition based on predefined conditions. Which of the following settings must be configured to enable this functionality?

A company uses SAP MM to manage its inventory and procurement processes. The purchasing department is required to order 500 units of a specific material that needs to be available within the next month. They are planning to use a standard purchase order. The material is not subject to batch management and does not have a material master that allows for automatic reorder. The procurement process involves a purchasing group responsible for electronic items. Consider the following information and options related to creating and managing this purchase order:

- The company's typical lead time for electronic components is 3 weeks.
- There are currently 200 units in stock.
- The safety stock level for this material is 100 units.

Given the situation above, select the correct course of action from the options listed below:

A: Create a standard purchase order for 500 units with the standard purchasing group for electronic items.
B: Create a rush order for 500 units to ensure delivery within the required timeframe.
C: Issue a purchase requisition for 300 units, considering the current stock and safety stock levels.
D: Create a standard purchase order for 300 units to cover the deficit after considering the current stock against the required safety stock.
E: Set up a reorder point for the material at 100 units with an automatic order for 500 units whenever the stock falls below this level.
F: Recommend a review of the material master to include automatic reorder functionality and proceed with a standard order for 300 units.

A multinational corporation operates using SAP MM to manage its extensive inventory across various locations. The company has recently decided to update its inventory valuation method for a key raw material (Material X) due to fluctuating market prices. Material X is crucial for the company's manufacturing process, and accurate valuation is essential for financial reporting and cost management. Previously, the material was managed using the Standard Price method, but considering the market volatility, the company is contemplating a shift to the Moving Average Price (MAP) method.

The finance team needs to ensure that the transition to MAP does not disrupt the ongoing accounting processes and that it aligns with the company's strategic financial objectives. They must consider the impact of this change on the material ledger, future purchase orders, and the overall inventory valuation in SAP MM.

Given this scenario, which of the following actions should the finance team take to effectively manage the transition from Standard Price to Moving Average Price for Material X, ensuring seamless integration with SAP MM functionalities and financial accounting requirements?

Options are included in the question text for clarity.

A: Immediately change the price control setting from Standard Price (S) to Moving Average Price (V) in the material master record of Material X, and revaluate existing inventory at the current market price.
B: Implement a dual valuation approach, where both Standard Price and Moving Average Price are used concurrently for Material X to hedge against market volatility.
C: Adjust the Standard Price periodically to reflect market changes until the transition to Moving Average Price is feasible, minimizing the impact on financial reporting.
D: Directly update the price control setting to Moving Average Price without adjusting the existing inventory valuation, relying on future transactions to normalize the valuation.
E: Conduct a thorough impact analysis on financial reports and inventory valuation under both price control methods before making any changes to the material master record.