Certification Questions


Q 1. At which level is physical inventory carried out in Inventory Management?
(Only one answer is correct)

A.  At material level
B.  At material/stock type level
C.  At material/plant/stock type level
D.  At material/plant/storage location/stock type level


The Physical inventory is carried out on the basis of stock management units. A stock
management unit is a non divisible part of a stock of materials for which a separate book
inventory exists. A stock management unit is uniquely defined by:  Material, Plant, Storage
Location, stock type, Valuation Type, Batch, Special Stock.

Q 2. What options do you have after entering a physical inventory count for a raw material?
(More than one answer is correct)

A.  You can initiate a recount.
B.  You can print a list of differences to determine the materials you have to recount.
C.  You can post an inventory difference, whereby a material document and an accounting
document are created in the background.
D.  You can post the inventory difference, whereby only an accounting document is created in
the background.

A, B, C

The physical inventory process consists of three phases: Creation of physical inventory
documents, Entry of Count, Posting of Inventory difference.
If the results of a count seem doubtful, a recount can be done.
When you post the inventory differences, the quantities and values of stocks are updated.

Q 3. In your company, some materials have a large number of goods movement leading to
possible errors in Inventory Management. You would like to inventory the stock several times
each time using only a sample, but cover all stock units at least one every year.
Which of the following methods can be used?

A. Cycle Counting Method.
B. Difference Posting procedure
C.  Sampling method
D. Live method


Cycle counting is an inventory procedure whereby selected materials are inventories several
times. All stock units are inventoried at least once a year. The following types of stocks can
be included: Unrestricted-use stock, Stock in Quality inspectin, and Blocked stock.

Q 4. You are tasked with determining the ‘Safety Stock’ for a material. Which of the following
reports/factors would you take into account?
(More than one answer is correct)
A. Slow moving items
B. Range of coverage
C. Replenishment lead time
D. Demand forecast

C, D

You typically would need to consider the following factors when calculating the safety stock:
• Demand forecast and demand forecast error
• Replenishment lead time (RLT) and RLT forecast error
• Service level
• Safety stock method
• Demand type

Q 5. How do you replicate a delivery free of charge in R/3’s Materials Management?

A.  You enter a purchase order with the purchase order price. Then, however, you post the
receipt with reference to the purchase order using a non-valuated movement type.
B.  You enter a purchase order item, set its invoice indicator to blank and its purchase order
price to zero, and then post the goods receipt.
C.  You do not enter a purchase order, but post the delivery free of charge using a specific
movement type in Inventory Management.
D.  You create the material with the material type UNBW and then post the goods receipt
without reference to the purchase order.


Vendors can sometimes send you goods as bonus. These can be entered into the system as
a free of charge delivery, as other good receipts using movement type 511.
Materials valuated at moving average price do not have any postings in FI.
However, materials valuated at standard price update the stock value as well as quantity.

Q 6. Which of the following statements about movement types are true?
(More than one answer is correct)
A.  The movement type influences the update of material stock account and consumption
B  In the standard SAP system, you can enter per material document only goods movements
of  one movement type.
C.  Goods movements, that are created from other application areas (for example a delivery
in SD), are not described with movement types .
D.  The movement type used controls field selection for the goods movement transaction.
E.  If you use special stock indicators, you can create different stock and value updates of a
material for one and the same movement type.

A, D, E

Movement Types, among other things, control the following settings: Shelf Life Expiration
Date Check, Automatic creation of storage location data in the material master record,
Automatic generation of PO at time of goods receipt, Stock determination, Dynamic
availability check, Field selections.
All goods movement in the whole of ERP (SD, PP, PS etc) are represented by movement
A material document can have multiple movement types.

Q 7. Which of the following statements on procuring a material of material type NLAG are
(More than one answer is correct)
A.  The purchase order must be account assigned.
B.  The goods receipt must always be non-valuated.
C.  When you enter an invoice, you can change the account assignment as long as the goods
receipt was non-valuated.
D.  When the material is for consumption, no document is ever created in Financial

A, C

Material type NLAG is not value updated. Therefore, an account assignment object and a
G/L account must always be specified in the order. The good receipt value for the valuated
goods receipt is posted immediately to this account as a consumption.

Q 8. Which of the following stock transfers/transfer postings are relevant to valuation?
(More than one answer is correct)
A.  Stock transfer from storage location to storage location within the same plant.
B.  Stock transfer from consignment stores of vendor XY to our unrestricted-use stock in
storage location 0001.
C.  Transfer posting from stock in quality inspection in storage location 001 to stock in quality
inspection in storage location 0002 within the same plant.
D.  Stock transfer of a material from storage location 0001 from plant 0001 to plant 0002.
The plants belong to the same company, however the valuation areas are different (valuation
level is plant).

B, D

The valuation area can correspond to a plant or a company code (And NOT to a storage


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