Q01 - Question
A purchasing manager requires every vendor return to reference the vendor's Return Material Authorization (RMA) number before any physical stock is moved. The manager also wants to reduce data entry errors on return quantities. Which method should purchasing agents use to create vendor returns?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Add a purchase order line with a negative quantity to a new or existing purchase order.
- B. Copy the lines from the original purchase invoice into a new purchase order.
- C. Create a purchase order of the type Journal and enter the return lines as a draft.
- D. Create a purchase order of the type Returned order.
D is correct.
Explanation: The Returned order type is the only method in Accounts payable and Procurement and sourcing where you must enter an RMA number and a Return action. The Returned order type also checks that the quantity is negative, which reduces data entry errors.
A is incorrect: The negative quantity method is used when no reference to a specific purchase order or RMA number is required, so it does not enforce the RMA requirement.
B is incorrect: Copying lines from the original invoice keeps the original pricing and limits the return quantity to the received quantity, but it is not the method that requires an RMA number.
C is incorrect: The Journal type is a draft. It does not affect stock quantities or generate item transactions, so it cannot process a return.
Q02 - Question
Your organization has two legal entities. USMF manufactures products and DEMF sells them. DEMF creates a purchase order with USMF as the vendor. Which type of intercompany chain is created?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Purchase order initiated intercompany chain (two-legged)
- B. Sales order initiated intercompany chain (two-legged)
- C. Sales order initiated intercompany chain with an external customer facing sales order (three-legged)
- D. Purchase order initiated intercompany chain with direct delivery (three-legged)
A is correct.
Explanation: The evidence states that when DEMF creates a purchase order and the vendor is USMF, the system automatically creates a purchase order-initiated intercompany sales order in USMF. This is a purchase order initiated intercompany chain (two-legged).
B is incorrect: A sales order initiated intercompany chain starts with a sales order as the initiating order, not a purchase order.
C is incorrect: A three-legged chain includes an original sales order to an external customer, which is not the initiating order in this scenario.
D is incorrect: The evidence describes purchase order initiated chains as two-legged. Direct delivery is a separate feature.
Q03 - Question
Buyers enter expected values on RFQ lines for internal purposes. The procurement manager does not want vendors to see these values when they review the RFQ and reply with bids. The Select RFQ fields to include in vendor RFQ reply forms feature is enabled. What should you do?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Set the Lock RFQs when they are sent option to Yes on the Request for quotation FastTab.
- B. In Default request for quotation reply fields, set the slider to No for each field that vendors must not see.
- C. Add the expected values as internal attachments at the line level of the RFQ case.
- D. Turn off the alternates toggle on the header of the RFQ case.
B is correct.
Explanation: The evidence supports B because fields set to Yes in Default request for quotation reply fields are included with their values in RFQ reply forms. Setting the slider to No prevents vendors from seeing data that you enter for internal purposes.
A is incorrect: Lock RFQs when they are sent enforces amendment processing. It does not hide field values from vendors.
C is incorrect: Internal attachments are visible only on the customer side, but they do not control which RFQ field values appear in vendor reply forms.
D is incorrect: The alternates toggle controls whether vendors can add alternate lines for non-catalog item lines. It does not affect field visibility.
Q04 - Question
A customer returns a product that was ordered through a sales agreement. You create a return order based on the original sales order. The sales manager decides that the returned quantity must not be deducted from the sales agreement commitment. What should you do?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Use the Remove link option on the Return order page.
- B. Confirm the sales agreement again to store a new version in the history.
- C. Clear the Price and discount is fixed check box on the sales agreement line.
- D. Add the return lines for this agreement to an existing return order that is linked to another sales agreement.
A is correct.
Explanation: A return order that is based on a sales order linked to a sales agreement updates the related commitment. To keep the returned quantity from being deducted, use the Remove link option on the Return order page. You can select Create link later to re-establish the link.
B is incorrect: Confirming a sales agreement stores the current version in a history table. It does not change how a return order affects the commitment.
C is incorrect: Price and discount is fixed controls whether a price change on an order line breaks the link to the commitment. It does not control return order links.
D is incorrect: A return order can be linked to only one sales agreement. Returns for products from different sales agreements require separate return orders.
Q05 - Question
A company wants posted customer payments to settle against open transactions without user action. The settlement must follow a defined order based on due date and then transaction amount. What should you configure on the Settlement tab of the Accounts receivable parameters page?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Set Automatic settlement, Prioritize settlement, and Use priority for automatic settlements to Yes, and then select Manage priority to define the order of attributes.
- B. Set Use priority for automatic settlements to Yes and leave Automatic settlement set to No.
- C. Set Prioritize settlement to Yes only, and have users select Mark by priority on the Settle transactions page.
- D. Set Automatic settlement to Yes and reorganize open transactions by using a payment schedule.
A is correct.
Explanation: Automatic settlement settles transactions when you post them. Use priority for automatic settlements applies the defined priority order during automatic settlement, and it's available only when Prioritize settlement and Automatic settlement are both set to Yes. Use Manage priority to sequence attributes such as Due date and Transaction amount.
B is incorrect: Use priority for automatic settlements isn't available unless Automatic settlement and Prioritize settlement are both set to Yes.
C is incorrect: Prioritize settlement alone enables the Mark by priority button for manual use. Users still settle transactions manually, so the requirement for settlement without user action isn't met.
D is incorrect: A payment schedule reorganizes due dates on open transactions. It doesn't define the order in which transactions are selected during settlement.
Q06 - Question
A vendor responds to a purchase order with Accepted with changes. A purchasing agent plans to use the Process PO update action to apply the suggested changes. Which two suggested changes can Process PO update apply to the purchase order? Each correct answer presents a complete solution.
Domain: Implement and manage supply chain processes (15-20%) Type: Multiple choice
- A. The vendor splits a line into a schedule of multiple deliveries.
- B. The vendor changes the quantity on a purchase order line.
- C. The vendor substitutes a line with another product entered as text.
- D. The vendor changes the mode of delivery on the header.
B and D are correct.
Explanation: The evidence supports B and D because the Process PO update action can apply header updates, such as mode of delivery, and date and quantity updates on lines. For other changes, you must manually update the purchase order.
A is incorrect: A split into a schedule must be made manually on the purchase order.
C is incorrect: A substitution is not a header update or a line date or quantity update, so you must update the purchase order manually.
Q07 - Question
A manufacturer uses unified manufacturing (mixed mode) in Supply Chain Management. For several discrete products, the company wants to change the supply policy between production orders, kanbans, transfer orders, and purchase orders without redesigning product data. Which production type should the company use for these products?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Formula
- B. Co-product
- C. BOM
- D. Planning item
C is correct.
Explanation: The evidence supports C because for full flexibility in unified manufacturing (mixed mode), you should use production type BOMs for all products. A product with this production type can then be supplied by production orders, kanbans, transfer orders, or purchase orders.
A is incorrect: Formula is a process manufacturing production type. Kanbans and production orders cannot be used for this production type.
B is incorrect: Co-product is a process manufacturing production type. Kanbans and production orders cannot be used for this production type.
D is incorrect: Planning item is a process manufacturing production type. Kanbans and production orders cannot be used for this production type.
Q08 - Question
A procurement administrator wants purchase requisition lines in the IT hardware procurement category to be flagged when they exceed a set threshold, so that reviewers know a request for quotation is required. Other categories need different thresholds. Which purchasing policy rule should the administrator configure?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. Category access policy rule
- B. Purchase order creation and demand consolidation rule
- C. Purchase requisition request for quotation (RFQ) rule
- D. Catalog policy rule
C is correct.
Explanation: The purchase requisition RFQ rule configures when requests for quotations are required. You can set specific thresholds for each procurement category. When an RFQ is required, the requisition line is flagged so that the appropriate action can be taken during review.
A is incorrect: A category access policy rule restricts employee access to procurement categories. It doesn't set RFQ thresholds.
B is incorrect: This rule controls how approved requisition lines are processed into purchase orders, including automatic or manual creation and demand consolidation. It applies after approval, not during review.
D is incorrect: A catalog policy rule sets the procurement catalog for an organization. It defines which products are available, not when an RFQ is required.
Q09 - Question
A company uses production groups to specify the accounts used during production. The company wants to track material, labor, and overhead costs of each production order. Which two fields should you configure on the Production groups page? Each correct answer presents part of the solution.
Domain: Implement and manage supply chain processes (15-20%) Type: Multiple choice
- A. The WIP account field on the Ledger - Resources tab
- B. The Scrap account field
- C. The Report as finished offset account field
- D. The Picking list offset account field on the Ledger - Items tab
A and D are correct.
Explanation: The evidence supports A and D because you enter the account for the cost of items in production in the Picking list offset account field on the Ledger - Items tab. You enter the account for labor and overhead costs for work in process in the WIP account field on the Ledger - Resources tab. Together, these settings track material, labor, and overhead costs of a production order.
B is incorrect: The Scrap account field is on the Standard update tab of the Production control parameters page. It specifies the ledger account for scrap, not material, labor, and overhead costs in production.
C is incorrect: The Report as finished offset account balances the amount posted to the Report as finished account when finished items reach inventory. It doesn't track material, labor, and overhead costs during production.
Q10 - Question
A company sets the Allow zero costs toggle to No on the Costing FastTab of the Landed cost parameters page. A user attempts to post a purchase order invoice with a zero value for a projected cost. What happens?
Domain: Implement and manage supply chain processes (15-20%) Type: Single choice
- A. The system assigns a zero price to that cost area and processes the vendor cost invoice.
- B. The system generates an error message and prevents the user from posting the invoice.
- C. The system posts the invoice and creates a warning message in the voyage log.
- D. The system automatically assigns the previous voyage cost to the current voyage.
B is correct.
Explanation: The evidence supports B because when the Allow zero costs toggle is set to No, the system generates an error message and prevents the user from posting an invoice or purchase order with a zero value for a projected cost.
A is incorrect: Assigning a zero price occurs when the Allow zero costs toggle is set to Yes, not No.
C is incorrect: The system does not post the invoice when Allow zero costs is set to No; it generates an error message and prevents posting.
D is incorrect: The system does not automatically assign previous voyage costs when a zero cost is encountered; it requires user intervention to resolve the zero cost issue.