TRUE or FALSE

1. In the procurement process, goods movement is part of the process. It is a process step that results in a change in stock. Goods receipt is when material are removed from storage. Goods issue is when materials are received into inventory. Stock transfer is when you change a material's status. Transfer posting is when goods are moved from one location to another.
2. Master Data involved in the procurement process is: client, company code, plant (receiving plant), storage location, purchasing organization, purchasing group.
3. Organizational Data involved in the procurement process is: material master, vendor master. Purchasing Information Records, Conditions (pricing)
4. The procurement process is triggered by some event that results in a requirement to acquire materials. This requirement takes the form of a purchase requisition. The company must select a source of supply. The company may need to request quotations. After receiving quotations the company selects a vendor and sends them a purchase order. The vendor then confirms receipt of purchase order. The vendor ships the materials to the company which receives them into inventory. Then the vendor sends an invoice and the payment is then sent to the vendor.
5. The final step in the procurement process is paying the vendor. In this step a payment method must be selected, decide which invoices are ready for payment, calculate the amount for payment, post the payment document and print the payment medium (if by check). As a result the payment is made to the vendor by check or electronically and the appropriate general ledger accounts are updated. The bank account is credited and the vendor account is debited and the accounts payable reconciliation account debited and a corresponding financial document is created.
6. When a company receives a vendor invoice it verifies the invoice as accurate before it makes payment. Companies use a three way match between purchase requisition, goods issue and the invoice.
7. In the procurement process an account determination must be made so that it is know which GL account to assign to the PO. This is defined in the Material Master.
8. In the procurement process the stock type / status must be defined. This identifies how the company can use the materials in various processes. Unrestricted mans the material can be used in any manner. In quality inspection means the material can be withdrawn for sampling inspection. Blocked status mean the material are damaged or unstable. Stock in transit means materials are being moved from one plant to another.
9. A purchase requisition is a communication sent to vendor in which a company commits to purchasing the specified materials.
10. Item categories must be defined in the procurement process. This defines the process regarding how the item is procured. Standard is where you create a purchase requisition, convert it to a purchase order, vendor ships material and vendor invoices and payment is made. Consignment is where the vendor is paid only when the item is used or sold. Third party is where the vendor ships directly to a customer. Subcontracting is where a company sends material to vendor who uses the item create semi-finished goods. Stock transfer is where materials are obtained from another plant within the same organization and services are things like janitorial , landscaping. within