SAP Financial Accounting (SAP FI) Practice Exam

What are the four steps in the MM purchasing program?

1. Purchase requisition, purchase order, goods receipt, invoice receipt

2. Goods receipt, invoice receipt, payment, purchase requisition

3. Purchase order, supplier confirmation, goods receipt, invoice

4. Invoice receipt, purchase requisition, payment, goods receipt

The correct answer is: Purchase requisition, purchase order, goods receipt, invoice receipt

The four steps in the MM (Materials Management) purchasing program are correctly identified in the first choice: purchase requisition, purchase order, goods receipt, and invoice receipt. Starting with the purchase requisition, this initial step involves the internal process where an individual or a department identifies a need for materials or services and formally requests them. This is essential for capturing demand within the organization. Next, the purchase order is created based on the purchase requisition. This document is issued to the vendor and outlines the specifics of the purchase, including quantities, prices, and delivery details. It serves as a contractual commitment between the buyer and seller. The third step, goods receipt, occurs once the ordered materials are delivered. This step involves the physical reception of goods into inventory, where the delivery is verified against the purchase order to ensure that the quantities and items match what was agreed upon. Finally, the invoice receipt represents the point at which the invoice from the supplier is received and processed. This is crucial for the accounts payable function as it initiates payment and updates financial records. This logical sequence in the purchasing process ensures that the organization effectively manages its procurement operations, maintains accurate inventory records, and manages supplier payments efficiently. Understanding these steps is vital for anyone working in