SAP BUSINESS ONE THEORIES

Answer True if the statement is valid, and False if the statement is invalid.

T. 1. SAP User could still change the account code of a GL account though a corre-
sponding transactions were already linked to it.

T. 2. In SAP Business One, there are a total of 5 drawers in the Chart of Accounts.

F. 3. When creating a volume discounts, user does not need to encode data related
to Date From and Date To fields.

F. 4. It is not possible to change the language settings of your SAP Business One Ap-
plication.

T. 5. When a purchase order is created, no value-based changes are posted in the

accounting system. However, order quantities are posted in the appropriate item‟s
inventory ledger cards.

F. 6. There are more than two (2) ways of recording goods receipt in SAP after creat-
ing a purchase order.

T. 7. There are only two (2) ways in creating a new GL account in SAP.

T. 8. After creating a purchase order, SAP user may create an AP invoice even with-
out recording the receipt of goods delivered.

T. 9. In SAP Business One Chart of Accounts levels 2 - 4 consist of active or title ac-
counts.

T. 10. It is possible to create shortcuts in SAP Business One Cloud.

T. 11. In SAP Business One, you can delete any G/L Account.

T. 12. Journal Entry, Posting templates and Recurring postings are the posting tools
in SAP Business One.

F. 13. You can create posting periods for future fiscal year any time.

Select the best answer.

How many levels are there in the Chart of Accounts
A. 5
B. 4
C. 3
D. 6

What module manages all accounting data and chart of accounts, general ledger,
current accounting posting, and reporting?
A. Reports
B. Records
C. Accounts
D. Financials

The process a payment received from a customer, go to

A. Purchasing-A/P → A/P Down Payment Invoice
B. Financials→ Journal Entry
C. Sales-A/R → A/R Invoice
D. Banking → Incoming Payments → Incoming Payments

How to extract accounts receivable aging in SAP Business One?

A. Financial → Financial Reports → Accounting → Aging → Choose Customer Receiv-
ables Aging
B. Financial → Financial Report → Choose Customer → Aging Receivables
C. Financial Report → Accounting → Choose Customer → Aging Receivables
D. Financial → Financial Report→ Choose Customer Aging Receivables

The four payment means in SAP Business One are:

A. Check, Bank Transfer, Cash and Debit Card
B. Check, Bill of Exchange, Cash and Credit Card
C. Check, Cash, Bank Transfer and Credit Card
D. Check, Cash, Money Transfer and Credit Card

List of Statements:
1. When SAP user creates a goods receipt PO, SAP Business One receives the
goods into the warehouse, updates the quantities, and creates an accounting jour-
nal if you manage the periodic inventory.
2. If no delivery for a purchase order precedes the A/P invoice, and the SAP users
are purchasing items managed in the warehouse, the stocks are increased when in-
voices are posted.
Which of the following statement(s) is (are) invalid?
1. Statement 1.
2. Statement 2.
3. Both statements are valid.
4. Both statements are invalid.

Journal entries that are for review, draft or for approval can be saved in SAP Busi-
ness One using:
A. Posting Templates
B. Journal Voucher
C. Recurring Posting
D. Journal Voucher Report

List of Statements:
1. It is possible to create the A/P Invoice without first creating a goods receipts PO
or a purchase order. 2. The A/P credit memo reduces the actual stock levels and cre-
ates an accounting transaction by applying
negative amounts to the previously invoiced accounts.
Which of the statement(s) above is (are) invalid:
A. Statement 1
B. Statement 2
C. Both statements are valid
D. Both statements are invalid.

It is advisable to create a recurring posting for the following transactions, except:

A. Quarterly Depreciation Expense
B. One time purchase of equipment
C. Fixed Rental Payments
D. Monthly Interest payments

These accounts are displayed in color blue in SAP Business One's chart of account
A. G/L Accounts
B. Active Accounts
C. Title Accounts
D. Control Accounts

The accounts are organized hierarchically according to drawers, titles, and active
accounts. If the company‟s Chart of Accounts is arranged in this manner:

1000 ->Assets 1100->Current Assets

1200->Fixed Assets 1201->Land
1202->Buildings

The „Fixed Assets‟ Account can be found in the _________ level as __________ account
located in the ___________ drawer.
A. 5th level, Active account, Liabilities
B. 4th Level, Title Account, Assets
C. 2nd level, Active Account, Assets
D. 2nd level, Title Account, Assets

In financial reports, a _______ summarizes all of the balances of each active account
below it and appears in blue in the Chart of Accounts.
A. Title Account
B. Cash Account
C. Active Account
D. Control Account

Journal Entry is used to manually create journal entries for accounts and business
partners. While a ___________ is a draft stage document that creates no values in the
general ledger.
A. Journal Report
B. Journal Posting
C. Journal Entries File
D. Journal Voucher

List of Statements:
1. If you create an A/P invoice without reference to the goods receipt PO, it will also
increase the quantity in
stock.
2. SAP user could view the ordered quantities in various reports and windows, such
as the Inventory Status
report and the Item Master Data window.
Which of the statement(s) above is (are) invalid:
A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

This allows you to record transactions that recur monthly weekly, quarterly, daily,
etc..
A. Posting Tools
B. Posting Template
C. Recurring Postings
D. Journal Voucher

List of Statements
1. If a delivery already exists for the transaction and you create an invoice without
reference to this delivery, errors can occur in inventory management because the
delivery quantity is posted twice in the system.
2. When SAP user creates a delivery, the corresponding goods issue is also posted.

Which of the following statement(s) above is (are) valid?

A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

Aging can be easily done by the system. Doubtful debt percentage on the basis of
aging is set under what module > sub-module?
A. Administration > Setup > Financials
B. Administration > Setup > Banking
C. Administration > System Initialization > General Settings
D. Administration > System Initialization > Posting Period

All open purchaser orders need to be closed at the end of the year by:
A. Retrieving the concerned purchase order, right click the mouse and se-
lect the “Close” option.
B. Retrieving the concerned purchase order and simply select the “Delete” option.
C. Retrieving the concerned purchase order, simply select the “Cancel” option.
D. All of the above.

This document serves as a foundation for planning production or purchase orders.

A. Sales Quotation
B. Sales Order
C. Purchase Return
D. Sales Return
 Closing the accounting books for a particular period in SAP Business One is done by
opening
A. Administration > Setup > Financials > Account Closing
B. Administration > Utilities > Period End Closing
C. Financials > Financial Reports > Account Closing
D. We cannot close the accounting books in SAP Business One.

To delete from the chart of accounts,

A. Right click > Advanced > Delete Account
B. Right click > Remove Account
C. Right click > Delete
D. Right click > Delete row

The types of Balance Sheet accounts includes the following except

A. Asset
B. Equity
C. Liability
D. Cost of sales

There are three types of balance sheet accounts. Which of the following are not
among the balance sheet accounts?
A. Assets
B. Equity
C. Liability
D. Revenue

These three (3) tabs can be found in the main menu except for
______________________.
A. Modules
B. Drag & Relate
C. Menu Bar
D. My Menu

List of Statement(s)
1. The return document is be used to credit the customer if the goods were deliv-
ered but no A/R invoice was issued.
2. Use the A/R credit memo to credit a customer after an A/P invoice was already is-
sued.

Which of the following statement(s) above is (are) valid?

A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

There are ____ modules in the main menu.

A. 7or8
B. 13or14
C. 11or12
D. 9or10

During document posting, when system message flags “posting date deviate from
defined range” posting periods are to be created under what Administration sub-
module?
A. Set-up
B. System Initialization
C. Approval Procedures
D. Licenses

When creating a sales order, which of the following is the logical flow of documents?
A. Goods Receipt, Accounts Payable, Incoming Payment
B. Sales Order, Goods Receipt, Accounts Receivable, Outgoing Payment
C. Sales Order, Goods Receipt, Goods Return, Accounts Receivable, Outgoing Pay-
ment
D. Sales Order, Delivery, Goods Return, Accounts Receivable, Incoming
Payment

In document handling of marketing documents (Sales and Purchasing), to create a

target document with contents to be copied form a base document, what form func-
tion is selected?
A. Copy to
B. Copy from
C. Goto
D. Wizard

How does SAP Business One calculate the stock available in the warehouse?
A. Committed – Ordered
B. In Stock – Committed
C. Committed + In Stock + Ordered
D. In Stock + Ordered – Committed (In Stock – Committed + Ordered)

Which column represents the quantity that is promised to customers on existing

sales orders? A. Ordered
B. Available
C. Committed
D. In Stock

The ______ mode is the default of an item or as business master data.

A. Find
B. Add
C. Update
D. Remove
When an error that reads “One of the Inventory Accounts is Missing” while
adding/creating a new Item Group, it is an indicative that:
A. Posting Period in not updated
B. Item Master is non-existing
C. Erroneous login account
D. Erroneous posting date

List of Statements
1. A goods receipt creates a journal entry that posts the value of the received
goods on the debit side of the stock account and the credit side of the inventory of-
set – increase account.
2. It is possible to create a sales return without first creating a delivery, a sales or-
der, or a sales quotation.
Which of the following statement(s) above is (are) valid?
A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

The __________ mode is the default of marketing documents.

A. Find
B. Add
C. Update
D. Remove

For which business partner types can “Delivery be created”?

A. Customers
B. Vendors
C. Leads
D. Customers and Leads

Before transactions are created, the users need first to?

A. Build-up the Item Master and Business Partners
B. Enter Sales Order and Purchase Orders
C. Create a Posting Period
D. Setup the Price Lists

__________________ used for cash sales to one-time customers, who have to pay the
full invoice amount immediately.
A. A/P Invoice + Payment
B. A/P Down Payment Invoice
C. A/R Invoice + Payment
D. A/R Down Payment Invoice

Which purchasing document increases ordered quantity?

A. A/P Invoice
B. Sales Order
C. Purchase Order
D. Goods Receipt PO

At the start of operation, if the procured items were received/accepted and the
same are to be stored in a warehouse other than the default warehouse, SAP user
first needs to
A. Simply enter the warehouse code in the warehouse column of the Goods Receipt
module.
B. Create a new warehouse and enter the warehouse code in the Goods Receipt
module.
C. Create a new warehouse, access the Form Setting\ Table Format then
check the Check box for warehouse, and enter the appropriate warehouse
code in the Goods Receipt module.
D. Create a new warehouse, access the Form Setting\ Table Format then check the
Check box for warehouse, and enter the warehouse code in the Delivery module.

The default access of the database you are using is ____________.

A. Super user
B. Limited user
C. Mobile user
D. General user

In marketing documents, there are two documents types: __________ and __________.
A. Item & Business Partner
B. Supplier & Vendor
C. Service & Item
D. BOM and Master Data

If SAP user intents to add additional discount on top of other discounts provided to
its customer, simply access:
A. Business Partner Master Data Payment Terms  Total Discount %
B. Business Partner Master Data\Payment Terms\Payment Terms
C. Stock Management\Price Lists\Special Prices\Special Prices for Business Partner
D. Stock Management\Price Lists\Special Prices\Update Special Prices Globally
What does SAP stand for?
A. Software, Applications and Products
B. Systems, Applications, and Products
C. Systems, Accesses and Products
D. Software, Accesses and Products

List of Statements
1. SAP Business One enables the SAP user to create target documents directly from
base documents.
2. SAP user can create an A/R invoice from multiple purchase orders and goods re-
ceipt POs.
Which of the following statement(s) above is (are) invalid?
A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.
 When an error that reads “Posting date deviates from defined range...” while
adding/creating a new transaction, users need to update the:
A. Posting Period
B. Item Master
C. Business Partner
D. Chart of Accounts

_____________ refers to the key information that describes your customers, vendors,
and leads as well as items that your company buys and sells.
A. Master data
B. System Configuration
C. Chart of Accounts
D. Transactional Data

List of Price Lists and Discounts

1. Special Prices
2. Discount Groups
3. Period and Volume Discounts
4. Prices assigned to the concerned business partners

List the hierarchy of Price Lists and Discount from least to greatest
A. 1,2,3,and4
B. 4,3,2,and1
C. 2,3,4,and1
D. 3,4,2,1nd1

This overrides period and volume discounts and price list assigned to a business
partner:
A. Special Prices
B. Discount Groups
C. Period and Volume Discounts
D. Prices assigned to the concerned business partners

A company has defined the posting periods as Quarters. How often should they run
the period-end closing utility? Please choose the correct answer.
A. The period end closing utility can be run only yearly.
B. They are required to run the period-end closing utility both at the beginning of
each quarter and at the end of the fiscal year.
C. Depending on their financial processes, they should run the period-end
closing utility at the end of the fiscal year and optionally can run it at the
end of each quarter.
D. Because they defined their sub-periods as quarters, the system requires them to
run the period-end closing
utility at the end of each quarter.
 List of Statement(s)
1. The purchase order afects the amount of stock committed to a customer and,
therefore, the available stock quantity.
2. SAP users can use the Goods Receipt if there is an increase in the quantity of in-
ventory outside the regular purchase and sales process.
Which of the following statement(s) above is (are) invalid?
A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

List of Statement(s)
1. If the sales order is created for items, the ordered quantities are listed in Inven-
tory Management as reserved for the customer.
2. If a delivery did not precede the invoice and you sell the warehouse items, stock
quantities are also
updated accordingly when you issue the invoice.
Which of the following statement(s) above is (are) valid?
A. Statement 1.
B. Statement 2.
C. Both statements are valid.
D. Both statements are invalid.

Customer A was provided with the following sales discount, 2/10, 5, 15, n/30. Sup-
posing the Company is able to collect from the said Customer two (2) after the said
sales. In what SAP module would sales discount could be viewed/displayed:
A. After the creation of Sales Order
B. After the delivery of the items‟ ordered
C. After the creation of Accounts Receivable
D. Upon making collection thru the use Incoming Payment module