FIN_Q2

1. Serials are used to track groups of items with common characteristics.

False

2. The whole procurement and sales process should still be done completely for inventory
transactions managed either by serial or batch.
True

3. When the system searches for a price, it first looks for a special price, then for period and
volume discount, then for discount groups and then to the basic price list assigned to the
business partner.
False

4. Goods receipt is used if there is an increase in the quantity of inventory outside the regular
purchase and sales process or if reconciling the system inventory count and physical inventory
count.
True

5. For inventory transfers, moving the item from one warehouse to another creates an inventory
transfer document and a journal entry.
True

6. The characteristics in batch could be dates such as expiration date, manufacturing date, or date
the items were received into inventory.
True

7. Items need to be set up with serial numbers if:

1 - high valued items; 2-tracked for security or repair reasons; 3 - for better item management
for all reasons noted

8. Locate the warehouse set up window in defining a new warehouse.

Admin > Set up > Inventory > Warehouses

9. To create Goods Receipt, go to

Inventory > Inventory Transactions > Goods Receipt

10. Goods issue creates a journal entry that posts the value of the issued goods on the credit side of
the inventory offset-decrease account and the debit side of the stock account.
False