1z0-520

1z0-520 practice questions, page 8 of 10, with answer review and explanations.

Question 36

Consider the following scenario for inventory item A: 1) Standard Cost $10 Purchase Order Line Price: $12, Purchase Order Line Quantity: 10 2) Receipt Routing: Direct Delivery You created a receipt of 8 units for item A. Which option correctly describes the effect on different accounts?

  1. Debit Material Account $80; Credit Inventory AP Accrual Account $96; Debit Invoice Price Variance Account $16; No effect on Purchase Price Variance Account
  2. Debit Material Account $80; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Debit Purchase Price Variance Account $16
  3. Debit Material Account $80; Credit Inventory AP Accrual Account $80; No effect on Invoice Price Variance Account; Debit Purchase Price Variance Account $16
  4. Credit Material Account $80; Debit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Credit Purchase Price Variance Account $16
  5. Debit Material Account $96; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Credit Purchase Price Variance Account

Question 37

Which three are valid setup options for purchasing document types? (Choose three.)

  1. Archive On
  2. Forward Method
  3. Default Hierarchy
  4. Security Access Level
  5. Can Change Hierarchy
  6. Owner Cannot Approve

Question 38

Consider the following scenario for Inventory Item B. 1) Standard Cost: $10 2) Purchase Order Line Quantity: 100; Purchase Order Line Price: $12 3) Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery 4) Received Quantity: 40 5) Invoice Price: $14; Invoiced Quantity: 20 Which option describes the effect on different accounts correctly?

  1. Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280
  2. Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280
  3. Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $80; Debit Purchase price Variance Account $40; Credit AP Liability Account $280
  4. Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance Account $40; Credit Purchase Price Variance Account

Question 39

Identify four ways in which sourcing rules significantly improve efficiency of procurement processes. (Choose four.)

  1. Allowing you to transfer from one supplier site to the other, if It is a global supplier.
  2. Assigning sourcing rules at the item or item-organization level using an assignment set.
  3. Giving you the ability to identify the priority to be given to the local sites of a global supplier.
  4. Sourcing the highest percentage of an item from only those suppliers who ranked the highest.
  5. Allowing you to identify the most efficient shipping method to be used for a specific sourcing rule,
  6. Automatically allocating planned orders across different suppliers based on predetermined criteria such as rank and percentage.
  7. Allowing the implementer to define a single sourcing rule for an item at the Item Master level, to cater to all inventory organizations.

Question 40

Select three true statements about the default of sourcing Information for requisitions and purchase orders. (Choose three.)

  1. The item price on a requisition can be defaulted from the Item attribute setup.
  2. Buyer name cannot be defaulted onto a requisition, but you can assign notes to a buyer.
  3. You can modify the last name of the requester defaulting from the Human Resources employee record.
  4. You must use the Transfer From assignment on a sourcing rule for Item Information to default onto an Internal requisition.
  5. When you assign a commodity to an approved supplier list, you do not need to assign the individual items in the commodity.
  6. You can have the same item on a quotation and a blanket agreement but the supplier or supplier site must be different, so that It can default onto a requisition