SAP C_TS422_2023 Online Practice Questions and Exam Preparation

SAP C_TS422_2023 Online Questions & Answers

• Question 1:

  What is the difference between co-products and by-products?

  A. Only co-products are identified by a special item category in the bill of material (BOM)
  B. Only co-products can be manufactured in isolation from the main product
  C. Only co-products have a zero inventory valuation
  D. Only co-products appear in the process or production order settlement rule
  D. Only co-products appear in the process or production order settlement rule

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  explanation:

  The difference between co-products and by-products is mainly in how they are accounted for in the production process. Co-products are products that have a relatively high sales value and are produced simultaneously from the same production process. By-products are products that have a relatively low sales value and are produced as a side effect of the main product. The following points explain the difference between them:

  Only co-products are identified by a special item category in the bill of material (BOM). This item category is L (Co-product) and it indicates that the component is a co-product that shares the joint costs of the production process with the main product and other co-products. By-products do not have a special item category in the BOM.They are usually entered with a negative quantity and a negative item category, such as N (By-product). Only co-products can be manufactured in isolation from the main

  product. This means that co-products can be produced independently from the main product if there is a demand for them. By-products cannot be manufactured in isolation from the main product.They are always produced as a result of the main produc.

  Only co-products have a zero inventory valuation. This means that co-products do not have a price in the material master and their inventory value is calculated based on the apportionment of the joint costs

  of the production process. By-products have a fixed inventory valuation based on the price specified by the price control in the material master.Their inventory value does not depend on the production process.

  Only co-products appear in the process or production order settlement rule. This means that co-products are settled to different receivers, such as sales orders, cost centers, or profitability segments, based on the apportionment structure defined in the material master of the leading co-product. By-products do not appear in the settlement rule.They are credited to the production order and reduce the total costs of the process.

  References:

  1: SAP Help Portal: Co- and By-Products

  2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance

  3: SAP Co-Products and By-Products Tutorial - Free SAP PP Training - ERProof Co-Product and By-product in Production order | SAP Blogs2

• Question 2:

  Where do you maintain the work center that represents the production line for repetitive manufacturing? Note: There are 2 correct answers to this question

  A. Production cost collector
  B. Repetitive manufacturing profile
  C. Routing
  D. Production version
  B. Repetitive manufacturing profile
  D. Production version

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  explanation:

  The work center that represents the production line for repetitive manufacturing is maintained in two places: the repetitive manufacturing profile and the production version. The repetitive manufacturing profile is a control parameter that defines the basic settings for repetitive manufacturing, such as the planning type, the backflushing method, the confirmation type, and the production line determination. The production version is a combination of a bill of material (BOM) and a routing or a rate routing that

  specifies how a material is produced. The production version also contains the work center that represents the production line for the material. The production version is assigned to the material master and is used in the planning and execution of repetitive manufacturing.

  References: Repetitive Manufacturing Profile | SAP Help Portal. Production Version | SAP Help Portal. Make-to-Stock Repetitive Manufacturing | SAP Help Portal.

• Question 3:

  You are trying to create a production order and NO valid production version can be selected. What could be the reasons? Note: There are 2 correct answers to this question.

  A. NO bills of material (BOMs) are assigned to the production versions.
  B. All production versions for the material are locked.
  C. The order lot size is NOT within the validity range of a production version.
  D. NO production lines are assigned to the production versions.
  A. NO bills of material (BOMs) are assigned to the production versions.
  C. The order lot size is NOT within the validity range of a production version.

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  explanation:

  A production version is a master data object that links a bill of material (BOM) and a routing or a production process model (PPM) for a material. A production version is required for creating a production order in SAP S/4HANA, as it determines the components, operations, and resources that are needed for producing the material.You can create a production version manually or automatically using the CS_BOM_PRODVER_MIGRATION02 report.

  If you are trying to create a production order and no valid production version can be selected, it could be because of the following reasons:

  No bills of material (BOMs) are assigned to the production versions.(A): A BOM is a master data object that defines the components and the quantities that are required for producing a material. A production version must have a valid BOM assigned to it, otherwise it cannot be used for creating a production order.You can assign a BOM to a production version on the MRP 4 tab page of the material master. The order lot size is not within the validity range of a production version.: A production version has a

  validity range that defines the period and the lot size interval in which it can be used for production planning.The validity range is maintained on the MRP 4 tab page of the material master2. If the order lot size (the quantity of the material to be produced) is not within the lot size interval of any production version, then no valid production version can be selected for creating a production order.

  The other options are not valid reasons for not being able to select a production version for creating a production order:

  All production versions for the material are locked.(B): A production version can have a status that indicates whether it is active or locked. A locked production version cannot be used for production planning, but it can still be selected for creating a production order.However, the system will issue a warning message that the production version is locked and ask for confirmation before proceeding with the order creation3. No production lines are assigned to the production versions.(D): A production line is an

  organizational unit that represents a group of resources that are used for producing a material.A production line can be assigned to a production version on the MRP 4 tab page of the material master2. However, this assignment is optional and not mandatory for creating a production order.A production line can be used for grouping production versions for reporting or analysis purposes, but it does not affect the selection of a production version for creating a production order.

• Question 4:

  Why would you use phantom assemblies? Note: There are 3 correct answers to this question.

  A. To increase the number of planning levels
  B. To simplify the structure of bills of material
  C. To reduce the number of material masters
  D. To make the assignment of components easier
  E. To reduce the number of changes required in bills of material
  B. To simplify the structure of bills of material
  C. To reduce the number of material masters
  D. To make the assignment of components easier

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  explanation:

  Phantom assemblies are assemblies that have their own product structure, but whose assembly does not actually physically exist. The components of the phantom assembly are incorporated directly in the superordinate product. The product structure of the superordinate product contains a reference to the phantom assembly. You can use phantom assemblies for the following purposes:

  To simplify the structure of bills of material: Phantom assemblies allow you to group components that belong together logically or functionally, without creating an additional level in the product structure. This can make the product structure easier to maintain and understand.

  To reduce the number of material masters: Phantom assemblies do not require a material master record in SAP S/4HANA, as they are not physically produced or stored. This can save storage space and reduce the effort of creating and updating material masters.

  To reduce the number of changes required in bills of material: Phantom assemblies can be used to represent common subassemblies that are used in multiple products. This way, you only need to maintain the product structure of the phantom assembly once, and any changes will be reflected in all the products that reference it. Phantom assemblies do not increase the number of planning levels, as they are not considered as separate planning objects. They also do not make the assignment of components

  easier, as the components are assigned to the superordinate product, not to the phantom assembly.

  References: Phantom Assembly | SAP Help Portal. Phantom Assembly | SAP Help Portal. Planning Phantom Assemblies | SAP Help Portal.

• Question 5:

  How can you limit the validity of a bill of material (BOM)? Note: There are 2 correct answers to this question,

  A. By Plant
  B. By Period
  C. By Industry
  D. By Material Status
  A. By Plant
  B. By Period

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  explanation:

  You can limit the validity of a BOM by plant and by period. The plant determines the organizational area of validity for the BOM, and you can assign the same BOM to different or further plants if the prerequisites are met. The period of validity for a BOM is restricted by the valid-from date and the valid-to date in the BOM header and item, which determine when the BOM becomes effective and when it ends.

  References: Validity of Bills of Material. BOM Item Validity

• Question 6:

  Which time elements can be reduced by a reduction strategy? Note: There are 3 correct answers to this question.

  A. Goods receipt processing time
  B. Move time
  C. Wait time
  D. Float after production
  E. Queue time
  B. Move time
  C. Wait time
  E. Queue time

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  explanation:

  A reduction strategy is a method of shortening the lead time of an order by reducing certain time elements in the order scheduling1.The time elements that can be reduced by a reduction strategy are move time, wait time, and queue time2. Move time is the time required to move a material from one operation to another. Wait time is the time between the end of an operation and the start of the next operation.Queue time is the time before an operation can start at a work center due to the work center's capacity

  utilization3.These time elements can be reduced by a percentage or a fixed value in the reduction strategy.

  References:

  1: Reduction Strategy | SAP Help Portal(https://blog.sap-press.com/4-strategies-for-make-to-stock-production-with-sap-s4hana)

  2: 4 Strategies for Make-to-Stock Production with SAP S/4HANA(https://blogs.sap.com/2022/03/22/highlights-for-manufacturing-in-sap-s-4hana-2021-part-2-production-planning-engineering-operations/)

  3: Scheduling | SAP Help Portal(https://blogs.sap.com/2022/04/26/manufacturing-in-sap-s-4hana-cloud-planning-strategies/).

• Question 7:

  When you create a sales order

  When can consumption of planned independent requirements take place for planning strategy 40 (Planning with final assembly?

  A. When MRP creates a dependent requirement
  B. When MRP creates a planned order
  C. When you create a sales order
  D. When MRP creates a planned order
  C. When you create a sales order

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  explanation:

  Planning strategy 40 (Planning with final assembly) is a make-to-stock strategy that uses planned independent requirements to trigger the procurement and production of the necessary assemblies and components before receipt of the sales orders. As soon as the sales order is received, it consumes the planned independent requirements and adjusts the master plan to suit the current requirements situation. This means that the important feature of this planning strategy is that you can react quickly to customers' requirements. The consumption of planned independent requirements can take place when you create a sales order, as well as when you change or delete a sales order.

  References: Planning with Final Assembly (40). Sample Scenario: Strategy 40. Outlining Make-to-Stock Production

• Question 8:

  Which of the following processes lead to an entry in the MRP planning file? Note: There are 3 correct answers to this question.

  A. Changing the storage bin in warehouse management
  B. Changing the procurement type in the product master
  C. Changing the operation times in the production data structure
  D. Changing the stock in inventory management
  E. Changing the purchasing contract in materials management
  B. Changing the procurement type in the product master
  D. Changing the stock in inventory management
  E. Changing the purchasing contract in materials management

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  explanation:

  The MRP planning file is a list of all materials relevant to the planning run. The system sets an entry in the planning file for a material when there is a change that affects the material requirements planning, such as changes to stock, requirements, receipts, or MRP data in the material master. The following processes lead to an entry in the MRP planning file:

  Changing the procurement type in the product master, which determines how the material is procured (internally or externally) and affects the MRP procedure and lot-sizing procedure.

  Changing the stock in inventory management, which changes the stock/requirements situation of the material and triggers a net requirements calculation.

  Changing the purchasing contract in materials management, which creates a purchase requisition as a receipt element and affects the availability of the material.

  References: Planning File. Planning File Entries for MRP Areas. SAP Exam C_TS422_1909

• Question 9:

  What could be the reason for multiple commitments, where several operations have the same scheduled dates on a work center after dispatching? Note: There are 2 correct answers to this question.

  A. The Finite Scheduling indicator is NOT set in the strategy profile.
  B. The work center has several individual capacities
  C. The Change Planning Direction indicator is set in the strategy profile
  D. Alternative work centers are fully occupied.
  A. The Finite Scheduling indicator is NOT set in the strategy profile.
  B. The work center has several individual capacities

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  explanation:

  Multiple commitments occur when several operations are scheduled to start or finish at the same time on a work center. This can happen for different reasons, depending on the settings of the strategy profile and the work center. Two possible reasons are:

  The Finite Scheduling indicator is NOT set in the strategy profile. This means that the system does not consider the capacity availability of the work center when scheduling the operations. The system only checks the basic dates and the relationships between the operations. Therefore, the system can schedule multiple operations at the same time on the same work center, resulting in multiple commitments. The work center has several individual capacities. This means that the work center can perform

  several operations simultaneously, depending on the number and type of individual capacities. The system assigns the operations to the individual capacities based on the capacity category and the priority. However, if the individual capacities have the same capacity category and priority, the system can assign multiple operations to the same individual capacity, resulting in multiple commitments.

  References: Scheduling | SAP Help Portal. Strategy Profile | SAP Help Portal. Individual Capacities | SAP Help Portal.

• Question 10:

  For a production version to be valid and consistent, what requirements must be fulfilled? Note: There are 3 correct answers to this question.

  A. The deletion flag must NOT be set for the bill of material (BOM) or the routing
  B. The lot size range must be within the lot size range of the assigned routing.
  C. The assigned routing and bill of material (BOM) must be valid in the entirevalidity period.
  D. The assigned routing must be a rate routing.
  E. The assigned routing must NOT have alternative sequences
  A. The deletion flag must NOT be set for the bill of material (BOM) or the routing
  B. The lot size range must be within the lot size range of the assigned routing.
  C. The assigned routing and bill of material (BOM) must be valid in the entirevalidity period.

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  explanation:

  A production version is a combination of a BOM and a routing that defines how a material is produced. For a production version to be valid and consistent, the following requirements must be fulfilled:

  The deletion flag must NOT be set for the BOM or the routing. The deletion flag indicates that the BOM or the routing is no longer used and should be archived. If the deletion flag is set, the production version cannot be used for production planning or execution. The lot size range must be within the lot size range of the assigned routing. The lot size range specifies the minimum and maximum order quantity for which the production version is valid. The lot size range of the production version must match or be

  smaller than the lot size range of the routing, otherwise the system will not find a suitable routing for the production order. The assigned routing and BOM must be valid in the entire validity period. The validity period defines the time frame for which the production version is valid. The validity period of the production version must be within or equal to the validity periods of the routing and the BOM, otherwise the system will not find a consistent BOM and routing combination for the production order.

  References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 113; [SAP Help Portal: Production Version].