S.No.Questions on Credit Management--Tick the correct answer. More than one Answer could be correct.

1In defining Credit Control Area, Update Group determines -

AUpdate group checks for the values of open sales orders, deliveries, and billing documents are updated

BThe default credit limit of the customer in that CCA

CStatic or dynamic credit check

DAll of the above

2The Default data in Credit Control Area -

AIs the highest value of credit limit a customer can get in that CCA

BIs proposed as default data in master data for a credit account in that CCA and cannot be over written

CIs proposed as default data in master data for a credit account in that CCA and can be over written

DBoth A & C

3The relationship between Company Code and CCA is -

AOne : One

BMany : 1

CMany : 1 but CCA can be over written programmatically

DMany : 1 but CCA can be over written programmatically with only those company codes permitted for that CCA

4Risk Category is defined for a ___________ and maintained in _____________

ACCA and company code

BCredit Control Area and Master data of credit account

CCompany Code and CCA

DMaster Data of credit account and CCA

5Which Of below is maintained in the Credit Master data

ARisk Category

BCustomer Credit Group

CSimple or Static or Dynamic credit check type

DECredit LimitAll of the above

6

Dynamic Credit Check:

ATotal value of open sales orders + open deliveries + open billing documents + open items for a specified horizon

BOpen deliveries + open billing documents + open items + open sales orders on the date of transaction

COpen deliveries + open billing documents + open items + open Sales orders on the date of finance posting

DNone of the above.

7Credit Check is executed during

AOrder

BDelivery

CInvoice

DInvoice Posting

EGood issue

8The credit price for an item is determined from

ANet Value of the item

BGross value of the item

CPricing step with Subtotal = A

DPricing step with Calculation Type = A

9Credit Check Needs to be activated at

AItem Category

BSchedule line cat

CMaterial

DSales Organization

10The determination of credit control area takes place in order of -

A1. Company code assigned to sales area; 2. Sales Area; 3. Sales Area Segment from payer master; 4. User Exit;

B1. User Exit; 2. Sales Area Segment from payer master; 3. Sales Area; 4. Company code assigned to sales area

C1. User Exit; 2. Company code assigned to sales area; 3. Sales Area Segment from payer master; 4. Sales Area;

D1. User Exit; 2. Sales Area; 3. Sales Area Segment from payer master; 4. Company code assigned to sales area

11Total Credit limit in credit account master data means -

ATotal Credit available for that credit account in that CCA

BTotal Credit available for that credit account in all CCA

CTotal Credit available for that credit account in each CCA

DMaximum value of the document

12Which of following statement is true

ATotal Credit Limit > Individual Credit Limit > Credit limit

BIndividual Credit Limit > Credit limit > Total Credit Limit

CTotal Credit Limit => Individual Credit Limit => Credit limit

DIndividual Credit Limit > Total Credit Limit > Credit limit

13What is the function of the Credit group

AAllows you to combine different sales document types for the credit limit check

BAllows you to combine different customers for the credit limit check

CBoth A&B

DNone of the above

14Out of VKM3, VKM5, VKM4, VOKR which all are used for releasing the Credit Block?

AVKM3, VKM4, VKM5

BVOKR, VKM3

CVKM4, VKM5

DVKM3, VKM4, VKM5, VOKR

15To activate simple credit check for an order -

AAssign Simple Credit check type to sales document type

BAssign Simple Credit check type to CCA + Risk cat + Doc group

CAssign Simple Credit check type to CCA + Risk cat

DAssign Simple Credit check type to CCA + Doc group

16The client requirement is to exclude all line items relevant for delivery outside credit check if the delivery due date is beyond 1 month

AI will use Horizon Date

BI will use next review Date

CI will use user exit

DRequirement is technically not feasible

17Which of below are not included in credit check

AReturn Order

BQuotation

CPurchase Requisition in third party sale

DAccounting document

18Which of the following step is not mandatory to set up automatic credit control

ADefine Credit Control Area

BActivate Credit Control to the Item Category

CAssign Values to Document Value Class

DDefine Document Credit Group

19Which of the following constitutes a Credit Account

ABill-To Party

BPayer

CSold-To Party

DCredit Representative

20In automatic credit control, when credit amount is exceeded -

AOrder goes on delivery block

BOrder goes on credit block

COrder goes on billing block

DOrder is rejected

21The Credit data is updated in -

ACompany Code Currency

BDocument Currency

CCredit Control Area Currency

DSales org Currency

22The Form of Payment Guarantees determined as -

ACustomer Payment Guarantee Procedure + Document Payment Guarantee Procedure

BPayer Master Data

CSales Document Type

DNone Of the above

23Which of the below are not a Form Of Payment Guarantee

ALetter Of Credit

BExport Insurance

CCustomer Invoice

DCredit Note

24The client requirement is to exclude the values of a particular type of sales orders from being updated in credit account -

AI will not assign any credit check type to sales order

BI will use a requirement routine to exclude sales order values

CI will select appropriate Update Group in CCA

DThe requirement is technically not feasible

25

ABCDEStatic Credit Check includes :

Total value of open sales orders + open deliveries + open billing documents + open itmes.Total value of Open sales orders + open deliveriesTotal value of Open billing documents + open itemsTotal value of open sales orders + open billing documentsNone of the above.