Learn, Practice, and Improve with SAP C_TS422_2023 Practice Test Questions

Explanation:

A low-level code (LLC) in SAP is a numerical indicator assigned to a material that shows the lowest level in any bill of material (BOM) where the material appears. It plays a crucial role in Material Requirements Planning (MRP) and Product Costing.

C. Sequence in which materials are planned in MRP:
During MRP runs, the system uses low-level codes to determine the order in which materials are planned. Materials with a lower LLC (appearing higher in the BOM structure) are planned first, ensuring that dependent requirements for components are generated correctly. For example, a finished product at level 0 is planned before its subcomponents at level 1, and so on. This sequencing avoids inconsistencies and ensures accurate requirement propagation.

B. How costs are rolled up by product costing:
In product costing, low-level codes ensure that costs are rolled up correctly from components to assemblies and finally to finished goods. The system calculates costs starting from the lowest-level components and then aggregates them upwards. Without LLC, cost roll-up could be inconsistent, leading to inaccurate product cost estimates.

Why the other options are not correct

A. Priority of alternative components inside ATP:
Available-to-Promise (ATP) checks are not influenced by low-level codes. ATP focuses on stock availability, planned receipts, and substitution rules, not BOM hierarchy sequencing.

D. Use of subitems inside material BOM:
Subitems in BOMs are managed through BOM item categories and explosion rules, not through low-level codes. LLC is about planning and costing sequence, not BOM subitem usage.

References:
SAP Help Portal – Low-Level Code in MRP (help.sap.com in Bing)
SAP Community – Low-Level Code Explanation (answers.sap.com in Bing)

Explanation:

In SAP S/4HANA Cloud Production Planning, the duration of an operation (processing time required to perform a task) is determined by a combination of the work center and the routing:

Work Center (A):
The work center stores capacity-related data, such as standard values for operation times, machine or labor efficiency, and formulas for calculating activity durations.
It defines how long a resource typically takes to perform an operation.

Routing (C):
The routing specifies the sequence of operations required to produce a material.
For each operation in the routing, base durations (setup time, processing time, teardown time) are maintained.
The actual duration of an operation during planning is calculated by combining the routing times with work center capacity data.

Why other options are incorrect:

B. Material master:
Incorrect. The material master contains production-relevant data such as planning strategies, BOMs, and MRP data, but it does not define operation durations.

D. Production version:
Incorrect. A production version links a material to a specific BOM and routing, but it does not store duration data itself; it only references the routing which contains the durations.

References:

SAP Help Portal – Routing and Work Center in SAP S/4HANA Cloud:
“The duration of an operation is determined by combining the standard values in the routing with the work center’s capacity data.”

Explanation:

Planning Strategy 70 is explicitly designed for scenarios where you want to procure or produce a semifinished material (assembly) based on forecast (planned independent requirements) before a sales order for the final product exists. The key mechanism is that the planned independent requirements (PIR) for the finished product are consumed by the dependent requirements of the semifinished material (created when the PIR is planned). This allows MRP to generate planned orders for the semifinished material based on the forecast, enabling its early production.

Why Other Options Are Incorrect:

A. Assembly processing with production orders (82):
This is a make-to-order strategy for the finished product. All production, including semifinished items, is triggered directly by a sales order, not by forecast consumption.

B. Planning with final assembly (40):
This is a make-to-stock strategy for the finished product. PIRs for the finished good are consumed only by sales orders for that finished good, not by the dependent requirements of its components.

C. Production by lot size (30):
This is a pure make-to-stock strategy. PIRs for the finished good drive the entire production, but consumption typically occurs against customer demands or via manual reduction, not specifically via the dependent requirements of its semifinished components in the way Strategy 70 defines.

Reference:
SAP Help Portal: "Planning with Planning Strategy 70" – This documentation states: "Planning strategy 70 is used if you wish to plan an assembly (for example, a semifinished product) on the basis of a forecast... The planned independent requirements for the assembly are created by a consumption from the planned independent requirements of the finished product."

Explanation:

The Clean Core Data dimension is one of the five pillars of SAP's Clean Core strategy (alongside Code, Process, Integration, and Extensibility). Achieving high-quality data in a Greenfield project involves:

1. Accuracy (Option B)
Accuracy is the most fundamental aspect of data quality. In an S/4HANA environment, the "Single Source of Truth" (Universal Journal) and simplified data models rely on precisely defined master and transactional data.

2. Timeliness (Option C)
S/4HANA is designed for real-time business processing. Therefore, data must not only be accurate but also current.

Why the Other Options are Incorrect

A. Efficiency:
While efficiency is a primary goal of the project and the processes you design, it is not considered a core "dimension" of data quality itself. Efficiency is the result of having high-quality data, but it doesn't define the quality of the data record.

D. Stability:
Stability generally refers to the Software/Technical Stack or the Infrastructure (ensuring the system doesn't crash and that the core code remains unmodified). While stable systems are important, "Stability" is not a standard metric used to measure the quality of a specific piece of data.

References

SAP Learning: Managing Clean Core for SAP S/4HANA Cloud – Unit on Clean Core Data.
SAP White Paper: Clean Core Data for SAP S/4HANA Cloud – Defines the metrics for data health, including accuracy and timeliness.

Explanation :

A collective order in SAP S/4HANA links a header order with its subordinate orders for semi-finished materials. This structure allows integrated planning and execution across multiple levels of production. The main advantages are related to availability checks and batch traceability.

A. Perform availability checks across the entire collective order:
When collective orders are used, the system can execute availability checks not only for the header material but also for all subordinate orders. This ensures that required components and capacities are available across the entire production chain. It improves reliability in planning and execution because shortages or constraints are identified early at any level of the order network.

C. Show the flow of batches across the entire collective order:
Collective orders enable batch traceability across multiple production levels. This means that the flow of batches from raw materials through semi-finished goods to the final product can be tracked seamlessly. Such visibility is critical for industries with strict compliance requirements (e.g., pharmaceuticals, food, automotive), where batch genealogy must be documented for quality assurance and regulatory audits.

Why the other options are not correct

B. Coordinate orders in the planning board:
The planning board is primarily used in PP/DS (Production Planning and Detailed Scheduling) scenarios. Collective orders in standard PP do not provide direct coordination in the planning board. Hence, this is not a recognized advantage.

D. Post confirmations for the entire collective order:
Confirmations (such as yield, scrap, or activity postings) are executed at the level of each individual order. Collective orders do not allow a single confirmation posting across all linked orders. Therefore, this option is incorrect.

References:
SAP Help Portal – Collective Orders (help.sap.com in Bing)
SAP Community – Collective Orders and Batch Traceability 【source】

Explanation:

Before creating a Bill of Material (BOM) in SAP S/4HANA Cloud, certain foundational questions must be answered to ensure the BOM is valid and accurately reflects production requirements.

Material Type Allowed (B):
Not all material types can have BOMs. For example, finished goods (FERT) and semi-finished goods (HALB) are typically allowed, whereas raw materials (ROH) or services (DIEN) cannot be the main item in a BOM.
Checking the material type ensures that the BOM can be created and used in production planning, costing, and material requirement planning (MRP).

Base Unit of Measure (C):
The base unit of measure of the material determines how component quantities are calculated in the BOM.
For example, if the finished product’s base unit is “EA” (each), the component quantities must align with this unit.
This is critical for accurate material planning, procurement, and production execution.

Why other options are incorrect:

A. In which storage location is the BOM required?
Incorrect. BOMs are created at the plant level, not at the storage location level. Storage location information is relevant for stock and inventory management, but not a prerequisite for BOM creation.

D. What status does the BOM have?
Incorrect. The BOM status (e.g., released, in preparation) is assigned after creating the BOM, not before. It controls usage and modifications but is not a prerequisite for creation.

References:

SAP Help Portal – Bill of Material in SAP S/4HANA Cloud:
“Before creating a BOM, the system checks whether the material type allows BOM creation and the base unit of measure to ensure correct component quantities.”

Explanation:

In Repetitive Manufacturing (REM), the production line is modeled as a work center. This assignment is not made in the routing but in two key master data objects specific to the REM flow:

B. Production Version:
The production version for a material produced repetitively must contain a REM-specific routing. In this routing, you assign the production line (work center) to the primary operation. This is mandatory for REM.

C. Repetitive Manufacturing Profile:
The profile (Transaction OPL8) is a key REM master data object. In the profile, you define the production line (work center) and the production rate (pieces/time period). This profile is then assigned to the material master (MRP 4 view) or the production version.

Why Other Options Are Incorrect:

A. Production Cost Collector:
Incorrect. The cost collector (Transaction KKF6N) is an accounting object that collects costs for a material over a period. You assign a production version (which already contains the line data) to the cost collector; you do not maintain the line within the cost collector itself.

D. Routing:
Incorrect for standard REM. While a REM routing exists, it is a simplified, rate-based routing specifically maintained within the production version. You do not maintain a separate, standalone routing in REM; the routing data is integrated into the production version.

Reference:

SAP Help Portal: "Production Version" – Describes that for repetitive manufacturing, you must maintain a REM routing in the production version.