The account assignment category controls the following aspects of a purchase requisition or purchasing document item:

• The type of account assignment object you must specify, such as cost center, order, project, or asset.
• Whether you must enter a material in the purchase order or whether you can enter a short text and material group instead. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4520, Unit 3, Lesson 2.

During reorder point planning, the system performs a net requirement calculation for every material included in the planning run and carries out a lot-size calculation for every material with net requirements. The system does not flag materials that have been subject to an activity relevant to MRP or perform backward scheduling to determine the availability dates of purchase requisitions2 References: SAP Help Portal - Reorder Point Planning

A subcontracting process involves sending components to a vendor who provides a service and returns an assembled or processed product. Some steps that can be part of this process are:

• Post subsequent adjustment of component consumption, which means that you can correct the actual quantity of components consumed by the vendor after receiving the finished product.
• Create an outbound delivery for components to be provided, which means that you can ship the components from your plant to the vendor’s location using the shipping functionality.
• Purchase components for direct delivery to the subcontractor, which means that you can order components from another vendor and have them delivered directly to the subcontractor without storing them in your own plant. References: [SAP S/4HANA Sourcing and Procurement | SAP Learning], Course S4520, Unit 4, Lesson 1.

When you post an invoice with invoice reduction, two accounting documents are created: one for the invoice posting and one for the credit memo posting. A message is also created that can be issued to the supplier as a notification of a credit memo posting. The invoice is not blocked for payment until the supplier confirms the credit memo receipt, and only one accounting document is not created, containing both the invoice and the credit memo postings. References: [SAP Help Portal - Invoice Reduction]

A release creation profile controls the aggregation of schedule line quantities in a delivery schedule, which determines how many releases are created for a scheduling agreement. You can enter a release creation profile in a purchasing info record, which is a source of supply for a material or service. A release creation profile also controls the periodicity of delivery schedule, which defines how often releases are created and transmitted to the vendor. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4520, Unit 6, Lesson 1.

SAP S/4HANA stores low-level code in the following objects:

• Bill of material (BOM), which is a structured list of components that make up a product or assembly.
• Planning file, which is an internal table that contains information about materials that need to be planned by MRP. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4525, Unit 1, Lesson 1.

To set up the Situation Handling use case for Quantity Deficit in Supplier’s Delivery, you must use the Monitor Situations app and the Manage Situation Types app. The Monitor Situations app allows you to view and process situations that require your attention, such as delivery delays or quantity deficits. The Manage Situation Types app allows you to configure the settings and rules for different types of situations, such as defining the threshold values and actions for quantity deficit situations. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4520, Unit 8, Lesson 1.

A purchasing organization is an organizational unit that is responsible for procuring materials or services for one or more plants and negotiating prices and conditions with vendors. When defining purchasing organizations, you must consider the following aspects:

• Each purchasing organization has its own info records, which contain information about the conditions and delivery data for a material from a specific vendor.
• Each purchasing organization has its own supplier master data, which contain information about the general data, accounting data, and purchasing data for a supplier. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4500, Unit 1, Lesson 1.

To determine the safety stock during automatic reorder point planning, the system requires the following data:

• Service level, which is the probability of avoiding a stockout situation during the replenishment lead time.
• Mean absolute deviation, which is a measure of the forecast accuracy based on the historical consumption data.
• Replenishment lead time, which is the time required to procure or produce a material. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4525, Unit 1, Lesson 1.

The automatic account determination is used to assign the correct general ledger accounts for the inventory postings. If the account determination is set up incorrectly, the system will issue an error message when posting a transaction that affects the inventory value or quantity. The transactions C, D, and E are examples of such transactions, as they involve stock movements between different valuation areas, stock types, or company codes. The transactions A and B do not affect the inventory value or quantity, as they only change the material master data or the purchasing info record. References: SAP Help Portal, SAP Community

The SAP Smart Business key performance indicator (KPI) tiles are interactive dashboards that provide real-time insights and analytics for purchasing processes. Some of the key features of these tiles are:

• Insight to Action: This feature allows the user to drill down into the details of the KPI and perform appropriate actions based on the analysis. For example, the user can view the purchase requisitions that are overdue and create purchase orders for them directly from the tile.
• Smart alert thresholds: This feature allows the user to set different thresholds for the KPI values and change the color or icon of the tile accordingly. For example, the user can set a red alert if the purchase requisition-to-order cycle time exceeds a certain limit. The tile will display a red icon and notify the user of the critical situation.

The SAP Fiori launchpad is a role-based, personalized, and real-time access point for SAP applications and services. Some personalization options of the SAP Fiori launchpad are:

• Add new tile groups, which are collections of tiles that represent different applications or tasks. You can create your own tile groups and arrange them according to your preferences.
• Add tiles to existing tile groups, which means that you can add more applications or tasks to the tile groups that are already available on your launchpad. You can also remove tiles from tile groups or move them to different tile groups. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4500, Unit 1, Lesson 1.

Some effects of parking a purchase order are:

• You can use Situation Handling to alert users about incomplete documents, which means that you can notify the responsible users or approvers about the parked purchase orders that need their attention or action.
• You can use a workflow to request completion of the document, which means that you can automate and streamline the process of completing and releasing the parked purchase orders by using predefined rules and conditions. References: SAP S/4HANA Sourcing and Procurement | SAP Learning, Course S4520, Unit 1, Lesson 1.