SAP Financial Accounting (SAP FI) Practice Exam

At what point do financial postings take place in the MM purchasing process?

1. Purchase order submission

2. Goods receipt

3. Invoice receipt

4. Goods issue

The correct answer is: Invoice receipt

Financial postings in the Material Management (MM) purchasing process primarily occur at the point of the invoice receipt. This phase is critical as it is when the actual costs incurred for the goods or services are recognized and recorded in the financial accounting system. When an invoice is received, the system creates accounting entries that reflect the liability to the vendor, as well as the corresponding expense or asset, depending on whether the goods belong to inventory or are consumed directly. This event initiates the financial integration with the accounts payable cycle, ensuring that the organization's liabilities are updated accurately. While other stages like purchase order submission or goods receipt involve tracking and managing materials and their quantities, they do not directly result in financial postings. The goods receipt may involve a preliminary entry reflecting the receipt of materials, but the financial impact is realized upon the invoice receipt. Goods issue, on the other hand, relates to the actual outflow of goods, typically leading to adjustments in inventory rather than direct postings linked to vendor liabilities. Thus, invoice receipt is the definitive point for financial postings in the MM process.