C_ARSUM Practice Test 8 — 10 Questions

Question 1

A supply chain risk analyst is configuring a supplier risk engagement in SAP Ariba Supplier Risk. The analyst needs to identify which data elements feed the inherent risk calculation for a supplier before any mitigation controls are applied. Which two data elements are used as inputs to inherent risk? (Choose two.)

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

The supplier's geographic locations, including countries where they operate or source from.. Inherent risk represents the exposure a supplier carries before any controls are applied. The model derives this from the supplier's commodity or category assignments and its geographic locations, because these determine which regional and category-specific threats apply. Internal attributes such as revenue, open purchase orders, or preferred status do not feed the calculation, so they cannot raise or lower inherent risk on their own.

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The number of open purchase orders currently issued to the supplier in the SAP Ariba sourcing pipeline.

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The supplier's declared annual revenue and employee headcount recorded on the supplier profile.

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The supplier's preferred status in the supplier master and the date that status was granted.

Question 2

A compliance officer is reviewing a supplier's qualification project in SAP Ariba Supplier Management. The project shows that the 'Financial Stability' module was approved two years ago, but the supplier's latest audited financial statements are now overdue. The officer wants the system to automatically flag the supplier for re-evaluation based on the age of the qualification data. Which feature should the officer configure?

Accepted Answer

A qualification expiration rule that sets a validity period on the qualification, triggering a re-evaluation or requalification process when the period elapses.. Qualification expiration rules attach a validity period to a completed qualification and automatically trigger re-evaluation or requalification when that period ends. This is the only option that enforces a time-based policy on qualification data without manual intervention. Scorecards, risk monitoring, and registration updates address different concerns and do not automatically flag aged qualification records.

Answer

A supplier registration update request that asks the supplier to re-enter all financial information whenever the compliance team manually initiates it.

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A supplier performance scorecard that includes a financial health metric and alerts the compliance team when the metric drops below a threshold.

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A risk engagement with a monitoring alert that watches for news events related to the supplier's financial condition.

Question 3

In SAP Ariba, who is typically responsible for filling out the registration questionnaire?

Accepted Answer

The supplier contact.. Once a supplier is invited to register, the responsibility falls on the supplier's primary contact or administrator to provide the requested information. This process ensures that the entity providing the services or goods is the one verifying their own profile data, such as tax IDs, addresses, and certifications. By shifting this data entry burden to the supplier, the buying organization achieves higher accuracy and reduces the internal administrative overhead associated with managing supplier records.

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The category manager.

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The procurement administrator.

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The SAP Ariba system administrator.

Question 4

Refer to the exhibit. A supplier registration is currently stuck in a pending state. If an administrator applies the 'SKIP_TO_FINAL_NODE' action, what is the expected result in the SAP Ariba workflow engine?

Accepted Answer

The workflow advances directly to the final assigned approver.. The 'SKIP_TO_FINAL_NODE' action bypasses all intermediate approval nodes in the chain, moving the document directly to the final approver. This is a powerful administrative tool used to resolve bottlenecks, such as when an earlier approver is unavailable. However, it should be used with caution, as it overrides standard governance protocols and may lead to compliance risks if mandatory checks are bypassed prematurely.

Answer

The registration is automatically approved by the system.

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The entire approval chain is cancelled and the registration is rejected.

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The system throws a permission error due to lack of administrative rights.

Question 5

Refer to the exhibit. What is the business outcome of this configuration when a supplier updates their commodity list?

Accepted Answer

The procurement team is notified for review. The configuration triggers a new workflow whenever a supplier changes their commodity profile. This is crucial because a change in commodities may introduce new risks or compliance requirements (such as specific diversity or environmental certifications). By forcing a new workflow, the system ensures that the procurement team is alerted to evaluate the impact of these changes, maintaining consistent governance over the supplier's scope of service throughout their entire tenure in the system.

Answer

The registration is immediately terminated

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The supplier is banned from future sourcing

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The system automatically updates the ERP record

Question 6

What occurs when a supplier is marked as 'Preferred' in the SAP Ariba supplier management solution?

Accepted Answer

Buyers receive a visual indicator when selecting the supplier in the buying process.. The 'Preferred' status is a strategic designation used to guide internal users toward suppliers who have been vetted and approved for high-volume or high-value business. It helps consolidate spend and increase compliance by ensuring employees select high-quality vendors. From a system perspective, it provides a visual indicator to buyers, directly influencing the user experience in the Buying module to favor preferred vendors over non-preferred alternatives, effectively streamlining the procurement process.

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The supplier is automatically invited to all future sourcing events.

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The system automatically increases the supplier's performance score.

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The supplier is exempt from all future performance reviews.

Question 7

A procurement manager needs to ensure that all suppliers in the 'Strategic' segment undergo a mandatory quarterly business review. Which SAP Ariba Supplier Lifecycle and Performance feature effectively enforces this periodic evaluation requirement?

Accepted Answer

Supplier Performance Management Project. The Supplier Performance Management (SPM) module is specifically designed to manage periodic performance reviews and scorecards. By configuring recurring projects, organizations ensure compliance with quality standards and strategic alignment. This mechanism is critical for maintaining long-term supplier health, as it forces standardized data collection and executive feedback, preventing informal or inconsistent assessments that could jeopardize supply chain risk management strategies.

Answer

Supplier Request Project

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Registration Questionnaire

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Supplier Profile Questionnaire

Question 8

What is the primary purpose of the Supplier 360 profile in SAP Ariba?

Accepted Answer

To provide a consolidated view of supplier data and status. The Supplier 360 profile serves as a centralized dashboard that aggregates data from across the SAP Ariba suite. It provides a comprehensive view of a supplier's status, including registration, qualification, performance, and risk metrics. This centralized approach enables procurement professionals to make informed decisions by having a single source of truth for supplier health, reducing the need to jump between different modules to assess supplier viability.

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To automate invoice processing for the supplier

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To allow suppliers to edit their own Ariba Network profiles

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To manage the creation of sourcing event templates

Question 9

When should an organization choose to use the 'Internal Registration' process instead of sending an invitation to the supplier?

Accepted Answer

When the organization already has all required data on file.. Internal Registration is appropriate when the procurement team already has all necessary information from an offline engagement, such as a legacy vendor or a vendor brought in through a merger. This bypasses the need for the supplier to complete a new digital registration, accelerating the process. Using this method ensures that existing relationships are integrated into the Ariba system quickly and accurately without causing unnecessary friction for the vendor.

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When the supplier refuses to use the Ariba Network.

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When the supplier is located in a different region.

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When the supplier is a competitor in the industry.

Question 10

Which action must be performed to make a new supplier qualified for a specific commodity category?

Accepted Answer

Create and approve a Qualification project for that category.. Qualification in SAP Ariba is a formal process that involves assigning a supplier to a specific category. This requires the creation of a Qualification project, which is then routed to the relevant stakeholders for review and approval. This ensures that only suppliers who meet the specific standards of that commodity category are cleared for business, mitigating quality and compliance risks within the supply base.

Answer

Add the supplier to the Approved Supplier List (ASL).

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Update the supplier's contact information in the profile.

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Send a general registration invitation to the supplier.