1Z0-900 · Question #121
While negotiating the terms of the consignment agreement, the buyer and the supplier mutually agree to set aging onset point as receipt and the aging period as five days. The terms also say that the…
Based on the consignment terms - aging onset at receipt, 5-day aging period, daily consumption advice - ownership transfers to the buyer in exactly three ways: aging expiry, manual transfer before aging, or manual transfer immediately. B, D, and F are correct. B is correct…
Question
While negotiating the terms of the consignment agreement, the buyer and the supplier mutually agree to set aging onset point as receipt and the aging period as five days. The terms also say that the consumption advice will be generated daily. In which three scenarios will the goods be transferred from the supplier’s ownership to buyer’s ownership?
Options
- AYou received the goods today and you decided to issue the goods after days without transferring
- BYou received the goods today and for the next one week you do not plan any action on the same.
- CYou received the goods today after six days you decide to transfer the ownership using the "create
- DYou received the goods today and you transfer the ownership using the "create transfer to owned
- EYou received the goods and after four days you return the material to the supplier.
- FYou received the goods today and after three days you transfer the ownership using the "create
Explanation
Based on the consignment terms - aging onset at receipt, 5-day aging period, daily consumption advice - ownership transfers to the buyer in exactly three ways: aging expiry, manual transfer before aging, or manual transfer immediately.
B, D, and F are correct.
- B is correct because doing nothing for 7 days means the 5-day aging period expires. With daily consumption advice enabled, the system automatically triggers ownership transfer on day 5 - no manual action needed.
- D is correct because manually executing "Create Transfer to Owned Inventory" immediately upon receipt is a valid and deliberate transfer action.
- F is correct because manually transferring after 3 days still falls within the 5-day aging window, so it's a legitimate manual transfer before aging kicks in.
Why the others are wrong:
- A explicitly states the goods were issued without transferring - the word choice signals no ownership change occurred.
- C describes a manual transfer on day 6, but the 5-day aging period already auto-transferred ownership on day 5 - the manual action is redundant and invalid at that point.
- E is a return to the supplier, which moves goods back to the supplier, not to the buyer.
Memory tip: Think "FAT" - Force transfer (manual, pre-aging), Age expiry (automatic after 5 days), Transfer now (immediate manual). Any scenario that falls outside these mechanisms - a return, a late manual action after aging, or an explicit "no transfer" issue - doesn't qualify.
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