Purchase Order Processing & Systems Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Purchase Order Processing & Systems flashcards as text
What distinguishes a 'standing order' from a standard purchase order?
Answer: A standing order authorizes recurring deliveries on a schedule without issuing individual POs each time
A standing order pre-authorizes a supplier to make scheduled deliveries against an umbrella agreement, eliminating the need for individual POs for each delivery.
Which internal control is most effective at preventing duplicate payments in a PO-based payment process?
Answer: Assigning unique PO numbers and flagging invoices matched to already-paid POs
Unique PO numbering combined with a system flag preventing re-payment of already-matched and paid POs is the most direct control against duplicate payments.
A buyer receives a supplier's invoice that includes additional charges not listed on the original purchase order. What is the appropriate first step?
Answer: Place the invoice on hold and issue a purchase order amendment if the charges are valid
Unauthorized invoice charges should be placed on hold pending investigation; if the charges are legitimate, a PO change order should be issued before approving payment.
In supplier portal technology, which capability most benefits the purchase order management process?
Answer: Enabling suppliers to view, acknowledge, and confirm PO delivery dates in real time
Supplier portals enable real-time PO visibility, acknowledgment, and delivery confirmation, improving order status accuracy and reducing follow-up inquiries.
Which document typically triggers the creation of a purchase order in a formal procurement process?
Answer: Approved purchase requisition
An approved purchase requisition is the internal authorization document that triggers the creation of a formal purchase order to a supplier.
A procurement team is evaluating whether to implement optical character recognition (OCR) in their AP process. What is the primary benefit?
Answer: It automates data extraction from paper invoices to speed up matching and reduce manual entry errors
OCR technology automatically extracts key data fields from paper or PDF invoices, reducing manual keying errors and accelerating the three-way match process.
When a purchase order is issued against a master contract, what term describes the individual PO releases drawn against that contract?
Answer: Release orders or call-offs
Individual purchase orders issued against a master blanket contract are called release orders or call-offs, referencing the pre-negotiated contract terms.