Purchase Requisition & Order Processing 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 Requisition & Order Processing flashcards as text
What is the significance of a PO number in the order processing workflow?
Answer: It uniquely identifies the transaction and links documents across the procure-to-pay cycle
The PO number uniquely identifies a transaction, linking the requisition, order, receiving report, and invoice throughout the P2P cycle.
Which of the following BEST justifies requiring a purchase requisition before issuing a PO?
Answer: It ensures budget availability and internal authorization before committing funds
The requisition process verifies budget availability and secures internal authorization before financial commitments are made.
An organization uses a procurement card (P-card) primarily to:
Answer: Streamline low-value, routine purchases with reduced administrative burden
P-cards streamline low-value, routine purchases by reducing the paperwork associated with formal POs and requisitions.
When a supplier's delivery contains fewer items than ordered, the buyer should:
Answer: Issue a partial receipt and hold payment until the shortage is resolved
A partial receipt documents the shortage, and payment should be held or adjusted until the full order is fulfilled or the issue resolved.
Which of the following is an example of an internal control weakness in the requisition process?
Answer: Allowing the requisitioner to also approve their own requisition
Allowing self-approval violates segregation of duties, a fundamental internal control that prevents fraud and errors.
In electronic procurement (e-procurement), a key advantage over paper-based processes is:
Answer: Faster cycle times and improved spend visibility through automation
E-procurement automates workflows, reducing cycle times and providing real-time spend visibility that paper systems cannot match.
A 'not-to-exceed' (NTE) clause in a purchase order means:
Answer: Total charges billed by the supplier may not surpass the specified dollar limit
An NTE clause caps the total amount the supplier can invoice, protecting the buyer from cost overruns on time-and-material contracts.