CCP CRM & AR Automation 3 — Questions and Answers
Question 1: What is 'electronic invoice presentment and payment' (EIPP)?
- A paper-based billing system with electronic backup
- A platform allowing suppliers to deliver invoices and receive payments electronically (Correct answer)
- A government mandate for tax invoice filing
- A method for printing invoices at customer locations
Correct answer: A platform allowing suppliers to deliver invoices and receive payments electronically
EIPP platforms digitize the entire invoice-to-payment cycle, enabling faster delivery, automated matching, and electronic remittance.
Question 2: A company's AR team notices that automated cash application has an 85% match rate. What should they focus on to improve this?
- Increasing the number of billing clerks
- Enriching remittance data quality and expanding matching rules (Correct answer)
- Switching to paper-only invoicing
- Reducing the number of customers
Correct answer: Enriching remittance data quality and expanding matching rules
Match rates improve when remittance data is richer and matching algorithms have more rules to handle exceptions like partial payments and deductions.
Question 3: In CRM-driven collections, what is a 'promise-to-pay' (PTP) record?
- A customer's purchase order commitment
- A logged commitment from a customer specifying when they will pay an overdue invoice (Correct answer)
- A credit insurance policy
- A court judgment against a delinquent customer
Correct answer: A logged commitment from a customer specifying when they will pay an overdue invoice
A PTP record captures a customer's verbal or written commitment to pay by a specific date, allowing collectors to monitor follow-through and escalate if broken.
Question 4: Which KPI measures the effectiveness of a collections team in reducing the AR backlog?
- Gross margin percentage
- Accounts Receivable Turnover Ratio (Correct answer)
- Return on equity
- Inventory turnover
Correct answer: Accounts Receivable Turnover Ratio
The AR Turnover Ratio (Net Credit Sales ÷ Average AR) measures how efficiently a company collects its receivables, with a higher ratio indicating faster collection.
Question 5: What is the function of a 'credit hold' automation rule in an ERP/CRM system?
- Automatically approving all orders regardless of balance
- Blocking new orders from customers who exceed their credit limit or are significantly past due (Correct answer)
- Generating purchase orders for approved vendors
- Sending welcome emails to new customers
Correct answer: Blocking new orders from customers who exceed their credit limit or are significantly past due
Credit hold automation prevents fulfillment of new orders when a customer's outstanding balance or past-due amount breaches defined thresholds, protecting the company from further exposure.
Question 6: How does robotic process automation (RPA) differ from traditional AR automation?
- RPA only works with paper documents
- RPA uses software robots to mimic human actions in existing systems without requiring system integration (Correct answer)
- RPA requires complete replacement of legacy systems
- RPA is exclusively used for payroll processing
Correct answer: RPA uses software robots to mimic human actions in existing systems without requiring system integration
RPA bots interact with existing interfaces like a human would, making them ideal for AR tasks in legacy systems that lack APIs for traditional integration.
Question 7: Which document in the AR process formally acknowledges that a dispute has been raised and is under investigation?
- Proforma invoice
- Debit memo
- Dispute acknowledgment or case record in CRM (Correct answer)
- Bill of lading
Correct answer: Dispute acknowledgment or case record in CRM
A dispute case or acknowledgment record in the CRM logs the customer's claim, assigns it to a resolver, and tracks resolution status to ensure timely closure.
CCP CRM & AR Automation 3
What is 'electronic invoice presentment and payment' (EIPP)?