CCP CRM & AR Automation 3

Question 1

What is 'electronic invoice presentment and payment' (EIPP)?

Accepted Answer

A platform allowing suppliers to deliver invoices and receive payments electronically

Answer

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?

Accepted Answer

Enriching remittance data quality and expanding matching rules

Answer

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?

Accepted Answer

A logged commitment from a customer specifying when they will pay an overdue invoice

Answer

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?

Accepted Answer

Accounts Receivable Turnover Ratio

Answer

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?

Accepted Answer

Blocking new orders from customers who exceed their credit limit or are significantly past due

Answer

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.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP CRM & AR Automation 3