CCP Financial Management in CargoWise 2 — Questions and Answers
Question 1: In CargoWise, what is the purpose of a 'Local Client' on a financial transaction?
- It identifies the branch that owns the revenue (Correct answer)
- It specifies the currency of the transaction
- It links the transaction to a taxation authority
- It determines the default payment term
Correct answer: It identifies the branch that owns the revenue
The Local Client field identifies the branch or entity responsible for the revenue or cost on a transaction.
Question 2: Which CargoWise feature allows you to automatically convert foreign currency invoices using a predefined exchange rate table?
- Exchange Rate Maintenance (Correct answer)
- Currency Revaluation
- Multi-Currency Ledger
- Forex Auto-Post
Correct answer: Exchange Rate Maintenance
Exchange Rate Maintenance in CargoWise stores and applies predefined rates when converting foreign currency transactions.
Question 3: What happens to a CargoWise creditor invoice when it is 'matched' to a purchase order?
- It is automatically approved for payment
- It is linked to the PO for three-way matching validation (Correct answer)
- It is posted directly to the general ledger
- It triggers an automatic bank payment
Correct answer: It is linked to the PO for three-way matching validation
Matching a creditor invoice to a purchase order enables three-way matching between PO, receipt, and invoice before approval.
Question 4: In CargoWise financial reporting, what does a negative balance on a debtor account typically indicate?
- The debtor owes money to the company
- The company owes money or credit back to the debtor (Correct answer)
- The account has been written off
- The invoice is disputed
Correct answer: The company owes money or credit back to the debtor
A negative debtor balance indicates the company has a liability to the customer, such as from a credit note or overpayment.
Question 5: Which CargoWise module is used to manage the company's chart of accounts?
- Accounts Receivable
- General Ledger Maintenance (Correct answer)
- Job Costing
- Cash Book
Correct answer: General Ledger Maintenance
General Ledger Maintenance is where chart of accounts structure, account codes, and account types are configured.
Question 6: How does CargoWise handle accrual accounting for unbilled shipment costs?
- Costs are ignored until the invoice is received
- Estimated costs are posted as accruals and reversed when actual invoices are received (Correct answer)
- All costs are expensed immediately at shipment creation
- Accruals are only available with the premium finance module
Correct answer: Estimated costs are posted as accruals and reversed when actual invoices are received
CargoWise supports accrual accounting by posting estimated cost accruals that are automatically reversed when the actual creditor invoice is entered.
Question 7: What is the function of the 'Cost Centre' field in CargoWise financial transactions?
- It defines the tax code to apply
- It allocates costs to a specific department or operational unit (Correct answer)
- It sets the payment due date
- It identifies the shipment mode
Correct answer: It allocates costs to a specific department or operational unit
Cost Centre allows financial transactions to be allocated to specific departments or business units for management reporting.
CCP Financial Management in CargoWise 2
In CargoWise, what is the purpose of a 'Local Client' on a financial transaction?