COP Billing, Invoicing & Compliance Standards 3

Question 1

A sales tax exemption certificate submitted by a customer is expired. What should the order processor do before applying the tax exemption?

Accepted Answer

Request an updated valid exemption certificate from the customer

Answer

An expired exemption certificate does not provide valid protection; the processor must obtain a current certificate before exempting the sale.

Question 2

What is the purpose of a proforma invoice?

Accepted Answer

To provide a preliminary document estimating costs before the actual sale is finalized

Answer

A proforma invoice is a preliminary bill of sale issued before goods are delivered, used for quotes, customs, or buyer approval.

Question 3

Which element is NOT typically required on a compliant B2B invoice in the United States?

Accepted Answer

Seller's DUNS number

Answer

A DUNS number is not a standard required element on a U.S. B2B invoice, though invoice number, itemization, and due date are essential.

Question 4

A customer takes an early payment discount of 2% on an invoice that did not offer early payment terms. How should the order processor respond?

Accepted Answer

Contact the customer and request the remaining balance, noting no discount was offered

Answer

Unauthorized deductions must be addressed; the processor should request the remaining balance and clarify the correct payment terms.

Question 5

Under the Foreign Corrupt Practices Act (FCPA), what invoicing-related practice is strictly prohibited?

Accepted Answer

Creating false or inflated invoices to conceal bribe payments to foreign officials

Answer

The FCPA prohibits using false invoices or fictitious billing as a mechanism to disguise payments made to foreign government officials.

(COP) Certified Order Processor Practice Test