CPP Purchase Order Processing & Systems 2

Question 1

Which type of purchase order is most appropriate when a buyer needs to procure goods or services over an extended period at pre-negotiated prices?

Accepted Answer

Blanket purchase order

Answer

A blanket purchase order establishes pre-negotiated terms and pricing for recurring purchases over a defined period, reducing administrative overhead.

Question 2

In an ERP-integrated procurement system, what is the primary function of a goods receipt (GR) document?

Accepted Answer

To confirm the physical receipt and quality acceptance of ordered items

Answer

A goods receipt document confirms that ordered items have been physically received and accepted, triggering the three-way match process for payment.

Question 3

A purchase order is sent to a supplier who then ships goods without acknowledging the PO. What legal risk does this create for the buyer?

Accepted Answer

There may be uncertainty about whether the supplier accepted the exact terms and conditions

Answer

Without a PO acknowledgment, ambiguity exists about whether the supplier accepted the buyer's specific terms and conditions, which can complicate dispute resolution.

Question 4

Which PO processing metric measures the average time from purchase requisition approval to PO issuance?

Accepted Answer

Requisition-to-order cycle time

Answer

Requisition-to-order cycle time measures procurement department efficiency from the point a requisition is approved until the PO is issued to the supplier.

Question 5

When implementing an e-procurement system, which feature most directly reduces 'maverick spending'?

Accepted Answer

Enforced catalog purchasing with pre-approved vendors and prices

Answer

Catalog purchasing within an e-procurement system enforces use of pre-approved vendors at negotiated prices, eliminating unauthorized off-contract purchases.

(CPP) Certified Purchasing Professional Practice Test

(CPP) Certified Purchasing Professional Practice Test

CPP Purchase Order Processing & Systems 2