CRPA Customer Billing & Invoice Management

Question 1

Which billing method sends invoices automatically based on predefined contract milestones or time intervals?

Accepted Answer

Recurring/automated billing

Answer

Recurring/automated billing triggers invoices based on predefined schedules or milestones without manual intervention, reducing errors and improving cash flow predictability.

Question 2

What is the primary purpose of a credit memo in accounts receivable?

Accepted Answer

To reduce the amount owed by a customer due to returns or adjustments

Answer

A credit memo reduces the balance a customer owes, typically issued for product returns, billing errors, or agreed-upon price adjustments.

Question 3

Which invoice element is most critical for ensuring timely payment according to AR best practices?

Accepted Answer

Clear payment terms and due date

Answer

Clearly stated payment terms and due dates eliminate ambiguity, directly reducing late payments by setting explicit customer expectations.

Question 4

A customer claims an invoice contains a pricing discrepancy. What is the FIRST step an AR professional should take?

Accepted Answer

Validate the invoice against the original sales order or contract

Answer

Validating the invoice against the original sales order or contract establishes the factual basis of the dispute before any financial adjustment is made.

Question 5

Which of the following best describes 'invoice aging' in the context of billing management?

Accepted Answer

A report categorizing outstanding invoices by the length of time they have been unpaid

Answer

Invoice aging reports group outstanding receivables by time buckets (e.g., 0–30, 31–60, 61–90 days) to help AR teams prioritize collections efforts.

CRPA - Certified Receivables Professional Practice Test

CRPA - Certified Receivables Professional Practice Test

CRPA Customer Billing & Invoice Management