ERP ERP Fundamentals 4 — Questions and Answers
Question 1: Which ERP module typically manages the process from purchase requisition to vendor payment?
- Order-to-Cash (OTC)
- Procure-to-Pay (P2P) (Correct answer)
- Record-to-Report (R2R)
- Plan-to-Produce (PTP)
Correct answer: Procure-to-Pay (P2P)
The Procure-to-Pay process covers all steps from identifying a purchase need through receiving goods and issuing vendor payment.
Question 2: What is the significance of a 'three-way match' in ERP procurement?
- Matching three vendor quotes before ordering
- Verifying that the purchase order, goods receipt, and vendor invoice all agree before payment (Correct answer)
- Approving purchases at three management levels
- Comparing prices across three suppliers
Correct answer: Verifying that the purchase order, goods receipt, and vendor invoice all agree before payment
Three-way matching validates that PO quantity/price, received goods, and invoice details align, preventing fraudulent or erroneous payments.
Question 3: In ERP project management, what does a 'blueprint' or 'business blueprint' document describe?
- The server hardware architecture
- How the company's business processes will be configured and executed in the ERP system (Correct answer)
- The software vendor's implementation methodology
- The end-user training schedule
Correct answer: How the company's business processes will be configured and executed in the ERP system
A business blueprint maps current and future business processes, defining exactly how the ERP will be configured to meet the organization's requirements.
Question 4: Which statement best describes ERP system 'scalability'?
- The ability to reduce the number of software modules over time
- The system's capacity to handle increased users, transactions, or data volume as the business grows (Correct answer)
- The ease of switching to a competing ERP vendor
- The number of languages the system supports
Correct answer: The system's capacity to handle increased users, transactions, or data volume as the business grows
Scalability refers to the ERP's ability to grow alongside the business, accommodating more users, higher transaction volumes, and additional modules without performance degradation.
Question 5: What is 'change management' in the context of an ERP implementation?
- Managing software version updates and patches
- The structured process of preparing, supporting, and helping people adopt the new system (Correct answer)
- Tracking changes made to the system configuration
- Updating the project schedule when deadlines shift
Correct answer: The structured process of preparing, supporting, and helping people adopt the new system
Change management addresses the human side of ERP implementation—communication, training, and stakeholder engagement—to drive user adoption and minimize resistance.
Question 6: Which ERP feature enables automatic financial entries when a goods receipt is posted?
- Manual journal entry
- Account determination / automatic account assignment (Correct answer)
- Period-end closing
- Cost center allocation
Correct answer: Account determination / automatic account assignment
Account determination rules in ERP automatically post the correct debit and credit entries to the general ledger when inventory or operational transactions occur.
Question 7: A mid-sized company wants ERP functionality but lacks IT staff to manage servers. Which deployment model is most appropriate?
- On-premises with dedicated IT team
- Cloud-based SaaS ERP (Correct answer)
- Custom-coded legacy system
- Standalone desktop accounting software
Correct answer: Cloud-based SaaS ERP
SaaS ERP is hosted and maintained by the vendor, eliminating the need for on-site servers and internal infrastructure management.
ERP ERP Fundamentals 4
Which ERP module typically manages the process from purchase requisition to vendor payment?