ERP Financial Management and Reporting 3

Question 1

In ERP systems, which financial control prevents a single employee from both approving a purchase order and authorizing payment to the same vendor?

Accepted Answer

Segregation of duties

Answer

Segregation of duties is an internal control that divides key tasks across different employees to reduce fraud and error risk.

Question 2

A 'soft close' in ERP financial management differs from a 'hard close' because it:

Accepted Answer

Allows certain transactions to still be posted after the initial close

Answer

A soft close provisionally closes a period while allowing specific users or transaction types to continue posting, unlike a hard close which is permanent.

Question 3

In ERP budgetary control, 'budget availability check' is triggered at which point in the procurement process?

Accepted Answer

When a purchase order or requisition is created

Answer

Budget availability checks in ERP occur at commitment creation (purchase requisition or purchase order) to prevent overspending before a liability is incurred.

Question 4

Which financial KPI in ERP measures the proportion of revenues that remain after deducting cost of goods sold?

Accepted Answer

Gross margin

Answer

Gross margin equals (Revenue - COGS) / Revenue and is the first profitability measure on the income statement after direct production costs.

Question 5

An ERP 'payment run' that is scheduled to execute on a Friday before a holiday weekend should be reviewed for which risk?

Accepted Answer

Value dating errors causing payments to clear before due dates

Answer

Value dating issues can cause bank debits to occur on the wrong date around holidays, potentially paying vendors too early or generating bank charges.

(ERP) Enterprise Resource Planning Certified Practice Test

(ERP) Enterprise Resource Planning Certified Practice Test

ERP Financial Management and Reporting 3