ERP Vendor Management 2

Question 1

What is 'three-way matching' in ERP vendor management?

Accepted Answer

Comparing the purchase order, goods receipt, and vendor invoice before payment

Answer

Matching three vendor invoices to one purchase order

Answer

Assigning three approvers to each vendor transaction

Answer

Reconciling three vendor accounts at period end

Question 2

Which ERP capability allows organizations to negotiate and store pricing agreements with vendors in advance?

Accepted Answer

Outline Agreements / Contracts

Answer

Goods Receipt Processing

Answer

Vendor Down Payments

Answer

Material Valuation

Question 3

In vendor management, what does 'dual sourcing' refer to?

Accepted Answer

Purchasing the same material from two separate vendors to reduce dependency risk

Answer

Using two ERP systems to manage vendor data

Answer

Having two employees approve all vendor invoices

Answer

Splitting vendor payments into two installments

Question 4

How does an ERP system typically handle vendor payment terms such as '2/10 Net 30'?

Accepted Answer

It stores terms in the vendor master and automatically calculates discount deadlines on invoices

Answer

It blocks payment until 30 days have passed regardless of discounts

Answer

It requires manual calculation by the accounts payable team

Answer

It applies the discount to all invoices regardless of payment date

Question 5

What is the purpose of a 'vendor evaluation system' in ERP platforms like SAP?

Accepted Answer

To score vendors on criteria like price, delivery, and quality for objective comparison

Answer

To calculate the net book value of vendor assets

Answer

To create financial statements for vendor-related transactions

Answer

To automatically block vendors with overdue invoices

Question 6

In ERP, what triggers the creation of a vendor liability when goods are received?

Accepted Answer

Posting of the goods receipt against a purchase order

Answer

Issuance of a purchase order

Answer

Approval of the vendor invoice

Answer

Release of the payment run

Question 7

Which best practice ensures vendor master data quality in an ERP system?

Accepted Answer

Implementing centralized vendor master data governance with defined approval workflows

Answer

Allowing all users to create and edit vendor records freely

Answer

Duplicating vendor records for each purchasing department

Answer

Storing vendor data only in spreadsheets outside the ERP