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

Three-way matching compares the purchase order, goods receipt, and vendor invoice to verify accuracy and prevent fraudulent or erroneous payments.

Question 2

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

Accepted Answer

Outline Agreements / Contracts

Answer

Outline Agreements, such as contracts and scheduling agreements, store pre-negotiated pricing and terms that auto-populate purchase orders.

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

Dual sourcing is a supply chain strategy where a company uses two vendors for the same material or service to reduce single-source dependency risk.

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

ERP systems store payment terms in the vendor master and automatically compute discount due dates and net payment deadlines on each invoice.

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

The vendor evaluation system provides weighted scores across criteria such as price, on-time delivery, and quality to objectively rank and compare vendors.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Vendor Management 2