ERP Vendor Management 3

Question 1

What is a 'preferred vendor' designation in ERP systems?

Accepted Answer

A vendor pre-selected by default for sourcing specific materials based on performance and agreements

Answer

A vendor who receives automatic 100% discount on all orders

Answer

A vendor whose invoices skip three-way matching

Answer

A vendor exempt from the approved vendor list

Question 2

What is the role of an 'info record' in ERP vendor management?

Accepted Answer

A record linking a vendor to a material with pricing and delivery conditions

Answer

A document that tracks vendor payment history

Answer

A vendor complaint log for quality issues

Answer

A report showing all open purchase orders by vendor

Question 3

In ERP vendor management, what does 'vendor consolidation' aim to achieve?

Accepted Answer

Reducing the total number of vendors to lower costs and simplify management

Answer

Merging vendor financial records into a single ledger entry

Answer

Combining multiple vendor invoices into a single payment

Answer

Linking vendors across multiple ERP systems

Question 4

Which ERP report helps management identify vendors that account for the majority of procurement spend?

Accepted Answer

ABC Analysis / Spend Analysis

Answer

Aging Report

Answer

Material Requirements Planning Report

Answer

Open Invoice Report

Question 5

What action should be taken in ERP when a vendor is permanently decommissioned?

Accepted Answer

Set the vendor to 'blocked' or 'marked for deletion' to preserve audit history

Answer

Delete the vendor master record immediately

Answer

Transfer the vendor's data to a spreadsheet and remove from ERP

Answer

Reassign all past transactions to a generic vendor account

Question 6

What is the primary benefit of integrating vendor management with an ERP's financial module?

Accepted Answer

It provides real-time visibility into accounts payable, accruals, and vendor liabilities

Answer

It eliminates the need for purchase orders

Answer

It allows vendors to directly modify their own master data

Answer

It replaces the need for three-way matching

Question 7

In ERP vendor management, what is the purpose of a 'source list'?

Accepted Answer

A record specifying which vendors are authorized to supply a given material during a defined period

Answer

A list of all open vendor invoices awaiting approval

Answer

A ranked list of vendors by total spend

Answer

A log of all goods receipts posted against vendor deliveries