Procure to pay basics

1. 1A purchase order is a formal demand to a vendor for supplying particular goods or services under the negotiated conditions stated in the purchase order. Which of the following statement is true regarding purchase orders?

   1. AA purchase order cannot be created without reference to a purchase requisition
   2. BA purchase order can be created without reference to a purchase requisition
   3. CA purchase order must be created with reference to a request for quotation
   4. DVendor/Supplier code is not mandatory for creating purchase order
2. 2There are 3 suppliers A, B, C. We have to order a item such that it arrives before 30th July 2018. The quotations provided by A, B, C are as follows:
   A: Price=1000, Del Date=30th July 2018
   B: Price=1200, Del Date=29th July 2018
   C: Price=1000, Del Date=29th July 2018
   
   Which Vendor(s) can receive a purchase order from us?

   1. AA and C
   2. BOnly C
   3. COnly A
   4. DB and C
   5. EA and B
3. 3There are a total of 1000 items in the inventory with a moving average cost of 5 rs. A goods receipt is made for 200 items, each costing 8 rs. What will be the final MAC (moving average cost) of the inventory?

   1. A7.5
   2. B7
   3. C5.5
   4. D5
4. 4There are a total of 1000 items in the inventory with a moving average cost of 5 rs. A goods receipt is made for 200 items, each costing 8 rs. Then a sale is done for total 300 quantity each with selling price of 7. What will be the final MAC (moving average cost) of the inventory?

   1. A5.5
   2. B5
   3. C7.5
   4. D6
5. 5After doing goods receipt entry, which all updates will happen in the ERP system?
   

   1. AInventory, G/L accounts, Purchase order, requisition, material cost
   2. BInventory, G/L accounts, Purchase order, quotation, requisition, material cost
   3. CInventory, G/L accounts, Purchase order, material cost
   4. DInventory, G/L accounts, material cost
6. 6Which of the options given below are examples of payment terms with supplier? (you can choose multiple options)

   1. APayment expected before 30 days
   2. BReceive 2% payment on paying before 10 days
   3. Cpayment in advance
   4. Drecurring invoices
7. 7In determination of requirements stage, how can purchase requisitions be created?

   1. AManually
   2. BManually or through MRP run
   3. CAutomatically
   4. DOnly through MRP run
8. 8What is release strategy in a purchase order?

   1. AStrategy for automatic determination of quantities in a PO
   2. BStrategy for automatic determination of prices in a PO
   3. CConfiguration to select vendor in a PO
   4. DApproval mechanism of a PO
9. 9During invoice confirmation, which account gets debited?

   1. AGR/IR Clearing account
   2. BInventory account
   3. CAccounts Payable-Vendor
   4. DCash in Bank
10. 10After determination of requirements, generally what is the next step in procure to pay cycle?

    1. AVendor selection
    2. BSource Determination
    3. CPO creation
    4. DNone of the above

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Quiz on Procure to pay basics, created by shashank sachan on 16/07/2018.

Author

shashank sachan

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