CAPA Exam: Domain 2 Processing
Functions - Sections 1 & 2 Reviewed
Questions and Answers Latest 2025/2026
GRADED A+
3 Way Match - CORRECT ANSWER-Before AP pays a bill the invoice must match the
approved purchase order and both of those must match the receiving documents.
*PO identifies what the firm has ordered and provides authorization to make purchase.
*Invoice indicates payment expected by the vendor.
*Receiving documents what the firm has actually received.
4 Way Match - CORRECT ANSWER-3 Way Match with Quality Control added
Archiving Source Documents - CORRECT ANSWER-*File by Vendor Name
>Disadvantages = Replication, Integrity, Retrieval
>Advantages = All pertinent info available for approval review & post-audit and All
vendor info in one place.
Automated/Electronic Matching Advantages - CORRECT ANSWER-*Paperwork reduced
*Automated files do not get lost as easily as paper files
*Searching, sorting, and routing capabilities expedite matching process, replace paper
handling, filing, and routing
*Ability to remotely access central file facilitates information sharing between distant
locations, such as purchasing and receiving
, *Need for AP department to rematch and review documents already matched in
purchasing or receiving disappears
*Company level policy and options can be set up to control how matching & exceptions
should occur
*System features allow management & purchasing department personnel to easily
authorize freight and tax charges on an invoice.
Automated/Electronic Matching Techniques - CORRECT ANSWER-1. Two-Step Process:
Allows invoices to be entered & distributed first, then later matched in a separate
process. *"Decouples" the process. Advantage = promptly records the account effect of
the invoice by allowing GL info to be recorded w/o waiting for matching to occur.
Unmatched invoices are suspended in exception status until matched.
2. One-Step Process: Allows invoice entry, GL distribution, & matching to occur in one
step on the invoice entry screen.
*Creates possibility that accounting may be delayed pending info required for
successful match. Appropriate accrual must be made during closed for unrecorded
invoices.
Blanket Purchase Order - CORRECT ANSWER-*Covers multiple purchases over
specified period of time
*Up to a certain dollar mount limit stated on the PO
*Generally with a single vendor but can cover multiple vendors for a specific project.
*Reduced controls. Tracking amounts and purchasers is cumbersome.
*May have several people and departments spending against it.
Credits Earned - CORRECT ANSWER-*Emphasizing purchasers must forward credit
documents or otherwise informing the procurement department of amounts due.
*Maintaing effective pending credit file.
*Taking credits first, and, if necessary, researching later.
*Networking with peers in similar businesses to gain knowledge of standard
practices/procedures.
Functions - Sections 1 & 2 Reviewed
Questions and Answers Latest 2025/2026
GRADED A+
3 Way Match - CORRECT ANSWER-Before AP pays a bill the invoice must match the
approved purchase order and both of those must match the receiving documents.
*PO identifies what the firm has ordered and provides authorization to make purchase.
*Invoice indicates payment expected by the vendor.
*Receiving documents what the firm has actually received.
4 Way Match - CORRECT ANSWER-3 Way Match with Quality Control added
Archiving Source Documents - CORRECT ANSWER-*File by Vendor Name
>Disadvantages = Replication, Integrity, Retrieval
>Advantages = All pertinent info available for approval review & post-audit and All
vendor info in one place.
Automated/Electronic Matching Advantages - CORRECT ANSWER-*Paperwork reduced
*Automated files do not get lost as easily as paper files
*Searching, sorting, and routing capabilities expedite matching process, replace paper
handling, filing, and routing
*Ability to remotely access central file facilitates information sharing between distant
locations, such as purchasing and receiving
, *Need for AP department to rematch and review documents already matched in
purchasing or receiving disappears
*Company level policy and options can be set up to control how matching & exceptions
should occur
*System features allow management & purchasing department personnel to easily
authorize freight and tax charges on an invoice.
Automated/Electronic Matching Techniques - CORRECT ANSWER-1. Two-Step Process:
Allows invoices to be entered & distributed first, then later matched in a separate
process. *"Decouples" the process. Advantage = promptly records the account effect of
the invoice by allowing GL info to be recorded w/o waiting for matching to occur.
Unmatched invoices are suspended in exception status until matched.
2. One-Step Process: Allows invoice entry, GL distribution, & matching to occur in one
step on the invoice entry screen.
*Creates possibility that accounting may be delayed pending info required for
successful match. Appropriate accrual must be made during closed for unrecorded
invoices.
Blanket Purchase Order - CORRECT ANSWER-*Covers multiple purchases over
specified period of time
*Up to a certain dollar mount limit stated on the PO
*Generally with a single vendor but can cover multiple vendors for a specific project.
*Reduced controls. Tracking amounts and purchasers is cumbersome.
*May have several people and departments spending against it.
Credits Earned - CORRECT ANSWER-*Emphasizing purchasers must forward credit
documents or otherwise informing the procurement department of amounts due.
*Maintaing effective pending credit file.
*Taking credits first, and, if necessary, researching later.
*Networking with peers in similar businesses to gain knowledge of standard
practices/procedures.
