INMT 341 EXAM 1 VERIFIED STUDY GUIDE
Procure to Pay Business Process - Answers - Includes the activities involved in
acquiring, paying for, and maintaining the goods and services needed by an
organization
Buy "things" (Procure to Pay) -Acquire needed resources for the organization's order to
cash and conversion processes at an optimal price, and at the time when and location
where the resources are needed.
Procure to Pay Business Process Events - Answers - •Identify need and possibly
internally request the purchase of goods or services by an authorized purchasing agent.
•Negotiate a purchase order with a vendor.
•Receive and inspect goods or services from a vendor.
•Store and/or maintain goods.
•Pay a vendor for goods or services.
•Return goods to a vendor.
During procure to pay business process, the organization takes the role of the -
Answers - Customer
As a purchaser, the negotiation event is triggered by... - Answers - identifying a need
What are the 3 key roles for the purchasing organization's negotiation process? -
Answers - The purchasing organization's key roles in the negotiation are to
1- verify the need,
2-select the vendor, and
3- communicate requested terms for the potential order.
After the vendor is selected and contacted the purchasing org. must... - Answers - Wait
for vendor acceptance or rejection of the purchase order.
If the negotiation with a vendor is successful (the terms of the order request are
accepted), the status is often referred to as - Answers - Valid, open purchase order, and
the purchaser waits for the next event - the arrival of the ordered goods or services
What triggers this event by giving the purchaser authorization to take delivery of goods
or services in a P2P process? - Answers - The status of a valid, open purchase order. In
this class, we will consider the arrival as the point of purchase.
In a procure to pay process, when is payment due? - Answers - Once the goods or
services are received
In what circumstances under a P2P, would you have to include a separate request
goods for purchase event and what would trigger this event? - Answers - When
, purchasing agents enter into purchase order negotiations only after authorized parties
make purchase requests to them. In that case, your analysis would have to include a
separate request goods for purchase event.
The request would need to be triggered by a valid need. The requestor would then
communicate the request to an authorized purchasing agent, who will enter into a
negotiation with a vendor.
During another procure to pay scenario, purchasers are required to prepay in part or in
full before the purchase, in this case payment occurs before goods are received. What
is the trigger to receive the goods/services? - Answers - The trigger to receive goods
would involve a prepaid, open purchase order.
Order to Cash Business Process - Answers - The organization plays the role of the
seller, delivering goods and services to customers and collecting payment.
Sell "things" (Order to Cash)- Attract and retain customers, help customers select goods
and services, deliver the goods and services requested, and collect payments for the
goods and services.
Order to Cash Business Process Events - Answers - •Market goods or services to
potential or returning customers (and/or perform support activities that help customers
choose you as a vendor).
•Negotiate (with a potential or returning customer) the terms of a sales order for goods
or services.
•Select and inspect goods or services to be delivered to the customer.
•Prepare goods or services for delivery to the customer.
•Deliver goods or services to the customer.
•Receive payment for goods or services from the customer.
•Negotiate the terms of, and possibly accept, a customer return of goods.
For example, an organization could have a simple process where the customer selects
items for sale and brings them to a checkout counter to pay for them. In this scenario,
the selling party has two strategically significant events - the delivery of goods to the
customer (the sale) and the receipt of customer payment. What triggers the sales
event? What authorizes the organization to take funds from the customer? - Answers -
The sales event is triggered by the customer, by coming to the counter with the goods
he/she wants to buy.
The sale (transferring ownership of the goods to the customer) allows for authorization
for org. to take funds from customer.
Consider another scenario where the customer does not come into a store to place
items on a counter, but orders items from a web site. As a result? - Answers - This
customer's action triggers the first process event -an order negotiation with the
customer.
Procure to Pay Business Process - Answers - Includes the activities involved in
acquiring, paying for, and maintaining the goods and services needed by an
organization
Buy "things" (Procure to Pay) -Acquire needed resources for the organization's order to
cash and conversion processes at an optimal price, and at the time when and location
where the resources are needed.
Procure to Pay Business Process Events - Answers - •Identify need and possibly
internally request the purchase of goods or services by an authorized purchasing agent.
•Negotiate a purchase order with a vendor.
•Receive and inspect goods or services from a vendor.
•Store and/or maintain goods.
•Pay a vendor for goods or services.
•Return goods to a vendor.
During procure to pay business process, the organization takes the role of the -
Answers - Customer
As a purchaser, the negotiation event is triggered by... - Answers - identifying a need
What are the 3 key roles for the purchasing organization's negotiation process? -
Answers - The purchasing organization's key roles in the negotiation are to
1- verify the need,
2-select the vendor, and
3- communicate requested terms for the potential order.
After the vendor is selected and contacted the purchasing org. must... - Answers - Wait
for vendor acceptance or rejection of the purchase order.
If the negotiation with a vendor is successful (the terms of the order request are
accepted), the status is often referred to as - Answers - Valid, open purchase order, and
the purchaser waits for the next event - the arrival of the ordered goods or services
What triggers this event by giving the purchaser authorization to take delivery of goods
or services in a P2P process? - Answers - The status of a valid, open purchase order. In
this class, we will consider the arrival as the point of purchase.
In a procure to pay process, when is payment due? - Answers - Once the goods or
services are received
In what circumstances under a P2P, would you have to include a separate request
goods for purchase event and what would trigger this event? - Answers - When
, purchasing agents enter into purchase order negotiations only after authorized parties
make purchase requests to them. In that case, your analysis would have to include a
separate request goods for purchase event.
The request would need to be triggered by a valid need. The requestor would then
communicate the request to an authorized purchasing agent, who will enter into a
negotiation with a vendor.
During another procure to pay scenario, purchasers are required to prepay in part or in
full before the purchase, in this case payment occurs before goods are received. What
is the trigger to receive the goods/services? - Answers - The trigger to receive goods
would involve a prepaid, open purchase order.
Order to Cash Business Process - Answers - The organization plays the role of the
seller, delivering goods and services to customers and collecting payment.
Sell "things" (Order to Cash)- Attract and retain customers, help customers select goods
and services, deliver the goods and services requested, and collect payments for the
goods and services.
Order to Cash Business Process Events - Answers - •Market goods or services to
potential or returning customers (and/or perform support activities that help customers
choose you as a vendor).
•Negotiate (with a potential or returning customer) the terms of a sales order for goods
or services.
•Select and inspect goods or services to be delivered to the customer.
•Prepare goods or services for delivery to the customer.
•Deliver goods or services to the customer.
•Receive payment for goods or services from the customer.
•Negotiate the terms of, and possibly accept, a customer return of goods.
For example, an organization could have a simple process where the customer selects
items for sale and brings them to a checkout counter to pay for them. In this scenario,
the selling party has two strategically significant events - the delivery of goods to the
customer (the sale) and the receipt of customer payment. What triggers the sales
event? What authorizes the organization to take funds from the customer? - Answers -
The sales event is triggered by the customer, by coming to the counter with the goods
he/she wants to buy.
The sale (transferring ownership of the goods to the customer) allows for authorization
for org. to take funds from customer.
Consider another scenario where the customer does not come into a store to place
items on a counter, but orders items from a web site. As a result? - Answers - This
customer's action triggers the first process event -an order negotiation with the
customer.
