3-Way Match correct answers Procurement Process
1. Purchase Requisition, Generated by Business Unit.
2. Approved Purchase Req sent to Procurement
3. Procurement assigns Buyer and identifies existing approved suppliers.
4. If no suppliers, a Sourcing Process is initiation, otherwise a PO is ...
SCM 402 Exam 1 || with Complete Solutions.
3-Way Match correct answers Procurement Process
1. Purchase Requisition, Generated by Business Unit.
2. Approved Purchase Req sent to Procurement
3. Procurement assigns Buyer and identifies existing approved suppliers.
4. If no suppliers, a Sourcing Process is initiation, otherwise a PO is placed.
5. Supplier delivers Products or Goods (remits invoice)
6. Receiving Department logs Receipt and Packing Slip
7. Finance completes a "3-way Match" to ensure the PO, Invoice and Packing Slip align.
8. If 3-way match is confirmed Accounts Payable sends? the invoice. If not, root cause is
assessed before payment is processed
GAAP correct answers Generally Accepted Accounting Principles ("GAAP") are the standard
framework of guidelines for financial accounting used in any given jurisdiction; generally known
as accounting standards or standard accounting practice.
RFQ correct answers Request for Quote ("RFQ")
Formalized, binding request for pricing information
Typically done under an NDA
Used to make decisions based upon price (commodity buying)
RFI correct answers Request for Information ("RFI")
Non-binding, less formal request for information and pricing
Sometimes under an NDA
Used to filter or screen viable sources of products and/or services
RFP correct answers Request for Proposal
Formalized, detailed and exhaustive binding request for information ...
Pricing, Technology, Services, Roadmap, Corporate Capabilities
Always done under an NDA
Used to make strategic supplier selection decisions
MPA correct answers Master Purchase Agreement
-Establishes a formal business Agreement for the purpose of procuring Products &
-Services and considered to be the most strategic and complex Agreement used within an SCM
organization
-->All business, operating and legal terms are defined in the MPA and are typically supported by
remedy positions
-->Obligations of both parties are clearly delineated and address the Business,
-->Economic and Technology aspects of the relationship over the life of the Agreement
--->Sometimes contain Commitments
-Products and Services are typically procured through a PO process
-->The terms of the MPA are used rather than the PO standard terms
Formal "Amendments" are used to change or modify a Master Agreement
, MSA correct answers Master Services Agreement
-Establishes a formal business Agreement for the purpose of delivering Services including
Repair & Return, Technical Support, System Integration, Engineering Design, Installation,
Professional Services, etc...
-All business and operating terms are defined in the MSA (Payment, ordering, etc...)
-All Legal terms are defined in the MSA (Limitation of Liability, Indemnification, Warranty,
etc...)
-Actual work is typically procured through a PO and may be supported by a SOW if the
activities are outside the general scope of the MSA
-->The terms of the MSA are used rather than the PO standard terms
Purchase Order (PO) correct answers -Formal contract to procure products or services which
clearly identifies the costs and expectations of both the Buyer and the Seller. Typically a PO is
requested using a Purchase Requisition ("PR").
-->Can be a stand-alone contract or used as an extension of an MPA or an MSA where the
negotiated Terms & Conditions would apply to the PO.
-->A Change Order ("CR") is issued to modify or cancel a PO
Statement of Work ("SOW") correct answers -Specific description of work or services to be
performed including costs, timelines, quality of performance and acceptance:
-->A contractual extension to a MPA or MSA - not a contract
-->Should not be used to modify Agreement provisions or to make purchases
-->Issued in conjunction with a Purchase Order
Non-Disclosure Agreement (NDA) correct answers -Provides legal security for companies to
exchange confidential or proprietary information
-->Attributes include topic, scope, points of contact, duration, duties of each party and remedy
positions
-Typical NDA is between two parties and "Mutual" in scale
-->The parties share equal rights & provisions (almost)
Three-Way or Multi-Party NDA's are less common
--> Very difficult to negotiate - especially if the parties are competitors
Payment terms (Domestic) correct answers Provisions specified in an agreement / contract that
stipulate when and how payment will be made.
Payment term: Net30 / Net45 / Net60 correct answers Net30 - Payment is due no later than 30-
days after receipt of invoice or acceptance of the goods / services
2%10Net30 correct answers -If payment is made within 10-days of the receipt of invoice, a 2%
discount will extended to the buyer.
-If payment is made after 10-days of receipt of invoice, the outstanding payable must be made no
later than 30-days after receipt of invoice.
Shipping Terms: Domestic correct answers Contractual rights and responsibilities between a
buyer and seller for delivery, risk of loss, title, and payment of freight charges.
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