Chapter 4 - Fulfillment Process Study Questions
In a manual process, what document is used to track the progress of the fulfillment process?
Sales order
Which steps from the fulfillment process have a financial impact on the company receiving the order from the customer?
Send shipment and receive customer payment
Which of the following account are affected by a shipment of goods to a customer? a. A/P b. A/R c. COGS d. Finished goods inventory e. bank account
c. COGS AND d. Finished goods inventory
Which of the following information is NOT typically found in a picking document? a. quantity b. material number c. price d. FOB Point
c. Price
Which of the following data is NOT typically found in a customer purchase order? a. material number b. quantity c. storage location d. price
c. storage location
When using an ES, the person responsible for preparing invoices can retrieve a list of orders that need to be billed. Such a list is called ...
A billing due list
Which of the following data is NOT typically found in a sales order? a. requested delivery date b. actual delivery date c. material number d. shipment terms
b. actual delivery date
Typically, what information would you find in a packing list?
Bill-to address Ship-to address Quantity
Typically, what information would you find in an invoice?
Bill-to address Ship-to address Quantity Price
Typically, what information would you find in a picking document?
Bill-to address Ship-to address Quantity Requested delivery date
Typically, what information would you find in a purchase order?
Bill-to address Ship-to address Requested delivery date
The fulfillment process often begins when a ____________ sends an inquiry.
Customer
When using an ES, the person responsible for preparing shipments can retrieve a list of orders that need to be shipped. Such a list is called ...
Delivery due list
In a manual process, what document is an itemized list of the materials sent or the services provided to the customer, with the cost of the items plus discounts, taxes, shipping, and other charges?
Invoice
In a manual process, what document accompanies the shipment and specifies the items and quantities shipped?
Packing list
In a manual process, what document is created by the warehouse when they receive a sales order?
Picking document
In a manual process, what document is a commitment by the customer to purchase the materials?
Purchase order
Typically, what information would you find in a quotation?
Quantity Price
Payment terms are declared by the seller during the _____________ step, while payment terms are declared by the buyer at the ______________ step.
Quotation Purchase Order
Which steps from the fulfillment process DO NOT HAVE a financial impact on the company receiving the order from the customer?
Receive customer inquiry, send quotation, and receive customer purchase order
What is the correct order of the fulfillment process?
Receive customer inquiry/ create and send quotation Receive customer purchase order and create sales order Prepare and send shipment Create and send invoice Receive payment
In the fulfillment process, which department creates the sales order?
Sales Department
In the fulfillment process, a picking document includes what information?
The storage location of the materials to be picked
The only time a financial impact is made on the income statement in the fulfillment process is when you send the shipment. T or F?
True
When using an ES, it is very difficult to obtain information about the status of a customer order. T or F?
True
When you send the shipment, two transactions happen that affect the financial impact of the fulfillment process. T or F?
True
What are examples of instance-level information relevant to the fulfillment process?
Was the invoice paid? If so, when? What was the total of the sales order? How long did it take to send the shipment after creating a sales order? When did we send the goods? What was the total of the invoice? Was the invoice sent? If so, when? What was the total of the payment?
___________________ involves taking a standard or base model of a product and then configuring it to meet the customer's special needs by adding either special options or add-on parts. a. Configure-to-order b. Sell-from-stock
a. Configure-to-order
Which of the following documents are associated with the fulfillment process? a. Picking document b. Packing list c. Bill of materials d. Customer master e. Customer invoice
a. Picking document b. Packing list AND e. Customer invoice
Which of the following are variations of the basic fulfillment process? a. quote to cash b. produce to pay c. requisition to pay d. inquiry to cash e. plan to produce
a. Quote to cash AND d. inquiry to cash
In the fulfillment process, which department prepares and sends the quotation? a. Sales b. Purchasing c. Accounting d. Production
a. Sales
___________________ involves fulfilling customer orders directly from the company's inventory and or finished goods. a. Sell-from-stock b. Configure-to-order
a. Sell-from-stock
The accounts receivable account goes up when a ____________ is sent. a. Shipment b. Invoice
a. Shipment
Which of the following are examples of process-level information relevant to the fulfillment process? a. Which customers are prompt and which ones are habitually late in sending the payment? b. Which materials are sold most frequently? c. Which materials are produced most often? d. Which vendor do we buy from most frequently? e. What is the average time between creating a sales order and sending the shipment?
a. Which customers are prompt and which ones are habitually late in sending the payment? b. Which materials are sold most frequently? AND e. What is the average time between creating a sales order and sending the shipment?
When using an ES, much of the data needed to create a customer invoice is ____________. a. automatically obtained from data previously stored in the system b. manually entered
a. automatically obtained from data previously stored in the system
Which of the following information is NOT typically found in a quotation? a. requested delivery date b. quantity c. price d. terms of delivery
a. requested delivery date
When creating customer invoices, the person responsible can retrieve a list of orders that need to be acted on. This list is called ___________. a. An order due list b. A billing due list
b. A billing due list
In the fulfillment process, which department prepares and sends the invoice? a. Sales b. Accounting c. Warehouse d. Production
b. Accounting
The COGS account goes up when a shipment is ____________. a. Prepared b. Sent
b. Sent
In the fulfillment process, which department receives payment? a. Sales b. Purchasing c. Accounting d. Warehouse
d. Accounting
In the fulfillment process, which department prepares and send the shipment? a. Sales b. Purchasing c. Accounting d. Warehouse
d. Warehouse
Which of the following information is NOT typically found in a packing list? a. Ship to: b. quantity c. Bill to: d. invoice date
d. invoice date
Which of the following information is NOT typically found in an invoice? a. Ship to: b. quantity c. price d. picked quantity
d. picked quantity