Manage Milestone Payments (Contracts)
(329).webp "Manage Milestone Payments (Contracts) - Quiz")
- 1.
When might it be appropriate to use a Milestone Payment Contract?
- A.
To spread payments across vendor deliverables
- B.
Always for large purchases or projects
- C.
When a Buyer determines it is appropriate
- D.
When the PO setting requires it
Correct Answer
A. To spread payments across vendor deliverablesExplanation
A Milestone Payment Contract may be appropriate when the buyer wants to spread payments across different vendor deliverables. This type of contract allows the buyer to make payments at specific milestones or stages of the project, ensuring that the vendor is delivering the agreed-upon work before receiving full payment. It provides a level of security for the buyer and helps to manage the financial aspect of the project effectively. This approach is particularly useful for large purchases or projects where the buyer wants to ensure that payments are made in a controlled and structured manner.Rate this question:
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- 2.
True or False? A scheduled payment warning in the system will inform an AP specialist that the invoice is related to a Milestone payment contract.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A scheduled payment warning in the system will inform an AP specialist that the invoice is related to a Milestone payment contract. This means that when the system displays a scheduled payment warning, it is indicating that the invoice is associated with a contract that requires payments to be made at specific milestones or stages of completion. The warning serves as a reminder for the AP specialist to ensure that the payment is made according to the terms of the contract.Rate this question:
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- 3.
Why do you need to authorize sites on a Contract?
- A.
So rigs/locations can use the Contract for POs
- B.
To restrict Contract usage to PRs
- C.
To limit Contracts to Houston Buyers
- D.
So the Corporate Warehouse can use
Correct Answer
A. So rigs/locations can use the Contract for POsExplanation
The reason why you need to authorize sites on a Contract is so that rigs/locations can use the Contract for purchase orders (POs). By authorizing specific sites, you are allowing them to utilize the Contract for their procurement needs, ensuring that the purchasing process is streamlined and efficient. This helps in maintaining control over the usage of the Contract and ensures that it is utilized appropriately by the designated sites.Rate this question:
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- 4.
A Contract field was greyed out and now is clear. What does this tell you?
- A.
You can revise the field
- B.
The field has been revised
- C.
You cannot revise the field
- D.
The field is locked
Correct Answer
A. You can revise the fieldExplanation
The fact that the Contract field was initially greyed out and is now clear indicates that it is editable and can be revised.Rate this question:
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- 5.
If you are in a Contract, what system function will let you revise it?
- A.
Go To > Contracts
- B.
Select Menu > Create Release PO
- C.
Select Menu > Revise Contract
- D.
Select Menu > View Revision History
Correct Answer
A. Go To > ContractsExplanation
The correct answer is "Go To > Contracts" because this system function allows you to access the Contracts section where you can make revisions to your existing contract.Rate this question:
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- 6.
True or False? Milestone invoices will arrive in an approver's Start Center Inbox for review and action.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Milestone invoices are a type of invoice that are sent to an approver's Start Center Inbox for review and action. This means that the statement "Milestone invoices will arrive in an approver's Start Center Inbox for review and action" is true.Rate this question:
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- 7.
Why might you place an invoice on Hold?
- A.
You have questions or there are discrepancies
- B.
To reject the invoice for payment
- C.
To reject it without telling anyone
- D.
To find more time in the day
Correct Answer
A. You have questions or there are discrepanciesExplanation
Placing an invoice on hold is done when there are questions or discrepancies regarding the invoice. This allows the person responsible for processing the payment to investigate and resolve any issues before proceeding with payment. It ensures accuracy and prevents any potential errors or fraudulent activities.Rate this question:
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- 8.
Which application do you use to receive materials and services against a Milestone Contract?
- A.
Receiving
- B.
Purchase Orders
- C.
Invoice
- D.
Inventory
Correct Answer
A. ReceivingExplanation
The application used to receive materials and services against a Milestone Contract is called "Receiving." This application is specifically designed to track and manage the receipt of goods and services in accordance with the terms and conditions outlined in the Milestone Contract. It allows the user to document the receipt of each item, verify its quantity and quality, and update the inventory accordingly. The Receiving application plays a crucial role in ensuring that the contractual obligations are met and that the organization receives the materials and services it has contracted for.Rate this question:
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- 9.
Who is responsible for identifying the need for a Milestone Contract?
- A.
Buyer
- B.
Accounts Payable Processor
- C.
Accounts Payable Manager
- D.
Purchasing Manager
Correct Answer
A. BuyerExplanation
The buyer is responsible for identifying the need for a Milestone Contract. This is because the buyer is the one who is involved in the procurement process and is responsible for identifying the specific requirements and needs of the organization. They have the knowledge and understanding of the project or purchase that requires a Milestone Contract and can determine if it is necessary. The other options, such as the Accounts Payable Processor, Accounts Payable Manager, and Purchasing Manager, may be involved in the process but it is ultimately the buyer's responsibility to identify the need for a Milestone Contract.Rate this question:
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- 10.
True or False? The cost of a service or item is not the trigger for a Milestone Payment Contract.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The cost of a service or item is not the trigger for a Milestone Payment Contract. This means that the payment milestones are not based on the total cost of the service or item, but rather on specific milestones or achievements that need to be met or completed. The payment is released when these milestones are reached, regardless of the overall cost.Rate this question:
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Current Version
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Jul 30, 2024Quiz Edited by
ProProfs Editorial Team -
May 08, 2014Quiz Created by
Joseph Hartman
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