Purchase Order Process In Hotel And Restaurant! Quiz
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Welcome to the trivia questions on Purchase Order Process in Hotel and Restaurant! Whenever a purchase is made, it is important to ensure that the right people verify it before the money is allocated for the expense. How knowledgeable are you of the importance of a purchase order and how to prepare one? Take the test to find out!
- 1.
Why do we have purchase orders?
- A.
To establish levels of spending controls and accountability.
- B.
Our accounting system cannot pay invoices without matching purchase orders.
- C.
To track purchases and receipt status for month-end purposes.
- D.
It ensures the correct coding of expenses within our financial reporting.
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
Purchase orders assist with financial oversight and allow accurate reporting of incurred expenses. Because the PO is so critical to the process, our accounting software will not allow an invoice to be paid without a valid PO.Rate this question:
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- 2.
I should create my PO.
- A.
When Accounting calls or emails to ask me for one.
- B.
When I receive the item or service I ordered.
- C.
Before I purchase a good or service.
- D.
When I get around to it.
Correct Answer
C. Before I purchase a good or service.Explanation
You must have an approved PO before your order the product or service. An approved PO is a confirmation your manager agrees to the expense before it is incurred. A paper trail also allows Finance to have a snapshot of the outstanding liabilities to the hotel and to better report and plan for them. ***Food and Beverage purchase orders may be done upon receipt. ***Some service POs may be done upon receipt of the invoice. These specific invoices will be routed to you via a scanned email from Accounts Payable.Rate this question:
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- 3.
I know my PO is approved because:
- A.
I receive an email with the PO number and "approved" in the subject line.
- B.
..it needs to be approved? I didn't know that.
- C.
I check the status in JDE and see the PO in the "approved" filter
- D.
We needed the good or service, so my manager wouldn't reject it.
Correct Answer(s)
A. I receive an email with the PO number and "approved" in the subject line.
C. I check the status in JDE and see the PO in the "approved" filterExplanation
Email is the easiest way to know when your PO has been approved. If you are not receiving emails, see Accounting to make sure your user setup is corrected. You can also set up rules within the email to help manage your email receipts. If you are in JDE, you can check the status under Procurement - Daily Processing - Order Generation - Order Awaiting ApprovalRate this question:
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- 4.
I'm searching for my vendor in the PO creation fields, but it has 3 listings in the selection box. One has an Sch Typ VC, one says VG and one says VT. How do I know which one to use?
- A.
VT - Vendor Trade
- B.
VC - Vendor Construction or Corporate
- C.
VG - Vendor Guest
- D.
Any of the above
Correct Answer
A. VT - Vendor TradeExplanation
All vendors should have a VT designation next to their name. If the vendor has multiple listings, each with VT, select and Find again. Try to match up the addresses. Also, some vendors have Tax IDs with letters at the end. Avoid these, if and when possible.Rate this question:
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- 5.
I am ordering 5 boxes of paper which cost $20.00 each. My PO should show the following:
- A.
Qty 1; Cost $100.00
- B.
Qty 20; Cost $5.00
- C.
Qty 5; Cost $20.00
- D.
Qty 50; Cost $2.00
- E.
Qty 5; Cost $20.00; + shipping, handling, or other fees, if applicable. I should also use the tax fields to account for sales tax, if applicable
Correct Answer
E. Qty 5; Cost $20.00; + shipping, handling, or other fees, if applicable. I should also use the tax fields to account for sales tax, if applicableExplanation
While C is not wholly incorrect, the best answer is E. Using proper quantities and costs allows us better flexibility with the PO and reduces re-work. If 2 cases are backordered, we can tell the system to receive 2 and leave 3 open. This greatly reduces the need to amend POs or create new ones. Shipping, fees, and taxes are other common factors that can be added at the beginning of the PO process, reducing the need for amendments and rejections.Rate this question:
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- 6.
How can I find out where to code a new expense?
- A.
Refer to the Expense Dictionary.
- B.
Call Accounting and ask them.
- C.
Call my manager and ask them.
- D.
I just code it wherever and somebody else will fix it for me.
Correct Answer
A. Refer to the Expense Dictionary.Explanation
While Accounting and your manager are always available to assist you, becoming familiar with the Expense Dictionary is beneficial. Ours is located on the Shared Drive at S:\All\Financial Reference\Purchasing.Rate this question:
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- 7.
Purchase Order approvers are reviewing the following when they receive a PO
- A.
Timing and necessity of the expense.
- B.
They do not review the purchase orders for anything.
- C.
Proper coding and descriptions of the expenses and proper taxes.
- D.
I don't know.
Correct Answer(s)
A. Timing and necessity of the expense.
C. Proper coding and descriptions of the expenses and proper taxes.Explanation
Approvers are a check and balance part of the process. They might refer to your checkbook to understand the financial position of the department, they check to code for reporting accuracy; they check taxes and they check descriptions for thoroughness.Rate this question:
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- 8.
I want to buy something from an online vendor, such as BuyEfficient or InnerWorkings. Do I still need to do a JDE PO?
- A.
No.
- B.
I don't know.
- C.
Yes. Once the JDE PO is approved, I can enter the online request, using the JDE PO number.
- D.
Yes. I should ask Accounting to do a Purchase Order for me.
- E.
None of the above.
Correct Answer
C. Yes. Once the JDE PO is approved, I can enter the online request, using the JDE PO number.Explanation
Depending on the vendor, some purchases are automatically initiated, which is why you still need the PO in advance. You will place that PO number directly in the online billing information section. JDE POs should be created for the vendor who will fill the order - not directly to BuyEfficient.Rate this question:
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- 9.
For what do I need all these description fields?
- A.
To help Accounting match the invoice to the Purchase Order
- B.
To give all end-users maximum information regarding what I'm buying
- C.
I don't need them. They are a waste of time.
- D.
I just type something in. It doesn't matter.
Correct Answer(s)
A. To help Accounting match the invoice to the Purchase Order
B. To give all end-users maximum information regarding what I'm buyingExplanation
Descriptions are probably the most critical piece of information on a Purchase Order. It allows end-users to see exactly what you are requesting to buy. It also allows Accounting to match up invoices to Purchase Orders if items are backordered or shipped separately. Description 1 is the most important of all. It should not say the vendor's name or just an item number. It should say "Bqt Hseman Tunic-Brown-Size Medium", for example.Rate this question:
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- 10.
The DC Sales Tax rate is:
- A.
5.75%
- B.
6%
- C.
6.75%
- D.
5%
- E.
18%
Correct Answer
B. 6%Explanation
The correct answer is 6% because it is the only option that matches the given information. The question states that the DC Sales Tax rate is being asked for, and out of the given options, 6% is the only rate that corresponds to the given question.Rate this question:
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- 11.
Put the following processes in the correct order A.Give PO to Accounting B.Place Order C.Receive Approval D.Determine what is needed to be purchased/create PO E.Receive goods/services F.Print out PO G.Sign and Date PO and attach packing slip/work order
- A.
D,C,B,F,A,E,G
- B.
B,E,D,F,C,G,A
- C.
D,C,B,F,E,G,A
- D.
B,D,E,F,C,G,A
- E.
D,C,B,F,A,E,F,G,A
Correct Answer
C. D,C,B,F,E,G,AExplanation
Following the proper steps in the proper order saves every time and energy. The correct order is to determine what you need and create a request in JDE (PO), receive approval from your hierarchy of approvers, place the order,print the PO and file/hold, receive the goods/services, sign and date the PO to acknowledge receipt, give PO to Accounting.Rate this question:
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- 12.
Fill in the blanks: Shipping _____ taxable at _____%:
- A.
Is not; no percentage applies
- B.
Is; 5.75%
- C.
Is; 6%
- D.
Is; 8%
Correct Answer
C. Is; 6%Explanation
Yes, DC taxes shipping, handling and freightRate this question:
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- 13.
My PO was rejected because
- A.
I coded it incorrectly.
- B.
The approver is giving me a hard time.
- C.
I did not account for tax and/or shipping.
- D.
My descriptions were insufficient.
- E.
The approver would like to delay the purchase due to financial considerations.
Correct Answer(s)
A. I coded it incorrectly.
C. I did not account for tax and/or shipping.
D. My descriptions were insufficient.
E. The approver would like to delay the purchase due to financial considerations.Explanation
There are many reasons an approver might reject a PO. Most times, it is to correct or enhance the document for better ease down the road. Amending a PO is quick and easy. Approvers should use the communication tools within JDE to alert initiators which lines were rejected and why. Sometimes it is necessary to reject a PO for financial considerations and your approver will discuss those with you directly and assist with planning.Rate this question:
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- 14.
I received 3 of the 10 items on my Purchase Order. The other 7 are back-ordered. Should a do a new PO for the 7?
- A.
Yes. Complete a new PO when the 7 items are received.
- B.
Yes. Complete a new PO when the vendor alerts you the items are backordered
- C.
Yes. You should do a new PO every time the information on the old one changes.
- D.
No. I do not need to do anything. Accounting already has my signed PO which I sent to them when I placed the order.
- E.
No. I need to indicate on the PO how many were received in the shipment and send it to Accounting. I will keep a copy or print a new one for remaining shipments. I do not need to revise anything at this time unless there was a price change or additional fees.
Correct Answer
E. No. I need to indicate on the PO how many were received in the shipment and send it to Accounting. I will keep a copy or print a new one for remaining shipments. I do not need to revise anything at this time unless there was a price change or additional fees.Explanation
If you completed the original request using the proper quantity and cost per item, you should indicate on the PO how many were received and send it to accounting with the packing slip. When the remainder(s) of your order arrives, the same PO (copy or reprint) should be noted with the newly received amount and sent to Accounting, repeating these steps until the entire amount is received.Rate this question:
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- 15.
The Open PO report is emailed out weekly so that:
- A.
Initiators can double-check open POs against their waiting-to-be- received PO files
- B.
Your mailbox becomes too full
- C.
You can see who else has open POs
- D.
You can tell the vendor if an item has been paid or not
Correct Answer
A. Initiators can double-check open POs against their waiting-to-be- received PO filesExplanation
The Open PO report is circulated weekly to give users a snapshot of open POs. POs can be open for many reasons, including waiting to be amended, waiting to receive the item, it was duplication and needs to be canceled, or because Accounting has not received an invoice for payment. If you see old POs on the list and you believe you received the item and gave the Purchase Order packet to Accounting, please feel free to follow up with Accounting about status. We request you do not reach out to the vendor to discuss payment status or request copies of invoices. While we appreciate your assistance, often this adds to clogging the paperwork flow.Rate this question:
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- 16.
If a vendor calls me directly to ask about payment, I should:
- A.
Look in my checkbook
- B.
Look in JDE to see if they were paid
- C.
Put the vendor on hold and call Accounting to ask them
- D.
Forward them to Accounting at extension 2849 or [email protected]
Explanation
All requests should be funneled through Accounts Payable to reduce duplicated efforts and save operations time.Rate this question:
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- 17.
Checkbooks should be updated each time an order is placed.
- A.
False. JDE POs are all I need.
- B.
True. Checkbooks are a budget management tool.
- C.
It doesn't matter either way.
- D.
What is a checkbook?
Correct Answer
B. True. Checkbooks are a budget management tool.Explanation
Checkbooks are a vital part of controlling spending. While they are not directly linked to the JDE PO process, they are reviewed by approvers for an accurate picture of spending.Rate this question:
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- 18.
The Purchase Order process is very specific because:
- A.
Good information equals good information out.
- B.
Many people are involved and consistency keeps everything going smoothly.
- C.
I have no idea.
- D.
Accounting does not have enough work to do, otherwise.
Correct Answer(s)
A. Good information equals good information out.
B. Many people are involved and consistency keeps everything going smoothly.Explanation
Purchase Orders create the information that is recorded to expenses in our financial reporting system. The better they are, the better the information we have to analyze and plan. At times, it can seem like we have rigid or random processes, but it is like building a house. You can't paint the walls before they been erected and you can't pour concrete if the hole hasn't been dug. Each step is carefully evaluated for its cost/benefit. We encourage the curious to come and spend an hour with us to see the steps in the process.Rate this question:
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- 19.
I just received an email with a bunch of scanned invoices and purchase orders, I should:
- A.
Wait for further instructions
- B.
Do nothing
- C.
Print them out and give them to Accounting
- D.
Review them for notes on requested actions then complete those actions or follow up with Accounting for further clarification or assistance
Correct Answer
D. Review them for notes on requested actions then complete those actions or follow up with Accounting for further clarification or assistanceExplanation
In an ideal world, this step could be avoided because all POs would be done for the exact amount before the item is ordered and a completed PO would be routed to Accounting immediately upon receipt of the item. The reality is, sometimes, even the best process can't cover all the bases. A vendor might invoice us before they ship the goods. A vendor might tack on hidden fees or have grossly underestimated freight. When this happens, we need your assistance in revising the POs. However, if you are consistently receiving scanned invoices requesting "Needs PO" or please route a copy of PO#----, chances are you aren't following the outlined processes, thus making more work for everyone. You may also feel like you've already given us what we are requesting. We are human - we occasionally misplace stuff, like everyone else. We wouldn't ask for it if we had it, so be kind and keep the ball moving by providing the info.Rate this question:
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Apr 19, 2024Quiz Edited by
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May 17, 2010Quiz Created by
Tfraher
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