Purchases with Billing Before Receipt: Test Pool

Which steps would you perform in the purchasing process when you create a bill before receiving the purchased items to inventory? (Select all the correct responses.)

Entering a purchase order first (correct)
Preparing a bill for the vendor and then creating a purchase receipt on receipt of the items (correct)
Processing a purchase receipt and then creating a bill (incorrect)
Verifying the vendor's credit history (incorrect)

What can you do when the Allow AP Bill Before Receipt check box is selected for a vendor on the Vendors form? (Select all the correct responses.)

Create a bill before the corresponding purchase receipt is created. (correct)
Process the purchase receipt before the bill is created. (correct)
Receive the purchased items to inventory without the purchase receipt being created. (incorrect)
Clear the check box with the same name on the Purchase Orders form. (incorrect)

Suppose that you are processing purchases of inventory items with billing before receipt. When does the system assign the Closed status to the purchase order?

When all the lines in the purchase order have been received and fully billed (correct)
When all the items have been received, whether or not they have been billed (incorrect)
When all the items have been billed, whether or not they have been received (incorrect)
When at least one item has been received and fully billed (incorrect)

Why may you need to select the Allow AP Bill Before Receipt check box for a vendor on the Vendors form?

To process bills from the vendor before processing the corresponding purchase receipts for purchase orders (correct)
To automatically generate purchase receipts before entering bills from the vendor (incorrect)
To create purchase receipts without entering bills from the vendor (incorrect)
To automatically determine the payment terms for the bills from the vendor (incorrect)