Procurement
The Procurement domain tests requisition-to-pay: requisitioning, sourcing, purchasing, receiving, invoicing, approvals, and supplier management. Questions focus on document flow and the setup controls that change it.
Document flow
- Requisition → RFQ or quote → purchase order → receipt → invoice → payment.
- A requisitioning business unit requests goods; a procurement business unit buys on its behalf. The two can differ.
- Document styles control numbering and routing; approval rules in Approval Management Extensions route by amount, category, or cost center.
Sourcing and agreements
- Blanket purchase agreements set preapproved prices and terms; contract purchase agreements are broader and may lack committed quantities.
- Supplier qualification and punchout catalogs feed requisitions before a buyer touches them.
Receiving and matching
- The receipt-required flag on the PO line or shipment determines whether a receipt is mandatory before invoice.
- Invoice match options are 2-way (PO and invoice), 3-way (adds receipt), and 4-way (adds inspection).
Worked example: A requisition for 100 units at 12 USD each comes from a requisitioning business unit. The procurement business unit has a blanket agreement at 10 USD. The buyer issues a PO for 100 at the agreement price. The supplier ships 100 and invoices at 12 USD. Three-way match compares PO price with invoice price; quantity matches the receipt; the price variance exceeds tolerance, so the invoice is held. The buyer must resolve the variance or adjust the PO. This tests that the PO, not the requisition, is the price source for matching.
Traps: assuming requisition amount controls approval after the PO is created; confusing requisitioning and procurement business units; ignoring match-option setup; assuming receipt is always required.