ERP Software Business and Accounting Terms: Assessment Quiz (Part 1)

 

As Sage 100 ERP software consultants, we have the pleasure of working with some very sophisticated and experienced ERP software clients.  It’s also rewarding helping new employees get trained and up to speed on the ERP software so they can be effective in their new role.  Whether you’re seasoned or new to working with ERP software, we find it’s often good to occasionally step back and review some of the meanings behind some basic business and accounting terms we work with every day.  These would also be great interview survey questions if you are planning to hire a new employee.  Take a few minutes to test your knowledge of some common business and accounting terms.  

First, here’s a little levity to illustrate the point that we are never too seasoned to be reminded of the basics:  

ACCOUNTING JOKE:  A successful accountant in a big firm had a very strange habit. Every morning he opened his drawer to look at a rolled up piece of paper and then rolled it up and locked the drawer again. His trainees were very curious and thought that he hid the secret of his great success in his drawer. So one day when the accountant was out, the trainees decided to break the lock.  When they broke the lock and took out the paper it read:

“DEBITS to the LEFT and CREDITS to the RIGHT”

Test your knowledge of the meanings behind common business and accounting terms.

Match up the business and accounting terms with the meanings.  See answers below…

ERP Software Business and Accounting Terms:

1. Sales Order
2. RMA Form
3. Credit Insurance
4. Hold Order
5. Bill of Lading
6. Drop Ship
7. Pick List/Picking Ticket/ Pick Ticket
8. Packing Slip
9. Credit Memo
10. Purchase Order

ERP Software Business and Accounting Meanings:

  A. Guarantee by a third party against non-payment of an invoice by a customer.
  B. Document that a customer submits to the receiving company in which it authorizes the purchase of specific items or services from the receiving company. It states the quantity and price that the customer is willing to pay and where the products are to be sent to
  C. Legal document between the shipper of goods and the carrier of goods. It describes the type, quantity, and destination of the goods.
  D. Form to translate a customer order into a standardized format for internal use by a business. The form should always be assigned a unique identification number so it can be tracked, as well as, a place for the sales persons name if there are commissions associated with it.
  E. Document listing all items to be picked from stock in order to fulfill a customer order.
  F. Document issued by the seller of goods/services to the buyer, reducing the amount that the buyer owes under the terms of an earlier invoice. It maybe issued because the buyer returned goods or there is a pricing dispute, or some other reason the seller agreed to.
  G. Authorization document issued by the order entry staff and use by the receiving department to accept back goods originally shipped to a customer.
H. The practice of having suppliers ship directly to a company's customers, by passing the company itself.
  I. If there is a sales order from an existing customer with an unpaid and unresolved invoice more than a certain amount predetermined by the company, the credit department places a hold on that sales order. When that happens the customer should be informed that the order will be kept on hold until the outstanding invoice is paid.
  J. Itemization of the goods included in a shipment. This typically includes the description, part number, and quantity of each item. It is prepared by the shipper and is attached to the outside of the shipping container. It is used by the recipient to verify the contents of the shipment.

Answers: 1(D)  2(G)  3(A)  4(I)  5(C)  6(H)  7(E)  8(J)  9(F)  10(B)

Please CONTACT US at Convergence Technologies, Ltd. for any questions related to business and accounting related questions.  As a Sage 100 ERP and Sage CRM consulting firm, we can help you with business process review, Sage 100 ERP and Sage CRM system support and training, custom programming (we are one of 70 Sage Master Developers authorized in the U.S.), planning and project management, implementation, and report design.  Other products supported are Sage HRMS, Sage Fixed Assets and Sage Timesheet.  We also sponsor User Groups to help Sage 100 ERP customers get the most out of their investment.  Visit our website www.converg-tech.com or call us at 260-748-4866.

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