Font size
WorksheetsProcurement of NPM Quiz
Total questions: 17
Worksheet time: 33mins
After the Purchase Order has been placed, changes in the requirement may arise. Which statements are correct?
A change process is required for an increase in quantity or a content change
Price reductions require change process, yet with no hierarchical approval.
Price increases in individual items that do not increase the total price of a PO necessitate a change process.
PR is the abbreviation for Purchase Requisition.
Who can create a PR
and what are the required documents to be included?
The group company determines which employees may create a PR.
The goods/ services or content to be ordered must be specified.
If a PR is split into multiple Purchase Requisitions, the cost center manager must give approval for splitting the PR.
The Purchase Requisition may be created by any employee of a requesting department.
All received suppliers’ quotations must be attached.
An employee authorized by the cost center manager, wishes to procure fans. The unit price is indicated at EGP 170 according to the Blanket Order/Contract. Since the total value does not exceed EGP 1,000, a Small Amount is placed.
True
False
The supplier MOHM is to supply office chairs. According to the Purchase Order, a newer model than the originally listed in the Purchase Order is available and is selected to be purchased. The costs remain unchanged. Which statements are correct?
A PR adjustment with a new approval process is always required.
The change of model must be documented in the PR.
If the newer model of office chair remains the same in type, quality and serves the same purpose, no change process is required.
(a) must be defined by the requesting department in the Release Order based on a Blanket Order , such as (b)
(c) list is pre-approved by the Procurement & CFO, as the PR can only be issued after receiving the goods/services and invoice, such as (d)
For goods/services that are used regularly by only one (a) and the total yearly purchase does not exceed EGP 900,000 with (b) , it is beneficial to proceed an Annual Purchase Order.
When creating the (c) with estimated quantity a legal clause must be added in the (d) clarifying that no obligation to receive delivery with respect to the (e) that will be accepted by the requester unless there is a written request.
Which of the Procurement Types listed here are among the types that can be ordered directly the requesting department?
Special Buys.
Release Order (only if all goods/services are listed in the Blanket Order/Contract).
Small Amount Order.
Purchasing responsibility within the procurement process is assumed by either the central/local purchasing function or the requesting department. Which statements are correct?
Depending on the Procurement Type, purchasing responsibility may lie with the requesting departments.
Local management determines whether the requesting department may procure on its own authority.
For each group company, it is determined whether operational procurement is handled by the central or by the local purchasing function.
In (a) and (b) cases, the Requesting dept. may undertake an Emergency Buy (c) without the involvement of the Purchasing Function.
The (d) must be prepared promptly after the assignment.
A requesting department creates an SSL. Which statements are correct?
SSL stands for Single Supplier Letter.
The responsible purchasing function has the right to accept or reject the SSL.
An SSL can be created if there are objective preferences that the requesting department can justify in a way that is understandable to the purchasing function.
An SSL is created when the goods/services can only be procured from one supplier.
An SSL is generally to be attached to the PR
The Requesting department has forgotten to create a PR. The item is not on the Special Buys List & the supplier is commissioned. After the service has been rendered, the supplier submits their invoice. Which statements are correct?
Since the requesting dept. had involved the appropriate hierarchy, the procedure was compliant with the policies.
This is a Maverick Buy, the assignment should have been made only through an approved PR/PO.
When does the policy of Four-Eyes Principle & Segregation of Duty is applied in the context of the procurement process and which statements are correct?
Changes may be possible in specific parts of the process. However, the local management (e.g. CEO, CFO) justifies, adequately controls, and documents this.
The central Purchasing Function must always be involved in the procurement process.
The creator and the approver of a PR must be different people.
Hierarchical approval for PRs is determined.
Which statements are correct?
In a cluster B company where there is no L1/L2 level manager, either the CEO or the CFO must give approval if the value of a PR exceeds EGP 2.8 million.
If the PO value is EGP 400,000, then a level L4 manager must approve.
PRs for amounts under EGP 5,000 do not require hierarchical approval.
What do you confirm by giving functional approval?
Prices of the billed service.
Quantity, type, and correct performance of the received/billed service.
A content change to a PO increases the costs and takes it over the original PO value of 100,000 EGPs. The new order value is 105,000 EGPs. A PR/Purchase Order adjustment is…
Not necessary.
Necessary
A requesting department of a Group company in Cluster B creates an SSL for a total PO value of 300,000 EGPs. Does a manager have to approve the SSL and, if so, what level of management does he or she have to belong to? The SSL …
… requires approval by CEO.
… requires approval by CFO.
… requires approval by a representative of management level L5 (or higher).
… does not require approval by any representative of management level L2 or L1.
A supplier is awarded a tender for providing trucking service. However, due to global energy crisis, their offered prices have increased.
Which statement is correct?
The PR/PO must be amended and fully approved prior to supplier service implementation.
The PR/PO can be amended after service has been started, yet before receiving the invoice.
The PR/PO can be amended after receiving both the service and the invoice.
