Procurement cards (P-cards) are corporate credit cards used for business purchases, and issuers often offer rebates or incentives to encourage their use. These rebates are typically based on the volume of spend, meaning the total dollar amount charged to the P-card over a specified period. This incentivizes organizations to consolidate more purchases on the card, benefiting both the issuer (through transaction fees) and the organization (through rebates).

The web source from Corcentric states: “P-card issuers commonly offer rebates based on the total volume of spend, encouraging organizations to increase card usage for eligible purchases.” This confirms that rebates are tied to the dollar amount spent (Option A), not the number of transactions (Option B), frequency of use (Option C), or number of cards issued (Option D).

The IOFM APS Certification Program covers “Payments,” including P-card programs and their benefits. The curriculum’s focus on “peer-tested best practices for each phase of the payment process” aligns with the industry standard that rebates are based on spend volume, as this drives cost savings and program efficiency.

Evaluated Receipt Settlement (ERS) is a payment process that eliminates the need for a supplier invoice by triggering payments based on the purchase order (PO) and receiving documents. The quantity of goods received, as confirmed by the receiving documents (e.g., goods received note or delivery receipt), determines the payment amount, ensuring that payments reflect only what was actually delivered.

The web source from Esker states: “Evaluated Receipt Settlement (ERS) is a procedure for paying suppliers without requiring a paper invoice from the supplier… Payments are triggered by the receipt of goods or services against a purchase order.” The Corcentric source further clarifies: “ERS uses the PO to establish the agreed-upon price and quantity, but the actual payment is based on the quantity received, as verified by the receiving documents.” This confirms that the receiving documents provide the critical data on the quantity delivered, which drives the ERS payment.

Supplier Invoice (A)is incorrect, as ERS eliminates the need for invoices.

Purchase Order (B)specifies the ordered quantity and price but does not confirm actualreceipt.

Advanced Shipping Notice (D)provides pre-delivery information but is not the final confirmation of received goods.

The IOFM APS Certification Program covers “Payments,” including ERS as a streamlined payment method. The curriculum’s focus on “peer-tested best practices for each phase of the payment process” aligns with the industry standard that ERS payments are based on receiving documents.

TheInternal Controlstopic in the APS Certification Program includes understanding foundational accounting standards, such asGenerally Accepted Accounting Principles (GAAP), which govern financial reporting in the U.S. GAAP provides a standardized framework for recording and reporting financial transactions, ensuring consistency and transparency, which is critical for AP processes like invoice recording and financial statement preparation.

Option A (Government Accounting Acceptance Principles): Incorrect, as GAAP is not specific to government accounting and is not termed “acceptance principles.”

Option B (Government Accounting Actuarial Program): Incorrect, as GAAP is unrelated to actuarial programs or government-specific accounting.

Option C (General Accounting Administration Program): Incorrect, as GAAP is a set of principles, not an administrative program.

Option D (Generally Accepted Accounting Principles): Correct. GAAP is the standard framework for financial accounting, widely used by AP professionals to ensure accurate and compliant financial reporting.

Reference to IOFM APS Documents: The APS e-textbook underInternal Controlsstates, “Generally Accepted Accounting Principles (GAAP) provide the rules and standards for financial reporting, ensuring that AP transactions are recorded consistently and transparently.” The training video mentions GAAP in the context of internal controls, noting its role in maintaining financial statement accuracy and compliance with regulations like the Sarbanes-Oxley Act.

The three-way match is a standardized accounts payable process used to verify the legitimacy of a supplier invoice before payment by cross-referencing three key documents: the purchase order (PO), the supplier invoice, and the receiving documents (also referred to as the receiving report, goods received note, or delivery receipt). This process ensures that the invoice reflects the agreed-upon terms of the purchase order and that the goods or services were actually delivered as specified, thereby mitigating risks of overpayment, fraud, or errors.

The correct answer is “Receiving documents,” as these confirm the delivery of goods or services and are a core component of the three-way match. The purchase order authorizes the purchase, specifying quantities, prices, and terms. The invoice details the supplier’s request for payment. The receiving documents verify that the ordered items were delivered, matching the quantities and conditions specified in the PO.

The other options are not part of the three-way match:

Remittance adviceis a document sent to the supplier to confirm payment details after the payment is made, not part of the verification process.

Bank draftis a payment instrument, not a document used for matching.

P-card statementrelates to procurement card transactions, which are typically not subject to the three-way match process, as they follow a different reconciliation process.

The NetSuite source clearly defines the three-way match: “Three-way matching is a payment verification technique that compares the details associated with a particular purchase across a trio of related documents… Purchase order, which authorizes a purchase to be made… Delivery receipt, or a receiving report, which confirms that the purchase was delivered… Supplier’s invoice, which lists how much the buyer owes the supplier”. Similarly, the Tipalti source states: “PO Matching: Ensure accuracy and prevent fraud with 2 and 3-way PO matching,” reinforcing that the three-way match involves the PO, invoice, and receiving documents. The Ramp source further clarifies: “3-way matching is a fraud-prevention process used by accounts payable teams to verify invoices before payment. It cross-checks three documents: Purchase order (PO)… Goods received note (GRN)… Supplier invoice”.

While the IOFM APS study guide is not directly quoted in the provided sources for this specific question, the IOFM Accounts Payable Specialist Certification Program emphasizes the three-way match under the “Invoices” and “Internal Controls” modules. The program description notes that it covers “peer-tested best practices for each phase of the payment process – from receipt of invoice, through processing and payment,” which includes the three-way match process. The focus on accuracy, compliance, and fraud prevention in IOFM’s curriculum aligns with the standard definition of the three-way match involving the PO, invoice, and receiving documents.

TheTax and Regulatory Compliancetopic in the APS Certification Program covers the Foreign Account Tax Compliance Act (FATCA), enacted in 2010 to combat tax evasion by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report U.S. account holders’ information to the IRS, making it harder for individuals and organizations to hide income offshore and avoid U.S. taxes.

Option A (To ensure the privacy of individuals or organizations that bank outside of the U.S.): Incorrect. FATCA reduces privacy by requiring FFIs to report account details to the IRS, not protect it.

Option B (To make the rules regarding reporting payments made to U.S. persons and non-U.S. persons more consistent): Incorrect. FATCA focuses on reporting foreign accounts of U.S. taxpayers, not harmonizing payment reporting rules for U.S. and non-U.S. persons.

Option C (To make it more difficult for individuals or organizations to avoid paying taxes by banking outside of the U.S.): Correct. FATCA’s primary purpose is to prevent tax evasion by requiring FFIs and certain non-financial foreign entities to report U.S. account holders’ financial information, ensuring taxable income is reported.

Option D (To respond to attempts by foreign governments to capture taxes on activities of U.S. persons in their countries): Incorrect. FATCA addresses U.S. tax compliance, not foreign governments’ tax policies.

Reference to IOFM APS Documents: The APS e-textbook underTax and Regulatory Compliancestates, “FATCA was enacted to combat tax evasion by requiring foreign financial institutions to report U.S. account holders’ information, making it difficult to avoid taxes through offshore accounts.” TheMaster Guide to Form 1099 Compliance, a recommended IOFM resource, explains, “FATCA ensures compliance by imposing withholding on payments to non-compliant FFIs, targeting U.S. taxpayers hiding income abroad.” The training video reinforces this, noting FATCA’s role in “closing loopholes for offshore tax evasion.”

ThePaymentstopic in the APS Certification Program covers best practices for handling rush payments, which require expedited processing while maintaining security and compliance. Acceptable practices include allowing vendors to pick up payments (with proper controls) and prioritizing electronic payments for speed and security.Mailing the paymentis generally not suitable for rush payments due to delivery delays.

Item I (Allow the payment to be picked up by the vendor): Acceptable, provided strict controls (e.g., ID verification) are in place to ensure the correct recipient collects the payment.

Item II (Insist on making the payment electronically): Acceptable and preferred, as electronic payments (e.g., ACH, wire transfers) are fast, secure, and trackable, ideal for rush scenarios.

Item III (Mail the payment): Not acceptable for rush payments, as mailing introduces delays (e.g., 2–5 days), undermining the urgency.

Option A (II and III only): Incorrect, as Item III is not suitable for rush payments.

Option B (I, II, and III): Incorrect, as Item III is not suitable.

Option C (I and II only): Correct, as Items I and II are acceptable rush payment practices.

Option D (I and III only): Incorrect, as Item III is not suitable.

Reference to IOFM APS Documents: The APS e-textbook underPaymentsstates, “For rush payments, electronic payments are preferred for speed and security, and vendor pickup is acceptable with controls, but mailing is not suitable due to delays.” The training video notes, “Rush payments should leverage ACH or wire transfers, or controlled pickup, avoiding mail to meet urgent deadlines.”

An accountable plan, as defined by the Internal Revenue Service (IRS), is a reimbursement or allowance arrangement for business expenses, including Travel and Entertainment (T&E), that meets three specific requirements to avoid being treated as taxable income: (1)Expense substantiation, where employees must provide documented evidence (e.g., receipts) for expenses; (2)Business connection requirement, meaning expenses must be incurred in connection with performing services for the employer; and (3)Return of unused cash advances on a timely basis, ensuring any excess advances are returned within a reasonable period (typically 120 days). All three elements (Options I, II, and III) are required for a T&E accountable plan.

The web source from the IRS states: “An accountable plan must meet three requirements: 1) Employees must have paid or incurred expenses while performing services as an employee (business connection); 2) Employees must adequately account for these expenses within areasonable period (substantiation); and 3) Employees must return any excess allowance or advance within a reasonable period.” This directly supports Option B, as all three elements are included in the IRS definition.

The IOFM APS Certification Program covers “Tax and Regulatory Compliance,” including IRS regulations for T&E accountable plans. The curriculum’s focus on “peer-tested best practices” and compliance with federal tax laws emphasizes the three IRS requirements, confirming that all three elements are essential.