Pass APS Exam Guide

TheVendor Master Filetopic in the APS Certification Program addresses managing dynamic vendor data, such as contact information, which can change frequently. An efficient approach is toinclude a contractual requirementfor vendors to notify the organization in writing of personnel or contact changes, ensuring the VMF remains accurate without excessive manual effort.

Option A (Conduct a thorough audit semiannually): Inefficient, as semiannual audits are too infrequent for frequently changing data and resource-intensive.

Option B (Include only the vendor web address): Inefficient and risky, as websites may not provide current contact details, and manual checks are time-consuming.

Option C (Assign an individual to review weekly): Inefficient, as weekly reviews are labor-intensive and impractical for large vendor bases.

Option D (Include in the vendor contract notification of personnel changes): Correct. Contractual notification shifts responsibility to vendors, ensuring timely updates with minimal organizational effort.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “To manage frequently changing contact information, include contractual terms requiring vendors to notify the organization of changes in writing, reducing manual updates.” The training video notes, “Efficient VMF management leverages vendor contracts to ensure timely contact updates, avoiding labor-intensive audits.”

The current thinking on automation of Travel and Entertainment (T&E) expense handling, reporting, and reimbursement is that itreduces processing costs, thereby increasing efficiency in handling T&E data. Automation streamlines tasks like receipt capture, expense report submission,approval workflows, and reimbursement, reducing manual effort and errors while improving compliance and visibility.

The web source from SAP Concur states: “T&E automation significantly reduces processing costs by streamlining expense reporting, improving accuracy, and increasing efficiency in handling T&E data.” This directly supports Option D. The other options are incorrect:

Option A: Automation minimizes, not perpetuates, manual work in modern T&E systems.

Option B: Automation strengthens controls, reducing loopholes through features like policy checks.

Option C: T&E automation is well-established, not too new to evaluate.

The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” emphasizing the benefits of automation in expense management. The curriculum’s focus on “peer-tested best practices” aligns with the efficiency and cost-saving benefits of T&E automation.

TheVendor Master Filetopic in the APS Certification Program outlines the goals of a vendor management program, which include preventing duplicate payments, ensuring compliance with laws (e.g., IRS reporting), and collecting spend data for procurement.Streamlining sales and use tax processes, while related to AP, is typically handled through tax compliance systems or purchasing processes, not the vendor management program, which focuses on vendor data and relationships.

Option A (Reducing duplicate payments): A key goal, achieved by maintaining accurate vendor master file data to avoid duplicate vendor entries.

Option B (Streamlining sales and use tax process): Not a primary goal. Sales tax processes are managed separately, often through AP or procurement systems, not the vendor management program. Correct answer.

Option C (Collecting spend information for procurement): A goal, as vendor management provides data on spending patterns, aiding procurement negotiations.

Option D (Compliance with laws and regulations): A goal, ensuring vendor data supports IRS reporting (e.g., 1099s) and sanction list compliance.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “Vendor management programs aim to reduce duplicate payments, ensure regulatory compliance, and collect spend data for procurement, but sales tax processes are typically managed outside vendor management.” The training video notes, “Vendor management focuses on accurate data to prevent errors like duplicates and support compliance, not directly on tax processes.”

A "direct spend" invoice pertains to expenditures directly tied to the production of goods or services, such as raw materials or inventory used in manufacturing or resale. In accounts payable, direct spend is distinguished from indirect spend, which covers operational expenses like supplies or repairs that support business operations but are not incorporated into the final product. The correct answer is "Inventory," as it directly relates to goods acquired for production or resale, aligning with the definition of direct spend.

According to the web source from SAP Concur: “Direct spend refers to the purchase of goods and services that are directly incorporated into a product being manufactured, such as raw materials… Indirect spend refers to expenses that support the operations of a business but are not directly included in the final product, such as utilities, office supplies, and facility maintenance.” Inventory, particularly raw materials or goods for resale, is a core component of direct spend, whereas supplies (e.g., office supplies) and repairs (e.g., equipment maintenance) typically fall under indirect spend. The option "Material" could also be associated with direct spend, but "Inventory" is the more precise term in this context, as it encompasses materials used in production or sale.

The IOFM Accounts Payable Specialist (APS) Certification Program includes the topic of “Invoices,” which covers invoice types and their purposes. While the IOFM study guide does not explicitly define “direct spend” in the provided sources, its focus on invoice processing and procurement processes implies familiarity with distinguishing direct and indirect spend. The curriculum’s emphasis on “peer-tested best practices for each phase of the payment process” supports the standard industry definition provided by SAP Concur.