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Exit VCEDump ISM-CORE Supply Management Core
Question 44 of 53
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Q44 Single choice

A firm enters into a contract with a minority business. The invoice does not match the purchase order, and some incorrect items are shipped. The erroneous items, valued at $5,000, are returned. The replacement items are scheduled to be delivered within 2 days. The total invoice is for $18,000, which is a substantial amount for the business. Preferential payment terms have previously been negotiated from 30 to 14 days from receipt of goods, as cash flow is a significant issue.
The situation is summarized as follows: Purchase Order RaisedGoods Received Invoiced Timing18 days ago 13 days ago 12 days ago Amount$18,000 $18,000 $18,000
As it will take one business day to process payment, a decision needs to be made on whether the supplier should receive payment on time.

Which of the following courses of action should the supply manager take?

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