Oracle Financials Cloud: Accounts Receivable 2017 Implementation Essentials — Question 39

What is the difference between Prospective and Spend authorized suppliers?

Answer options

• A. Prospective suppliers are suggested by internal users, whereas Spend authorized suppliers are registered externally.
• B. Prospective suppliers can participate in Sourcing activities only, whereas Spend authorized suppliers can participate in all Procure-to-Pay activities.
• C. Prospective suppliers are limited to purchase orders, whereas both purchase order and agreement can be created for Spend authorized suppliers.
• D. Prospective suppliers are limited to sourcing and qualification activities, whereas Spend authorized suppliers are limited to purchase orders and agreements.

Correct answer: D

Explanation

The correct answer is D because Prospective suppliers are indeed limited to sourcing and qualification activities, while Spend authorized suppliers are able to engage in both purchase orders and agreements. Options A and B misrepresent the scope of participation for these supplier types, and option C incorrectly states the limits of purchase orders for Prospective suppliers.