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PGMP · Question #303

You are the program manager for your organization that utilizes vendors from several different organizations. A vendor has submitted an invoice for the work they have completed in your program. You ha

The correct answer is A. Approve the payment request. Once you have reviewed the vendor's work results and confirmed that the contractual obligation is complete, the next logical step is to approve the payment. You have already done the verification step - examining the work against the contract - and have agreed the work is done. T

Program Life Cycle Management

Question

You are the program manager for your organization that utilizes vendors from several different organizations. A vendor has submitted an invoice for the work they have completed in your program. You have reviewed the work results and agree with the vendor that their contractual obligation is complete. What should you do next in regard to the vendor's invoice?

Options

  • AApprove the payment request
  • BFinalize the performance report
  • CExamine the contract
  • DComplete a financial audit of the work

How the community answered

(17 responses)
  • A
    76% (13)
  • C
    18% (3)
  • D
    6% (1)

Explanation

Once you have reviewed the vendor's work results and confirmed that the contractual obligation is complete, the next logical step is to approve the payment. You have already done the verification step - examining the work against the contract - and have agreed the work is done. There is no further need to re-examine the contract (C), perform a financial audit (D), or finalize a performance report (B) before approving a payment that is already verified and due. Withholding payment after confirming completion would be a breach of contract and an unethical business practice. Prompt payment upon verified completion is the correct and expected action.

Topics

#Vendor Management#Contract Closure#Payment Processing#Program Execution

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