Examkin

Question

Difficulty: MediumElectronic Business and Data Interchange in Accounting

In an Electronic Data Interchange (EDI) workflow, a Functional Acknowledgment sent by a receiving trade partner's system confirms that the transmitted transaction has been validated and posted to the general ledger.

Answer: Answer

Answer

False
A Functional Acknowledgment in Electronic Data Interchange confirms only technical transmission success and syntax compliance. Accounting validation and ledger posting require further processing within the enterprise resource planning (ERP) or accounting software.

Step-by-Step Solution

1
Examine the role of a Functional Acknowledgment in EDI operations.
Determine that a Functional Acknowledgment (such as an EDI 997 message) functions as an automated electronic receipt verifying receipt and envelope/syntax integrity.
EDI communication protocol separates document transmission confirmation from application accounting logic.
2
Analyze accounting transaction processing requirements in computerized systems.
Recognize that general ledger posting occurs only after internal application checks, such as purchase-order matching and authorization approval.
A technical message acknowledgment is generated prior to business application processing and account reconciliation.

Key Concept

Distinction between EDI transmission acknowledgment and accounting application posting controls
Rate this question

Topics

Electronic Business and Data Interchange in Accounting

More questions from this topic