Question

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n):

a. post-billing system
b. open-item system
c. pre-billing system
d. balance-forward system

Answer 1

The correct answer is a post-billing system. This system is used to create invoices after the shipment is confirmed and matched with the sales order, ensuring accuracy in billing. Hence, the correct answer is option (a).

Step-by-step explanation:

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a post-billing system. This system ensures that billing is based on what has actually been shipped to avoid discrepancies.

In contrast, a pre-billing system generates invoices before goods are shipped, an open-item system deals with invoices that are partially paid or disputed, and a balance-forward system aggregates all outstanding charges and payments over a period and reflects them on a single statement.