Regarding Electronic Data Interchange (EDI),which of the following statements is incorrect?
A) A manager approves the invoice, and then an electronic fund transfer sends the retailer's payment to the supplier.
B) The retailer electronically sends an invoice to the supplier.
C) EDI procedures are used for both cash payments and cash receipts in many companies.
D) When a retailer's inventory reaches a low level, the computer creates and sends an electronic purchase order to the supplier.

Question

Quizplus · Accepted Answer

EDI is typically used for the electronic exchange of documents from one company to another. In the context of EDI, it is the supplier who sends an invoice to the retailer, not the other way around. The retailer might send a purchase order, but the invoice usually goes from the supplier to the retailer after the goods or services have been delivered.

Regarding Electronic Data Interchange (EDI),which of the Following Statements Is