Accredited ACH Professional (AAP) Practice Exam

Which business transaction document is often triggered by a sales contract?

1. Shipping Notice

2. Payment Receipt

3. Vendor Invoice

4. Order Acknowledgment

The correct answer is: Shipping Notice

The correct response to the question is the shipping notice, as this document is commonly generated as a result of a sales contract. When a sales contract is established between a buyer and seller, it outlines the details of the transaction, including the quantities and types of goods to be delivered. Once the seller prepares to fulfill the contract by shipping the products, a shipping notice is created to inform the buyer that the shipment is on its way. This notice typically includes information such as tracking numbers, expected delivery dates, and details about the items shipped, helping the buyer to anticipate receipt of the goods. While other documents such as payment receipts, vendor invoices, and order acknowledgments play significant roles in the business transaction process, they are not directly triggered by the sales contract in the same immediate manner as a shipping notice. Payment receipts document the reception of payment and are usually generated after the transaction is completed. Vendor invoices request payment after goods or services have been provided and typically follow the fulfillment of the sales contract rather than precede it. Order acknowledgments confirm that the seller received and accepted the order, but they do not represent the act of shipping the goods. Thus, the shipping notice is the document that is most closely linked to the execution of the sales contract.