The document describes the purchasing and inventory control processes at Gadgets-Express Enterprise. It outlines the key steps and departments involved, including purchasing, receiving, inventory control, and accounts payable. Purchase requisitions are reviewed by purchasing agents and used to create purchase orders that are sent to vendors and various departments. Incoming goods are verified against purchase orders by receiving, and receiving reports update inventory and accounting records. Strong internal controls include segregation of duties and supervisory oversight to ensure policies are followed.
The document describes the purchasing and inventory control processes at Gadgets-Express Enterprise. It outlines the key steps and departments involved, including purchasing, receiving, inventory control, and accounts payable. Purchase requisitions are reviewed by purchasing agents and used to create purchase orders that are sent to vendors and various departments. Incoming goods are verified against purchase orders by receiving, and receiving reports update inventory and accounting records. Strong internal controls include segregation of duties and supervisory oversight to ensure policies are followed.
The document describes the purchasing and inventory control processes at Gadgets-Express Enterprise. It outlines the key steps and departments involved, including purchasing, receiving, inventory control, and accounts payable. Purchase requisitions are reviewed by purchasing agents and used to create purchase orders that are sent to vendors and various departments. Incoming goods are verified against purchase orders by receiving, and receiving reports update inventory and accounting records. Strong internal controls include segregation of duties and supervisory oversight to ensure policies are followed.
The document describes the purchasing and inventory control processes at Gadgets-Express Enterprise. It outlines the key steps and departments involved, including purchasing, receiving, inventory control, and accounts payable. Purchase requisitions are reviewed by purchasing agents and used to create purchase orders that are sent to vendors and various departments. Incoming goods are verified against purchase orders by receiving, and receiving reports update inventory and accounting records. Strong internal controls include segregation of duties and supervisory oversight to ensure policies are followed.
Vendor Purchasing Department Inventory Control Receiving Department Accounts Payable General Ledger
PO PURCHASE REVIEW PO BLIND INVENTOR REQUISITION RECORD Y LEDGER PO PO S FILE
PURCHASE A JOURNAL; SUMMARY PREPARE REQUISITIO PR VOUCHER PURCHASE N ORDER cv PURCHASE PACKING RECEIVING REQUISITION SLIP REPORT PO PO PO PREPARE PACKING RECEIVING PO RECEIVING INVOICE PR SLIP REPORT POST GENERA PO REPORT AND B RECO LEDGER PO PO NCILE
PO FILE POST PR LIABILI RECEIVING TY SUMMARY C REPORTS STORES JOURNAL PACKING SLIP VOUCHER
VOUCHER PURCHASES REGISTER JOURNAL RECEIVING C RECEIVING REPORT JOURNAL RECON REPORTS VOUCHER A CILE FILE UPDATE ACCOUNTS FILE RECORDS INVENTORY PAYABLE SUB LEDGER LEDGER PO INVOICE PURCHASE RECEIVING SUMMARY REQUISITION REPORTS PURCHASE PR INVOICE INVOICE CASH ORDER COPY PO DISBURSEMENT PURCHASE VOUCHER REPORT RR B Gadgets-Express Enterprise SM Northwing, SM City Bacolod Rizal Street, Reclamation Area, Bacolod City, Negros Occidental, Philippines. Inventory Control
To have a reliable internal control, the firm develops written policies and procedures and invest in education and training for employees. Supervisors also evaluate an employee’s performance to make sure the employee is following company policies. Before the purchases were approved, the purchasing agents review requisitions for proper approval and budgets. In our enterprise, the purchasing agents wants to know first if the purchases are aligned with the correct suppliers. Checking document receipt on receiving report and comparing goods received to purchase order are will-organized inorder to trace and manage good internal control system in the company. The accounts payable personnel separate from receiving, purchasing, and cash disbursements where in disbursements made with pre-numbered checks. In our order through checks, it is signed by authorized individual in order maintain credit and to have control in the amount of money that goes in and out.
Purchasing Department
The purchasing department receives the purchase requisitions, sorts them by vendor, and prepares a multipart purchase order (PO) for each vendor. Two copies of the PO are sent to the vendor. One copy of the PO is sent to inventory control, where the clerk files it with the open purchase requisition. One copy of the PO is sent to AP for filing in the AP pending file. One copy (the blind copy) is sent to the receiving department, where it is filed until the inventories arrive. The clerk files the last copy along with the purchase requisition in the open PO file.
Receiving
Goods arriving from the vendor are reconciled with the blind copy of the PO. Upon completion of the physical count and inspection, the receiving clerk prepares a multipart receiving report stating the quantity and condition of the inventories. One copy of the receiving report accompanies the physical inventories to the storeroom. Another copy is sent to the purchasing department, where the purchasing clerk reconciles it with the open PO. The clerk closes the open PO by filing the purchase requisition, the PO, and the receiving report in the closed PO file.A third copy of the receiving report is sent to inventory control where (assuming a standard cost system) the inventory subsidiary ledger is updated. A fourth copy of the receiving report is sent to the AP department, where it is filed in the AP pending file. The final copy of the receiving report is filed in the receiving department.
AP Department
When the invoice arrives, the AP clerk reconciles the financial information with the documents in the pending file, records the transaction in the purchases journal, and posts it to the supplier’s account in the AP subsidiary ledger (voucher register). After recording the liability, the AP clerk transfers the source documents (PO, receiving report, and invoice) to the open vouchers payable (AP) file.
General Ledger Department
The general ledger department receives a journal voucher from the AP department and an account summary from inventory control. The general ledger clerk reconciles these and posts to the inventory and AP control accounts. With this step, the purchases phase of the expenditure cycle is completed.
