The process outlined to the left has the following benefits:
are made to ensure the best value purchase is made
that goods are not ordered unless the purchase has been
approved (Purchase Order)
receiving of goods is formally acknowledged. Checks are
made that the goods received are the goods ordered.
received are checked against purchase orders and delivery
are processed through accounting system i.e.
Purchases Journal, Accounts Payable Ledger. This allows
the business to keep track of its expenditure and to have
more control over its liabilities (amounts owing to Creditors).
When statements are received from suppliers they are reconciled
i.e. transactions on the statement are checked for differences
/ discrepancies with our accounting records. Reconciliations
performed regularly will ensure that the accounts payable
system is correct.
Copyright and Disclaimer | About the author Leo Isaac | Email Webmaster