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Purchases & Payments (1. Ordering (A. Procurement department…
Purchases & Payments
1. Ordering
A.
Procurement department
centralized dept in org
most reliable & cost efficient supplier
vetted & approved suppliers list
B.
Requisition
best price, quality, shortest delivery, etc
requisition - std format doc
(Authorised: Dept Head)
buyer to source goods
C.
Purchase Order (P/O)
triplicate: 1) procurement 2) supplier 3) receiving dept
approved: chief buyer
pre-#
2. Receiving
A.
Goods Delivered
agrees quantities ordered with delivered
superficial quality check
receiving clerk - supplier D/N = P/O
additional measures - CCTV cameras
B.
Credit notes
pre-#
approved:
purchase manager
if goods need to be returned
C.
GRN issued
pre-# GRN
stating actual quantity received
attach P/O + D/N + C/N {3 way matching}
3. Recording
A.
Acc clerk
agree price/quantity/vat/recalc
all supporting docs attached P/O + D/N + GRN + C/N
prepare grid stamp
B.
Liability is raised
payment becomes due
4. Payments
A.
Prep of payment
Cr: statement received = invoices = payments maded
payment requisition - creditors clerk
creditors recon performed
B.
Presentation of requisition
always 2 signatures
agree = amount/payee/date/cancel sup doc's before sign
payment req + all sup doc = authorized signatories