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Purchases & Payment Cycle: Functions (1. Ordering (Process Flow: Req…
Purchases & Payment Cycle:
Functions
1. Ordering
Process Flow:
Req Dept issue Req - Procure Dept > Buyer Selects supplier from auth list (list edit = ChB) > Pre-no PO(in triplicate: supplier, receiving dept, acc dept) ChB
Telephonic Orders must be discouraged
Doc Flow
: Requisition(Req)-Purchase Order(PO)
Affected Accounts
SFP
Payables & Accruals, Inventory, VAT, Provisions, Bank,Discount receivable, Prep-Exp
SOCI
Salaries & Wages, General Expenses, Consumables
2. Receiving Goods
Process Flow:
Rec Clerk agree PO-DLN(Auth & Quantity) > Superficial Qual check > Indicate on DLN goods not taken Rec Clerk & Del Clerk sign off changes > Rec Clerk fill pre-no GRN & agree to PO & DLN > Send copies of docs to acc dept
Extra surveillance and security at rec dept to prevent theft and stock disappearing
Doc Flow:
Delivery Note(DLN) - Goods Received Note(GRN)
3. Recording
Process Flow:
Acc Clerk agrees Invoice using grid stamp: Quant - GRN, Price-PO, VAT, Recalc > Attach GRN,PO,DLN to INV > Record
4. Payment
4.1 Preparation of Payment
Process Flow:
Cr Clerk inspect docs Acc clerk > Recon CrStates - Invoices & Pmts > PmtReq with supp docs
Doc Flow:
Creditors' Statements(CrStates), Payment requisitions(PMTReqs)
4.2 Actual Payment
Process Flow:
Two sigs inspect amt, payee, date, supp docs > Make pmt issue Rec > Send RemAdv
Doc Flow:
Remittance advice(RemAdv) - Receipt(Rec) - EFT proof