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Purchases and Payments Cycle - Coggle Diagram
Purchases and Payments Cycle
Ordering of Goods
Documentation
Requisitions
List of Approved Suppliers
Must exist and never changes
Supplier price lists
Obtained periodically by business
Purchase orders
Attributes
Sequntially numbered
The name of the supplier
The quantity ordered
A description of the goods
The price of the good
Discounts
Terms of payment;
Delivery address;
Signature of the by the buyer/purchase department
Sent to
The supplier
The receiving department
kept in a deliveries pending registe
The receiving of Goods
Documentation
Copy of the PO
Check the following again PO
Type
Quality
quantity
Supplier delivery notes
Goods received notes
Attrib.
he quantity of goods received
The purchase order number
The date on which goods was received
A description of the goods
Details of the person who received the goods
Sent to
Ordering department
Copy of the PO and DN to the accounts department
Recording of Goods
Documentation
Supplier invoice
Attrib.
The price, terms and account details to the agreed PO
The calculations on the invoice/s
Quality, type, quantity and date to the GRN and DN
Copy of the PO’
Copy of the GRN
Purchases Journal
filed under the
suppliers’ name
hecked to the statement received from the supplie
Credit Notes
supplier and a credit note is to be made
out to the supplier.
Payment cycle
Payments to creditors/payables
Control over cheque forms
Drawing & signing of cheques;
Recording of payments
documentation
Remittance advices
Cheques
Bank statements
Cash payments journal