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1). Ordering of goods - Coggle Diagram

- - - - Copy of the PO;
      - Supplier delivery notes (hereafter DN); and
      - Goods received notes (hereafter GRN).
    - - Details of goods received
        a. A GRN should be used to record the details of items received;
        b. The GRN should be signed off by the person in charge of receiving.
        
        The Goods received note:
        The following information should be included in the GRN:
        i. The quantity of items received;
        ii. The number of the purchase order
        iii. When the items were received;
        iv. A description of the commodities;
        v. Information on the person who received the goods.
        b. The GRN should be printed in duplicate and forwarded to the following addresses:
        i. Ordering department;
        ii. Accounts department, together with a copy of the PO and DN.
        
        Treatment of damaged goods:
        Damaged items should not be accepted. They should be returned to the supplier and the accounts and buying departments should be notified.
  - - - Supplier invoice;
      - Copy of the PO’s;
      - Copy of the GRN;
      - DN form supplier;
      - Purchases Journal; and
      - Credit Notes (Disputed invoices and goods returned).
    - - Recording of purchases:
        The purchases should be put directly into the buy journal, filed under the suppliers' names, and compared to the supplier's statement.
        
        . Disputed Invoices:
        Disputed bills should be kept separate and followed up on by a senior employee.
        
        Goods returned:
        All items must be returned to the supplier, and a credit note must be sent to the provider.
  - - - 3 Functions:
        
        Control over cheque forms;
        
        Drawing & signing of cheques; and
        
        Recording of payments.
      - Documentation present within the payments made to creditors/payables function:
        
        Remittance advices
        
        Cheques
        
        Bank statements
        
        Cash payments journal
      - Controls over cheque forms:
        a. Cancelled cheques should be clearly marked as such and either attached to the relevant cheque counterfoil or filed separately;
        b. All cheques should be sequentially numbered;
        c. All paid cheques should be filed in numerical order;
        d. Cash cheques should be avoided; and
        e. All cheques must be crossed with the words 'not transferable'.
        
        . Drawing and signing of cheques:
        a. Cheques drawn should be presented to persons authorised to sign them and must be accompanied by the necessary supporting documentation;
        b. Documents to be paid should be inspected and, if agreed that the expenditure was valid and accurate, the documents should be marked as paid to avoid resubmission for payment; and
        c. Cheques should be signed by two signatories with the appropriate level of authority to sign them.
        
        . Recording of payments:
        a. To ensure segregation of duties, the recording of cheques must be done by people who are not involved in the drawing, signing, or handling of the cheques;
        b. Cheques returned from the bank must not be accessible to the person who keeps accounts payable records;
        c. The control account must not be accessible to the people who maintain the accounts payable sub ledger;
        d. Regular reconciliations must be done by someone who is not involved in the accounts payable sub ledger.
        
        EFT’s is also a valid payment method; however, these controls have been dealt with
    - - Occurrence/Validity;
      - Authorisation;
      - Completeness;
      - Accuracy;
      - Recording;
      - Classification; and
      - Cut off.