OBJECTIVES

Tracking purchases of goods and/or services from vendors

Tracking amounts owed

Maintaining vendor records

Controlling inventory

Making timely and accurate vendor payments

Forecasting purchases and cash outflows

INPUTS
Purchase Requisition - shows items requested by stores and may indicate the name of the vendor
Purchase Order - based on purchase requisition but also includes vendor information and payment terms Vendor Invoice - includes items shipped by vendors, prices, shipping terms and discounts provided

 Receiving Report - reflects the count and condition of received goods

Bill of lading accompanies the goods sent

Packing slip included in the merchandise package

Debit/Credit Memoranda - debits or credits accounts payable

OUTPUTS
Financial Statement Information
Vendor Checks - should be supported by a voucher and signed by a person designated by management Check Register - lists all checks issued for a particular period

 Discrepancy Reports - used to identify any differences among quantities on the purchase order, receiving report, and vendor invoice Cash Requirements Forecast - predicts future payments and payment dates by reference to outstanding purchase order, unbilled receiving reports and vendor invoices

Receive Goods or Services

Receiving Report

Shipping Notice

Materials Requisition Form

Receiving Report

Purchase Goods or Services

Payment Purchase Invoice

Invoice and Payment Data

Maintain Accounts Payable

Cash Requirement Forecast Purchase Analysis

IT Used in Sales and Purchasing Processes

Automated data-entry technology

RFID Tags

 Business Process Outsourcing - has given rise to a business model called business without boundaries. The result is a new dimension to outsourcing called offshoring. Business Process Management (BPM) software packages help companies collect corporate knowledge, data, and business rules into a business system to improve core business processes.