BASIC PURCHASES SYSTEM

Receiving clerk receives the goods and reconciles with packing

slip and blind copy of PO
 Sends receiving report to
 Inventory storeroom
 Purchasing department
 Files hard copy

AP department reconciles invoice, purchase order and receiving

report
 Records transaction in the purchases journal

Gender ledger department receives journal voucher from AP

dept and account summary from inventory control.

1
BASIC CASH DISBURSEMENT SYSTEM
AP clerk reviews AP packets each day, identifies items due, sends
supporting documents to cash disbursements department.
Cash disbursements department reviews documents for completeness
and accuracy and prepares the payment for signature.
AP department removes the liability and sends AP summary to GL
department.
GL department posts to the general ledger control accounts and files
the documents.

2
AUTHORIZATION CONTROLS
Purchases of inventory should be authorized by the Inventory Control
department, not by purchasing agents

Accounts Payable authorizes the payments of bills, not the cash

disbursements clerk, who writes the checks