...1) Draw a context diagram for the expenditure cycle for AB Hi-Fi Suppliers Purchase Requisition Quote Purchase Order Invoice AB Hi-Fi Expenditure cycle Bank Supplier Payment Details Items Delivered Delivery Docket Accepts / Rejects Delivery Delivery Driver Prepare a level 0 DFD for the expenditure cycle at AB Hi-Fi Purchase Clerk Monitors stock levels Completed Purchase Requisition Inventory Purchase Requisition Approved Purchase Requisition Purchase Manager 1.0 Demand for Goods Commence ordering on receipt of approved purchase requisition 2.0 OrderingG oods Requests list of approved suppliers Purchase Clerk Quotes sent Opens Requisition Requests for quotes Purchase Requisition Suppliers Create Purchase Order P.O. emailed Purchase Order P.O. emailed P.O. emailed Warehouse Clerk Receiving Report & Delivery Docket Delivery Docket Accepts / Rejects Delivery Delivery Driver 3.0 Receiving Goods Supplier Payment Updates 4.0 Payment for Goods Creates Payment File Extracts PO status Invoice P.O. data store Suppliers Payments File Accounts Payable General Ledger data store Supplier Payment Details Bank Process 1.0 Determine demand for goods Process 2.0 Order goods Process 3.0 Receive goods Process 3.0 Receive goods Process 3.0 Receive goods Process 4.0 Pay for goods All Suppliers Approved Suppliers Purchase Clerk Provide PO number on...
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...B. Verified that each item listed was properly recorded in inventory purchases journal. Traced to vendor invoice and purchase requisition in Treasurer’s Office. Examined purchase requisition for agreement with receiving report as to quantity and description of goods received. All agreed except C. See also comment D. Examined purchase requisition for evidence that proper company official approved items and quantities. Thomas’ and Rogers’ signatures or initials present in all cases except E. Examined vendor invoice for agreement with receiving report and purchase requisition as to quantity and description of goods received. All agreed except C. Examined vendor invoice for evidence that company employees verify prices, extensions, and footings. Markings or initials present in all cases except F. Compared invoice prices with Master Price list. All agree except H, I, and J. Traced invoice to canceled check and matched dollar amounts, recalculating any applicable discount. All agreed except J. See also comment K. Comments: A. Receiving reports have no place for Vendor name. Most merchandise is received from Cypress Products, but if office supplies or other necessary material is received at the receiving dock, the report should have a place to indicate an alternate vendor than Cypress Products. B. Receiving report #3926 not on file. Used Purchase Requisition and Vendor Invoice to verify quantity and descriptions of items. Obtained copies of Receiving...
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... Vendor Purchase Requisition Number Receiving Report Number Invoice Number Check Number Audit Procedures 8/20/06 Cypress Products 6702 3918 711 3091 8/21/06 Cypress Products 6703 3919 802 3121 F 8/24/06 Cypress Products 6705 3920 991 3164 F 8/27/06 Cypress Products 6704 3921 1261 3203 E H L 8/28/06 Cypress Products 6706 3922 1313 3251 D 9/2/06 Cypress Products 6707 3923 1406 3310 G 9/3/06 Cypress Products 6708 3924 1510 3345 I 9/7/06 Cypress Products 6710 3925 1616 3397 F B Cypress Products 6709 3926 1691 3425 B 9/14/06 Cypress Products 6711 3927 1812 3451 C C 9/16/06 Cypress Products 6712 3928 2072 3471 F J 9/16/06 Cypress Products 6713 3929 2149 3510 E Audit Objectives: To verify that all received merchandise was properly ordered and recorded and is for legitimate business purpose. To verify that expenses and assets are properly valued and classified. To verify that merchandise orders are handled properly and cash disbursements occur accurately for these orders. Scope: a) Population- All received merchandise. b) Sample- Judgmental. Selected 12 receipts of merchandise from Inventory Department’s receiving report file. Audit Procedures: Reviewed receiving reports for completeness and authorization. See comments A and B. Verified that each item listed was properly...
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...1. Is the supply function organized properly? Is it strategic or tactical in nature? No it is not. It is tactical in nature when expeditor was picking up parts with no confirmed orders or supply department receiving invoices for items that could not be matched to corresponding purchase order. 2. Purchasing procedures at Blozis are related to specifications, the use of requisitions, purchase orders, and receipt and delivery. Should these be changed? Why or why not? If they should be changed, how? Problems: Yes they should be changed because the current processes will only generate a lot of inaccuracies in the inventory and documentations. Current inventory and purchasing process allows for inventory to go missing, late payments to suppliers as well as mismatched receiving of invoices with purchase orders. No proper tracking and accounting of inventory is possible. Early payment discounts are also missed. The lack of documentation for the items picked up is not helping the departments to stay within budget. Corners are being cut with the way the system works. Two micrometers are lost because the expeditor most likely has picked up them up at the receiving dock and has taken them directly to the engineers. Since no documentation was in place to illustrate what has happened, it has become a financial and time loss to the company. Supply department also has to face with invoice for which they have no confirming documentation to support the payment for. There...
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...control. The supply department is exhibiting weak control over materials and the overall supply management performance. The implementation of a supply management process will give the organization control of its operations. The large number of items, the large dollar value involved, the need for an audit trail, the severe consequences of poor performance, and the potential contribution to effective organizational operations inherent in the function are five major reasons for developing a robust process. The acquisition process is closely tied to almost all other business processes included in the organization and also to the external environment, creating a need for complete information systems and cross-functional cooperation. Issue Identification There is a lack of communication and control across this organization. The expediter is overworked, as he is involved in more than his assigned tasks. He is consulted by engineering or production when there are ordering problems, he also writes commercial specifications for these departments, types the requisitions, issues purchase orders, picks up rush orders, and supervises the stock room. There is no segregation of duties as anyone in the company is allowed to initiate a requisition. As a result of the informal operations, the engineering and production departments have difficulties staying within budget as the managers do not know what materials are being charged to their department until the monthly accounting statements...
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...documents and time-consuming tasks. The E-Purchasing Solution automatically sends purchase orders, purchase requisition forms, etc… from SAP ensuring completion and timely approval of documents that are sent to your suppliers. You can easily track documents to verify they have effectively been sent ensuring that no order has been lost or misplaced. ERP FAX EMAIL Purchase order Purchase order copy Purchase order copy EMAIL Purchase department Production planning Accounting department Suppliers Purchase Manager Validation form by e-mail Automatic file Warehouse ERP FAX EMAIL Purchase order Purchase order copy Purchase order copy EMAIL Purchase department Production planning Accounting department Suppliers Purchase Manager Validation form by e-mail Automatic file Warehouse The Purchasing Policy The driving force behind any purchasing corporate policy considers the following objectives: 1. Spend corporate funds wisely. 2. Operate in a professional manner. 3. Purchase the right materials in the right quantities, at the right time and price, from the right source. 4. Practice the highest level of ethical standards to ensure confidence among all parties Purchasing Procedures Purchasing Cycle Fiscal Officer Approves Employee fills out form Vice Chancellor Approves Purchasing Cycle Supervisor Approves Purchase Order Issued and Sent To Vendor Item received By Vendor Receiving Report Signed and Invoices Paid Fiscal Officer Approves Employee fills out form...
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...Chapter 4 The Procurement Process Multiple Choice Questions | 1. |Which one of the following is not a type of organizational data that is utilized in the procurement process? | | | | | |Client | | |Company Code | | |Storage Location | | |Purchasing Organization | | |Manufacturing Plant | | | | | |Answer: e Difficulty: Easy Page Reference: 2 | | |Section: Organizational Data Practice: ...
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... Company : RONS ENVIRO CARE LLC / DUBAI Duration : From 9TH March 2015 till date POSITION : STORE KEEPER RESPONSIBILITIES: ▪ To exercise general control over all activities in Stores Department ▪ To ensure safe keeping both as to quality and quantity of materials. ▪ To maintain proper records. ▪ To initiate purchase requisitions for the replacement of stock of all regular stores items whenever the stock level of any item of store approaches the minimum limit fixed in respect thereof. ▪ To initiate action for stoppage of further purchasing when the stock level approaches the maximum limit. ▪ To check and receive purchased materials forwarded by the receiving department and to arrange for the storage in appropriate places. ▪ To reserve a particular material for a specific job when so required. ▪ To issue materials only in required quantities against authorised requisition notes/material lists. ▪ To check the book balances, with the actual physical stock at frequent intervals by way of internal control over wrong issues, pilferage, etc. TECHNICAL SKILLS: *MS office word, Excel *Power Point *Internet Explorer EDUCATIONAL SKILLS: 2007: University of Dschang; Bachelor of Science in Management 1999: Cameroon...
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...Whenever inventory records in any departments are below its re-order level, a dedicated staff in each department will submit a purchase requisition to the purchasing department clerk. Upon receiving the documents, the clerk will prepare the purchase orders. He will send Copy 1 to the supplier, Copy 2 to the receiving department and Copy 3 to the accounts payable department. A few days later, the supplier ships the order and the goods arrive at the receiving department, together with a copy of Packing Slip. The receiving clerk reviews the purchase order (and the packing slip), inspects the goods and prints three copies of receiving report. The first copy of the report will be used to update the inventory records to reflect the receipt of goods, and later filed in the department. The second copy with the goods is sent to the warehouse and the third copy is sent to the accounts payable department. A day or two later, the accounts payable clerk receives a supplier’s invoice for the items shipped. The clerk assesses the receiving report and respective purchase order and later reconciles these documents with the supplier’s invoice. If all aspects of the order reconcile, the clerk records the amount of purchase into the respective accounts payable. Every Friday, a clerk from the accounting department will review the accounts payable and identify any items which are due for payment. A cheque will be prepared. Once approved and signed, it will be sent to the supplier and General Ledger will...
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...Whenever inventory records in any departments are below its re-order level, a dedicated staff in each department will submit a purchase requisition to the purchasing department clerk. Upon receiving the documents, the clerk will prepare the purchase orders. He will send Copy 1 to the supplier, Copy 2 to the receiving department and Copy 3 to the accounts payable department. A few days later, the supplier ships the order and the goods arrive at the receiving department, together with a copy of Packing Slip. The receiving clerk reviews the purchase order (and the packing slip), inspects the goods and prints three copies of receiving report. The first copy of the report will be used to update the inventory records to reflect the receipt of goods, and later filed in the department. The second copy with the goods is sent to the warehouse and the third copy is sent to the accounts payable department. A day or two later, the accounts payable clerk receives a supplier’s invoice for the items shipped. The clerk assesses the receiving report and respective purchase order and later reconciles these documents with the supplier’s invoice. If all aspects of the order reconcile, the clerk records the amount of purchase into the respective accounts payable. Every Friday, a clerk from the accounting department will review the accounts payable and identify any items which are due for payment. A cheque will be prepared. Once approved and signed, it will be sent to the supplier and General Ledger will...
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...I. Company Background: Swisher Systems Corporation (SSC) is an industrial heating company which was established in 1949. SSC is an innovator of flexible heating products, especially with its knit and braided heating element. The heating element is multi-stranded resistance wire that is knit and braided with fibreglass and is the base technology for almost all SSC products. SSC is known in the industry as being the highest quality flexible heat supplier which produces control devices and heating cable. SSC’s competitive advantage is on the quality products which maintains higher and safer temperature that are more flexible than their competitors or other products in the market. II. Facts of the Case: A. Mike Watkins Director of Purchasing for Swisher Systems Corporation Solely responsible for purchasing all materials of SSC. Has various experiences in material management prior to SSC. Has more than thirty-five (35) years of industrial purchasing experience. B. Products at Swisher Systems All SSC products are solutions to industrial heating applications SSC manufactures fifty percent (50%) standard products and fifty percent (50%) custom orders. o The custom products can be applied to virtually all industries that require heating products. Industries like semi-conductors, food processing, medical, petrochemical and others. Biggest contributor of SSC’s sales is the cloth heating jacket, though expensive compared to its competitors. The...
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...very honest and trustworthy individual guy, but is often shy and a bit awkward. D- Nicks main role in this story is that he’s the narrorator, and all of these events are based on his life. He is a very down to earth guy, calm and collected with a bunch of crazy events and people surrounding him. Instead of being in surroundings thatmirror him as a person, he is almost in an opposing environment, rivaling his ways of living. “There are only the pursued, the pursuing, the busy and the tired.” This quote goes to show a category for most characters in this book, for example Gatsby is a pursuer and a busy man. While someone like Daisy is the pursued. Being a go with the flow type of woman, instead of a go getter. A main symbolic item is that of the guests names on gatbys timetable. It shows that his connections he claims to have with most may be legitimate. It also goes to show that Gatsby seemingly surrounds himself with people and objects to put on a front of being knowledgeable and well...
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...I am going to describe the testing for control over the expenditure cycle. The expenditure cycle starts with the purchase requisition. The department in need of the service or assets sends a properly approved, serially numbered requisition to the purchasing department. The risk associated with the purchase requisition is that anyone could potentially make a purchase requisition order for any kind of amount. Therefore, to mitigate a risk associated with the purchase requisition, it is very important to have the right personnel to approve the purchase order. When I tested the expenditure cycle, I randomly chose the purchase requisition and I followed every step associated with that cycle and in In addition, I documented every step of my testing by describing every significant detail related to my testing. Also, I performed walkthrough by talking to the right personnel and asking them questions associated with my testing. That help me not only to better understand the entity’s business cycle but made my testing more reliable since I could determine appropriate segregation of duties among the personnel. The purchasing department should place the order after giving proper consideration to the time and quantity to order. The purchasing department should also obtain competitive bids from various suppliers to make sure the best price is obtained. The purchase order is issued only after proper approval. For the internal control purposes, it is best that prenumbered purchase order...
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...Purpose: The purpose of this matrix is to provide guidance to those personnel involved with receiving or accepting goods and materials on behalf of the Maricopa Community College District. Best business practices support that receiving be completed through a centralized function and location. Such guidance helps ensure that the following “Key Control Objectives” and “Process Attributes” are achieved. • Goods are purchased only with proper authorization. o Goods compared to purchase orders or other purchase authorization before acceptance. o Unmatched receivers investigated; Unauthorized items identified for return to vendor. o Receipts under blanket purchase orders monitored; Quantities exceeding authorized total returned to vendor. • Goods received are recorded correctly as to account, amount, and period. o Goods counted, inspected and compared to packing slips before acceptance. o Receiving reports issued by receiving/ inspection department in pre-numbered order. o Receiving documentation, purchase order, and invoice matched before recording liability. This matrix serves to provide guidelines in which the order of steps completed may vary depending on college and circumstances. Goods POs/LPOs – Non-Capital |Non-capital and delivered to Central Receiving |Inspect for proper addressing before acceptance...
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...|Mohammed Jamal P.K. | | |Logistics Professional – Buyer | | | | | |Mobile: +971 50 137 2700 - E-mail: jammucom@yahoo.co.in | | | | |Gulf experienced professional equipped with 18+ years of progressive work exposure and record of achievements within the domain of logistics industry. | |Expertise in various logistics aspects including but not limited to: procurement, purchasing, buying, inventory control, material management, warehousing, | |vendor management, logistics operations and client servicing. Strategic thinker with a flexible and proactive approach in continuously developing process | |improvements. Astute in identifying areas in procurement systems, processes and operations in need of improvement with the vision to develop and implement | |successful action plans. Creative thinker and effective team leader who possess...
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