3. Buyer does not check Prepare a vendor performance Vendor performance ratings can be vendor’s past performance. report and use it when updated automatically and made selecting vendors. available to buyer. 4. Blind counts not made by out quantities ordered Do not permit receiving clerks to access receiving. on copy of Purchase Order quantities on purchase orders. sent to receiving Request bar coding or RFID tagging of Provide incentives if all items and use readers to check in all discrepancies between deliveries. packing slip and actual Still provide incentives to detect delivery are detected. discrepancies. 5. Written notice of Send written notice of Receiving data and comments entered equipment receipt not sent to equipment receipt to via on-line terminals and routed to purchasing. purchasing. purchasing. 6. Written notice of Send written notice of Configure system to notify accounts equipment receipt not sent to equipment receipt to accounts payable automatically of equipment accounts payable payable receipt. 7. Mathematical accuracy of Verify mathematical accuracy Automatic verification of mathematical vendor invoice is not verified. of vendor invoice. accuracy of vendor invoice. 8. Invoice quantity not Compare/verify invoiced System verifies invoice quantity with compared to receiving report quantity with quantity quantity received. quantity. received. 9. Notification of Obtain confirmation from Configure system to require confirmation acceptability of equipment requisitioner of the of equipment acceptability prior to from requesting department acceptability of equipment approving invoice for payment. not obtained prior to ordered prior to recording recording payable. payable. 10. Voucher package not sent Send voucher package Configure system to match invoices to Treasurer. (purchase order and receiving automatically with supporting report) to Treasurer along documents. with approved invoice. 11. Voucher package not Treasurer should mark Configure system to mark supporting cancelled when invoice paid. voucher package as PAID documents as used when invoice is paid. when check is signed. 12. No mention of bank Bank account should be Bank account should be reconciled by reconciliation. reconciled by someone other someone other than Accounts Payable or than Accounts Payable or the the treasurer. treasurer. 13.11 The ABC Company performs its expenditure cycle activities using its integrated ERP system as follows: Employees in any department can purchase requests for items they note as being either out of stock or in small quantity. The company maintains a perpetual inventory system.
3. Buyer does not check vendor’s past performance. Prepare a vendor performance report and use it when selecting vendors. Vendor performance ratings can be updated automatically and made available to buyer. 4. Blind counts not made by receiving. out quantities ordered on copy of Purchase Order sent to receiving Provide incentives if discrepancies between packing slip and actual delivery are detected. Do not permit receiving clerks to access quantities on purchase orders. Request bar coding or RFID tagging of all items and use readers to check in all deliveries. Still provide incentives to detect discrepancies. 5. Written notice of equipment receipt not sent to purchasing. Send written notice of equipment receipt to purchasing. Receiving data and comments entered via on-line terminals and routed to purchasing. 6. Written notice of equipment receipt not sent to accounts payable Send written notice of equipment receipt to accounts payable Configure system to notify accounts payable automatically of equipment receipt. 7. Mathematical accuracy of vendor invoice is not verified. Verify mathematical accuracy of vendor invoice. Automatic verification of mathematical accuracy of vendor invoice. 8. Invoice quantity not compared to receiving report quantity. Compare/verify invoiced quantity with quantity received. System verifies invoice quantity with quantity received. 9. Notification of acceptability of equipment from requesting department not obtained prior to recording payable. Obtain confirmation from requisitioner of the acceptability of equipment ordered prior to recording payable. Configure system to require confirmation of equipment acceptability prior to approving invoice for payment. 10. Voucher package not sent to Treasurer. Send voucher package (purchase order and receiving report) to Treasurer along with approved invoice. Configure system to match invoices automatically with supporting documents. 11. Voucher package not cancelled when invoice paid. Treasurer should mark voucher package as PAID when check is signed. Configure system to mark supporting documents as used when invoice is paid. 12. No mention of bank reconciliation. Bank account should be reconciled by someone other than Accounts Payable or the treasurer. Bank account should be reconciled by someone other than Accounts Payable or the treasurer. 13.11 The ABC Company performs its expenditure cycle activities using its integrated ERP system as follows: Employees in any department can purchase requests for items they note as being either out of stock or in small quantity. The company maintains a perpetual inventory system.