COMM 455 Lecture Notes - Lecture 16: Purchase Order, Accounts Payable
Document Summary
Ordering things we want: go to head of department for new computer agree or not, send to purchasing department if agreed. Don"t know scott, no incentive to give him a laptop: purchase requisition we agree that ubc should order, authorized to buy this laptop. Know commitments we"ve made, know at end of the year what we have received or not. Purchase: trying to get the best price for ubc: have temptation, supplier: send more orders, we will give you kickbacks, ubc would not get benefit, have to have trustworthy, good controls, not only through one supplier. File all open purchase orders: purchase order #1000 2 tvs, 2 radios, ipad didn"t order, shouldn"t receive don"t have to verify price; verify you get the order and check the condition. Accounting department invoice from supplier match from purchase order match to receiving report number. Accountant should match all 3 documents: dr. __asset/inventory/expense___, cr.
