chapter 13 expenditure cycle exam 1

Expenditure Cycle Steps

1) Purchase Needs, 2) Purchase Orders, 3) Receive Goods+Services, 4) Vendor Invoices, 5) Payment

All Departments

have purchasing needs - docs used: purchase requisitions

Purchasing Department/Buyers

purchase inventory and supplies on behalf of company - docs used: purchase order

Warehouse

receives, counts, and routes/stores inventory mailed to WH - docs used: inventory receipt, debit memo

Accounts Payable

pay for inventory, supplies, and provided services - docs used: vendor invoice, voucher

Cashier

prints and mails checks for payments - docs used: checks written to pay others

Purchase Requisition

department requests that purchase department buys them something - paper based or submitted through AIS

Purchase Order

request to order items from vendors, approved by purchasing department - directly entered/stored in AIS

Inventory Receipt

WH employee opens box/counts items, records in AIS - AIS captures receipt and generates invoice JE

Debit Memo

when goods need to be returned, this captures # of items and vendor info - AIS captures info + notifies AP

Vendor Invoices

sent by vendor to AP, confirms total owed to vendor - input into AIS by AP, triggers JE

Vouchers

associated with every invoice for payment, scheduled for payment, results in checks - invoices assigned by vouchers by AIS or manually

Checks

check run, vouchers that need to be paid are flagged + printed/mailed