Proof of Being Informed 1. What are the two kinds of “Approvals”? Proof of Being Informed Authorize/Veto

2. Boilerplate Lanuage Default terms on the back (fine print) of a pre-printed document … called “boilerplate language”.

3. Front vs. Back of Forms Provisions entered on the front of the form will always supersede the boilerplate provisions on the back of that form.

Order Acknowledgement 4. Order Acknowledgement The order acknowledgement is legal written confirmation of order acceptance, BUT…. are considered a counter-offer if they differ from the terms on the purchase order. Provisions on the Order Acknowledgement SUPERSEDE the original PO unless proactively disputed.

Hierarchy Front of PO supersedes PO Boilerplate Acknowledgement boilerplate supersedes PO Boilerplate Front of PO supersedes Acknowledgement Boilerplate Front of Acknowledgement supersedes everything (PO Boilerplate, Order Acknowledgement Boilerplate, and FRONT of PO) UNLESS DISPUTED

5. Packing Slip Often the vendor’s order filling document, (the Picking Ticket) serves as the Packing Slip. Many companies have their shipping department check behind their order fillers as a quality control.

Shipping Department Documents 6. Packing slip Shipping Manifest Shipping Order Bill of Lading Shipping Advice

Receiving Department Documents 6. Packing slip Shipping Manifest Shipping Order Bill of Lading Shipping Advice Receiving Log Gatehouse Log

7. Freight Payment Terms Freight Prepaid (FRT PPD) Freight Collect (FRT COL) Freight Prepay and Add (PPY&ADD) Delivery (DEL, DLV, DLVRY, etc. Pickup (PU, P/U, etc.)

First… look at FOB point and find out WHO owns the merchandise being transported. THINK about the logical relationship between the five Freight Terms, and the two FOB alternatives. Go over these in your group again, again, again, and again. MASTER the logic.

7. Freight Payment Terms Freight Prepaid (FRT PPD) Freight Collect (FRT COL) Freight Prepay and Add (PPY&ADD) Delivery (DEL, DLV, DLVRY, etc. Pickup (PU, P/U, etc.)

UNLESS SPECIFIED OTHERWISE 8. Freight Claims FOB point! (not Freight Terms) The claim is made by, and paid to, the OWNER of the damaged goods. UNLESS SPECIFIED OTHERWISE in the purchase contract!

9. Receiving Dock Duties Supervise or perform the unloading Verify the item was actually ordered (match PO) Count the quantity received Inspect for Damage Visible Damage Concealed Damage File claims with Carrier (or notify vendor/carrier) Sign the B/L or manifest (releasing the driver from bailment) Inform Accounts Payable (via packing slip or receiving voucher) Deliver goods to requisitioner

Receiving Dock Documents 10. Receiving Dock Documents Claim Form (or “notification of damage”) Packing Slip Receiving Voucher Receiving Log

$$$ BUYER SELLER Accounts Payable Receiving Dock Goods & Services Purchasing Agent Manager Requisitioner

Requisitioner Management Purchasing Vendor Receiving

Initiation of the purchase Approval of the purchase Negotiation of the purchase agreement Formal issuance of the purchase contract Communication with Vendor Internal Departments

Homework -- for this weekend You can get a head start if you wish Jan, Terry, Nickie Assign each group member to be one of the three Learn your job

ACTG 313 September 13, 2017

Debit Inventory and Credit A/P Requisitioner Management Purchasing Vendor Receiving Debit Inventory and Credit A/P Accounts Payable Debit A/P and Credit Cash Controller Treasurer Bank

3-Way Match What was ordered What was received What was invoiced Purchase Order Receiving Voucher Vendor Invoice Accounts Payable

Final Parts of the Cycle Purchase Order Receiving Verification Electronic Invoice Accounts Payable MATCH? No Yes Check Register Cut Check Check

Job Titles in the Purchasing Cycle Information Flow Job Titles in the Purchasing Cycle Requisitioner Management Purchasing Vendor Receiving Accounts Payable Controller Treasurer Bank

Documents in the Purchasing Cycle Statement? Requisition Purchase Order Order Acknowledgement Bill of Lading RFP RFQ RFB Invoice Packing List Receiving Voucher Check Signature Card Remittance Advice Check Register Bank Statement

Final Parts of the Cycle Purchasing Receiving Vendor Invoice Accounts Payable MATCH? No Yes Check Register Cut Check Check

Check CANCEL the documentation Check Vendor Invoice Accounts Payable Purchase Order Receiving Voucher Check Register Cut Check Check Controller Treasurer Signs Check & Mails Check Vendor Vendor Invoice Receiving Voucher Purchase Order CANCEL the documentation FILE

Check FILE Check Register Controller Vendor Vendor’s Bank Bank Reconciliation Our Bank Bank Statement Check Register Bank Statement Reconciliation Report FILE

Some More Important Concepts Three-Way Match What was ordered (PO document) What was received (receiving voucher document) What is being invoiced (vendor invoice) Service purchases: Payment voucher “Approved for Payment” Who prints the check? Treasurer (or designee) signs the check Signature Card provides bank with authorized signatures Payment voucher

Still More Important Concepts CANCELLATION of the paperwork (not voiding) Remittance Advice Part of the check paper, OR Tear-off stub from the vendor’s invoice, OR A copy of the invoice itself

SELLERS Company Return this copy with your payment SELLERS Company

SELLERS Company SELLERS Company 1457 Main Street Suite 46 Sellers City, ND SELLERS Company 150.00

SELLERS Company BYERS 150.00

SELLERS Company SELLERS COMPANY 150.00 ONE HUNDRED FIFTY and NO/100ths BYERS COMPANY 9967 Delivery Street Byer City, MT SELLERS COMPANY 150.00 ONE HUNDRED FIFTY and NO/100ths INVOICE -00000 SELLERS Company BYERS 150.00

SELLERS Company SELLERS Company 1457 Main Street Suite 46 Sellers City, ND SELLERS Company

Check Remittance Advice “Check stub” BYERS COMPANY BYERS COMPANY 9967 Delivery Street Byer City, MT Check BYERS COMPANY 9967 Delivery Street Byer City, MT Remittance Advice BYERS COMPANY 9967 Delivery Street Byer City, MT “Check stub”

Check Remittance Advice “Check stub” SELLERS COMPANY 150.00 ONE HUNDRED FIFTY and NO/100ths INVOICE -00000 BYERS COMPANY 9967 Delivery Street Byer City, MT BYERS COMPANY 9967 Delivery Street Byer City, MT “Check stub” SELLERS COMPANY INVOICE -00000 150.00

“Check stub” SELLERS COMPANY INVOICE -00000 150.00 BYERS COMPANY 9967 Delivery Street Byer City, MT BYERS COMPANY 9967 Delivery Street Byer City, MT “Check stub” SELLERS COMPANY INVOICE -00000 150.00

What we ordered What we received What we were billed What we paid BYERS COMPANY 9967 Delivery Street Byer City, MT What we received What we were billed What we paid BYERS COMPANY 9967 Delivery Street Byer City, MT SELLERS COMPANY INVOICE -00000 150.00

Important Concepts CANCELLATION of the paperwork (not voiding) Remittance Advice Part of the check paper, OR Tear-off stub from the vendor’s invoice, OR A copy of the invoice itself The cancelled “Supporting documentation” filed in A/P Treasury employee’s responsibilities

What we ordered What we received What we were billed What we paid BYERS COMPANY 9967 Delivery Street Byer City, MT What we received What we were billed What we paid BYERS COMPANY 9967 Delivery Street Byer City, MT SELLERS COMPANY INVOICE -00000 150.00

Check Check Vendor Invoice Accounts Payable Purchase Order Receiving Voucher Check Register Cut Check Check Controller Treasurer Signs Check & Mails Check Vendor Vendor Invoice Receiving Voucher Purchase Order FILE

Important Concepts Checking account reconciliation! CANCELLATION of the paperwork (not voiding) Remittance Advice Part of the check paper, OR Tear-off stub from the vendor’s invoice, OR A copy of the invoice itself Treasury employee’s responsibilities The cancelled “Supporting documentation” filed in A/P Checking account reconciliation!

X X X X X X X X X X X X

Last part of Purchasing Cycle UNIT 9: Last part of Purchasing Cycle Homework: Reading from HW10 X X X X X X X X X X X X

Controls on the Pur. Cycle UNIT 10: Controls on the Pur. Cycle Homework: Reading, Study, and Group Meeting X X X X X X X X X X X X

Homework: Group meeting X X UNIT 11: Discussion on Reading Homework: Group meeting X X X X X X X X X X

Intro to Flowchart Creation X X UNIT 12 Intro to Flowchart Creation Homework: Extensive Reading X X X X X X X X X X

Self-Study Videos: Flowcharting X X UNIT 13 Self-Study Videos: Flowcharting Homework: Individual Flowcharts X X X X X X X X X X

Self-Study Videos: Flowcharting X X UNIT 13 Self-Study Videos: Flowcharting Homework: Individual Flowcharts X X X X X X X X X X

Self-Study: Flowcharting Practice X X X X X X X X X UNIT 14 Self-Study: Flowcharting Practice Homework: Group Evaluation of Flowcharts X X X

Self-Study: Flowcharting Practice X X X X X X X X X UNIT 14 Self-Study: Flowcharting Practice Homework: Group Evaluation of Flowcharts X X X

Self-Study Videos: Flowcharting Self-Study: Flowcharting Practice UNIT 13 Self-Study Videos: Flowcharting Homework: Individual Flowcharts X X UNIT 14 Self-Study: Flowcharting Practice Homework: Group Evaluation of Flowcharts X X X X X X X X X X

In-Class Evaluation of Flowcharts UNIT 15 In-Class Evaluation of Flowcharts Homework: Prepare for Exam

REVIEW FOR EXAM “Help Session”

EXAMINATION 1 Units 2 through 15