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Proof of Being Informed
1. What are the two kinds of “Approvals”? Proof of Being Informed Authorize/Veto
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2. Boilerplate Lanuage Default terms on the back (fine print) of a pre-printed document … called “boilerplate language”.
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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.
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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.
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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
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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.
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Shipping Department Documents
6. Packing slip Shipping Manifest Shipping Order Bill of Lading Shipping Advice
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Receiving Department Documents
6. Packing slip Shipping Manifest Shipping Order Bill of Lading Shipping Advice Receiving Log Gatehouse Log
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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.)
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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.
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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.)
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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!
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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
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Receiving Dock Documents
10. Receiving Dock Documents Claim Form (or “notification of damage”) Packing Slip Receiving Voucher Receiving Log
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$$$ BUYER SELLER Accounts Payable Receiving Dock Goods & Services
Purchasing Agent Manager Requisitioner
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Requisitioner Management Purchasing Vendor Receiving
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Initiation of the purchase Approval of the purchase
Negotiation of the purchase agreement Formal issuance of the purchase contract Communication with Vendor Internal Departments
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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
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ACTG 313 September 13, 2017
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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
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3-Way Match What was ordered What was received What was invoiced
Purchase Order Receiving Voucher Vendor Invoice Accounts Payable
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Final Parts of the Cycle
Purchase Order Receiving Verification Electronic Invoice Accounts Payable MATCH? No Yes Check Register Cut Check Check
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Job Titles in the Purchasing Cycle
Information Flow Job Titles in the Purchasing Cycle Requisitioner Management Purchasing Vendor Receiving Accounts Payable Controller Treasurer Bank
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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
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Final Parts of the Cycle
Purchasing Receiving Vendor Invoice Accounts Payable MATCH? No Yes Check Register Cut Check Check
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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
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Check FILE Check Register Controller Vendor Vendor’s Bank Bank
Reconciliation Our Bank Bank Statement Check Register Bank Statement Reconciliation Report FILE
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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
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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
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SELLERS Company Return this copy with your payment SELLERS Company
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SELLERS Company SELLERS Company 1457 Main Street Suite 46
Sellers City, ND SELLERS Company 150.00
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SELLERS Company BYERS 150.00
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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 SELLERS Company BYERS 150.00
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SELLERS Company SELLERS Company 1457 Main Street Suite 46
Sellers City, ND SELLERS Company
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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”
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Check Remittance Advice “Check stub” SELLERS COMPANY 150.00
ONE HUNDRED FIFTY and NO/100ths INVOICE BYERS COMPANY 9967 Delivery Street Byer City, MT BYERS COMPANY 9967 Delivery Street Byer City, MT “Check stub” SELLERS COMPANY INVOICE 150.00
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“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 150.00
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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 150.00
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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
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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 150.00
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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
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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!
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X X X X X X X X X X X X
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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
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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
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Homework: Group meeting
X X UNIT 11: Discussion on Reading Homework: Group meeting X X X X X X X X X X
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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
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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
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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
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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
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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
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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
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In-Class Evaluation of Flowcharts
UNIT 15 In-Class Evaluation of Flowcharts Homework: Prepare for Exam
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REVIEW FOR EXAM “Help Session”
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EXAMINATION 1 Units 2 through 15
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