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Purchasing System Flowchart Overview

The purchasing agent monitors inventory levels and decides to replenish items from a supplier. They enter this information into the computer to create a digital purchase order with three copies - one for the supplier, one for accounts payable, and one for their files. When goods are received, the receiving clerk inspects them, prepares receiving reports, and sends one copy to purchasing to update inventory levels and close the purchase order.

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188 views7 pages

Purchasing System Flowchart Overview

The purchasing agent monitors inventory levels and decides to replenish items from a supplier. They enter this information into the computer to create a digital purchase order with three copies - one for the supplier, one for accounts payable, and one for their files. When goods are received, the receiving clerk inspects them, prepares receiving reports, and sends one copy to purchasing to update inventory levels and close the purchase order.

Uploaded by

Marisol
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Narrative
  • Table of Entities and Activities
  • Flowchart

SPICE IS RIGHT

IMPORTS (STAND-
ALONE PC BASED
ACCOUNTING SYSTEM)
Group 5
NARRATIVE
 Purchasing Process
 The purchasing agent monitors the inventory levels by reviewing the inventory
subsidiary ledger from his department computer. He decides which items need to
be replenished and selects a supplier. He then enters this information into the
computer terminal to create a digital purchase order. The computer terminal
generates three hard copies of the purchasing order. The purchasing agent sends
one copy to the supplier, one copy to the accounts payable department where it is
filed temporary, and files the third copy in the purchasing department. When the
goods received, the receiving department inspects and verifies them using the
packing slip, which is attached to the goods. The receiving clerk manually prepares
two hard copies of a receiving report. One copy accompanies the goods to the
warehouse for storage. The receiving clerk sends the second copy to the purchasing
agent who uses it to update the inventory subsidiary ledger and to close the open
purchase order. The purchase agent then files the receiving report in the
department.
TABLE OF ENTITIES AND
ACTIVITIES
Entities Para Activities
Purchasing Department 1 1. Monitor inventory levels
(Agent) by receiving the
inventory subsidiary
1 ledger.
2. Replenished and select
1 a supplier.
3. Enter information to
create a digital
1 purchase order to
generate three hard
1 copies.
4. Send one copy to the
1 supplier.
5. Send one copy to
Accounts Payable
Entities Para Activities
Receiving Department 1 7. Goods received.
(Clerk) 1 8. Inspect and verify goods using
the packing slip attached.
9. Prepare two hard copies of
1 receiving report.
10. Send one copy to the
1 warehouse for storage.
11. Send one copy to the
1 purchasing department.
12. Update inventory to close and
1 open purchase order.
13. Files receiving report.
1
FLOWCHART
The end.

SPICE IS RIGHT IMPORTS (STAND- ALONE PC BASED ACCOUNTING SYSTEM) Group 5
NARRATIVE Purchasing Process The purchasing agent monitors the inventory levels by reviewing the inventory subsidiary ledg
TABLE OF ENTITIES AND ACTIVITIES Entities Para Activities Purchasing Department (Agent) 1 1 1 1 1 1 1. Monitor inventory lev
Entities Para Activities Receiving Department (Clerk) 1 1 1 1 1 1 1 7. Goods received. 8. Inspect and verify goods using th
FLOWCHART
The end.

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