CHAPTER 3 Flashcards
What is purchasing?
This is the process that ensures the company has a steady supply of goods that can be sold to customers or materials that can be used for production
How does it Start?
Step 1: Starts with Purchase Order and continues with the rest of the purchasing document such as Goods Receipt PO and A/P Invoice.
Step 2: The system captures the information per step (para alam ng customer kung ano ung on hand sa inventory.)
Abby’s note: parang if mag oonline shopping kayo makikita niyo kung ilang products na lang natitira parang ganon pero correct me if I’m wrong eto kase pagkakaintindi ko)
Two types of key master data needed in purchasing.
- Vendor - identifies who is supplying the goods and services and the user can search for the appropriate vendor in any purchasing document but can also create a new vendor while creating a purchasing document.
- Item master - Identifies what is being purchased.
- this can be copied into any document in purchasing, sales, production, MRP, inventory, and service modules.
2 important things in the purchasing process
- Ship-to Address - indicates the address where the purchased item will be sent.
- Pay-to Address - shows the address that would be printed on the check when the payment is issued.
Also, check the basic four-part process nasa page 1 ng chapter 1 part 1
Check pages 2-3 of part 1 of Chapter 3
Creating Purchase Order
- first document in the procurement process.
- commercial document that is issued by a buyer to a seller specifying the items, material or services that are being purchased, including agreed-to quantities and prices
- once created, there are no posting in the inventory and accounting.
Needed when creating a purchase order (PO)
- Delivery Date - target date when the items need to be delivered
- Vendor - identifies from whom the items or services are being delivered.
- Item/Service type - defines if the order is for an item or a service.
- Items 0 shows what item(s) are needed to be purchased.
- Quantity - indicates the number or quantity that is being purchased.
Also, check bottom part ng part 2 chapter 3