Chapter 9 Flashcards
transaction processing system
a recording and processing system
vendor
the person the company buys products from
common carrier
trucking, rail , or air freight system
purchase requisition
a form prepared to document the need and request that the specific items and quantities be purchased
purchase order
document issued to a seller by a buyer that indicates the details product, quantities and agreed upon prices
purchases journal
a chronological listing of all PO’s issued to vendors
blind purchase order
includes information from the PO but it omits price and quantity of the items order, this is so that the receiving clerk has to check how much is in his shipment
bill of lading
provides details of the items included in the delivery, and the receiving clerk must sign that from as verification of receipt
packing slip
intended to show quantities and descriptions of items included in the shipment, but it does not generally include prices
receiving reports
details the contents and condition of a receipt
receiving log
a sequential listing of all receipts
cutoff
the date for the end of the accounting period
accounts payable subsidiary ledger
includes the detail of amounts owed to each vendor
debit memo
the document that identifies the items being returned, along with relevant info regarding vendor, quantity, and price
cash management
careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligation
remittance advice
usually a tearoff part of a check that has a simple explanation of the reasons for the payment, including invoice numbers and transaction line item descriptions
cash disbursements journal
a chronological listing of all payments
dual signature
policy where two people sign a check if it is over a certain amount
three way match
principle in purchasing where a purchase order is matched to a receiving report and to an invoice
business process reengineering
an organized change in business processes for the purpose of improving efficiency and effectiveness
automated matching
a computer software technique in which the computer software matches an invoice to its related purchase order and receiving report
evaluated receipt settlement
invoiceless system where everything is checked electronically
vulnerability testing
examining the system to determine the adequacy of security measures and to identify security deficiencies
penetration testing
intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls
intrusion detection
software alerts the organization to hacking or other unauthorized use of the system or network
epayables
electronic invoice presentment and payment EIPP
procurement cards
credit cards for purchases
