Control AP Flashcards
Frequent need for reimbursement of funds
possible deficiency
Debit Memo
Credit Memo
Return
Purchase
Approval for vendor’s invoices for payments
responsibility of accounting department
Reconciliation
responsibility of the accounting department
Managers order by
submitting requisition orders to the inventory control department which authorizes
which then puts together a purchase order REQUISITION
which then get approved by purchasing department
which then are sent out by the purchasing department as a purchasing order and neg. w/ vendor
and a vendor invoice is received
Purchasing agent enters invoice into invoice program
which then get received by the receiving department who verifies the PO
which then the AP;VP department matches PO,receiving report and vendor invoice
AP accounting sends a payment voucher to CFO
controls bearing relevance to other controls is relied upon as
not too effective
Objective
Procedure
Evaluate or identify
performance of something
cash budget advantage
sufficient cash on hand to pay maturing liabilities
Receiving clerk should never verify
Purchase Order Quantities
Completeness control AP aid
prenumbered documents
Accuracy in recording of inventory quantities
CUTOFF FOR RECEIVING AND SHIPPING
Accounts payable subsidiary ledger most useful
for partial receiving and payment on invoices
APPROVED PAYMENT VOUCHER
PO, INVOICE, RECEIVING REPORT
BEST TESTED AFTER YEAR END
ACCOUNTS PAYABLE
WAREHOUSE MOST IMPORTANT PROCEDURE
INSPECTION OF RECEIVING AND SHIPPING PROCEDURES
