Expenditure cycle

Question 1

1Requisitioner

Answer 1

Prepare pre-numbered requisition

Obtain approvals needed

send the original copy to purchasing

inspect goods when received from the receiving department, sign receiving report upon receipt of goods

Question 2

2Purchasing

Answer 2

receive approved requisition

contact approved vendor

issued pre-numbered purchase order to:
Original goes to the vendor
Blind copy to Receiving
Copy to AP
File copy

Question 3

5Accounting

Answer 3

receive purchase summary

post to GL

reconcile GL and AP

reconcile vendors monthly statements and AP master file

Question 4

4Accounts payable

Answer 4

receive vendor invoice

match documents

cehck mathematical accuraccy

prepare prenumbered voucher

account for the numerical sequence of vouchers

data entry
prepare purchase jounal
Update AP master file
daily purchase summary

reconcile daily purchase summary

Question 5

3Receiving

Answer 5

receive goods from the vendor

inspect goods, all shipments received must have a PO

prepare received report

Match details of the order received with a blind copy of PO and indicate the quantity received

send goods to requisitioning department, obtain signature

Distribute received report