Expense Cycle

Question 1

What is the first document in the Spending Cycle?

Answer 1

Purchase Requisition

created by department, or originator that requests to make purchase

Question 2

Which departments get the purchase order?

Answer 2

Purchase Originator
Accounts Payable
Receiving Department

Question 3

How is the purchase order from that goes to the Receiving Department unique?

Answer 3

Quantities are blank. Force shipping department to count what is received.

Question 4

What document is generated by the Receiving Department?

Answer 4

The Receiving Report

Question 5

Which department gets the Receiving Report?

Answer 5

Accounts Payable

Question 6

What does Accounts Payable do after getting the receiving report? And what document does this generate?

Answer 6

Compares all documents:
Purchase Order
Received Report
Invoice 
(If all match, issues Purchase Voucher)

Question 7

Which department gets the voucher from A/P? What does it do?

Answer 7

The Treasurer

Cancels supporting documentation to prevent double payment, and issues check

Question 8

Which document does The Treasurer send with the check when payment is maid

Answer 8

Remittance Advice