Purchase System

Question 1

What are the steps in the purchase system?

Answer 1

Requisition note
Purchase order raised
Goods received by the company
Purchase invoice received
Purchase invoice paid

Question 2

What controls are included in a purchase order?

Answer 2

Pre-numbered, sequential forms
Approved supplier lists
Tender process for no authorised suppliers

Question 3

What controls are included in the goods received?

Answer 3

Pre-numbered/sequential goods received note matched to original purchase to check quantity and validity
Goods checked for quality and returned if bad
Inventory system updated

Question 4

What controls are included in a purchase invoice received?

Answer 4

Invoice matched to GRN and PO
Statements received reconciled to the payables ledger

Question 5

What controls are included in the payment of the invoice?

Answer 5

Payment authorised by official
Purchase ledger updated promptly/ stamped PAID
Due dates monitored to avoid interest/missing early discounts