Sales and purchasing Flashcards
1
Q
Objectives of a revenue system?
A
All sales are authorised Goods are safeguarded All assets are recorded All sales are accurate Debtor ledger is accurately maintained Stock records are accurately maintained
2
Q
What is a billing?
A
Same as invoice
3
Q
What is a requisition document?
A
Initiated by department wanting to order the goods?
4
Q
Purchase order?
A
Formal order sent to suppliers
5
Q
Goods inward note (GIN/GRN)?
A
Internal form used to record goods received
6
Q
How to combat threats in the expenditure cycle?
A
Authorisation,
supplier selection
safeguarding of physical assets
payment of invoices (matching invoices to GRNs and POs, prices, terms, vat)
7
Q
What are some features of a purchasing system?
A
(DATA CAPTURE) Requisition form Goods inward note Invoice (TRANSACTION PROCESSING) Batch processing at end of day On line authorisation by buyers Manual review for errors prior to postings Pre formatting menus Closed loop verification (system displays narrative for checking)
