Professional Documents
Culture Documents
Purchase Requisition:
A request (properly authorised) is sent to the buying department, asking it to purchase a
quantity of a particular item. The requisition might come from the manager of the stores
department.
Purchase Order:
The buyer places an order with a supplier, probably after checking prices and delivery
terms with a number of different suppliers.
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Sales Order:
A sales order is received from the customer.
The prder goes through a credit check.
The sales order is processed.
Delivery Note:
The goods are delivered to the customer, who signs the delivery note.
A copy of the delivery note is sent to the account department.
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Accounting:
Preparing the annual financial plan or budget for the business
An element of the budget should be a material purchases budget, which is
the budget for the quantities of materials that will be purchase in next
financial year and their cost.
In order to prepare the budget, the accountant should therefore discuss
prices with the purchasing department.
Responsible for producing management information about prices, by
comparing actual paid and expected/budgeted prices.
Responsible to provide information to senior management about inventory
control in order to avoid excessive inventories.
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considerations in production
Manufacturing:
Produce products.
Accounting:
Record the cost of production and calculate the cost of closing
inventory at the end of each financial year.
Provide management information about the production costs for the
purposes of:
- Preparing the annual budget.
- Calculating expected unit cost of production for each product item.
- Produce control report about actual production costs incurred.
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Accounting:
Providing information about costs and gross profit margin.
Estimating total profit at different price levels.
Involved in the preparation of marketing budgets and providing control
report information that compares actual marketing spending with the
budget.
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Accounting:
Providing information about costs and gross profit margin.
Estimating total profit at different price levels.
Involved in the preparation of marketing budgets and providing control
report information that compares actual marketing spending with the
budget.