Exam 12: The Purchasing Process

Notifications that a PO has been prepared and sent to the vendor are sent to the receiving department, the accounts receivable process, and the department or process that requested the purchase.

A "blind" copy of the purchase order should be sent to receiving so that:

In a purchasing process, the receiving report may be accessed by all of the following except:

Who usually authorizes a purchase requisition?

The warehouse number is the primary key for the relational table for inventory.

A(n) ______________________________ copy of a document is one in which selected data are blanked out so that persons receiving that copy will not have access to the data.

An employee has a conflict of interest when he (she) has a financial interest (direct or indirect) in a company with which the employer does business.

At the time that a purchasing process places an order for goods or services, which of the following is typically updated?

The business document that accompanies the purchased inventory from the vendor identifies the shipment and triggers the inventory receiving process is the vendor packing slip.

The receiving department or quality control function should ______________________________ to ensure that the correct goods are received in acceptable condition.

The connections from the suppliers of merchandise and raw materials through to an organization's customers, including the flow of information, materials, and services, are its supply chain.

A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to:

At the time that a purchasing orders goods and services, the process is likely to interact with all of the following data stores except the:

Below is a narrative describing the "Receive goods and services" portion (bubble 3.0) of the purchasing process described in Chapter 12. Narrative Description The vendor packing slip, which accompanies the purchased inventory from the vendor and identifies the shipment, triggers the receiving process. As indicated by bubble 3.1 of the figure, goods arriving at the receiving department are inspected and counted, and these data are matched against the vendor packing slip and the "PO receiving notification" (i.e., the blind copy of the PO). Nonconforming goods are denoted by the reject stub out of process 3.1. Notation of rejected goods is added to the vendor service record in the vendor master data. After the count and condition of the goods has been obtained, process 3.1 completes the receiving report by noting the quantity received. Once annotated with the quantity received, the PO receiving notification becomes a receiving report, which is the document used to record merchandise receipts. Process 3.2 compares the receiving report data to the information stored in the PO master data-a process that often is automatically completed by the information system. Bubble 3.2 also reflects the following activities: *Data about vendor compliance wrth the arder terms are added to the vendor servce record an the vendor master data. *The receiving repart data is 5 tored as a copy of the receiving repart document ar electranically. *Receiving repart date is 5 sent to the accaunts payable pracess. *A capy af the receiving repart is sent to the warehause (i.e., "Stack notice") writh the guods. *The inventory master data are updated to reflect the additional inventory an hand. *The cast of the inventary received is relayed to the general lediger pracess (5ee the data flow "GL inventary received update"). *Finally, the PO master data are updated to reflect the receigt of the goods. Required: From the DFD (TB Figure 12.5) and the narrative description above, explode bubble 3.0 into a lower-level diagram showing the details of that process.

As used in the purchasing process chapter, the term "goods and services" refers to raw materials, merchandise, supplies, fixed assets, or intangible assets only.

Reorder point (ROP) analysis reorders inventory when the item reaches a certain inventory level that was determined in advance based on the item's purchase rate.

Which of the following managers is most likely to report to the controller?

Which type of supply chain collaboration methods includes the vendor replenishing standard merchandise while the buyer manages the replenishment of promotion merchandise?

EOQ is a technique of analyzing all incremental costs associated with acquiring and carrying particular items of inventory.

Supply chain execution software: