Class_14_expenditure_cycle_handouts

Class_14_expenditure_cycle_handouts - The Expenditure Cycle

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The Expenditure Cycle (Purchasing/Acquisition) 10/19/2011
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The Expenditure Cycle A recurring set of business activities and related information processing operations associated with the _______________________________ _____________ . Process Begins with __________________________ Ends with ______________________
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Objectives of the Expenditure Cycle Tracking purchases of goods and/or services from vendors Tracking amounts owed Maintaining vendor records Controlling inventory Making timely and accurate vendor payments Forecasting purchases and cash outflows
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Expenditure Cycle Order Goods Cash Disbursement Approve invoices Receive Goods Purchase Returns Vendor Inventory Vendor Cash Vendor Receiving Rpt Request goods Purch Request
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Expenditure Cycle: Purchasing
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Expenditure Cycle: Cash Disbursement Processes
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Acquisition Cycle – Fixed Assets Employee (Cashier) r Employee Cash (1,1) (1,1) (1,1) (1,1) (0,N) (0,N) (0,N) (1,1) (1,1) (1,1) (0,N) (0,N) (?,?) (?,?) “Normal” Cardinalities?
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Request Goods Description Begins cycle Requesting the purchase of inventory or supplies Involves only internal agents, “requestor” and “approver” Key Decisions What, when, and how much to purchase
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Request Goods Document Purchase Requisition- documents the need to purchase goods or supplies Contains: requisitioner name, item descriptions, item quantities, item numbers, item prices, delivery location, date needed, suggested vendor, department, account number Opportunities for Using Information Technology Electronic purchase requisition Integrated systems allowing automatic
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Order Goods Description Mutual commitment event in which a supplier agrees to provide goods to the business and the business agrees to pay a certain price for those goods Ordering supplies and/or materials. Key Decisions Who to order from (price, quality, dependability) – What Vendor??
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Order Goods Document _________________ - formally requests a vendor to sell and deliver specified products at specified prices; also a promise to pay Contains: vendor name, purchasing agent name, order date, requested delivery date, delivery location, method of shipments, information about the items ordered
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Order Goods Opportunities for Using Information Technology Electronic Data Interchange (EDI) to reduce costs associated with generating purchase orders Linking EDI to Point-of-Sales systems Vendor Managed Inventory - VMI (Walmart) Procurement cards for miscellaneous supplies On-line custom catalogues On-line bidding
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Receive Goods Description Receiving and storing items that have been ordered. ___________________event in which title
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This note was uploaded on 10/20/2011 for the course ACC 321 taught by Professor Dunn during the Summer '11 term at Michigan State University.

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Class_14_expenditure_cycle_handouts - The Expenditure Cycle

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