Chapter Twelve

Chapter Twelve - Chapter Twelve: Acquisition/Payment...

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Chapter Twelve: Acquisition/Payment Process The primary purpose of the acquisition process is to obtain the resources the organization needs and to pay for them. Fundamentally, organizations exist to create value for their stakeholders; the acquisition/payment process is one element of the basic purpose. Basic Steps for Acquisition/Payment Process: 1. Request goods and services based on monitored need. Inventory levels, for example, might be monitored with the reorder point; orders could be based on an economic order quality formula. 2. Authorize the purchase This process promotes good internal controls. 3. Purchase goods/services Once a purchase has been authorized, the appropriate documentation must be submitted to the bender/supplier 4. Receive goods and services Major purchases of goods, particularly inventory, are received through a dedicated receiving department for stronger internal controls. 5.
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This note was uploaded on 03/27/2012 for the course ACCT 01 taught by Professor Smith during the Spring '12 term at Howard.

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Chapter Twelve - Chapter Twelve: Acquisition/Payment...

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