The purchase clerk enters the p urchase requisition

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The Purchase clerk enters the p urchase requisition into the University’s Enterprise System. If the employee has not nominated any vendors, the clerk will select one from the master vendor List in the Enterprise System (ES). If the employee has recommended an unknown vendor, an agreement has to be negotiated. This is done via a different process. Sometimes the initial quote is absent or has expired in the meantime. In this case the clerk will have to get a new quote from the vendor. Once the vendor is registered in the ES, this can be done online, but it still may be some time before the quote comes through. Once the quote is available, the clerk enters it and the ES generates a purchase order. Some vendors accept electronic purchase orders in a standard format, but others require a fax or hardcopy. Either way, the ES produces an electronic, fax or hardcopy form, which is sent to the vendor. Material goods are always delivered to the Goods Receipt Department. When goods arrive, a clerk at this Department retrieves the corresponding purchase order from the ES. If a purchase order cannot be found, the shipment is returned to the vendor. The clerk checks the quality and quantity. If there are any significant issues with the goods, the clerk cancels the purchase order in the ES, returns the goods to the vendor and advises both the employee, who made the original request and the Accounts Payable Office that the purchase is cancelled. Accounts Payable then know not to pay any invoice. Otherwise, the shipment is then delivered to the department of the employee through the internal mail and parcel service. The employee is notified they can collect the item from the mail drop in their department.
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Once the employee acknowledges delivery, the Goods Receipt clerk generates a goods receipt form from the ES and forwards it to the Accounts Payable Office. Meanwhile, the vendor sends an invoice for the goods to the University. Sometimes the invoice is included with the goods. Sometimes it is sent separately. Either way, it finds its way to the Accounts Payable Office. The invoice can arrive at any time after the purchase order has been sent, so in fact, it is possible that the Accounts Payable Office can receive the invoice before the goods receipt form. An Accounts Payable clerk attempts to find a matching purchase order in the ES. If not found, the clerk returns the invoice to the vendor unpaid. Eventually, an Accounts Payable clerk compares the purchase order with the goods receipt form and the invoice. This is called “three - way matching”. When matched, the clerk is authorised to pay the vendor. Vendors often give a discount for early payment, so the amount payable may depend on time issues. Sometime this grace period expires. Once payment is authorised, the clerk initiates a bank transfer to the vend or’s bank . A payment notice is also sent to the vendor. Payment is not confirmed finally until a receipt is received from the vendor.
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  • Fall '19
  • invoice, purchase requisition, Goods Receipt Department

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