What is the difference between a purchase requisition and a purchase order quizlet?

1. inventory need recognized, Inventory drops below reorder levels (or other need for goods or services arise)

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What is the difference between a purchase requisition and a purchase order?
What is a purchase requisition quizlet?
Which is the purpose of a purchase requisition?
Which is a purpose of a requisition?

2. prepare purchase requisition, a purchase requisition (PR) is prepared and copies are sent to Purchasing and Accounts Payable (A/P)
Purchasing prepares a purchase order (PO) that is sent to the vendor, and sends copies to Inventory Control, A/P, and Receiving

3. prepare purchase order, Purchasing prepares a purchase order (PO) that is sent to the vendor, and sends copies to Inventory Control, A/P, and Receiving

4. Prepare receive report, Upon receipt, Receiving counts (blind copy used to force the count) and inspects the goods, and a Receiving Report (RR) is prepared and copies sent to the Warehouse, Purchasing, Inventory Control, and A/P.

5a. update purchases journal and AP subledger, Upon receipt of the supplier's invoice and copies of the RR and PO, A/P reconciles the
documents, and updates the purchases journal and the accounts payable subsidiary ledger.

5b update inventory, Upon receipt of the copies of the RR, Inventory Control updates the inventory subsidiary ledger.

6. reconcile and post to GL, Periodically, the purchases journal and inventory subsidiary ledger are summarized using, respectively, a purchases summary and an inventory summary; this information is reconciled and then used to post to the general ledger (debit Inventory and credit Accounts Payable).

Inventory control monitors inventory and authorizes restocking with a purchase requisition. A copy is retained and one is sent to accounts payable.

Purchasing acts on the purchase requisition and prepares a purchase order. The original is sent to a vendor. Copies go to inventory control and accounts payable. A blind copy is sent to receiving and another is filed in purchasing.

When the goods are received, the receiving staff count and inspect the goods. The blind purchase order tells what goods were ordered. The count is a significant control check. Receiving prepares a receiving report. One copy accompanies the goods to the storeroom. Other copies go to purchasing, inventory control, and accounts payable.

Accounts payable reconciles the purchase requisition, purchase order and receiving report. When the vendor invoice arrives, it is examined thoroughly and reconciled and if all documents agree, the transaction is recorded in the purchases journal and the accounts payable subsidiary ledger. The information is filed until the time arises to make payment.

The general ledger department receives a journal voucher from accounts payable and a summary from inventory control. The inventory and accounts payable control accounts are updated.

Terms in this set (32)

Which of the following is the correct sequence of steps in the Procurement Process?
a. Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send Payment
b. Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send Payment
c. Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive Shipment, Receive Invoice
d. Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send Payment

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What is the difference between a purchase requisition and a purchase order?

The main difference between a purchase requisition and a purchase order is that a purchase requisition is for getting internal permission to buy goods or services, whereas a purchase order is for actually purchasing the goods or services. These documents are created and approved internally within a company.

What is a purchase requisition quizlet?

Purchase requisition. a document that identify what material is needed, when, and how much. The document is created by anyone in the company who is in need of materials ( such as a new computer, a new chair), and is sent to the purchasing department.

Which is the purpose of a purchase requisition?

A purchase requisition form is an internal document used by an employee to purchase goods or services on behalf of their firm. These purchases may be for business operations (such as office supplies), inventory, or manufacturing inputs.

Which is a purpose of a requisition?

A requisition, in procurement, is a request for goods or services made by an employee to the person or department in a company that is responsible for purchasing. If the request is approved, that entity will submit a purchase order (PO) to a supplier for the goods or services.