# data[].attributes.body
-> Optimum quantity of reorder

Q = quantity of order
c = cost of placing an order
n = number of units required anually
k = carrying cost per unit of inventory

# data[].attributes.body
-> include salaries and wages who engaged in purchasing , receiving and inspecting materials
2. Carrying Costs
-> storage and handling costs, interest on material costs insurance and losses through theft

# data[].attributes.body
Maintained at apt level

Smooth flow of production and sales

Too low

Risk of disturbed production

Too high

Unnecessary carrying costs

# data[].attributes.body
STANDING INSTRUCTION/ORDER
💰written request to bank👉pay a certain sum of money to another party for a specified period or until request withdrawned
💰go to bank👉fill in form👉must deduct from account with the bank branch
💰regular payment👉monthly or weekly👉fixed or a sum amount of money
💰stop at request👉fill in form to stop SI👉form will be send

# data[].attributes.body
ELECTRONIC FUNDS TRANSFER(EFT)
💰may use ATM machine, cash deposit machine,payment card(credit/debit cards), online banking facility,phone banking facility

# data[].attributes.body
DIRECT DEBIT
💰payer gives permission to payee to withdraw money from payer's bank by signing an agreem

# data[].attributes.body
BANK CHEQUE
💰payer fill form👉present at bank counter instruct for a bankers' cheque 👉pay cash money to be transfer👉bank will issue a cheque👉payer send cheque to payee👉payee bring cheque to bank👉cash money remitted to payee's account

# data[].attributes.body
Storekeeper : in charge of store

➡ Incoming goods
➡ GRN/RR
➡ Material Requisition Note
➡ Selling Goods

Reasons for store keeping :
🦄 Immediate access to goods
🦄 Centralized Receipts
🦄 Full identification of available goods
Functions :
🦄 Maintaining the store in an orderly
and tidy manner
🦄 Prevent waste
🦄 Prevent unauthorized entity

# data[].attributes.body
Payment voucher ➡ payment authorization

Remittance advice

use AP ledger > inform supplier > remit amount, invoiced refered, credit notes refered, paid payments & balance to be paid.

Send RA to suppliers

Reconciles RA with SOAR

# data[].attributes.body
BANK TRANSFER
💰payer requests bank transfers money to payee account
💰by telegraph (TT) via secured system👉cash laju (CIMB), western union,MEPS

# data[].attributes.body
Design to detect and prevent errors in outputs

Example :

Built in checks similar to those in processing controls such as the record count, are employed to prevent output errors

# data[].attributes.body
CHEQUE
💰written order👉payer instruct bank to pay another person(payee)
💰payer👉prenumbered blank forms supplied by banks👉bank charge cheque fee

# data[].attributes.body
controls designed to detect and prevent any errors occuring while data is being processed

these are incorporated during the development of the application system.

Example :

Record count or hash totals

# data[].attributes.body
Goods send to receiving dept

Delivery notes attached with goods

Receive clerk inspection

After complete, receive 2 signed copies from the clerk of Supplier's Delivery Notes

1 SDN is returned to supplier and another one is used to prepare Receiving Report (RR) or Goods Received Note (GRN)

# data[].attributes.body
CASH
💰small amount payment or for "cash on delivery(C.O.D)"👉cash payment journal👉asset custody
💰petty cash👉does not use PO👉records on petty cash voucher👉asset custody petty cashier

# data[].attributes.headline
29. CONTROLS IN THE COMPUTER ENVIRONMENT

# data[].attributes.subject
29. CONTROLS IN THE COMPUTER ENVIRONMENT

# data[].attributes.body
INPUT CONTROLS

to detect and prevent errors when data is converted to a computer readable form

achieved through validation procedures

Example :

The customer number will have a check digit to confirm that it is a valid number.

# data[].attributes.body
•To monitor efficiency of various areas and system of an organisation

•Purchases discount lost analysis:monitor voucher and payment processing efficiency

•Time lapse between inventory and placing order : monitor the efficiency of purchasing department

•Time lapse between receiving bay and movement goods : monitor which goods are inspected

# data[].attributes.body
Helpful for management control purposes

A routine review and audit of the reports produced may reveal any unwanted reports.

Purchase Order ~> analyse orders by product ~> volume and value items purchased, identify excessive buying

Time lapse data ~> sales order and receipt of goods ~> identify excessive delay

Inventory on hand ~> analyse high volumn stocked ~> increase unnecessary stock holding or inaccurate reorder level

Goods/material received at a point of time ~> identify unreasonably high volume items purchased

Amount cash disbursed ~> cash outflow control purposes

Vendors paid over the due date ~>identify cashflow problems or processing problem

# data[].attributes.body
2. Placing the order

PRF Received

Sort item according to potential suppliers

Choose best supplier

Prepare 2 set of Purchase Order

PO Contains :
🦄 Supplier name, address, item description
quantity, unit price, trade discounts,
total price of goods, delivery date

# data[].attributes.headline
AP CLERK BY RECORDS PURCHASES RETURNS JOURNAL

# data[].attributes.subject
AP CLERK BY RECORDS PURCHASES RETURNS JOURNAL

# data[].attributes.body
1. Goods received were damaged
2. Goods requested were not quality required
3. The need no longer exists for the ordered goods
4. Overcharged by mistake
5. Error in calculation

# data[].attributes.body
- To Make a payments to supplier
- Input data from voucher application or input data manually
- Function :
1. Sort the voucher file by due date to identify due for payment
2. Produces a cash requirements report for planning
3. Select vouchers due for payment when produces control reports
4.  Produce cheque register to be print for control purpose
5. Print cheque for distribution to creditor
6. Update accounts payable for payments made
7. Create records for general ledger control acc

# data[].attributes.body
Part of inventory or storekeeping application

Ensures the receipt of goods is recorded after the first checking

The PO authorise the purchase in the PO detail file and record details of the receipt as the quantity in order to create a receipts files

From those files, the computer programs produce :~> a receiving report which may be use to initiate an entry in the inventory file , ~> a receipt register which is used by the voucher system .

The inventory system maintains records of each inventory kept in stores.

The incoming inventory added using the receiving report

The outgoing inventory is subtracted using the material requisition note .

This system uses the receiving report created by the receiving application when they are linked

This system also produce a purchase requisition when the reorder level is reached or sends the information to the purchasing application when they are linked.

# data[].attributes.body
1. FIRST IN,FIRST OUT METHOD
received earliest leave stores first
2. WEIGHTED AVERAGE METHOD
uses an average cost per unit

# data[].attributes.body
Produces the purchase orders and prints or transmits them directly to the supplier

Produces a purchase order register

Adds records to the purchase order details file.

# data[].attributes.body
1. Identifying a potential supplier

Research potential suppliers

Get purchase manager approval

Once approved, database on potential suppliers is develop

Consider

🦄 Supply conditions
🦄 Specific details of internal needs
🦄 Past experience
🦄 Quality
🦄 Reliability

Credit facility from supplier must be prearranged

🦄 Negotiate : limit amount,
time limit, cash discount
🦄 Apply for increasing credit limit or settle
outstanding debt

# data[].attributes.body
-value stock
-store ledger cards 👉prepared by account dept👉contain info similar to stock record cards,extra info👉unit price&total value
used for
1. Valuation of the cost of sales
2. Valuation of issues relating to production or services
3. Valuation of inventory on hand at any time

# data[].attributes.body
1. STOCK RECORD CARD
consists stock number,description,'in','out','balance' minimum, maximum and reorder levels
2. BIN CARDS
contain information of the stock number,bin number,description,unit,'in','out' and 'balace'

# data[].attributes.body
does not keep updated records, amount determined periodically

# data[].attributes.body
Purchase requisition received from stores for stock items and for the staff for special items

Information about the purchase of stock item might come from stores department

The request for special items sent to purchasing department using specialised form.

The short-listed supplier identified using product code

# data[].attributes.body
maintaining a set of inventory records on continuous and consistent basis

# data[].attributes.body
1. Valuation of the inventory for the purposes of accounting
2. Checking again loss through theft and misuse
3. Identifying inventory physical state(deteriorated,damaged,leakage) and physical verifies (storekeeper/store officer)

# data[].attributes.body
- Record liability to pay a supplier
- Input : vendor invoice, receiving reports, purchase order
- Integrated system : data accessed by voucher application from other application
- Batch processing system : enter all details with a match purchase order, receipt register before record the liability
- Online real-time processing system : record purchase order and invoice details, if details match with receipt register details it has been recorded

# data[].attributes.body
1. Purchase Requisition form (PRF)
2. Categorized Goods to be purchased :
General Goods :

Normally stored for manufacturing or sales

Special Items :

Needed only for a specific purpose or time period

# data[].attributes.body
- count the inventory
- amount recorded on
stock verification sheets
✅ serial number
✅stock number
✅description
✅units of measure
✅quantity
✅unit price
✅total value

# data[].attributes.body
1.  Requesting
2. Ordering
3. Receiving Goods
4. Store keeping
5. Dealing with returned Goods
6. Paying

# data[].attributes.body
1. Applying

2. Recording

3. Requesting

4. Checking

5. Approving

# data[].attributes.body
The application programs of the computer system :
1. Purchasing
2. Receiving/ Inventory
3. Voucher Application
4. Cash disbursement