BPIC expenditure cycle

Purchases System

begins when inventory clerk prints purchase requisitions by accessing the purchase requisition file

purchasing

the __________________ department receives the purchase requisition

vendor, inventory control, A/P, receiving

purchase order copies are sent to _______________, _____________, _____________, and _______________

receiving

blind copy of purchase order is sent to _____________

packing slip, blind copy

receiving clerk receives the goods and reconciles with __________________ and __________________

inventory storeroom, purchasing department, A/P, files hard copy

receiving report is sent to ______________, ________________, ________________, _________________

invoice, purchase order, receiving report

A/P department reconciles _____________, _______________, and _________________ (three-way match). Records transaction in the purchases journal

cash disbursements

A/P clerk reviews A/P packets each day, identifies items due, sends supporting documents to ________________________ departments

cash disbursements department

_________________________ reviews documents for completeness and accuracy and prepares the payment for signature

A/P, G/L

________ department removes the liability and sends A/P summary to the _________ department

G/L department

________________ posts to the general ledger control accounts and files the documents

purchase requisition

when inventories drop to predetermines reorder point, more items need to be ordered

purchase order

what we ordered, by purchasing department, sent to vendor, inventory control, A/P and receiving departments

blind copy

purchase order copy that contains no price or quantity information, sent to receiving

receiving report

contains what items we actually received, to inventory storeroom, purchasing department, and A/P

invoice

from customer, amount to be paid

job tickets, time cards

production employees fill out two forms: __________________ and _____________________

cost accounting, job tickets

_______________ department uses ________________ to allocate labor costs to WIP accounts

cost accounting, G/L

________________ department summarizes these charges in a labor distribution summary which is forwarded to the ______________ department

personnel action forms, time cards

payroll department receives _______________ and ___________________

prepare the payroll register
enter the information into the employee payroll records
prepare paychecks and send them to paymaster for distribution to employees
send a copy of the payroll register to A/P

payroll department uses personnel action forms and time cards to: __________________________, _____________________________, ______________________________, _________________________________

A/P, cash disbursements, G/L

________________ department prepares cash disbursements voucher for the total amount of the payroll, sends copies to _________________ and ___________________ departments

cash disbursements

___________________ department reviews the payroll voucher and writes a check for the payroll and deposits it into the payroll imprest account

purchase requisition

__________________ is filled out when a department manager determines that an old fixed asset needs to be replaced or that a new fixed asset is warranted

fixed asset system (FAS)

___________________ department performs record-keeping functions

depreciation schedule

depreciation calculations are internal transactions that the FAS system bases upon a ________________________

personnel action forms

used by personnel department to:
activate new employees
change the pay rate of employees
change marital status and/or number of dependents
terminate employees

job tickets

account for the time spent by the worker on each production job

time cards

used to capture the total time worked each pay period for payroll calculations, must be signed by a supervisor

payroll register

gets information from personnel action form and time cards, enter info in employee payroll records and prepare checks

paymaster

independent person that received checks to hand out to employees to ensure that each person receiving a check is a valid employee

payroll imprest account

separate account that contains funds used strictly for employee payroll use, funded from the main cash account