Differences
This shows you the differences between two versions of the page.
| Both sides previous revisionPrevious revision | |
| articles:coordinating_purchasing_and_accounting [2019/10/06 19:09] – [Example 1] rrandall | articles:coordinating_purchasing_and_accounting [2019/10/06 19:10] (current) – [Example 2] rrandall |
|---|
| ===== Example 2 ===== | ===== Example 2 ===== |
| |
| More recently, I visited a company where I interviewed their Receiving personnel. A common issue for them is where the Purchasing function orders a length of wire/cable (e.g., 1,000 feet), but the supplier "Packing List" reflects an excess (e.g., 1,003 feet). Even though the cost remained the same as the original amount of wire/cable ordered, the company's Accounting Dept. will not pay the supplier until the Purchasing function issues a revised "Purchase Order" for the actual amount received. While the cost associated with this administrative function far exceeds the cost of the excess wire/cable, it delights the Accounting function! | More recently, I visited a company where I interviewed their Receiving personnel. A common issue for them is where the Purchasing function orders varying lengths of wire/cable (e.g., 1,000 feet), but the supplier "Packing List" reflects an excess (e.g., 1,003 feet); which is a common industry practice. Even though the cost remained the same as the original amount of wire/cable ordered, the company's Accounting Dept. will not pay the supplier until the Purchasing function issues a revised "Purchase Order" for the actual amount received. While the cost associated with this administrative function far exceeds the cost of the excess wire/cable, it delights their in-house Accounting function! |
| |
| ===== The Solution ===== | ===== The Solution ===== |
