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articles:coordinating_purchasing_and_accounting [2019/10/06 19:09]
rrandall [Example 1]
articles:coordinating_purchasing_and_accounting [2019/10/06 19:10] (current)
rrandall [Example 2]
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 ===== 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 =====