ITM 410 Lecture Notes - Lecture 12: General Ledger, Economic Order Quantity, Demand Forecasting

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 410
• Professor: Lin Ying Dong

Document Summary

Purchasing process handles the repetitive work routines of the purchasing and receiving departments purchasing and receiving departments by capturing and recording data related to the day-to-day operations of the departments. Process prepares a number of reports used by personnel at various levels of management. Goods: raw materials, merchandise, supplies, fixed assets, or intanglible assets. Services: work performed by outside vendors, including contractors, catering firms, towel. Purchasing receives authorization (via purchase acquisition and, if required, approval of the po) to execute and record the purchase. The open po ( flow 2c) authorizes receiving to accept the goods. Receiving executes the receipts and, along with the warehouse, has custody of the goods. The controller/general ledger records the increase in inventory. Individual managers" goals may not be in congruence with organizational objectives: purchasing may buy large quantities to reduce ordering costs and increase discounts leading to increased receiving, inspecting, and carrying costs.