CHAPTER 3

Question 1

What is purchasing?

Answer 1

This is the process that ensures the company has a steady supply of goods that can be sold to customers or materials that can be used for production

Question 2

How does it Start?

Answer 2

Step 1: Starts with Purchase Order and continues with the rest of the purchasing document such as Goods Receipt PO and A/P Invoice.

Step 2: The system captures the information per step (para alam ng customer kung ano ung on hand sa inventory.)

Abby’s note: parang if mag oonline shopping kayo makikita niyo kung ilang products na lang natitira parang ganon pero correct me if I’m wrong eto kase pagkakaintindi ko)

Question 3

Two types of key master data needed in purchasing.

Answer 3

1. Vendor - identifies who is supplying the goods and services and the user can search for the appropriate vendor in any purchasing document but can also create a new vendor while creating a purchasing document.
2. Item master - Identifies what is being purchased.

• this can be copied into any document in purchasing, sales, production, MRP, inventory, and service modules.

Question 4

2 important things in the purchasing process

Answer 4

1. Ship-to Address - indicates the address where the purchased item will be sent.
2. Pay-to Address - shows the address that would be printed on the check when the payment is issued.

Also, check the basic four-part process nasa page 1 ng chapter 1 part 1

Question 5

Check pages 2-3 of part 1 of Chapter 3

Question 6

Creating Purchase Order

Answer 6

• first document in the procurement process.
• commercial document that is issued by a buyer to a seller specifying the items, material or services that are being purchased, including agreed-to quantities and prices
• once created, there are no posting in the inventory and accounting.

Question 7

Needed when creating a purchase order (PO)

Answer 7

1. Delivery Date - target date when the items need to be delivered
2. Vendor - identifies from whom the items or services are being delivered.
3. Item/Service type - defines if the order is for an item or a service.
4. Items 0 shows what item(s) are needed to be purchased.
5. Quantity - indicates the number or quantity that is being purchased.

Also, check bottom part ng part 2 chapter 3