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I'm an IT guy. I have the luxury of often ordering high ticket items that get recycled in 4-5 years. From my standpoint, I put a purchase req into an antiquated system. It goes through several levels of approval, then off to purchasing for a "purchase order", a commitment to eventually pay for something purchased. Payment terms are often net 30, 60, or 90. Problems arise when vendors don't read the purchase orders, they expect payment in 30 days but we don't pay for 90, or vise versa. It seems like a complete clusterfuck - and I'm guessing saying everything should just go on a corporate credit account that gets audited from time to time is the equivalent of saying everyone should just bring in their own computer devices and use cloud services. What else goes on beyond what I interact with? There's the mythical AR team which I know nothing about. Accounts payable, also know nothing about. And even more mythical, general ledger transactions. Are these normal terms no matter what size corp you work for?
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Nov 25, 2015 01:26
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| # ? Apr 26, 2024 18:18 |
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It all sounds pretty standard. The Requisition/Purchase Order/Payment Terms work together to give your finance/accounting team time to control cashflow and assist in making projections/forecasts against budgets (departmental, quarterly, whatever.) Some companies will allow certain types or values of invoices through without purchase orders, others will be sticklers, others still will be happy to put a lot on corporate credit cards and just audit expenses. Generally it's a mix based on who precisely is purchasing what (such as executives putting whatever they want on cards and everyone else needing a requisition to get some meeting refreshments.) The general ledger is a summary of various transactions. You might have a cost code or department as a single line item. The detail of this line would be broken down in it's relevant subledger.
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Nov 25, 2015 02:36
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It's more or less like this:http://www.theonion.com/blogpost/tha-autobiography-of-herbert-k-16457
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Nov 25, 2015 11:17
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