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Business Situation: A vendor supplies materials on a just-in-time basis to your manufacturing facility....

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Accounting

  1. Business Situation:

A vendor supplies materials on a just-in-time basis to your manufacturing facility. The material is sent with a bill of lading to the warehouse loading dock and the vendor sends the company an electronic update of the inventory shipped so it can be loaded into the inventory system automatically. The receiving clerk counts the inventory received and updates the bill of lading with the quantities received. The updated bill of lading is sent to the inventory clerk who confirms that the computer system matches the bill of lading. The accounts payable department receives a report on a daily basis indicating which purchase orders have been updated by the warehousing department.

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