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Receiving and Cash Disbursement Processes

The receiving department has access to a copy of each purchase order. This copy of the purchase order does not allow access to the quantities. Vendors use bar coding or RFID tagging of all items which enables receiving department employees to use readers to check in all deliveries. When equipment is received and scanned, the purchase order is updated with the date and the quantity received. The receiving clerk then forwards the updated purchase order and equipment to the requisitioning department head and verbally notifies the purchasing department that the goods were received. The system automatically notes differences between quantities orders and quantities received in a report accessible by accounts payable.

Upon receipt of a purchase order, the accounts payable clerk saves the copy in the open purchase order file. When a vendor invoice is received, it is matched with the applicable purchase order and compared with the report from receiving. If all agree, the system then approves the invoice for payment. If approved, a payable is created by debiting the requisitioning departments equipment account. Unpaid invoices are filed by due date. On the due date, a check is prepared and forwarded to the treasurer for signature. The invoice and purchase order are then saved by purchase order number in the paid invoice file.

Checks received daily from the accounts payable department are sorted into two groups: those over and those under $10,000. Checks for less than $10,000 are machine signed. The cashier maintains the check signature machines key and signature plate and monitors its use. Both the cashier and the treasurer sign all checks over $10,000. The bank account is reconciled by the cashier.

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