Only $2.99/month

Terms in this set (90)

The starting point for this is generally from the receiving department who notes either a QUANTITY or QUALITY issue. The difficulty can also be with the ITEM ORDERED. The vendor sent the wrong item.

QUANTITY issue. Receiving department notes on receiving report difference and notifies purchasing and accounting. Accounting sees difference and adjusts open purchase order system for change in quantity.

Quantity over purchase order amounts require approval prior to payment.

Receiving should separate the excess items (items not on approved purchase order) and hold pending resolution.

QUALITY issue. Needs to addressed with purchasing. Purchasing needs to determine the appropriate price to pay for the item, the result of discussion with vendor. There is an approval process in purchasing.

Purchasing formally requests adjustment to invoice amount. Accounting is informed of the result. Purchases are recorded. Purchase Allowances are also recorded.

WRONG ITEM. Purchases needs to determine if the item should be returned. In general, most items will be sent back to the vendor. Item is kept in receiving department in a separate section awaiting resolution. Accounting is informed by shipping documents, if the item is returned. Accounting is informed if the item is to be kept and sold in stores. Adjust inventory records for different item and price as applicable if item is to be kept. If returned, adjust PO or process purchase allowance.

RECEIVING should not keep items in dispute for prolonged period of time. RECEIVING should maintain log of items held pending resolution as these items are not YET IN INVENTORY SYSTEM!