Company Documents
Process of Managing, Accounting and Documenting Purchases of Goods
Purchases is one the most important processes in a retail business. Therefore managing and accounting purchases is a very important aspect of accounting in Zyxware. Documenting purchases serves two specific purposes. One is the regulatory purpose of preparation of monthly tax returns which will also include and require the maintenance of the stock registers. The second is that the details maintained in the Purchase registers helps in tracking a product back to the original source.
When a purchase order has been placed with a distributor, the person in charge of purchases should get a cheque for the amount from the Accounts-in-charge and send it via an office hand to make the purchase from the distributor. The person who goes to the distributor should enter the cheque date and the cheque amount on the purchase bill. He should also verify that he has received all the items listed in the bill and originally requested from Zyxware before leaving the distributors office.
Once the person comes back to Zyxware with the purchased goods, he should enter the serial numbers of the purchased products on the purchase bill. This will ensure that the Accounts-in-charge will be able to record the purchase and the serial numbers of the products later while recording the purchase in the computer. Once the serial numbers are written down on the purchase bill, it should be handed over to the Accounts-in-Charge who will have to verify the following.
1) Cheque Date and Cheque Amount on the Bill
2) Tin number and name of company (Zyxware) should be present on the bill
3) Bill should be in the correct VAT dealer bill format.
4) Serial numbers of products with Serial Numbers should be present on the bill.
5) The tax rates are correct for the different items in the bill.
The person who made the purchases should then write down the following details on the boxes and on the actual product purchased - Date of Purchase and Distributor from which the product was purchased. Follow the standard list of Company name acronyms that we use to write the name of the distributor.
Before the end of the day, the details on the purchase bill has to be entered into the computerized system by the Accounts-In-Charge or a duly allocated personnel. This will automatically add the items to the stock registers and be available for later billing and accounting.
When a purchase order has been placed with a distributor, the person in charge of purchases should get a cheque for the amount from the Accounts-in-charge and send it via an office hand to make the purchase from the distributor. The person who goes to the distributor should enter the cheque date and the cheque amount on the purchase bill. He should also verify that he has received all the items listed in the bill and originally requested from Zyxware before leaving the distributors office.
Once the person comes back to Zyxware with the purchased goods, he should enter the serial numbers of the purchased products on the purchase bill. This will ensure that the Accounts-in-charge will be able to record the purchase and the serial numbers of the products later while recording the purchase in the computer. Once the serial numbers are written down on the purchase bill, it should be handed over to the Accounts-in-Charge who will have to verify the following.
1) Cheque Date and Cheque Amount on the Bill
2) Tin number and name of company (Zyxware) should be present on the bill
3) Bill should be in the correct VAT dealer bill format.
4) Serial numbers of products with Serial Numbers should be present on the bill.
5) The tax rates are correct for the different items in the bill.
The person who made the purchases should then write down the following details on the boxes and on the actual product purchased - Date of Purchase and Distributor from which the product was purchased. Follow the standard list of Company name acronyms that we use to write the name of the distributor.
Before the end of the day, the details on the purchase bill has to be entered into the computerized system by the Accounts-In-Charge or a duly allocated personnel. This will automatically add the items to the stock registers and be available for later billing and accounting.
