For the current purchasing system, there are four departments involved: the purchasing/inventory

department, accounts payable department, raw materials department, and the receiving department.
When the inventory hit the reorder point, the purchasing department prepares the purchase requisition
which it sends to the AP department which records it to the AP pending file. After this, three copies of a
multipart PO are prepared which is sent to the AP (one copy; filed in the AP pending file) and to the
vendor (two copies). A PO and purchase requisition is used to update the inventory record.
The receiving department then receives and inspects the goods and prepare a receiving report. All four
departments will receive one copy each. The AP department will file it to the AP pending file. Once the AP
department receives all three documents, it will record the liability in the purchases journal and post it to
the respective subsidiary ledger. The AP clerk then summarizes all purchases and prepare a journals
voucher which it sends to the general ledger department.
The ledger department receives the journal voucher, the account summary from the purchasing
department, and the invoice from the supplier. The general ledger clerk then posts the transactions to the
inventory and AP accounts.