ABC wholesale supplier company records the inventory receipt in the store’s department, matches that receipt with purchase orders, and creates liability in accounts. Also, releasing the payment and filing the transactions by the date. The Clerk reviews the receipt of the material with the packing slip and checks the items with the purchase order. The clerk then matches with PO kept in Bin cards (Stocking) otherwise rejected, updates the stock records by inventory system, and forward the original packing slip to accounts. The receipt of supplier invoices directly in accounts and cross-checking the same with received packing slips from the inventory department. The clerk then matched the liability and forward the received packing slip from inventory and invoices received from suppliers to the inventory department to process the payment. The stores prepared the check and send the same to suppliers, also send the copy of the cheque forward to accounts for accounting. Accounts record the payment transaction and reduce the liability to the suppliers. The accounts department files the documents of summary of payments along with a copy of checks day-wise.

Prepare Flowchart.