Assignment for Accounting Information Systems ( AIS )

The ABC Company performs its expenditure cycle activities using its integrated ERP system as follows: Employees in any department can enter purchase requests for items they note as either out of stock or in small quantity. -The company maintains a perpetual inventory system. . Each day, employees in the purchasing department process all purchase requests from the prior day. To the extent possible, requests for items available from the same supplier are combined into one larger purchase order to obtain volume discounts. Purchasing agents use the Internet to compare prices in order to select suppliers. If an Internet search discovers a potential new supplier, the purchasing agent enters the relevant information in the system, thereby adding the supplier to the approved supplier list. Purchase orders above $10,000 must be approved by the purchasing department manager. EDI is used to transmit purchase orders to most suppliers, but paper purchase orders are printed and mailed to suppliers who are not EDI capable