Case - Synergy Inc.Jeff Cooper is the newly appointed Supply Chain Director for a global company, Synergy Inc.Within one week of joining the company, Jeff is already facing a crisis.Some of Synergys large suppliers are threatening to stop supplying raw material to the company. Without a continuous supply of raw material, the company may have to shut down the factory within 2 weeks, and this will have an immediate impact on their delivering products to their customers. Jeff had a meeting with a few of the larger suppliers. They are complaining bitterly about the late payment of their invoices, in some cases, the suppliers are not getting paid for more than 3months, and the payment in arrears has grown to over $1 million. The issue of late payment has been an issue for a few years. Suppliers has complained to the Synergys senior management a number of times, but the problem was never completely resolved. At the meeting with the suppliers, Jeff promised to look into the problem and get back to the suppliers within one week.After talking to the Controller, Jeff found out that most of the outstanding supplier invoices are stuck at the Accounts Payable department due to failure in the 3-way match process. The Accounts Payable Manager is also complaining the documents received from various departments rarely match, for example, the receiving report provided by the warehouse does not match the purchase order, or the price on the purchase order does not agree with the supplier invoice. The Accounts Payable manager has been instructed by the Auditor that payments to the supplier can only be released if: the discrepancy of an invoice is less than 0.5% of the PO amount or less than $500, if the discrepancy is over $500, it must be sorted out with the Purchasing Department and the supplier to have the documents corrected if the discrepancy is not resolved then it has to be written off as a cost against the Supply Chain department, and this require the approval of the VP Operations. Upon investigation, Jeff discovered that the Purchase. 1: Explain how SAP handles purchasing transactions in the accounting ledgers

2: Explain how an ERP system can prevent any dishonesty behaviour in the purchasing process.