Processing map

The manufacturing supervisor in Durham enters purchase requisitions into the EPT system, which
triggers emails to the purchasing clerks. The purchasing clerks read the emails and decide whether the
request is for a known or unknown part. If what is needed is a known part, and there is a preferred
supplier for the material in the EPT system already, then a purchasing clerk emails a purchase order
(PO) to the supplier for the item(s) requested. If what is needed is
not
a known part, then a purchasing
clerk sets up a new part in the EPT system and performs traditional new vendor sourcing activities to
determine an appropriate supplier for the material. Once these steps are complete, a purchasing clerk
emails a PO to the chosen supplier. If no supplier exists for a known part, then a purchasing clerk must
still perform sourcing activities and send the PO to the newly identified supplier.
When the raw materials arrive, they are inspected for quality by the receiving department. If the
quality is deemed substandard, then the goods are immediately sent back to the supplier. The raw
materials passing quality inspection are then sent to the warehouse employees who count them for
accuracy and prepare a receiving report. Warehouse employees then decide where a good place to
store the materials in the warehouse might be and send the receiving report to the manufacturing
supervisor as proof the raw materials have been received. The manufacturing supervisor will then
sign the receiving report as confirmation the material has been received.
Purchasing clerks receive supplier invoices in a variety of ways, but the process after receipt is
always  the  same.  First,  they  check  each  invoice  for  accuracy  against  the  PO  and  make  sure  the
appropriate pre-negotiated discounts and payment terms are included (e.g., 2/10 n 30). If there are
any issues, they consult the supplier and make the corrections. The clerks then send the corrected
invoice and PO to the accounts payable clerks in the accounting department. If there are no issues,
then the supplier’s invoice is sent directly to the accounts payable clerks.
Next, accounts payable clerks will assign GL account numbers (to show the increase in inventory
[debit] and the  accounts payable  [credit])  and the cost center number (e.g., what job the material
should be charged to) for management accounting purposes. Accounts payable clerks will then enter
the  information  into  CODE  and  a  voucher  number  will  be  automatically  generated.  Supporting
documentation is printed and filed in the accounts payable file folders until payment is due.