By:

Arma, Jeanevive L.
Azores, Dennice E.
Martin, Nicole M.
Masongsong, Jayka C.
Mayor, Jessica D.
Salamanca, Danica Mae C.
- process in which businesses inquire, request,
receive, and then pay for raw goods and services.
 PURCHASE-TO-PAYMENT PROCESS

CART/SUPPLY MANAGEMENT PURCHASE REQUISITION PURCHASE ORDER

RECEIVING INVOICE ACCOUNTS PAYABLE/PAYMENT

STATUS
 CART/SUPPLY
MANAGEMENT

INTERNAL CONTROL :
1. Treat the supplier as partner and not vendors.
2. On time payment
3. Build relationship that is stronger and deep.
4. Price is what you pay, value is what you get
5. Detailed Agreement

INTERNAL CONTROL:
SELECTION RISK : 1. Require supplier to sign a code of conduct every
1. Financial Stability year
2. Operation 2.Ensure the vendor set-up process incorporates
3. Too much or too little information in the fiscal Duty segregation.
document. 3.Implement Check validation of select Vendor
payment
4. Develop an integrated supplier database
5. Back up suppliers for primary materials
 PURCHASE REQUISITION

– The internal process of formally getting approval to order a product for

fulfillment.

Controls:
1. Designate somebody as the central authority for handling the purchase of
goods. This individual should understand and be familiar of all purchasing
activity as well as understand purchasing policies and procedures.

2. Set purchase price limits and ensure purchases remain within transaction
limits and charges are not split into multiple transactions to avoid
exceeding.

3. Individuals assigned at purchase requisitioning should update and monitor

the inventories to ensure that orders are made and approved by the proper
authority on time.
 PURCHASE ORDER

INTERNAL CONTROL:

• To check if purchase orders are properly authorized.

• To verify if purchase orders are accurately and completely

prepared and recorded on a timely basis.

• To confirm if all purchase order transactions are reliably

processed and reported.
 RECEIVING

INTERNAL CONTROL:
• Security of Assets: - secure materials in a safe location.
- periodically count your inventory and compare the results with the
amounts shown on control records.

• Receipts of materials and supplies are properly authorized.

• Receipts of materials and supplies are recorded accurately and completely
on a timely basis.
• The receiving process is efficient and cost-effective.
• The receiving process is safe.
 INVOICE

- Comparing the invoice to the purchase order to ensure all costs

and charges are as expected.
Invoicing

• The vendor can invoice the customer at any time after the
items are shipped. By using an electronic invoicing solution,
the P2P process can be streamlined so that the information is
entered into the customer's accounts payable system.

• When the items are received, matched against the invoice and
purchase order, the invoice processing can commence.
 ACCOUNTS
PAYABLE/PAYMENT STATUS

- Invoices are approved for payment, payments are

made, and the accounting system is updated.
Separation of duties
Ensure that payment documents are processed correctly by having different people
involved in the payment process.
Accountability, authorization, and approval
Accountability ensures that you authorize, review, and approve invoices for payment
based on signed agreements, contract terms, and purchase orders.
Review and reconciliation
Your reconciliation activities confirm that you're paying for approved purchases and
are being billed correctly. Perform monthly ledger reconciliations to catch improper
charges and validate transactions.
THANK YOU
- END-