ABC Corporation’s accounts payable process is described below:

If anything needs to be bought, a purchase requisition slip (PRS) is filled out by the requestor. The PRS is
submitted to the purchasing department for canvassing and selection of supplier. Once the supplier is
selected, a purchase order (PO) is then prepared who is approved by the purchasing supervisor. In the
canvassing process only one quotation is needed for the PO to be prepared.

After the PO is approved, it will be then sent to the supplier for order fulfillment. Upon delivery, the
receiving clerk will match the quantities indicated in the PO against the invoice. The receiving clerk does
this while working from home. No need for him to check the actual goods. As long as he is advised by the
guard on duty that items were delivered he will just match the PO and the invoice, and proceed with the
preparation of the receiving report.

The accounts payable clerk records accounts payable once the PO is prepared. After receiving the copy of
the receiving report she will then reverse the accounts payable to process payment.