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ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions

A manufacturer's purchasing department receives a purchase requisition, selects a supplier and issues a purchase order. Which document should the accounts payable section match to the purchase order and the goods received note before authorising payment?

The supplier's invoice is matched with the purchase order and the goods received note before payment is authorised. This three-way match confirms that the goods charged were ordered and received. Sales orders and bank statements do not serve this control purpose.

  1. AThe supplier's invoiceCorrect
  2. BThe customer's sales order
  3. CThe bank statement

Explanation

The three-way match compares the purchase order (what was ordered), the goods received note (what arrived) and the supplier's invoice (what is being charged). A sales order relates to customers, and a bank statement is used later in reconciliation, not to authorise payment.

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