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ACCA Applied Knowledge · Financial Accounting · Sales and purchases

In a purchases cycle, which sequence of documents is normally correct from the buyer's perspective?

The normal sequence is purchase order, goods received note, supplier invoice, then payment. The buyer orders, receives and records the goods, matches the invoice to the order and delivery, and only then pays the supplier.

  1. APurchase order, goods received note, supplier invoice, paymentCorrect
  2. BSupplier invoice, purchase order, goods received note, payment
  3. CGoods received note, purchase order, payment, supplier invoice
  4. DPurchase requisition, payment, goods received note, supplier invoice

Explanation

The buyer orders goods with a purchase order, records delivery on a goods received note, then matches the supplier invoice to both before paying. Option B puts the invoice before the order, which is illogical. Options C and D pay before the invoice is checked or the goods are received.

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