Electronic Data Processing System (EDP System) for Materials Received
and Issued:
The preceding description of invoice approval and payment was for a
manual operation performed by an accounts payable clerk or an invoice clerk.
In an electronic data processing system (EDP system), the computer--to a
great extent--replaces the clerk. Upon receipt of the invoice (the source
document), the accounts payable clerk enters the account distribution on the
invoice. The data are then directly inputted from the invoice to the
computer data bank via a terminal device. The data are edited, audited, and
merged with the purchase order and the receiving order data, both of which
have been stored in the computer data bank. The common matching criterion on
all documents in the purchase order number. Quantities, monetary values, due
dates, terms, and unit prices are matched. When in agreement, the cost data
are entered in the accounts payable computer file with a date for later
payment.
The above procedure deals with the accounts
payable phase of a purchase transaction. Of equal importance is the need for
posting the data in quantities and dollar values to the materials inventory
file in the electronic data processing system (EDP system). The information
enters the EDP system from either the invoice or the invoice approval form,
which would have to include all computer-necessary data. The internal
computer program updates the materials inventory file. The withdrawal of
materials could also be programmed, so that manual posting to the materials
inventory file would be eliminated.
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