CHAPTER 2
THEORETICAL FOUNDATION
iv.Communicating
information about the
receipt
of ordered
merchandise to the
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inventory control function to update the inventory records.
The receiving department (function) itself has two core responsibilities:
oDeciding whether to accept a delivery based on the existence of a valid
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purchase order.
oVerifying the quantity and quality of the goods delivered to ensure that the firm
pays only
for goods actually
received and that inventory
records are accurately
updated.
3)Paying for goods, supplies, and services
This third primary activity of the EC involves two steps:
i.Approve vendor invoices for payment.
ii.Pay approved invoices.
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INSERT
EC
VISIO
DRAWING
(CONTEXT
DIAGRAM,
P.
410
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ROMNEY)
2.3.2.Objectives of EC
The primary
purpose
in
the
EC
is
to
minimize
the
total
cost
of
acquiring
and
maintaining inventories, supplies, and the various services the organization needs
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to function (Romney & Steinbart 2006, p. 410). Moreover, to facilitate the
exchange of cash with supplies (vendors) for needs goods (materials) and
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