Match each document in a voucher system in column one with its description in column two

Match each document in a voucher system in column one with its description in column two.

Document

1. Purchase requisition
2. Purchase order
3. Invoice
4. Receiving report
5. Invoice approval
6. Voucher

Description

__ A. An itemized statement of goods prepared by the vendor listing the customer’s name, items sold, sales prices, and terms of sale.

__ B. An internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.

__ C. A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms.

__ D. A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization.

__ E. A document used by department managers to inform the purchasing department to place an order with a vendor.

__ F. A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of goods.

The correct answer and explanation is :

Here’s how each document matches with its description:

1. Purchase requisition – E. A document used by department managers to inform the purchasing department to place an order with a vendor.

• A purchase requisition is an internal document used by employees or departments to request the purchase of goods or services. It provides details on what is needed, allowing the purchasing department to initiate the ordering process.

1. Purchase order – C. A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms.

• A purchase order is a formal request issued by a buyer to a seller. It specifies the items, quantities, and agreed-upon prices for the goods or services being purchased. Once accepted by the vendor, it becomes a binding contract to deliver the goods at the stated terms.

1. Invoice – A. An itemized statement of goods prepared by the vendor listing the customer’s name, items sold, sales prices, and terms of sale.

• An invoice is a document sent by a seller to a buyer, listing the goods or services provided, their prices, payment terms, and other necessary details. It serves as a request for payment and is used to document the transaction for both parties.

1. Receiving report – F. A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of goods.

• A receiving report is prepared when goods arrive at the company. It includes a detailed description of the items received, their quantities, and their condition. This document is crucial for matching the received items with the purchase order and invoice to ensure that the goods match what was ordered.

1. Invoice approval – D. A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization.

• Invoice approval is the process of reviewing an invoice to ensure it matches the purchase order and receiving report before payment is authorized. This process ensures the accuracy and legitimacy of the payment request.

1. Voucher – B. An internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.

• A voucher is a document that serves as proof of a transaction and includes all relevant supporting documents such as invoices, purchase orders, and receiving reports. It helps the company manage cash disbursements and ensures all steps are properly authorized before payment is made.

Explanation:

In a voucher system, the goal is to establish a controlled and organized process for approving and recording transactions, especially concerning payments. The purchase requisition initiates the purchase request, and the purchase order formalizes the order with the vendor. When the goods are received, a receiving report is created, detailing the condition and quantity of the items. The invoice is the seller’s request for payment and includes itemized information about the goods or services. Before paying, the invoice goes through invoice approval, ensuring it matches the purchase order and receiving report. Finally, the voucher serves as the complete record for the payment process, ensuring all necessary documentation is in place and authorized before the disbursement occurs.

This system helps ensure that there are no discrepancies in the ordering, receiving, and payment processes, thus reducing the risk of fraud or error in financial transactions.