409 Ch13

  1. Economic Order Quantity
    the optimal order size to minimize the sum of ordering, carriying, and stock out cost
  2. Materials Requirement Planning
    inventory management that seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to better schedule purchases to satisfy production needs
  3. Just In Time
    a system that minimizes or virtually eliminates inventories by purchasing and producing goods only in response to an actual sale
  4. Purchase Requisition
    A document only used internally to initiate the purchase of materials, supplies or services
  5. Imprest Fund
    The method used to maintain the cash balance in a the petty cash account
  6. Purchase Order
    A document that creates a legal obligation to buy and pay for goods or services
  7. Kick Backs
    a fraud in which a supplier pays a buyer or purchasing agent in order to sell its products or services
  8. Procurement Card
    A special purpose credit card used to purchase supplies
  9. Blanket Purchase Order
    An agreement to purchase set quantities at specified intervals from a specific supplier
  10. Evaluated Receipts Settlements
    A process for approving supplier invoices based on a two way match of the receiving report an purchase order
  11. Disbursement Voucher
    A document used to list each invoice being paid by a check
  12. Receiving Report
    A document used to record the quantities and condition of items delivered by a supplier
  13. Debit Memo
    A document used to authorize a reduction in accounts payable when merchandise is returned to a supplier
  14. Vendor Managed Inventory
    A system in which suppliers are granted access to point of sale and inventory data in order to automatically replenish inventory levels
  15. Voucher Package
    Combination of purchase order, receiving order, and supplier's invoice that all relate to the same transaction
  16. Non-Voucher System
    A method of maintaining accounts payable in which each supplier invoice is tracked and paid for seperately
  17. Voucher System
    A method of maintaining accounts payable that generates one check to pay for a set of invoices from the same supplier
Card Set
409 Ch13