The purpose is to discuss the accounting cycle in my organization. Describe the accounting cycle from identifying the transaction to the after-closing trial balance. Identify the Transactions
Accounts Payable receives invoices from various sources including the inter-office mail, U.S. mail, facsimile, etc. A review is made of each invoice to identify the invoice number, purchase order number, date of invoice, amount of invoice, and whether taxable or non-taxable. While reviewing the invoice, circling the above items provides ease of locating the items for future use. An invoice batch is made from invoices contain the same number accompanying pages.
The next step is to image or scan the invoices. A software package named Acenza distributed by FileNet, scans the invoice to enable an invoice image to project on a computer monitor for indexing and processing. The invoice requires values to link with a database, which is indexing. The values indexed are the above circled items. The invoice is ready to proceed to a database. Analyze the Transaction
An invoice interfaces into one of three databases: Oracle, Cincom, and Integrated Business Systems (IBS). Using Acenza to retrieve the invoice image and querying the appropriate database begins the analyzing process. A processor is a person performing the analyzing and providing the final approval of the invoice before payment.
The processor responsibility is to verify the vendor name, and remit to address are correct by comparing the invoice and database. There are two kinds of purchase order invoices. One is the purchase of product and the other is the purchase of services. An invoice with a product purchased requires the receiving of the product at the dock. The processor may match the invoice without the parts received and after receiving the parts, the invoice will continue through the system for payment.
A service type invoice requires the approval of the...