The Expenditure Cycle

The Expenditure Cycle

Ashutosh Deshmukh (Penn State University - Erie, USA)
DOI: 10.4018/978-1-59140-738-6.ch006
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Abstract

The expenditure cycle consists of the ordering of goods and services from suppliers and consequent payments to the suppliers. The generic transaction flow in the expenditure cycle can be described as follows: inventory control reviews inventory records to determine order requirements. A purchase requisition(s) is created and forwarded to the purchase department. The requisition contains details of items and quantities required. The purchase department selects suppliers by using the approved list of suppliers or any other standard operating procedure established by the organization. The supplier is selected and a purchase order is created and forwarded to that supplier. Another copy of the purchase order goes to the inventory control department to notify it that goods are on order. The supplier ships goods to the warehouse, and a receiving report is created. The receiving report is forwarded to inventory control and accounts payable. Inventory control updates inventory records based on the receiving report.

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Dedication
Table of Contents
Preface
Ashutosh Deshmukh
Acknowledgments
Chapter 1
Ashutosh Deshmukh
The term digital refers to digits or numbers; however, in the computer science lexicon this term refers to the representation of information in 0s... Sample PDF
A Framework for Digital Accounting
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Chapter 2
Ashutosh Deshmukh
In the late 1950s and early 1960s, mega corporations of the day began to handle data that rivaled government requirements. This data could not be... Sample PDF
The Evolution of Accounting Software
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Chapter 3
Ashutosh Deshmukh
The Internet spins a vast web of information across the globe. Data and information flow freely — available to anyone for learning, understanding... Sample PDF
The XML-Based Web Languages and Accounting
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Chapter 4
Ashutosh Deshmukh
Before the dawn of the computer age, intra- and inter-business activities, especially purchasing and selling of products and services, were... Sample PDF
Electronic Data Interchange
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Chapter 5
The Revenue Cycle  (pages 131-189)
Ashutosh Deshmukh
The revenue cycle deals with the delivery of products or services to customers and consequent collection of cash from customers. The standard... Sample PDF
The Revenue Cycle
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Chapter 6
The Expenditure Cycle  (pages 190-229)
Ashutosh Deshmukh
The expenditure cycle consists of the ordering of goods and services from suppliers and consequent payments to the suppliers. The generic... Sample PDF
The Expenditure Cycle
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Chapter 7
The Conversation Cycle  (pages 230-259)
Ashutosh Deshmukh
The conversion cycle spans a range of activities — product design, production planning and control, and cost accounting. Product design is a... Sample PDF
The Conversation Cycle
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Chapter 8
The Gender Ledger Cycle  (pages 260-292)
Ashutosh Deshmukh
The general ledger cycle consists of posting of entries from special journals, subsidiary ledgers, and general journal to general ledger; as well as... Sample PDF
The Gender Ledger Cycle
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Chapter 9
Ashutosh Deshmukh
A dominant trend in information technology is the convergence of different software functionalities. Even after the dot-com bust or, perhaps because... Sample PDF
Financial Management, Strategic Management and Digital Accounting
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Chapter 10
Ashutosh Deshmukh
Internal controls have existed since the dawn of business activities. Internal controls are basically systems of checks and balances. The purpose is... Sample PDF
Controls, Security, and Audit in Online Digital Accounting
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About the Author