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A Horizontal Perspective

19 January, 2016 - 12:35

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Figure 13.3  presents a horizontal view of the relationship between the PtoP process and its organizational environment. They show various information flows generated or captured by the process. After reviewing Figure 13.3, read Technology Insight 12.1, which discusses how horizontal information flows in an enterprise system become automated and therefore more efficient in terms of supporting the PtoP process.

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Figure 13.3 A Horizontal Perspective of the PtoP Process 
 
Table 13.1 Description of Information Flows*

Flow No.

Description

1

Purchase requisition sent from inventory control department to purchasing department

2

Purchase requisitions from various other departments sent to purchasing department

3

Purchase order sent to vendor

4

Purchase order notification sent to various other departments or to inventory control department

5

Purchase order notification sent to receiving department

6

Purchase order notification sent to accounts payable department

7

Goods and services received from vendor

8

Receiving notification sent to accounts payable department

9

Receiving notification sent to purchasing department

10

Invoice received from vendor

11

Approved voucher sent to cashier

12

Accounts payable notification and inventory cost information sent to general ledger

13

Check sent to vendor by cashier

14

Paid voucher returned to the accounts payable department

15

Notification of the cash disbursement sent from the cashier to the general ledger

* Many of these steps may be automated. See Technology Insight 12.1 for a description of these steps in an enterprise systems implementation.