Question

Refer to Figure 2-30 in the text and the discussion about updating master files from transaction files. The discussion pertains to the record structures for a sales transaction. Prepare a diagram (similar to Figure 2-30) that presents the record structure for the receipt of inventory items that had been ordered previously. Assume that a purchase order file exists and will be updated through information collected via a receiving report, which is the transaction record. Further, assume that the purchase was made on account, and the vendor AP record needs to be updated. Do not show the general ledger records in your diagram. Explain each step in the update process. 

 

Answer 1

1) System reads the Receiving Report record and matches it to the PO record using the PO Number.

2) System verifies that quantities received were constant with what was   ordered.

3) Match the Receiving Report to the Inventory Master record

4) Update the Quantity on Hand in Inventory using the Quantity Received 

5) Match the Receiving report record (or the PO) to Vendor AP file record using Vendor Number.

6) Update the AP Balance using the Total cost field in the PO Record.