Page 267 - Electronic Commerce

Chapter 5

Operating Buyer Vendor Manufacturing
unit
Mail
Work
order
Purchase
requisition
242 Purchase
order Purchase Sales
Purchase Mail Mail order Department
order room room
Purchasing Invoice
Department
Sales
Invoice order
Check Invoice
Accounting
Check
Check Department
Bill of
Copy of lading
purchase Accounting
order Department
Copy of Copy of
bill of invoice
Receiving lading
Learning
report

Bill of Shipping Cengage
Receiving Bill of lading
Department lading Bank Department
Check 2015
©
FIGURE 5-5 Information flows in a paper-based purchasing process
3. Purchasing also sends one copy of the purchase order to the Receiving
Department so that Receiving can plan to accept delivery when scheduled;
Purchasing sends another copy to Accounting to advise it of the financial
implications of the order.
4. The mail room sends the purchase order it received from Purchasing to the
selected vendor by mail or courier.
5. The vendor’s mail room receives the purchase order and forwards it to its
Sales Department.
6. The vendor’s Sales Department prepares a sales order that it sends to its
Accounting Department and a work order that it sends to Manufacturing. The
work order describes the machine’s specifications and authorizes
Manufacturing to begin work on it.
7. When the machine is completed, Manufacturing notifies Accounting and
sends the machine to shipping.
8. The Accounting Department sends the original invoice to the mail room and
a copy of the invoice to the Shipping Department.

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