CAT / FIA FBT Syllabus C. Accounting And Reporting Systems, Controls - Accounting & Purchasing Procurement - Notes ^{1 / 3}

The purchasing/buying function is responsible for placing and following up orders. It coordinates with the accounting department as follows:

establishing credit terms	the accounting department will work with the buying department to liaise with suppliers to obtain a credit account and to negotiate credit terms which are acceptable.
prices	the accounting department can advise the buying department on the maximum price that should be paid to maintain margins
payment	payments may be approved by the buying department but are made by the accounting department
data capture e.g. orders	order details will be input by buying department and details passed to accounting department
inventory	the purchasing department will consult with the inventory section of the accounting department to determine the quantity of items already in stock and therefore the quantity required
budgeting	the accounting department will consult with the buying department on likely costs in preparing budgets