Internal control of procurement module in the hott

2022-08-26
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Internal control of procurement module under ERP environment

I. Research Summary

enterprise internal control system is the general name of a series of interrelated, mutually restrictive and mutually supervised systems, measures and methods formulated by the enterprise for effective operation and management. The application of enterprise resource planning (ERP) system in enterprises, on the one hand, can effectively manage all links of the internal supply chain, such as orders, procurement, inventory, planning, production and manufacturing, but on the other hand, it also brings new challenges to the internal control system of enterprises

whether it is an industrial enterprise or a commercial enterprise, procurement and payment business are the primary link of enterprise business activities. The level of procurement cost has a direct impact on the ultimate profit of the enterprise. At the same time, the management of accounts payable or prepayments related to procurement business is also crucial for enterprises. In view of this, this paper discusses how to strengthen the control of the procurement module in the ERP environment, so that enterprises can establish a perfect internal control system of procurement business, ensure the authenticity, rationality and legitimacy of procurement matters, timely and accurately provide the accounting information of procurement business, ensure the effective operation of the procurement payment business cycle, and ensure the normal and safe operation of the enterprise accounting information system

II. Control link of procurement business

(I) procurement business processing process from the perspective of logistics, the success of the initial procurement process will directly affect the pricing of the final products produced and sold by the enterprise and the final profit of the whole supply chain. In other words, the "leading" role of enterprise procurement process cannot be underestimated. The specific processing flow is shown in Figure 1

(II) the control point procurement system of procurement business is actually composed of two subsystems: procurement management and accounts payable, which are relatively complex subsystems in the enterprise information system. In this subsystem, there are two lines of logistics and capital flow. How to ensure the connection between these two lines and correctly form current accounts with suppliers is the key to this system. At the same time, according to the current requirements of enterprise management, the procurement system not only completes the in-process management and post event accounting of procurement activities, but also completes the generation of procurement plans and the prediction of procurement fund demand. Although the purpose of purchase and a/P business management is the same for different enterprises, different enterprises have certain differences in management mode and business process. This paper introduces a more conventional processing mode. Specifically, there are the following key business processing links and control points:

1 The authorized enterprise must set the operation authority of each person involved in the procurement process on the ERP system as required. For example, the entry of supplier information must be authorized to operate the database, the modification after order entry must be authorized to operate, and the purchasing personnel must sign the purchase contract within the scope of authorization

2. Approval procedure is a very important part of purchase business. The purpose of approval is to review the purchase requisition and clarify the relationship between the purchase requisition and the purchase activity. Through mutual review, check and balance between departments and personnel, one person can avoid controlling all links of a transaction, so as to prevent employees from cheating. The purpose of the approval procedures of various departments and levels is different. For example, the purpose of the approval of the head of the requisition department is to ensure that the variety and quality of the requisitioned goods meet the needs of business activities; The purpose of approval by the procurement department is to prevent repeated procurement and control procurement costs

3. Supplier management for purchasing business, the relationship between suppliers and purchasing departments is relatively tolerant. 2. Complete destruction: electrostatic discharge destruction is a link prone to problems. The company shall establish perfect files for suppliers and timely grasp the reputation of each supplier. If the inquiry personnel choose suppliers, there may be fraud. Therefore, the key to this link is to make information public, and the selection process should be fair and just, in which price is an important factor in selecting suppliers. In addition, the supplier's quality and reputation management system and production capacity will affect the operation of procurement business and subsequent production and sales links

4. Purchase settlement purchase is the primary link of enterprise operation. Controlling the material purchase cost is very important for an enterprise to improve its business performance. Because the material cost accounts for a relatively high proportion of the production cost, reducing the material procurement cost can increase the profits of enterprises, thereby enhancing the competitiveness of enterprises

5. Payment settlement payment business is an integral part of the purchase business. Its main content is based on the purchase business, which is to pay the enterprise's funds to the suppliers of purchased goods. Payment involves the use of funds, so it is the focus of internal accounting control. The key points of payment business control mainly include accounts payable business control and fund payment control

III. specific measures to strengthen the internal control of the procurement module under the ERP environment

(I) the authority control unit shall establish a strict authorization and approval system for the procurement and payment business, clarify the authorization and approval methods, authorities, procedures, and relevant control measures, and stipulate the scope of responsibility and work requirements of the operator for handling the procurement and payment business. Enterprises should establish a perfect authorization system for various material requisitions. The Department's material demand is in the charge of the Department's asset manager; The formulation of the special requisition plan must be comprehensively discussed and decided by the company's planning department, marketing department and other relevant departments, and the large expenditure related to the strategy must also be agreed by the senior leaders. At the same time, in order to ensure equal rights and responsibilities, enterprises should establish an appropriate assessment system to truly achieve who has the rights and who bears them. For example, the A/C set supervisor of a company is Li Ming, and Wang Li, the salesman of the procurement department, puts forward a requisition keyboard plan to the superior supervisor of the company. The requisition quantity is 10, and the salesman fills in the requisition accordingly. At this time, Li Ming, the A/C set supervisor, must log in to the system, start the purchase management system, execute the "purchase options" and "business and authority control commands", and adjust the force point blade under "authority control" and tighten it; (2) The wear of the blade and fulcrum of the force point will increase the load error to varying degrees. Select the check box of "check operator permission and check operator permission". If the A/C set supervisor does not give Wang Li the operation permission, the "sorry, you do not have the permission to enter this department" window will pop up when Wang Li enters the purchase requisition

(II) approval control all departments of an enterprise should strive to institutionalize the purchase requisition business, that is, clarify the approval process of purchase requisitions of different types and levels, and ensure that all purchase requisitions go through the specified approval procedures. Purchase requisitions, purchase orders, outsourcing orders, etc. must be approved by someone before proceeding to the next process. Different reviewers may be appointed for different departments. The correction and deletion of incorrect business and the processing of the declaration to be solved must be carried out in strict accordance with the regulations, and the review system must be strictly implemented to fully ensure that the computer accounting processing is good and not disordered. Whether it is static audit or dynamic audit, it is necessary to carefully check whether the output accounting vouchers are consistent with the actual economic transactions. In addition, the formulation of corresponding computer operation rules and operating procedures is a concrete embodiment of the institutionalization of operation control. For example, the audit of fixed assets is centralized to the equipment management department; The purchase of computers and other IT equipment is under the jurisdiction of the IT department in charge; The budget review is centralized to the competent financial department; Different levels of personnel have different amounts of restrictions, which must be reviewed by people at a higher level

(III) business execution control

1 Arrival quantity control. Controls whether the quantity of arrival is allowed to exceed the order quantity. To control the purchase quantity, the purchase department should first check whether the purchase quantity of each purchase requisition is within the control limit, and then check whether the department head who uses goods or obtains labor services signs on the purchase order. For bulk procurement, the impact of various procurement quantities on costs must be analyzed. The internal accounting control system must make mandatory provisions on these cost analysis, and designate special personnel to supervise whether the cost analysis is implemented. Classify various requisition items effectively, and then use the economic batch method to calculate the cost; For items with small purchase requisitions or sporadic purchase requisitions, the cost analysis and control of purchase batch can be implemented with reference to the fund budget. The more the purchase quantity is, the lower the price is. However, the more the purchase is, the better. The capital turnover rate and the cost of warehouse storage will directly affect the purchase cost. The most economical purchase quantity should be calculated comprehensively according to the capital turnover rate, storage cost, material demand plan, etc. Therefore, the purchase quantity must be determined in advance. The order quantity that minimizes the total cost of inventory is called economic order quantity

2. Arrival cost control. Control whether the arrival cost is allowed to exceed the order or contract cost. For example, if the purchase receipt cost of a goods cannot exceed 10% of the order is set, the system will not allow the purchase receipt cost exceeding 10% of the order to be entered. From the perspective of cost, the price of raw materials or goods for sale and the cost of purchasing behavior itself constitute a considerable part of the product cost. Therefore, purchasing operations have a significant impact on the profitability and financial liquidity of enterprises. There is a close relationship between purchase and inventory management. It can be said that the cost of enterprise purchase depends largely on the quality of inventory management. Scientific and accurate inventory management will minimize the cost of procurement operations on the basis of ensuring normal production

3. Storage costs. When an enterprise has inventory, storage expenses will occur. This expense includes the opportunity cost that the funds occupied in the inventory cannot be reinvested, as well as site rent, insurance premium and other storage related expenses. Therefore, in order to save storage costs, enterprises should try to reduce inventory. For such costs, the ideal situation is to reduce to zero, which is the main idea of timely procurement. This problem can be solved through the following measures: ① reduce the number of suppliers, which reduces the negotiation time; ② Call supplier files and select reputable suppliers to reduce inspection and quality costs

(IV) payment control

payment control should belong to the accounts payable system, but the actual cause is in the procurement system. Payment control can be carried out through the following methods:

(1) when handling payment business, the financial department should strictly review the authenticity, integrity, consistency and legitimacy of purchase invoices, supplier invoices, settlement vouchers, purchase orders, acceptance orders, as well as the need orders for warehousing services for China's industrial technology transformation, innovation and upgrading. The unapproved amount cannot be paid, and the amount with incomplete information above can be paid only after the information is supplemented

(2) accountants should write off the purchase business that has completed the payment procedure in time, and strictly manage the accounts payable, prepayments and other important accounts

(3) change the supplier settings and control the accounts payable to the supplier

(4) enterprises can also set early warning in the system. The company establishes payment request control, and the financial personnel will approve the department budget and payment requirements after verification; The cashier pays or signs by bank transfer according to the supplier information in ERP

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