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understanding information systems

Account receivable
In many firms, customers pay by credit card or have goods charged to their accounts. The account receivable system in the transaction processing system that manages customer purchase records, payments, and account balances.

Many companies use a central purchasing department to procure the goods they need. The advantages of centralized purchasing department are cost control, vender control, and taking advantage of discount realized by quantity buying. The major advantage is inconvenience to the other departments in the organization for whom the goods are being purchased.

The function of a receiving system in a receiving department is to receive, inspect, and accept or reject goods that vendor’s ship. As goods are received, the shipping cartoons are opened, the contents are checked against the information on the purchase order, the price of shipment is verified, and goods are inspected for possible damage. If the goods are satisfactory, they are typically routed either to inventory or to the department initiating the purchase request.