Study Notes management accounting acca f2

 
It specifies the quantity, quality and the price of the goods that are to be bought. 
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It is authorized by head of purchase department 
 
Four Copies
of the purchase order are sent to the following: 
(a) The Purchase department 
(To keep records) 
(b) The accounts department (
so that when the goods are arrived and invoice has received. The 
invoice can be matched with the purchase order for price confirmation) 
(c) The stores section
(for updating the stock records) 
(d) The goods received section
(so that they can expect to get the goods by the date mentioned on 
the purchase order) 
The original purchase order is send to the supplier. 
4. Advice Note
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Advice note is an agreement which takes place as a result of trade with new supplier or change in 
terms and conditions of the trade with the supplier to avoid future disruptions. 
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Confirmation of purchase order is also done with the sign of this agreement for the supplier. 
5. Delivery Note
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Supplier sends delivery note to the customer with the goods. 
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The delivery note has 
two copies. Both are signed by buyer.
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One copy is 
retained by buyer
for documentation and the other copy is taken 
back to the supplier
by the driver to confirm the supplier that the goods have been delivered to the right buyer. 
 
Important:
If the supplier does not use his own transport, the 
consignment note
will provide the same 
evidence as the delivery note. 
6. Goods Received Note (GRN) (internal document)
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When the goods have been received at the goods received section, a good received note is 

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F2 Management Accounting
Page 12 of 147 
prepared and sent to the other departments so that they know that the goods have arrived. 
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