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When an authorized purchase requisition comes into the system, it is checked to see that it has been authorized. Furthermore, the budget master file is acessed to ensure that the purchase is covered by the authorizer's budget. After the purchase requisition has been validated, a vendor is selected from those in the vendor master file. At this time, a purchase order is prepared and the purchase requistion is filed away in the purchase requisition file.
All the departments in the organization that will be affected by this purchase are notified. These departments are the warehouse, receiving department, and accounts payable department.
The purchase order is submitted to the vendor. The purchase order data are recorded in the open purchase order file, which is a file that stores unfilled purchase orders. The vendor sends back an acknowledgment that the order will be filled. That information is also entered into the open purchase order file.
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