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can anyone tell me that is purchase order update the store ledger account??? if no then why in BPP study text says that the copy of purchase order should sent to the store department to update the record.
The copy of purchase order will be matched against the Goods Received Note. If matched, Store’s Ledger Account will be updated.
Since Goods Received Note doesn’t contain any ‘monetary’ information, i.e we don’t know what is the cost of those goods received, so the Purchase Order will tell us the cost.
Hope it helped you.
Also, someone has to monitor orders placed and the receipt of orders. If stocks are running low it would be useful for stores to know that more has been ordered and they could ring the supplier about the order if matters were becoming critical.
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