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Purchasing and Finance department

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Purchasing and Finance department

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • February 15, 2021 at 12:09 pm #610485
    applessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    Which function in an organisation is responsible for ensuring that only properly authosired purchases which are necessary for the business are made?

    Sir the answer was purchasing department but I want to know why financing department cannot be the answer

    I thought finance department only approves the payment since they usually check the invoice,goods recieved note and the copy of the purchase order
    Moreover finance department are the ones who actually have the cash in the department to buy the purchases

    February 15, 2021 at 3:19 pm #610515
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    What you write about the financing department is correct.

    However it is not them who place the orders – that is the purchasing department. Before they place the order they should ensure that the request by the department wanting the goods has been properly authorised.

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