BUSINESS ADMINISTRATION
OFFICE MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
note
|
|
|
supply list
|
|
|
itemization
|
|
|
payment
|
Detailed explanation-1: -The next step in the process of a purchase order is the contract. When the vendor receives the PO and accepts it, the PO becomes a contract between the two parties involved; the buyer and the vendor.
Detailed explanation-2: -Pay the vendor with a check or electronic funds transfer noting the invoice number on the check or transfer memo. The vendor is not an employee, thus you don’t need to withhold taxes, worker’s compensation or retirement benefits.
Detailed explanation-3: -Vendor Payments Explained Briefly, when a company orders goods from a supplier it raises a Purchase Order (PO), when the goods or services arrive they will receive an invoice from the supplier. If the goods or service matches the PO the details of the invoice are entered into the Account Payable system.