Question

Which of the following documents would be matched with the vendor invoice to ensure that the purchase was authorized (i.e., to ensure input validity)?

1) Purchase order
2) Receiving report
3) Sales invoice
4) Payment receipt

Answer 1

To verify that a purchase was authorized, a vendor invoice is matched with a purchase order and a receiving report. These documents confirm pre-authorization and the physical receipt of goods, respectively.

Step-by-step explanation:

To ensure input validity, a vendor invoice should be matched with a purchase order and a receiving report. The purchase order demonstrates that the purchase was authorized beforehand as it is issued by the buyer to the seller indicating types, quantities, and agreed prices for products or services. The receiving report documents the receipt of goods by the company, confirming that goods have been physically received and are ready for payment processing.

A sales invoice is issued by the seller to the buyer, reflecting what has been sold and the price, but it does not provide evidence of authorization. A payment receipt confirms that the payment has been made but does not ensure that the purchase was correctly authorized or that the goods were received.