Write 8 page essay on the topic Manufacturing Concerns Of Acquisition And Payment Process.The purchases department ensures that the transactions are authorized and complies with predefined criteria. A

Write 8 page essay on the topic Manufacturing Concerns Of Acquisition And Payment Process.The purchases department ensures that the transactions are authorized and complies with predefined criteria. Accounts payables or creditors are the other accounts affected by the acquisition of raw material. Whenever a purchase of raw material is made, the accounts payable account is credited with the net amount payable to the supplier of the raw material. When the amount is actually paid, the effect is incorporated in the cash ledger.Cost of goods sold balance represents the book value of the finished goods sold during the financial period. The other impact of the selling of finished goods is recorded in the sales ledger which is credited by the selling price of the sold good. The difference between the cost of goods sold balance and sales appears in the company’s income statement as the gross profit. Inventory account acts as a sub-ledger to the purchases ledger. The balance in the inventory account represents the value of inventory present in the warehouse at the end of the financial year. The inventory management department keeps on assessing the net realizable of the stock in hand, as according to accounting principles, the stock must be valued at lower of cost or net realizable value.2. Manufacturing concerns all around the globe are now focusing more and more on making its acquisition and payment process efficient and effective. Several business functions are involved in the acquisition and payment cycle such as Planning and forecasting, material management department, warehouse supervision department, quality control department and accounts department. All of the mentioned business functions are integrated with each other and with other business functions so that the company is able to utilize its resources aptly.

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