Question: Gaurav Mirchandaniis is the warehouse manager for a large office supply wholesaler. Mirchandaniis receives two copies of the customer sales order from the sales department. He elects the goods from the shelves and sends them and one copy of the sales order to the ship- ping department. He then files the second copy in a temporary file. At the end of the day, Mirchandaniisretrieves the sales orders from the temporary file and updates the inventory subsidiary ledger from a terminal in his office.
At that time, he identifies items that have fallen to low levels, selects a supplier, andand prepares three copies of a purchase order. One copy is sent to the supplier, one is sent to the accounts payable clerk, and one is filed in the warehouse. When the goods arrive from the supplier. Gaurav Mirchandaniis reviews the attached packing slip, counts and inspects the goods, places them on the shelves, and updates the inventory ledger to reflect the receipt. He then prepares a receiving report and sends it to the accounts payable department.