Abstract:
PT XYZ is a manufacturing company that has tight purchasing activities
to support the production and sales activity. Its main customers are big companies that require on-time delivery. The raw materials should be purchased in the best price, according to company’s need, and received in a proper time in order to fulfill customers’ requirements. Therefore, the company needs an appropriate internal control system on purchasing activities.
The scope covered by this research is focused on the control activities of
purchasing on metal sheet. The research method used in this evaluation is qualitative method using study case model. Meanwhile, the data gathering and processing are done through literature review and field research.
During the research process, researcher found several weaknesses of internal
control. First, the Purchase Requisition document is not authorized by production supervisor and checked by Warehouse. Second, Purchase Requisition does not state the delivery date. Third, the written Quotation is only requested to one selected supplier. Fourth, the Purchase Requisition and Purchase Order are both signed by General Manager. Fifth, the Purchase Order is not sent to Warehouse and Production Department. Sixth, Finance (Accounting) Department receives the Purchase Requisition, Quotation, Purchase Order, and Packing Slip only after the invoice is received. Last but not least, the Purchase Requisition and Purchase Order are not prenumbered.
For the better improvement in the internal control system, there are several
actions that should be taken. The company should prepare Material Request/Purchase Requisition that authorized by production supervisor and checked by Warehouse, revise Purchase Requisition form by adding column for the date of materials needed, ask at least three suppliers to send written quotation, prepare four copies of Purchase Order, send the Material Request/Purchase Requisition, Quotations, Purchase Order, and Packing Slip right away to Finance (Accounting) Department after the documents are prepared, and create pre-numbered in each document.
