USA Multiple PO formats in audit

[Logan9202]

Hello all, first post!

I have an accounting degree but I currently work in purchasing.

I would like to use multiple formats for purchase orders in order to make it easier for our warehouse to get items to the correct location. For example, normally POs come in with a DXXXXXXXX format, but I want items meant for a specific process to come in under a PO with a SBXXXXXXX format.

The accounting department has shot down this idea, suggesting that corporate auditors would take issue with having multiple formats for POs. I'm admittedly not the best with auditing, and struggled a bit in my auditing classes, but I'm failing to remember anything that would make multiple PO formats a no no to an auditor. It wouldn't affect the process of vouchering. It wouldn't affect the ability to randomly sample. I can't imagine a way it would affect the paper process in anyway.

Am I missing something obvious here?

 

[smallbushelp]

When you say format, do you mean numbering system? Like D23568945 is a PO number that you use now and you also want to have POs that have numbers like SB5648975? If I got that right, then I agree with you. Professional auditors should be able to handle a second numbering system as long as the same types of controls are adhered to as with your current PO handling procedures. If this is something that you feel very strongly about, then you should consider writing a proposal or memorandum to upper management explaining why the addition of a second numbering system would be beneficial to the company (e.g. how it will save time or money, cut down on order mistakes, etc.). Then allow upper management to make a decision. Some accountants just don't like change because they're comfortable with the way things are.

Oh, and if I misunderstood your explanation, then, never mind.

 

[bradgilliatt]

I agree with the previous response 100%

 

[bradgilliatt]

I would actually recommend a unique identifier that would enable the direction of goods....it would be an easier fight to recommend adding a new line item that is unique to each location within the po as opposed to changing the entire numbering format for certain types of po's (e.g. under the po number have a line that lists receiving location....that is how large companies direct the goods - i would also use a numbering convention that could not be confused with the po number - e.g. receiving location is d123 while po number is 904578433)

 

[Logan9202]

Thanks for all your responses. Yes, smallbushelp, you understood correctly my scenario. I asked my boss to discuss the issue with accounting, and I keep getting the same push back, non answer of, "it's an internal control issue."

Brad, thanks for your suggestion as well. I've been working with them now on having our supplier provide a separate code to instruct warehouse. Honestly, our biggest issue is lack of training in our warehouse, so I was looking for a more simple way to direct them.