Purchasing and Inventory Controls

VITALICS PURCHASING AND INVENTORY FORMS

Purchasing controls over inventory and expenses are a critical part of operating any organization. Using specific control forms will lower your fraud risks on unauthorized purchases and inventory theft allowing your business to maintain a positive cash flow.

PURCHASING AND INVENTORY FORMS


PURCHASING & INVENTORY FORMS$19

  • Electronic Download
  • 20 Purcasing & Inventory Forms
  • Compatible with Mac
  • Customize in Word & Excel
  • Easy to Modify in Word Excel Adobe
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VITALICS FORMS BUNDLE$129

  • ELECTRONIC DOWNLOAD
  • INCLUDES OVER 140 FORMS
  • CUSTOMIZABLE IN WORD AND EXCEL
  • 11 CATEGORIES
  • EASY TO MODIFY
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FRAUD TOOLKIT & VITALICS$298

  • ELECTRONIC DOWNLOAD
  • 2 HR VIDEO FRAUD PREVENTION
  • FRAUD MANUAL
  • VITALICS FORMS BUNDLE
  • COMPATIBLE WITH MAC
  • FREE EMAIL SUPPORT
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WHAT IS VITALICS

Vitalics is a small business internal control program that provides all the tools to easily set up and implement your company’s controls.  Vitalics contains over 140 already created yet customizable internal control forms, checklists and templates in a desktop application.  Vitalics forms are also available separately.   Whether you are a business owner, office manager, bookkeeper or accountant, Vitalics will provide you the reassurance that your work or your company assets are protected.



DID YOU KNOW ?

A skimming scheme is one of the most difficult schemes to prove because the money leaves the victim organization before it is recorded on the books. There is usually a manipulated sales receipt or customer invoice or an adjustment to inventory in order to force this scheme to balance to the books. Purchasing and inventory controls will reduce the fraud risks within your organization.

COMMON PURCHASING FRAUD SCHEMES

Types of Schemes in Purchasing

A conflict of interest is when employees, managers or executives put their personal interest above the company’s interest usually resulting in an adverse affect on the victim organization.

The most common inventory fraud scheme is that in which an employee is stealing inventory for their own personal use or gain. With weak inventory and purchasing controls, employees can manipulate the records to force inventory counts while they are removing inventory from the victim organization. It is also common for those employees to re-sell those items on Ebay and Craigslist.

A bid rigging scheme is a collusive fraud where an employee helps a vendor illegally obtain a contract that was supposed to involve competitive bidding. Although this happens frequently in construction it is also common for materials in manufacturing or retail as well.

Kickback Fraud is perpetrated by an employee and the employee’s vendor or customer. It usually involves the employee buying goods or services at an overstated price then personally receiving the difference.

PURCHASING CONTROL PROCEDURES
Helpful suggestions

Purchaser Approval Forms
When an employee has authority in the purchasing department it is important that the owner or manager review and approve the orders as well. Verifying changes in cost and quality of goods will protect the organization from purchasing schemes.

Physical Inventory Counts
Have another person verify a physical inventory count even if it is an owner. It is crucial in preventing inflated counts. All physical inventory counts must be signed and dated by the employee who conducted the count and then signed and dated by the person approving the count.

Set Guildelines on Vendor Relationships
If you have employees that seem to be unusually close with vendors this could be a sign of a fraud scheme in the making. Set company policies as to what is acceptable for your employees and their interaction with vendors and even customers.

Set Purchasing Limits
It is a good idea to set a specific limit for anyone with the authority to purchase goods or hire service contractors within your organization. Anything over a specific dollar amount should require additional approval from an owner, director, officer or qualified manager.