The Improvement Research On Procurement And Payment Internal Control Of Zhongyuan Co.ltd

The mechanization of agriculture is an important sign to measure a country’slevel of agricultural development.Mechanization of agriculture can not only improveagricultural productivity and living conditions of farmers,but also consolidate thefoundation of agriculture.Food processing machinery is the most common form ofagricultural processing machinery.There are four problems in the industry of foodprocessing machinery in China.Firstly,There are numerous smaller enterprises；secondly,enterprise operational mechanism is old in most enterprises that can hardlyadapt to the development of market economy；Thirdly,Most enterprises operates withlow efficiency and high cost；Fourthly,The overall quality of enterprises operationdeclines in a disorder industry and worse competition environment. he marketcompetition is often manifested in price when there relates more homogenizationproducts and Low technologicalism. The Prerequisite for the formation of pricecompetitive advantage is to to produce qualified products with lowest cost. In thefood processing machinery industry, the ultimately cost of materials consumed bythe product accounte for a large proportion of the product, thus reducing the cost ofmachinery products is an effective way to reduce the cost of materials consumed bythe product, It is necessary to establish and improve the procurement and paymentmanagement system to regulate the behavior of corporate purchasing.,if there is aneed for an effective control of materials procurement costs. this paper analysisenterprise procurement and payment system requirements and procurement andpayment business processes actually after a follow-up study on procurement andpayment processes of Zhongyuan Co.Ltd. which combines the Internal ControlApplication Guidelines-----procurement operations and Internal Control IntegrationFramework proposed by COSO. This paper concludes that the procurement andpayment management processes and systems division of labor is not detailed, thecontrol flow is not clear, the system is imperfect. Thus, the author draws on theexperience of Enterprise Internal Control Practice Note-----integration ofprocurement operations and the COSO internal control framework, Accounting for theproblems in the design and operation of the system, the author optimizes theprocurement system of program management, supplier management systems,procurement contract management system, purchase returns management system, procurement settlement management system and prepayments approval managementsystem.The paper also devises procurement program management processes,procurement budget management processes, supplier management processes,procurement contract management processes, payment and accounting treatmentprocesses, return or replacement management processes.what’s more the paperproposes safeguards to the effective operation of the internal control process to helpenterprises to reduce the risk of procurement and payment business processes andimprove efficiency.