A Comparative Study On Internal Control Of Purchasing Operations Of Chinese And German Equipment Manufacturing Companies

In recent years,in the face of the rapid development of the market economy and the impact of the epidemic,companies have had to face more operational risks in their operation and management.The improvement of internal control procedures directly affects the stable development of the company.Purchasing business as a company A part of daily operation and management plays a pivotal role and has become an indispensable core role in the internal control of a company.Improving the internal control process of the procurement business can not only save time and cost,ensure the quality of purchased materials,but also prevent fraud and fraud,and greatly reduce various risks.JS Machinery Company is a representative domestic manufacturing company.Its main business is corrugated machinery and equipment and subsequent processing.In recent years,with the launch of the company’s globalization strategy,the company has achieved significant results.However,since the company was founded,it has focused on product R&D,production and sales.There are many loopholes in management,and the awareness of internal control is not in place.German B Machinery Company is one of the top ten famous machinery manufacturers in Germany.A branch company was established in China in 2003,and it has adapted to the Chinese environment well.As an industry leader,Company B has a superior and complete internal control system for the procurement business,including institutional settings,procurement plans,warehouse inventory management,supplier review management,and an ERP system that runs through the entire business process,ensuring on-demand procurement,Scientific procurement.This article uses the following parts to compare the internal control of the procurement business of Chinese and German equipment manufacturing companies.First,the introduction introduces the research background,expounds the significance of the research,summarizes the research status at home and abroad,and also explains the research ideas and research methods used in the paper,and finally tells the deficiencies and innovations of the research.The second part introduces the concept of procurement business and related theories of internal control of procurement business,including procurement business and basic processes,risk points of procurement business and internal control theory of procurement business,and four theoretical foundations.The third part summarizes the basic situation of JS company’s procurement business from three aspects:procurement scope and situation,procurement business organizational structure and department responsibilities,and the establishment of internal control personnel for procurement business.It also analyzes the internal control process of JS company’s procurement business,including an overview of the internal control process of JS company’s procurement business,and standard evaluation of the internal control process of JS company’s procurement business.The fourth part describes the basic situation of the procurement business of the German B Machinery Company from the perspective of the scope and situation of the procurement,the organizational structure and department responsibilities of the procurement business,and the setting of the internal control personnel of the procurement business.The analysis is carried out on the internal control process of the procurement business of German B Machinery Company.The content covered includes an overview of the internal control process of the procurement business of the German B Machinery Company and the normative evaluation of the internal control process of the procurement business of the German B Machinery Company.The fifth part is a comparative analysis of the internal inventory control of the equipment manufacturing companies of the two countries,including the overall level of the company and the level of business processes.It includes aspects such as requisition approval issues,supplier management,purchase price determination,warehousing acceptance,and payment management.In addition,the above analysis leads to the problems and reasons in the internal control of the procurement business.This paper compares the internal control of the procurement business of Chinese and German equipment manufacturing companies,and concludes that the internal control of the procurement business of JS company has the following problems:message delivery is lagging、employees lack awareness of internal control、insufficient internal supervision of procurement business.And put forward an optimization plan for the problem: the range of products purchased by category 、 optimize the allocation of procurement staff 、 strengthen non-material contract procurement process optimization and supervision measures 、optimize the internal review mechanism for procurement 、 introduce ERP management system.JS company is a very good domestic machinery manufacturing company with a certain degree of representativeness.The research in this article can guide JS company to optimize the internal control process of the procurement business.It also provides a lot of enlightenment and reference for some manufacturing companies in China in the procurement business.significance.Therefore,this article hopes that through research and analysis,it can help manufacturing companies like JS Machinery to optimize the internal control system of the procurement business and provide a good development environment for the company’s operations.