Procurement Accounting Definition
Procurement accounting is the process of recording, classifying, and summarizing transactions to provide information that will be used in making decisions about acquiring and using resources. The purpose of procurement accounting is to ensure that an organization’s resources are best used to achieve its objectives.
Procurement accounting involves the following activities:
1. Identifying and classifying transactions related to procurement
2. Recording transactions in the accounting system
3. Summarizing and reporting transaction data
4. Analyzing procurement data to inform decision-making
