Research On The Internal Control Of TLD Company's Purchasing Payment

There are series of contradictions in the TLD Ltd.internal control process of Purchase-to-Pay.Under this background,this essay analyzes factors affecting purchasing payment cycle.Through establishing optimization model to study under what conditions,sales collection cycle and purchasing payment cycle can make products' profit maximum value.It insures that purchasing payment cycle can be found.Therefore establish reasonable internal control system of Purchase-to-Pay and improve the collaboration between various departments,enterprise and suppliers.This is not only improve business processes,reduce administrative cost,but control operation risks,reduce asset loss.This essay mainly through observation inquire method,questionnaire survey,literature review and case study to make research.Moreover,this essay is also based on the real data resource to ensure the study is veritable and viable.The studies indicate that factors affecting purchasing payment cycle including products' profit,payback periods,business background,funding sources,industry background of supplier,general strength,capital turnover,industrial difference,market difference and Country's policy.Through establishing optimization model,it may be concluded that when sales collection cycle is less than or equal to purchasing payment cycle can ensure suppliers' benefits and realize the maximization of the overall interests of the TLD Ltd.In conclusion,this essay put forward proposals to establish and improve the internal control process of purchasing payment of TLD Ltd.through allocation of responsibilities,system of mode method of payment selection and monitoring mechanism between various departments.Using the computational methods of optimization model to make the optimal purchasing paymentcycle for different suppliers.Secondly,through defining responsibilities of Purchasing Department,Finance Department and Sales Department to establish supervising and examing system.In this way,enterprise and supplies achieve win-win cooperation.Then it is helpful to improve the core competitive power.