The company was enormously successful in establishing colonies in Asia and that, combined with the tulip mania which was a bizarre speculative bubble in Northern Europe fueled by a runaway tulip bulb market, led the East India Company to become the most valuable company in the world with a total worth of 78 million Dutch Guilders.
Chapter 7--Inventories Student: ___________________________________________________________________________ 1. One of the two internal control procedures over inventory is to properly report inventory on the financial statements. True False 2. A purchase order establishes an initial record of the receipt of the inventory. True False 3. A perpetual inventory system is an effective means of control over inventory. True False 4. A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.
Furthermore, once Purchase Order is created with order type FO, ensure that the indicators for GR/IR control have been set correctly on the item detail screen. The Goods Receipt indicator may only be set in combination with the Goods Receipt Non-Valuated indicator. The Invoice indicator must be set. For the automatic creation of invoices, the ERS (Evaluated Receipt Settlement) indicator must be also set. A further prerequisite for automatic settlement is that a tax code must be entered in the purchase order.