What is the last stage of the purchases system?

The last stage of the purchases system is the cash payments stage. This stage signifies the final transaction in the purchasing process, where payment is made for goods or services received. Prior to this, various steps are completed, such as placing an order, receiving the goods, and obtaining an invoice. Once the goods have been received and the invoice has been checked against them for accuracy, the organization then processes payment, completing the cycle of purchasing.

In the context of internal accounting systems, the cash payments stage is critical for maintaining accurate financial records and ensuring that liabilities are settled. It ensures that all financial obligations are recognized and recorded in a timely manner, reflecting the true financial position of the entity. Therefore, cash payments serve as a crucial component in maintaining effective internal controls over cash flow and expenditures.