What happens to the purchase order after the receiving department enters the quantity received?

When the receiving department enters the quantity received, the purchase order is typically closed and updated in the inventory sub ledger. This reflects the completion of the transaction, indicating that the ordered items have been received in the appropriate quantities. Closing the purchase order in the system is essential for maintaining accurate inventory records and helps in financial reporting, as it updates the inventory values on hand and ensures that accounts payable can process payments for received goods accurately.

The update in the inventory sub ledger is crucial for tracking stock levels and ensuring that accounting records reflect the reality of the inventory status, which aids in decision-making, planning, and further purchasing. This process supports effective inventory management and helps prevent discrepancies that could arise from untracked or unrecorded stock movements.

The other options do not accurately represent the standard procedure following the receipt of goods. Approval processes typically occur prior to the receipt, filing for audit purposes is generally a separate activity that does not directly involve the status of the purchase order once the items are received, and forwarding records to HR is not relevant to the inventory or purchasing process.