Purchasing Procedure

•Initiating purchase requisition : The stores department prepares indents for the purchase of materials and forwards the same to the purchase department. Every department will make the specification of required material. This will be helpful for purchase department to identify that material.

•Inviting Tenders and Quotations :For saving money and placing the order to best vendor, purchase department will invite the quotations and tenders. This work can be done through offline and online advertising. After receiving the tenders from different seller, a comparative statement is made in which prices and conditions are compared. Best vendor will be selected for supply on the basis of the following : a) financial resource: Purchase department will see his pocket before selecting the source. b) Service after buying : Purchase department will choose that supplier which provide the service after buying. c) sample : Purchase department will get the sample for selecting the source of supplier.

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•Placing of Order :When the tender and source of supplier is selected, purchase department places his purchase order. Purchase order is the written agreement in which purchaser and sellers will bind its terms and condition. Purchaser will be responsible the price of material. Seller is responsible for supplying the material.

•Receipt and Checking of Invoice : supplier sends his invoice to the finance department for payment for the goods supplied .It is the duty of accountant to receipt and checking of invoice. He will compare it with the original copy of purchase order. If there is any mistake, he will inform the purchase department. Only after confirmation from purchase department, payment will be made by cashier.

• Receipt and Checking of Goods :After getting goods, purchase department will check the quality and quantity of material which has been mentioned in the purchase order. With this, we see whether everything is OK or not. After this receipt material’s report will be made.

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