Business Purchasing Process: A Detailed Breakdown
Basic Purchasing Operations
This includes a set of activities to be acquired for the development of the company.
Classes of Goods That Can Be Purchased
- Long-term Assets: Fixed assets
- Goods for Sale: Inventories
- Short-term Assets: Expenses
Real Long- and Short-Term Assets
- Long-term: Represent assets for the company.
- Short-term: They are quickly consumed with use, falling into the category of expenditure.
What is Needed to Make a Purchase?
1. Search Information
We check the stock card to verify the need to purchase (minimum stock).
2. Result
Determine the number of units to be purchased.
Stock sheet: Details the inputs and outputs of goods (in physical units and values). This tab also allows you to verify the existence of property after each operation and provides data on minimum and maximum stock tanks.
Finding a Potential Supplier
1. Search Information
It is necessary to know the quality, price, and payment terms offered.
2. Result
Quotation requests are sent to suppliers (for pricing).
Choosing a Supplier
1. Search for Information
Compare prices to select the most appropriate.
2. Result
A supplier is selected, and a purchase order is sent.
Stock Query Tab
- If stock: Should have ended.
- No stock: Quotation requests are sent. We compare quotes, select a provider, and send a purchase order.
Receipt of Goods
These goods are accompanied by a document (delivery note) issued by the seller. The quality and quantity of goods are examined to see if they match what was received.
Goods Have Been Received
1. Information Search
The delivery note is compared with the goods received.
2. Search Result
Concordance (or not) is found between the delivery note and goods.
Goods Have Been Requested
1. Information Search
The delivery note sent by the supplier is compared with the purchase order.
2. Search Result
Concordance (or not) is found between what was requested and what was received.
Goods are Entered into the System
1. Information Search
The articles are detailed with codes and amounts.
2. Result
Goods are entered into the system: The deposit/stock tab.
Receiving Purchased Goods and Performing Quality Control
- If NO match: A claim is made.
- If match: The delivery note is signed, goods are sent to the deposit, and goods are entered into the stock form.
The delivery note is given to the transporter, signing the agreement (or not) received.
Receipt of the Bill of Sale
If the supplier receives the signed delivery note in accordance with the receipt of goods, the invoice is sent to the buyer.
Expenses for the Purchase
In case of transportation run by the purchaser, the amount owed to the supplier increases. The provider sends a debit note to indicate an increase in debt.
Returning a Purchase
If the property does not coincide with the request, the provider sends a debit note to the customer to indicate the reduction of debt.
Recording of Purchases
To have good quality information, it is necessary to keep a written record of:
- Stock of goods: Number of units entered, the cost price of each item through the Stock Sheet.
- Our debt: To whom we owe, tracked through supplier sheets (current accounts).