Purchasing process

Purchasing process

1. Selecting Purchasing Methods

   • On Account (Stock)
   • $100-$500 Business Credit Card (stock, small value expenses, equipment
   • Under $100 petty Cash (Misc Stationery, Refreshments)

2. Facilitate registration of new Assets

   • need to enter into Asset Register
     • Asset location
     • Make, model, warranty/guarantee information
     • Supplier
     • Date of Purchase

3. Purchase Specifications

   • Must be requested through a purchase order Form

4. Receiving Goods

   • Take action to resolve non compliance
   • If there is a discrepancy contact suppler and sort out issue
   • Receiving goods and reconcile with delivery docket and invoice
   • File paper and Electronic scanned copies of Purchase orders and Invoices together.

5. Select Suppliers

   • Must Provide business with quality products, great service, competitive pricing and efficient delivery
     • Each new supplier must fill in background information with review checklist.
       • Appointment is approved by Finance Manager

6. Limits of Authority

   • Petty cash $100 (Office administrator)
     • Purchases $100-$200 (Approved by Finance Officer)
       • Purchases $500-$2000 (Approved by Finance Manager) Supplied by authorised supplier
         • Purchases over $2000 (Approved by Business manager) 3 Quotes from Suppliers

7. Placing orders and making Purchases

   • Obtain approval from Finance officer, Finance manager or Business Manager
   • Fill in purchase Order and attach 3 quotes if over $2000.