Documents used in the purchasing of good and services
- 1. Document used in the purchase of goods and services By Mrs. G Flanders-Hinds Section 10 Objective 4
- 3. OBJECTIVES Preparation and interpretation of the documents used in the purchase of goods and services: (a) Requisition forms (purchase and stock); and (b) Order forms
- 5. The procurement management process In order to carry out the procurement process, Figure I depicts some of the documents and activities that must be carried out by staff members to ensure the efficient purchase of goods and services for the business organization.
- 6. Fig. I The Procurement Management Process
- 7. Documents used in the purchasing office These are the documents the that procurement office would often use when purchasing goods and services from external suppliers: • Index of suppliers • Departmental requisition • Purchase requisition • Purchase order • Distribution of purchase order • Goods received note • Distribution of goods received note
- 8. Index of suppliers Index of suppliers – is a list of names of approved suppliers, arranged alphabetically with addresses and telephone numbers, descriptions of goods ordered from them, terms and conditions of sale and unit prices of goods. It is prepared and stored on computer by the purchasing office
- 9. INDEX OF SUPPLIERS Specimen index of suppliers format
- 10. Departmental requisition A departmental requisition – is prepared by the staff member of a department, authorized by the head of department (HOD) and sent to the store clerk requesting items for use by the staff member. The original is sent to the stores clerk as authority for the item issued and to monitor the rate of use of the item, while the carbon copy is filed by the HOD as a record of items received from stores. The rate of use will indicate when to purchase the new stock.
- 11. DEPARTMENTAL STOCK REQUISITION To: No. 22 Date: 16 March 2018 Please supply the following item(s) Quantity Description Quantity Description 2 dozen boxes Standard staples 2 reams Legal size copy paper 4 reams A4 copy paper Requested by: Patricia Shade (Administrative Assistant) Department: Administration Authorized by: Fran Semper (Office Manager) Date: 16 March 2018 Received by: Patricia Shade (Administrative Assistant)
- 12. Purchase requisition A purchase requisition – is prepared by either the Head of Department (HOD) within the firm or the stores clerk and sent to the purchasing office requesting goods to be purchased when they are not in stock or when a new item is required. The original is sent to the purchasing office so it can order the item and the carbon cop is filed by the HOD or stores clerk as a record of item requested from the purchasing office
- 13. PURCHASE REQUISITION To: Purchasing Officer No: 27 Date: 16 March 2018 Please supply the following item(s) Quantity Description Supplier 3 Ergonomic office chairs Millennium Office Suppliers Limited 2 Four-drawer vertical filing cabinets Millennium Office Suppliers Limited 3 Ergonomic computer desks Millennium Office Suppliers Limited Date required: ASAP Department: Registry Requested by: Jane Brown(Senior Office Clerk) Date: 16 March 2018 Authorized by: Amanda Fox (Supervisor) Date:
- 14. Purchase orders A Purchase order – is prepared as a letter or on a printed form by the buyer and sent to the supplier requesting goods to be purchased.
- 15. ORDER XTREME GLOBAL OFFICE SUPPLIES LTD Petit Bourg San Juan Trinidad Office Supplies Limited Cor. New and St Vincent Street Port of Spain Date: Delivery by: Delivery Date: 22 March 2018 Company’s Delivery van Within three working days Please supply the following item(s) Quantity Description Unit Price 3 Ergonomic office chairs $1250.00 2 Four-drawer vertical filing cabinets $1500.00 3 Ergonomic computer desks $1050.00 John Clarke Chief Buyer
- 16. Goods received note Good received note – is prepared by the stores clerk to report the arrival of the goods.
- 17. GOODS RECEIVED NOTE Supplier: Office Supplies Limited Cor. New and St Vincent Street Port of Spain Date: 27 March 2018 Please supply the following item(s) Quantity Description No. of packages Order No. 3 Ergonomic office chairs 3 456 2 Four-drawer vertical filing cabinets 2 456 3 Ergonomic computer desks 3 456 Delivered by: Received by: Date: Condition of goods: Recorded into stock by: Date:
- 18. Test Students are required read and interpret the following question carefully and fill out the departmental stock requisition on the next slide.
- 19. TEST You are Janice Paul, a typist in the Records Management Section of your firm, and your supervisor is Mrs. Jean Pierre. You require in the next three (3) days the following items from the stores clerk Mr. Keith Patrick. Use the form supplied to the request the items. Use the current date. The requisition number is 30. Please fill out the departmental requisition form below to complete the question. i. 1 ream A4 copy paper ii. 1 black HP deskjet 78 cartridge iii. 1 gross C6 white envelopes
- 20. DEPARTMENTAL STOCK REQUISITION To: No: Date: Please supply the following item(s) Quantity Description Quantity Description Requested by: Department: Authorized by: Date: Received by:
- 21. ANSWER This is how the departmental requisition form should look like after you have filled out the form. Please see the next slide.
- 22. DEPARTMENTAL STOCK REQUISITION To: Mr. Keith Patrick Store clerk No: 30 Date: 16 April 2018 Please supply the following item(s) Quantity Description Quantity Description 1 ream A4 copy paper 1 Black HP deskjet cartridge 1 gross C6 white envelopes Requested by: Janice Paul (Typist) Department: Records Management Section Authorized by: Jean Pierre (Supervisor) Date: 16 April 2018 Received by: Janice Paul (Typist)
- 23. REFERENCES Carysforth, C., Neid, M., Maxime, C. & Metz, Y. (2012). Office Administration for CSEC. A Caribbean Examination Council Study Guide. Nelson Thornes. Finisterre, S., Payne, L., & Reid, J. (2004). Longman Office Administration for CXC. Pearson Education Limited. Trendfield-Newsome, A. & Walker, C. (2011). Office Administration for CSEC Examinations. Macmillan Publisher Limited. Trendfield-Newsome, A. & Walker, C. (2011). Office Administration for CSEC Examinations. Macmillan Publisher Limited.