Purchasing Cycle

Purchasing Cycle:

Requisitions: Requisitions generated by various departments of your organization. They basically say that ‘I WANT THIS ITEM’ mentioning the item quantity and required date

Request for Quotation: The purchasing person sends the requirement to various suppliers giving details of the item and can also specify own terms and conditions such as payment terms, price etc.

Quotations: The Supplier responds to the RFQ and sends their quotations mentioning details of the item and all their terms and conditions regarding payment terms, discount, delivery schedules, etc.

Purchase Orders: The quotations received from various suppliers are compared and PO made for them in which all the terms and conditions of the firm are mentioned as regards to Payment, price, etc.

Receiving Goods: Suppliers ship the goods, which are received in your organization

Payments: After clearance from the receiving department about the receipt of goods, payments are made to the suppliers.

Close the PO: After the items are received, payments made you can close the PO.

Purchasing Requirements
• Item
• Quantity
• Ship to Address
• Bill to Address
• Delivery Schedules
• Terms and Conditions
• PO Numbering
• Approval Authority
• Supplier
• Accounts