Hi,
The entire procurement process consists of eight main activities: (1) Determination of requirements, (2) Source determination, (3) Vendor selection, (4) Purchase order processing, (5) Purchase order monitoring, (6) Goods receipt, (7) Invoice verification, (8) Payment processing.
The Purchasing process is triggered by the identification of a need for a good or service to be procured. This will be communicated to Purchasing department either by the generation of a MRP Requisition or a manual Requisition created by an individual in the business and sent to Purchasing.
The system helps the buyer/purchasing Group determine which Vendor the requirement should be purchased from, via existing master records (Agreements, PIRs etc) and pick the appropriate source.
The Procurement Officer like Procurement Co-ordinator or Materials Co-ordinator can now convert the Requisition to a Purchase Order to issue to the Vendor.
These activities begin with a requisition for goods and end with a payment to the vendor. In between, you have a buyer who is responsible for entering purchase orders and communicating those orders to the vendor; the goods receipt clerk who is responsible for verifying that the goods received from the vendor match the order, and the invoice verification clerk who ensures that the invoice from the vendor is accurate and that the service is completed/items delivered before the vendor is paid.
If no contract/purchasing agreement for the service/material exists either a service order or a requisition generated to support this requirement.
If a contract/purchasing agreement exists, a call-off order/release order is created
The goods receipt/SES is linked to the purchase order, call-off order/ release order or service order.
There is a direct link to these orders during invoice verification.
Regards,
Biju K
Bluesky
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