Purchasing cycle procedures manual

Aim

Define the methodology for buying and selling, through a scheme that guarantees

efficiency and timeliness.

Scope

This procedure starts from the clients' needs and ends when the

Distributor makes the acquisition of the products necessary for customer satisfaction.

Responsible

 sales department

Verify physical inventory stocks.

Find out about the needs that clients require.

Place purchase order according to customer requests.

Send purchase order to purchasing manager

 Purchasing Manager

Maintain close communication with the sales department.

Make quotes with different suppliers.

Select supplier.

Send purchase order to the accounting area.

 Accounting clerk

Enter the purchase order.

Review it before sending it.

Have it signed by the person in charge who is the manager.

Send it to the selected supplier via email.

Confirm received.

 General considerations

The Purchasing Manager is the one who defines which supplier the order will be
placed from.

The sales department must verify physical existence before informing the purchasing

manager of the need for any reference.

The accounting assistant is responsible for compliance with purchasing standards and

procedures.

 Related records

Supplier List

List of critical suppliers

Price

Purchase order

Sales invoice

Transport guide

Control mechanisms

The purchase is only made from suppliers previously selected and authorized by the

manager, the quotes must be compared with all suppliers allowing the most convenient one

to be chosen, the purchase order must be compared with the purchase invoice verifying that

what really has been recorded. When the merchandise arrives, the units are checked with

the transport guide and a physical count is carried out before entering the items into the

accounting system. If there are any shortages, the supplier is notified and the due note is

made.
ACTIVITY DESCRIPTION RESPONSIBLE RECOR

Establish product needs requested by

customers according to physical sales department Purchase o
inventory stocks.

If it is a new product, it is referred to the

supplier selection procedure, otherwise Purchasing Manager
the normal replacement is done.

According to the list of the supplier

selection procedure, the suitable supplier Purchasing Manager Quotes
is chosen.

Contact the supplier Purchasing Manager Email

The Distributor sends a quote request

Purchasing Manager
with the products needed.

The Distributor reviews the negotiation

terms that the supplier has stipulated; if
Purchasing Manager. Transport g
this does not include transportation, a
transportation provider will be contacted.

Prepare Purchase Order, scan purchase

order and send to supplier via email;
Make a copy for the warehouse, the Sales department and
original goes to accounting. Purchase or
accounting assistant

Once the Sales Invoice arrives, the

payment conditions are reviewed and Accounting assistant Sales invoi
payments are generated.
 Transportation included: track.

Transportation not included: hire

one of the transportation
providers.
Once the invoice for
transportation service arrives, it is
delivered to the accounting Accounting assistant.
assistant for review.

Review conditions; terms of

negotiation, discrimination of
values according to the terms of
negotiation.

Once the merchandise arrives, its

quantity is verified.

In the warehouse, the Inventory Manager

merchandise is approved and you
are informed

and finally the supplier is

qualified

Bibliography
https://repository.ucc.edu.co/bitstream/
20.500.12494/13337/1/2019_control_compras_inventario.pdf