Please rewrite this procedure and organize it
Use your own words if applicable
step 1 Identify needs. determine and define the business
requirements with the help of
step 2 PR A requester submits the filled out purchase requisition form after ensuring that all necessary administrative
requirements are met. Requisitions can be created for any type of procurement from
standard purchases to subcontracts and consignments.
step 3 PR approval Submitted purchase requisitions are then reviewed by department heads or
procurement officers. Approvers can either approve or reject a PR after evaluating the
need, verifying the available budget, and validating the purchase requisition form.
Incomplete purchase requisitions are rejected back to the initiator for correction and
resubmission.
step 4 PO
step 5 PO approval PO’s are now sent through an approval loop to ensure legitimacy and accuracy of
specifications. Approved purchase orders are then dispatched to vendors.
After reviewing the purchase order vendors can either approve, reject, or start a
negotiation. When an officer approves a purchase order, a legally binding contract is
activated.
step 6 Goods receipt Once the supplier delivers the promised goods/services, the buyer inspects the delivered
products or services to ensure that it complies with the contract terms.
The goods receipt is then approved or rejected based on the standards specified in the
purchasing contract or purchase order.
step 7 Supplier performance Based on the data obtained from the previous step, the supplier performance is evaluated. A
number of factors like quality, on-time delivery, service, contract compliance, responsiveness,
and Total Cost of Ownership (TCO) are considered.
Non-performance is flagged in existing rosters and information systems for future reference.
step 8 Invoice approval Once a goods receipt is approved, a three-way match between the purchase order, the vendor
invoice, and the goods receipt is performed.
If there are no discrepancies found, the invoice is approved and forwarded to the finance team
for payment disbursement.
In the case of inaccuracies, the invoice is rejected back to the vendor with a reason for rejection
step 9 Vendor payment Upon receiving an approved invoice, the finance team will process payments
according to the contract terms.
Any contract changes or reviews liquidated financial security will be taken into
account.
A payment made to a supplier will fall into one of the following five types: advance,
partial, progress or installment, final, and holdback/retention payments.
step 10 Supplier performance