The Procurement Process

Paper details
After reading the chapter, looking over the PowerPoint slides and watching the weekly videos describe in
your own words what the key concepts associated with the procurement process are and discuss the key
steps in the procurement process ( data, documents, and information).
Replies should be roughly 2-3 sentences long and at least 2 responses to 2 different students is required.
One classmate sharing is below:
The procurement process starts with the warehouse creating a purchase requisition. Once this is creating
the purchasing department creates and send the purchase order to a vendor who then fills the order. Next
the warehouse receives in the materials. The accounts payable department receives an invoice. They
verify pricing and correct goods and then submit payment for the invoice within reasonable terms of the
vendor.
Data in the vendor master record includes company name, address, how to communicate with them, which
items we purchase from them. Banking wire information as well as payment terms. You need to review this
information on a yearly basis to make sure everything is correct. Sometimes companies move and pricing
usually gets updated on a yearly basis as well.
Companies usually make two types of purchases. Items for stock, which they resell. These are tax exempt
and are coded a certain way on the accounting side. Also, items for consumption. This may include tools,
boxes for shipping, water, office equipment etc. Under the material master record these items may be
coded differently.