1. Each purchase is made should be supported by a proper requisition note, which is duly authorized by the respective Department head/in-charge.
2. The Purchase department of the company
floats the requisition reasonably in the market and invites proper quotation
from all the possible vendors.
3. The requesting department gets the
material / item as per its requirement, in terms of quality, quantity,
specifications, features, etc.
4. There are sufficient controls to
monitor the receipt, storage and issue of material in the stores department.
5. The vendor has billed the company as
per the quotations / negotiated rates.
6. The payments for these purchases are
made as per the authorization and within due dates.
7. All purchases, receipt and issue of
materials and payments are accounted in the books of accounts properly under
proper ledger accounts.
8. The controls in the purchase
department must be capable of generating appropriate documents at each process
level, thereby documenting the complete purchase process.
Nice post.
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