Tell me the whole purchase process from PR to Po

Question

Accepted Answer

The purchase process involves several steps from PR (Purchase Requisition) to PO (Purchase Order).

Purchase Requisition (PR) is created by the requesting department or individual.
The PR is then reviewed and approved by the relevant authority.
Once approved, the PR is sent to the purchasing department.
The purchasing department evaluates the PR and identifies potential suppliers.
Requests for quotations (RFQs) are sent to the selected suppliers.
Suppliers submit their quotations in response to the RFQs.
The purchasing department reviews and compares the quotations.
Negotiations may take place with the suppliers to finalize the terms and conditions.
Based on the evaluation and negotiations, a Purchase Order (PO) is prepared.
The PO includes details such as the supplier, items to be purchased, quantities, prices, delivery dates, and payment terms.
The PO is then sent to the supplier for acceptance.
Upon acceptance by the supplier, the PO becomes a legally binding contract.
Goods or services are delivered by the supplier as per the agreed terms.
The receiving department inspects the delivered items and verifies their quality and quantity.
If everything is satisfactory, the receiving department acknowledges receipt of the goods or services.
The supplier sends an invoice to the purchasing department for payment.
The purchasing department verifies the invoice and processes the payment.
The payment is made to the supplier within the agreed payment terms.

Accepted Answer

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