222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Material Purchase Procedure

When we produce any product, investment in raw material is of 50% to 60% of the total cost of product. So, it is very necessary to buy the raw material at low cost. If we reduce the 10% cost of buying of raw material, it means, we have increased our 10% profit. Purchase department will make full planning of his purchase. Everything should be planned. What to buy, when to buy and how to buy? By using following material purchase procedure, you can reduce your cost of buying any material.


1. Classification of Material

In the first step of purchasing procedure, purchase department will classify all the its material according to the nature of material. For example, we can classify our material with following way.

a) Raw material

b) Machine and Equipment

c) Tool

d) Other Material

2. Recognition of Need

Purchase department studies the purchase requisition which it gets from different department. Purchase requisition is the document which shows the demand of material of any department.  It makes the list of important material requirement. Suppose, C material is very limited, purchase department will buy C material first instead of buying other material.

3.  Specification of Required Material 

Every department will make the specification of required material. This will be helpful for purchase department to identify that material. Because some material are of technical configuration, so, its detail should be given to purchase department.  For things should be included in it.

i) Date

ii) Identification

iii) Originating Department

iv) Account to be Charged

v) Complete Description relating to quality and quantity of material desired

vi) Other Special Information

vii ) Date on which material is required for use

viii) Signature of issuing authority of requisition

 We also say purchase requisition as purchase requirement list or purchase indent.

4. Inviting Tenders and Quotations 

For saving money and placing the order to best vendor, purchase department will invite the quotations and tenders. This work can be done through offline and online advertising. Tender may be open, limited, oral.

a) Opening of Tenders 

Tender is opening at a specific date, time and at specific place.

b)  Preparation of Summary of Quotations

After receiving the tenders from different seller, a comparative statement is made in which prices and conditions are compared. Best vendor will be selected for supply.

5. Selection of Source 

There is the big source of suppliers. But purchase department has to be limited this on the basis of following point.

a) On the basis of financial resource: Purchase department will see his pocket before selecting the source.
b) Service after buying : Purchase department will choose that supplier which provide the service after buying.
c) On the basis of sample : Purchase department will get the sample for selecting the source of supplier.

6. Placing of Order 

When the tender and source of supplier is selected, purchase department places his purchase order. Purchase order is the written agreement in which purchaser and sellers will bind its terms and condition. Purchaser will be responsible the price of material. Seller is responsible for supplying the material.

7. Follow Up Service 

After placing the order, purchase officer will send the reminder. He can also get the written promise from vendor for supplying goods at a specific time.

8. Receipt and Checking of Invoice 

It is the duty of accountant to receipt and checking of invoice. He will compare it with the original copy of purchase order. If there is any mistake, he will inform the purchase department. Only after confirmation from purchase department, payment will be made by cashier.

9. Receipt and Checking of Goods 

After getting goods, purchase department will check the quality and quantity of material which has been mentioned in the purchase order. With this, we see whether everything is OK or not. After this receipt material's report will be made. With this, technical inspection is also necessary.

10. Completion of Record 

To record relating to purchase is done by accounts department. If there is VAT and excise obligations, accounts department will complete.

Purchase Procedure in SAP 



Comments

 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Material Purchase Procedure
Material Purchase Procedure
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFDKLVnITBNbWii64hfMU-qY_gGYdAz6InV3nvhVAumLVyq8_k3TfnDVakQ6FIjkOO30PDjQmcM6SPZLKD9IF8mOTuh3Rt4M871MbOciyuJDj16ZzGZj_DlNpjMzMYxPzcA9Q3IM3qdUh4/s400/purchase+process+in+sap.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFDKLVnITBNbWii64hfMU-qY_gGYdAz6InV3nvhVAumLVyq8_k3TfnDVakQ6FIjkOO30PDjQmcM6SPZLKD9IF8mOTuh3Rt4M871MbOciyuJDj16ZzGZj_DlNpjMzMYxPzcA9Q3IM3qdUh4/s72-c/purchase+process+in+sap.PNG
Accounting Education
https://www.svtuition.org/2012/09/material-purchase-procedure.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/09/material-purchase-procedure.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy