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⟩ Explain the steps in procurement of material?

Following are the steps in procurement of material:

Purchase Requisition is an indication to the purchase department to purchase certain material required for the production. Following particulars appear in the purchase requisition

-Material to be purchased

-When it is required

-How much to be purchased

-Selection of Source of Supply

-Single Tender

-Limited Tender

-Open Tender

-Global Tender

-Purchase Order

-Description of Materials to be supplied

-Quantity to be supplied

-Cash and trade discount Rates at which materials are supplied

-Additional charges e.g. Excise duty, Sales tax, packing charges, insurance Instructions in respect of delivery

-Guarantee clause

-Inspection clause

-Method of settlement of disputes

-Terms of payment Receipt and Inspection

-After the receipt of materials, inspection of the material is done. Inspection of materials means that the quantity actually received is compared with the quantity ordered; also the quality of the material is inspected.

Invoice received from the supplier is compared along with the purchase order, goods received note and inspection note.

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