As a business owner or manager, you know that managing purchases can be a daunting task. It is essential to have a system in place to ensure you are procuring products or services from credible sources and at competitive prices. Additionally, purchase orders should be created based on contract terms to avoid unnecessary expenses and ensure compliance with applicable laws and regulations.
One effective way to manage purchases is by creating a purchase requisition with reference to contract. A purchase requisition is a document that requests the procurement of goods or services. It outlines details such as the item or service required, the quantity needed, and the timeframe for delivery.
By creating a purchase requisition with reference to contract, you can ensure that your purchases are in line with the terms of the agreement. Here are some tips to keep in mind when creating a purchase requisition:
1. Review the Contract Terms
Before creating a purchase requisition, review the terms of the contract. The contract should outline the types of products or services that can be procured, the pricing structure, and any applicable discounts. Ensure that the purchase requisition adheres to the terms outlined in the contract.
2. Identify the Vendor
After you have reviewed the contract, identify the vendor from whom you will be procuring the goods or services. Ensure that the vendor is authorized to supply the products or services outlined in the contract.
3. Create the Purchase Requisition
Once you have identified the vendor, create the purchase requisition. Include details such as the vendor name, the item or service required, and the quantity needed. Also, include the contract reference number to ensure that the purchase requisition is in line with the terms of the agreement.
4. Obtain Approval
Before the purchase requisition is processed, it must be approved by the appropriate authority. The approval process may vary based on the size and structure of your organization. Ensure that the purchase requisition has been authorized before proceeding with the purchase.
5. Process the Purchase Order
After the purchase requisition has been approved, process the purchase order. The purchase order is a document that formalizes the procurement of goods or services. It includes details such as the vendor name, the item or service required, the quantity needed, and the pricing structure.
6. Track Delivery and Payment
After the purchase order has been processed, track the delivery of the goods or services. Additionally, ensure that the payment is made in line with the terms outlined in the contract.
In conclusion, creating a purchase requisition with reference to contract is an effective way to manage your purchases and ensure compliance with applicable laws and regulations. By following the tips outlined above, you can avoid unnecessary expenses and ensure that your procurement processes are aligned with the terms of your contract.