{"id":146,"date":"2016-10-09T05:54:06","date_gmt":"2016-10-09T05:54:06","guid":{"rendered":"https:\/\/blogs.scu.edu\/erpsystems\/?p=146"},"modified":"2016-10-09T05:56:48","modified_gmt":"2016-10-09T05:56:48","slug":"understanding-the-buying-process","status":"publish","type":"post","link":"https:\/\/blogs.scu.edu\/erpsystems\/2016\/10\/09\/understanding-the-buying-process\/","title":{"rendered":"Understanding the BUYING Process"},"content":{"rendered":"

This week post is for the Purchasing\/Procurement process and the jobs carried out by the Purchasing department. Purchasing department has a vital role to achieve a balance between three crucial factors: Cost, Quality <\/em>and Time <\/em>and they need to carefully prioritize them depending on the procurement goal working at all three organizational levels to achieve suitable trade-offs between the factors.<\/p>\n

Cost<\/em> is impacted by economies of scale, Time<\/em> by Contracts taking place on Plant level and Vendor selection has crucial impact on Quality<\/em> of ordered material.<\/p>\n

A general procurement process, its impact on other processes and all the documents created can be summarized as follows:<\/p>\n

    \n
  1. When Inventory<\/strong> recognizes the need to procure materials because of low inventory, it sends a purchase requisition document<\/em> to Purchasing department<\/strong>.<\/li>\n
  2. Purchasing department<\/strong> contacts its vendors<\/strong> and requests for their quotation<\/em>. After receiving the quotation<\/em>, purchasing department<\/strong> prioritizes the trade-off factors and sends the purchase order<\/em> to suitable vendor.<\/li>\n
  3. When Inventory<\/strong> receives the ordered materials with goods receipt<\/em>, invoice verification is done using purchase order<\/em> and order invoice<\/em>.<\/li>\n
  4. After verification, material document<\/em> is created for received materials, which is sent to Accounting department<\/strong> who makes the payment and creates financial document<\/em>.<\/li>\n<\/ol>\n

    \"Procurement<\/p>\n

    Fig:Procurement to Payment Process \u00a0<\/span>(Reference :http:\/\/www.ramco.com\/resources\/business-processes\/procure-to-pay.aspx<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"

    This week post is for the Purchasing\/Procurement process and the jobs carried out by the Purchasing department. Purchasing department has a vital role to achieve a balance between three crucial factors: Cost, Quality and Time and they need to carefully prioritize them depending on the procurement goal working at all three organizational levels to achieve … Continue reading Understanding the BUYING Process<\/span><\/a><\/p>\n","protected":false},"author":1710,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","kk_blocks_editor_width":"","_kiokenblocks_attr":"","_kiokenblocks_dimensions":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-146","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"gutentor_comment":0,"qubely_featured_image_url":null,"qubely_author":{"display_name":"mithun","author_link":"https:\/\/blogs.scu.edu\/erpsystems\/author\/mithun\/"},"qubely_comment":0,"qubely_category":"Uncategorized<\/a>","qubely_excerpt":"This week post is for the Purchasing\/Procurement process and the jobs carried out by the Purchasing department. Purchasing department has a vital role to achieve a balance between three crucial factors: Cost, Quality and Time and they need to carefully prioritize them depending on the procurement goal working at all three organizational levels to achieve…","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/posts\/146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/users\/1710"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/comments?post=146"}],"version-history":[{"count":2,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/posts\/146\/revisions"}],"predecessor-version":[{"id":149,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/posts\/146\/revisions\/149"}],"wp:attachment":[{"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/media?parent=146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/categories?post=146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.scu.edu\/erpsystems\/wp-json\/wp\/v2\/tags?post=146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}