PURCHASING PROCEDURE

The first in the process of purchasing is taken when a purchase requisition is initiated. A purchase requisition is a document prepared by the departments authorized to request the purchasing agent for the procurement of materials, there are three sources from which such requisition is received. When a separate production planning department is kept, it prepares a list of items required for each production order. This is called bill of materials. The purchase department proceeds to make purchase on the basis of such bill of materials. In certain cases, the requisition is received from production department using the particular item of raw materials.