Purchase of Supplies, Services, and Repairs:
Learning Objective of
the article:
-
Explain the procedure of Purchasing supplies, services
and repairs.
The procedure followed in
purchasing
productive materials should apply to all departments and divisions of a
business. Purchase requisitions, purchase orders, and receiving reports are
appropriate for accounting department supplies and equipment, the company
cafeteria, the first aid unit, the treasurers office, the building service
department, and the public relations, personnel, sales and engineering
departments, as well as all other departments. If, for example, the
accounting department needs new forms printed, a requisition should be sent
to the purchasing department in the usual manner, and a purchase order
should be prepared and sent to the printer.
In the case of magazine subscriptions, trade
and professional associations memberships for company officials, and similar
services, the official or department head may send in a requisition in a
usual manner. A requisition, an order, and an invoice for all goods and
services purchased are a necessity in properly controlling purchases.
Repair contracts on an annual basis for
typewriters, calculators, electronic data processing (EDP) equipment, and some
types of factory equipment may be requisitioned and ordered in the usual
manner. In other cases, a department head or other employee may telephone
for service and shortly thereafter may have a machine repaired and back in
operation. In such cases, the purchasing agent issues a so-called blanket
purchase order that amounts to approval of all repair and service costs of a
specific type without knowing the actual amount charged . When the repair
bill is received, the invoice clerk checks the amount of the bill with the
head of the department where the repairs took place and then approves the
invoices for payment. |
