The Function or Role Of Purchasing Department And The Major Purchasing Activities In A Company

November 20th, 2009 Comments off
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FUNCTION/ROLE OF A PURCHASING DEPARTMENT

  • To buy at the right time, right price and right terms

  • Ensuring the continuity  of supply

  • Selection and evaluation of suppliers/vendors

  • Aware of long-term and short term effects

  • Preserving and enhancing reputation of company

  • Aware of all supply options

  • Maintain stock level

MAJOR PURCHASING ACTIVITIES

  • Obtaining and analyzing quotations of vendors/suppliers

  • Interview representatives and correspondence

  • Deciding best buying terms and conditions

  • Negotiating and checking contracts

  • Scheduling orders and following up

  • Work with finance department to obtain discount, matching invoices, verify receipt, purchase journal entry,passing of invoices for payment and settlement of accounts

  • Disposing of surpluses

  • Other activities like assisting with preparation of material expenditure/purchasing budget.

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Financial Accounting

 
 

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