DAYALBAGH EDUCATIONAL INSTITUTE,DAYALBAGH

SEMINAR ACW 201On Purchasing Procedure ,Sales

Record , Valuation Of Inventory

Presented By:Saiyam Jain142048

SEMINAR TOPICPurchase Procedure

Stores Control & Record

Valuation Of Inventory

ISO 9001:2008 Purchasing procedures under ISO 9001 ensure that purchased materials meet the requirements of the purchaser and the final customers.

OrganizationDocumentationSupplier QualificationMaterial InspectionNon-conforming ItemsCorrective ActionContinuous Improvement

 

SAMPLE

Purchase Procedure1. Receiving

Purchase Requisition

2. Selection of Sources of Supply

3. Placing the Orders

4. Receiving & Inspection of Materials

1.Receiving Purchase Requisition

Received from - Store-Keeper for

Regular Items - Production

Departments for Special Material

- Maintenance Department for material needed for repairs & maintenance

- any Departmental Head like Marketing Manager, Finance Manager etc.

Specimen of Purchase Requisition

ABC castings Ltd., Jain & Brothers Co .Limited MG Road, AGRANo. 0012Date Required: 15/4/15 Purchase Order No.005

Item No. Code No. Description Qty Remarks

Requisitioned by: Approved by:

2.Selection of Sources of Supply: Steps Involved

a. Inquiry for Tenders & Quotations

b. Receipt of Quotations & Tenders

c. Comparison of Tenders Received

d. Selecting the Best Source

Serial No.

Name of the Supplier

Quantity

Price Terms of Delivery

Other Terms

Remarks

ABC COMPANY LIMITED Comparative Statement of QuotationsTender No……………….Name of Material……..

3.Placing the Ordera. Purchase Order :

5 copies to- -supplier - retained by

purchase department

-department initiating purchase

-Receiving Department

- Finance Department

b. Follow-Up

Specimen of Purchase Order ABG Casting Limited MG Road, Mangalore-3 PURCHASE ORDERNo. Date:Quotation No. Purchase Requisition No.

To Ltd., Bombay

Dear Sir, Please supply the following as per terms and conditions contained In your quotation number as mentioned above.

Sl.No.

Qty Description Price/Unit Total Remarks

Purchase Manager

4.Receiving & Inspection of Material

Unloading the material Unpacking Checking the number of units, weight,

measure, quality as per Purchase Order

Reporting the Shortage and Breakage Preparing Material Inspection Note and

Goods Received Note Sending MIN to Supplier & Stores Dept Sending GRN to Purchase Dept,

Accounts Dept, and the Dept requiring the Material

Material Inspection Note ABG Casting Limited,

M.G. Road,Mangalore-3

Material Inspection NotePurchase Order No. Date:Inspection Note No. Date:

Sl.No

Description Qty

QuantityRemarksInspecte

dAccepte

dRejected

Inspected by:

Goods Received NoteABG Castings Limited,

MG Road, Mangalore-3

Goods Received Note No: Purchase Order No:Date: Date:

Received from M/s Thermax Limited, Bombay under their Invoice No. TH 567230 dt……. The following:

Sl.No

Description

Stock Code No.

Quantity Rate Amount

Condition of Goods:……………………. Posted in Stores Ledger:……………..Posted in Bin Card:……………………… Remarks…………………………………...

Stores Control: Functions of Stores Department

Preparing Purchase Requisitions Receiving Goods into Stores Proper Storage of Goods Avoiding Damage & Deterioration Classification and Coding of Material Issue of Material Maintaining Stock records Maintaining Different levels of Stock Stock Verification at Regular Intervals

Specimen of a Bin Card Bin Card Description Bin No. Stores Folio No. Code No. Location Code. Unit: Maximum Level : Minimum Level: Reordering Level: Reordering Quantity:

DateReceipts Issues Balance

RemarksGR No. QTY MR No.

Qty Quantity

Entered by: Authorised by:

Specimen of Stores Ledger

STORES LEDGER Description… Code No….. Maximum Level…Location Code No…….. Unit…. Minimum Level……..Re-order Quantity….. Re-order Level….

Date

Receipts Issues Balance

GR No Qty Rate Amt MR No

Qty Rate Amt

Qty Rate

Amt

Valuation Of Material Issues

Materials issued from the stores are debited to the jobs or work orders which received them and credited to materials account. These jobs are debited with the value of material issued to them. While placing it to the processing plant its cost must include:

Invoice price less trade discount

The freight ,cartage, octroi etc

Expenses of purchase, storing ,record etc

Name of the Method Feature

FIFO First In First Out

LIFO Last In First Out

HIFO Highest In First Out

AVERAGE COST Amount/Units

INFLATED PRICE Highest Than Actual Price

SPECIFIC PRICE Price Discrimination

BASE STOCK Cost Price Of First Lot

Standard Price Predetermined Price

Market Price Market PriceRealizable or Replacement price

CONCLUSION