Purchasing DocumentsPurchasing DocumentsModule 5 Lesson 5Module 5 Lesson 5

What are purchasing documents?What are purchasing documents? In a business, when you want to In a business, when you want to

purchase something, there is purchase something, there is usually a procedure in place for usually a procedure in place for making those purchases. The making those purchases. The purpose of having a procedure purpose of having a procedure is to justify purchases, to is to justify purchases, to account for money spent and account for money spent and goods received. This procedure goods received. This procedure involves 3 different documents. involves 3 different documents.

What is the procedure?What is the procedure?Step 1: Complete a Step 1: Complete a Purchase Purchase

Requisition Requisition and submit to the and submit to the correct person/department correct person/department within your companywithin your company

Step 2: If approved, a Step 2: If approved, a Purchase Purchase OrderOrder is issued and products is issued and products are purchasedare purchased

Step 3: The seller creates and Step 3: The seller creates and sends an sends an InvoiceInvoice along with the along with the product.product.

Sounds like a lot, right?Sounds like a lot, right?Not really. These forms are Not really. These forms are

usually created using templates usually created using templates (preformatted documents.) So (preformatted documents.) So all an employee has to do is fill all an employee has to do is fill out the form.out the form.

Let’s begin with Purchase Let’s begin with Purchase Requisitions.Requisitions.

Purchase RequisitionsPurchase Requisitions

Purchase RequisitionPurchase Requisition A form to be completed by A form to be completed by

individuals individuals within a business within a business to request that items or services to request that items or services be purchased. be purchased.

Employee Purchasing Department

Purchase RequisitionPurchase RequisitionView the MS Office Purchase View the MS Office Purchase

Requisition Templates belowRequisition Templates below Sample 1Sample 1 Sample 2Sample 2 Sample 3Sample 3

Purchase RequisitionPurchase Requisition Company Company

informationinformation Vendor Vendor

informationinformation Date and Date and

ordering ordering informationinformation

Item Item informationinformation

SignaturesSignatures

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Video Explanation

Purchase RequisitionPurchase Requisition Catalogue No or Item No of Catalogue No or Item No of

productproduct Qty—how many to purchaseQty—how many to purchase Description—written Description—written

description of productdescription of product

Purchase RequisitionPurchase Requisition Unit Price—Price per itemUnit Price—Price per item Total Amt—Qty X PriceTotal Amt—Qty X Price Account number or Account number or

department for billingdepartment for billing

Purchase RequisitionPurchase Requisition Order Total is the total Order Total is the total

of all items requested on of all items requested on the requisitionthe requisition

Purchase OrdersPurchase OrdersView the MS Office Purchase View the MS Office Purchase

Order Templates belowOrder Templates below Sample 1Sample 1 Sample 2Sample 2 Sample 3Sample 3

Purchase OrdersPurchase Orders Company Company

informationinformation Vendor Vendor

informationinformation Date and Date and

ordering ordering informationinformation

Item Item informationinformation

SignaturesSignatures Video Explanation

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InvoiceInvoice

InvoiceInvoice A form that the seller/supplier

completes and sends to the buyer during the month indicating how much is owed for items bought or services rendered and the due date for payment/payment terms.

Seller Buyer

InvoicesInvoicesView the MS Office Invoice View the MS Office Invoice

Templates belowTemplates below Sample 1Sample 1 Sample 2Sample 2 Sample 3Sample 3

InvoicesInvoices Company Company

informationinformation Customer Customer

informationinformation Date and Date and

ordering ordering informationinformation

Item Item informationinformation

CommentsComments

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Video Explanation

Payment Terms ExplainedPayment Terms Explained Example: 5/10, n/30, means the

buyer can take a 5% discount on the purchase price if the invoice is paid within 10 days. However, if not paid early, the entire amount owed (the “net”, represented by the “n”) must be paid within 30 days of the invoice date. Late payments may result in additional charges being assessed to the buyer.

ProcessProcess

Purchase Requisition

Invoiceand product

Purchase Order

You