The document outlines the typical procedures involved in a business's purchasing process, which includes 9 main steps: 1) purchase requisition, 2) purchase order, 3) request for quotation, 4) request for information, 5) negotiate contract and send purchase order, 6) goods receiving note, 7) receive and check invoice, 8) authorize invoice and pay vendor, and 9) record keeping. The process also involves various post-shipment documents like bills of lading, certificates of origin, and export sales contracts to facilitate international shipments and ensure compliance.

1. PURCHASING DOCUMENT

2. In a business, when you want to purchase
something, there is usually a procedure in
place for making those purchases.
The purpose of having a procedure is to
justify purchases, to account for money
spent and goods received.

3. Photosource: https://kissflow.com/procurement-process/

4. STEP 1: Purchase Requisition
 A form to be
completed by
individuals within a
business to request
that items or
services be
purchased.

5. STEP 2: PURCHASE ORDER
Photo source:https://www.purchasecontrol.com/blog/purchase-order-vs-invoice/
 A purchase order
(PO) is the official
confirmation of an
order.
 It is a document sent
from a purchaser to
a vendor that
authorizes a
purchase.

6. STEP 3: REQUEST FOR
QUOTATION FORM (RFQ)
 is a standard business
process most often used to
invite suppliers to offer to
supply specific goods or
services on a competitive
basis.
 An RFQ typically asks for
the price per item, payment
terms, quality requirements
and length of contract.
Photosource: http://napc.gov.ph/content/request-quotation-10?throbber=1

7. STEP 4 : REQUEST FOR
INFORMATION (RFI)
 A Request for Information
(RFI) is the document
created by demand or
buy side companies to
obtain service and
resource information from
supply side companies
Source:https://trainingindustry.com/wiki/outsourcing/request-information-rfi/

8. STEP 5: NEGOTIATE
CONTRACT & Send P.O
Next the negotiations
regarding price,
availability and
customization options are
undertaken.
The contract regarding
the purchase of the goods
or services is completed.

9. STEP 6 :GOODS RECEIVING
NOTE
It is a document
produced when
goods are received
into the company/
factory.
It is usually
accompany goods
to any inspection & is
used to check
against invoices
before payment.
Source:https://mobiphil.com/goods-received-note-format/goods-received-note-format-impressive-food-receiving-control/

11. STEP 7: RECEIVE AND
CHECK INVOICE
“THREE-WAY MATCHING” (arrived with the order) are lined up
and reconciled to pinpoint discrepancies and ensure that the
transaction is accurate. Discrepancies should be addressed
once they are discovered.

12. INSPECTION CERTIFICATE
 is issued by the Inspection
Agency concerned certifying
that the consignment has been
inspected before shipment as
per the requirements of the
Exports (Quality Control and
Inspection) Act,1963.
 This certificate is required:– by
customs before allowing
shipment of goods or– by a
banker to negotiate the
documents.
Photosource:https://www.tuv.com/en/corporate/business_customers/product_testing_3/worldwide_market_access_1/mas

13. PRO FORMA INVOICE
 is a preliminary
bill of sale sent to buyers
in advance of a
shipment or delivery of
goods.
 The invoice will typically
describe the purchased
items and other
important
information such as the
shipping weight and
transport charges.
Photo source:https://cleartax.in/s/pro-forma-invoice-gst

14. STEP 8: AUTHORIZE
INVOICE& PAY VENDOR
Three documents must match
when an invoice requests
payment -.
The agreement of these
documents provides
confirmation from both the
receiver and supplier.
 Any discrepancies must be
resolved before the recipient
pays the bill. Usually, payment is
made in the form of cash,
check, bank transfers, credit
letters or other types of
electronic transfers.

15. STEP 9: Record Keeping
After the payment process, buyers make a
record of it for bookkeeping and auditing.
All appropriate documents right from
purchase requests to approved invoices
are stored in a centralized location.

16. Post-shipment Documents

17. BILL OF LADING
Photosource:https://www.flexport.com/help/113-switch-bill-of-lading
first common document used in international shipment and
it is a contract between the owner of the goods and the
carrier.

18. SEAWAY BILL
PHOTOSOURCE:https://songanhlogs.com/seaway-bill-la-gi.html
A transport document for
maritime shipment which
serves as evidence of the
contract of carriage and
as a receipt for the
goods, but is not a
document of title

19. AIR WAY BILL
Photo source:http://wap.dhl.com/serv/usawb.html
is a document that
accompanies goods
shipped by an
international air
courier to provide
detailed information
about the shipment
and allow it to be
tracked.

20. RAIL WAY BILL
 is a document used for the
shipments via a railway.
 The document is prepared
by the shipping agent or the
railway line that is going to
transport the shipment after
having received from the
shipper the shipping
instructions.
A draft railway bill is given to
the shipper in order to accept
and consign with the terms
noted and after this the
original copies are issued.

21. CERTIFICATE OF ORIGIN
 are often required-to
meet Customs
requirements in the
importing state– to
comply with Banking
requirements– for
other official and
commercial reasons
Photosource:https://incodocs.com/blog/certificate-of-origin-from-chamber-of-commerce/

22. Export Sales Contract
 is Agreement between
buyer and seller, stipulating
each and every details of
the transaction.
 – Legally binding
document.–
 It reduces the probabilities
of disputes & differences
as it fixes the role and
responsibilities of each
party.

23. THANK YOU!