The document discusses the purchasing process and documents involved. There are three main documents: 1) a purchase requisition is filled out by an employee to request an item purchase and must be approved, 2) if approved, a purchase order is issued to the vendor, and 3) the vendor sends an invoice along with the product to request payment. Templates are available to easily generate the forms needed for each step in the process.

1. Purchasing Documents Module 5 Lesson 5

2. What are purchasing documents? 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. This procedure involves 3 different documents.

3. What is the procedure? Step 1: Complete a Purchase Requisition and submit to the correct person/department within your company Step 2: If approved, a Purchase Order is issued and products are purchased Step 3: The seller creates and sends an Invoice along with the product.

4. Sounds like a lot, right? Not really. These forms are usually created using templates (preformatted documents.) So all an employee has to do is fill out the form. Let’s begin with Purchase Requisitions.

5. Purchase Requisitions

6. Purchase Requisition A form to be completed by individuals within a business to request that items or services be purchased. Employee Purchasing Department

7. Purchase Requisition View the MS Office Purchase Requisition Templates below Sample 1 Sample 2 Sample 3

8. Purchase Requisition Company information Vendor information Date and ordering information Item information Signatures A new web browser window will open for you to view the video. Video Explanation

9. Purchase Requisition Catalogue No or Item No of product Qty—how many to purchase Description—written description of product

10. Purchase Requisition Unit Price—Price per item Total Amt—Qty X Price Account number or department for billing

11. Purchase Requisition Order Total is the total of all items requested on the requisition

12. Purchase Orders View the MS Office Purchase Order Templates below Sample 1 Sample 2 Sample 3

13. Purchase Orders Company information Vendor information Date and ordering information Item information Signatures Video Explanation A new web browser window will open for you to view the video.

14. Invoice

15. Invoice 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

16. Invoices View the MS Office Invoice Templates below Sample 1 Sample 2 Sample 3

17. Invoices Company information Customer information Date and ordering information Item information Comments A new web browser window will open for you to view the video. Video Explanation

18. Payment 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.

19. Process Purchase Requisition Invoice and product Purchase Order You