Procurement Manual: Standard Procedures and Best Practices

Procurement Manual: Departmental Standards

This official manual provides a clear definition of objectives, structure, procedures, functions, responsibilities, and delegated authority for the performance of commissioned work.

Parts of the Procurement Manual

• The Procurement Process: Purchasing systems, order placement, purchase frequency, quantity calculation, filing, monitoring, and settlement.
• Reception of Goods: Order collation against bills, discrepancy handling, records, storage, and labeling.
• Revivals: Calculation, frequency, system control, and exposure systems.
• Buying File: Supplier books, ordering books, and receipt archives.
• Inventory: Inventory frequency systems and documentation.

Key Procurement Terminology

• Requisition: A formal permit issued to a supplier to satisfy a specific purchasing demand.
• Quote: The established payout amount, including the manner and time of payment for the requested good or service.
• Purchase Orders: A physical document stipulating the quantity and quality required from a supplier, including delivery time, location, and purchase conditions.
• Expediting: The process of order confirmation and follow-up.
• Receipt of Materials: The verification process ensuring the supplier delivery matches the purchase order specifications.
• Report of Receipt: A document specifying the date, vendor name, order number, delivery details, amount received, description, and authorizations.
• Quality Control: The review of delivered goods and services. Defective, damaged, or incomplete items are separated, recorded, and returned to the provider.
• Note of Transmittal: A document used frequently for partial shipments.
• Credit Note: A document issued to a customer to modify a previously issued voucher.
• Debit Note: A document issued to indicate that a business owner has been charged for interest, freight, returns, or other fees.
• Bill (Invoice): A written record detailing sold goods, including quantities, types, prices, and terms of sale.
• Remain: A document used for transaction verification, issued upon receipt of a proper invoice as an undertaking to pay the provider.
• Tax Credit: The amount a company has paid in taxes on purchases that may be reclaimed from the State at the time of resale.
• Export Invoices: Commercial invoices that display amounts without VAT surcharges.