PURCHASE PROCESS

Accomplish Goods
Source Create
Purchase Send out PO Sales Received
needed Purchase
Requisition Form Requisition Purchase
goods Order
(PRF) Form (SRF) Order (GRPO)

A Purchase Requisition Form (PRF) is a hard copy document to which details kung ano yung kailangan na item *for you* in the first place. But for
you to find kung ano ang ilalagay mo sa PRF, one needs to understand what kind of goods or items ang binibigay o binibili o kailangan ng isang
company.
Three Types of Goods That A Company Will Need In Its Entire Life:
What is that kind of item that when you buy it and then you sell it to your customers? Answer: MERCHANDISE INVENTORY
The type of good or item but you are going to consume it for your own consumption, meaning it is a consumable good. Answer: SUPPLIES
The item where you bought it, you use it and the expense of which will be charged through normal wear and tear for the passage of time. Answer:
EQUIPMENT

The common denominator on those items is that when you use Accounting Information Systems (AIS) or through the use of Business Logic vis-à-vis
about the AIS is that you need to issue item codes on those goods. An item code is a unique identifier on every item that you are going to buy. For
example, I bought one computer equipment, then the next time that I bought another computer equipment, let’s say a desktop with a mouse and a
keyboard together with the CPU and UPS or Uninterruptible Power Supply, I will tag them as- or I can put any item code like OE.COMP-001 for the
first item that I bought and the next item that I will buy will be tag as 002. All items that are identifiable should have a separate item code na ini-issue.
Para lang itong Delivery Order (DO) and Sales Invoice (SI) mo, wherein you have an internally and sequentially numbered delivery order and sales
invoices. Okay? So ito rin gano’n din, you have to identify these codes. Why does it matter? It’s because, again, the uniqueness of your data will always
*be prevail*. Binigay niya sa control *blah* kasi. Okay? So sa PRF, sa process of purchase of goods, pwede siya yung tatlo [referring to MI, Supplies,
and Equipment] na ‘yon. So whenever sabihin mo – Okay I need a computer equipment, that’s a fixed asset to you, so you accomplish a PRF. Meaning
to say, on the purchase process, there is always an initiator for the process, or a requestor for that matter. That hard copy PRF will be sent to your
Purchasing Department or Procurement Department. Why? Kasi yung Procurement Department mo would need to find a vendor who can provide the
needed goods – providing na hindi pa existing yung vendor. Meaning to say, this is the first time that you will do the transaction to that vendor.
So what will you do on the “Source of needed goods”? There is what you called the Vendor Accreditation Process. On the Vendor Accreditation
Process:
First, you need to have a bidding. Tatlong vendor. You will need to select a Vendor Selection Process. May tatlo kang vendor na pagpipilian.
What are the qualifications kung ano yung pipiliin mon a Vendor?
i. Kung kaya i-commit yung quantity that you need for that item.
ii. Second on the price. Hindi ibig sabihin na lowest price ‘yon yung kinukuha. Dapat competitive price, meaning to say, a price that is
actually reasonable given the product quality and quantity that you want.
iii. Also, there are instances that you’re looking at the vendor’s credibility. Meaning to say, *di ko maintindihan, choppy si ma’am* sa
business. Who are his customers? Who are his suppliers? Is it credible? Is it *keme* worthy?
Those things are being considered in the vendor selection process, because once you agreed with the price and quantity, then there is vendor already
who win that bidding process. That’s the time that your Purchase Requisition Form (PRF) is turned in and entered into a system by creating a Purchase
Order (PO). So, meaning to say, ang PRF mo and yung nakuha mo na data, which is the price from your vendors, will now be combined to make the
PO. That Purchase Order (PO), again, is an internally generated system number. Galing siya sa system. You will need to print out that PO and you
have it to be approve on a medium scale na corporation sa organization, it is usually approved by the company’s president or CEO.
After the PO has been approved. You need to send a PO to your vendor. [ito na ata ‘yong SEND OUT PO na step hehe] Remember do’n sa Sales
Order Process natin? Yung Customers’ PO ay ginagawan ng Sales. Dito baliktad. What did you realize? ‘Di ba ‘pag labas niya, kapag ide-deliver niyo
yung goods natin, ano ang kasama ng goods? Isn’t it kasama yung Sales Invoice? Tama ‘di ba? Kasama yung billing. Yung Sales Invoive. Isn’t it? This
is also of the same case. Siyempre um-order ka, then you will wait for the delivery of those goods. Kapag dumating na ‘yan sa warehouse, because
we’re a manufacturer or distributor of a consumer electronic products. Kapag dumating ‘yan sa warehouse, the warehouse will accomplish another
hard copy form.
-------------------- NA-DISCONNECT SI MA’AM --------------------
The SRF will then be uhh ipi-fill up ‘yan kasi this is also a hard copy form. Same like a PRF ng warehouse mo or whoever receives the goods. Ang
kailangan lang that whoever receives the goods is not the one who will encode it in the system. Because, why? That is a segregation of duties ng
role. Kailangan the receiver who has custody is not also the one who has the recording custody. That accomplish SRF will then be forwarded to the
Purchasing Department for entry to the system through the use of the GRPO. Remember gumawa ka ng PO? This time around, sa GRPO sinasabi mo
or tina-tag mo siya sa system as “already received” through the GRPO.
***Maliwanag ba?
Ma’am pwede paulit?
Ulit? Okay. ***

Remember yung PRF mo, ang equivalent niya sa system ay PO. Okay? Yung PO mo na ‘yon, since ang pini-PO mo lang ay goods or items, whether a
MI, Supplies or Fixed Asset. So meaning, darating ‘yong goods na ‘yon sa’yo. Kapag dumating ‘yong goods na ‘yon sa’yo, yung nag-received ng
goods na ‘yon, kailangan niyang gawan ng Stock Receiving Form (SRF), ‘di ba? Then na-receive niya, so si warehouse gagawa siya ng SRF. Then
yung SRF na ‘yon papa-approve niya kay Purchasing Dept. Sabi niya, “Purchasing na-receive ko na ‘to. Entry-an mo na sa system.” Sabi ni Purchasing,
“Sige, eentry-an ko na.” So ibig sabihin, every SRF has a corresponding GRPO entry in the system.

Class remember this: Sa likod ng GRPO, sa PO level wala pang nagiging journal entry sa system. Nagkakaroon ng journal entry do’n pa sa
GRPO. Ano kaya nagiging entry sa GRPO? Because the end of the GRPO, the end of the purchase process which is the GRPO, ayan pa lang
yung time na nagkaroon ka ng entry sa system. Sa GRPO. The entry sa likod niyan is:
Dr. Merchandise Inventory
Cr. Clearing Account (Goods Received Non-Invoice [GRNI])
Clearing account si GRNI. If you remember sa flowchart natin, naka-connector siya I tagged it as letter “A”.
PAYABLE PROCESS GOODS

Control Endorsed to
Prepare API
A Check Print API Finance

What did you notice about that letter A or about those GRPO?
AIDS: Tumutuloy po siya sa Payable Process Goods po, Ma’am?
The end of your Purchase Process is the beginning of your Payable Process. Kaya tinawag siyang Purchase to Payable Process. Because, why? Kasi
logically, kahit business logic tinuturo ko, you will only pay those items na na-receive mo, isn’t it? Not unless the credit terms are advance payment.
Pero you will never pay or process a payment anything na hindi mo pa nare-receive. Kailangan ma-ascertain mo na na-receive mo yung item before
you process it for payment. Why? Kasi yung GRPO, ‘di ba sinabi ko sa inyo na pinadala ‘yan ng customers sa’yo no’ng in-accomplish mo ‘yong SRF
mo nang magkasama ‘yan. Ano kasama niya? ‘Yong iyong Suppliers’ Invoice, isn’t it? Kasi no’ng nag-sales and delivery order processing tayo ‘di ba
naalala mo pinadala natin ‘yong sales invoice natin sa customer? Gano’n din diyan. Kasama ‘yong sales invoice.
So ngayon, tatlo ‘yong pino-forward for payable processing. Ano yung tatlong ‘yon?
1. PRF (hardcopy) with the equivalent PO (system) – one document count
2. SRF (hardcopy) with the referenced GRPO on the form of the SRF (reference system) – one document count
3. The Supplier’s Invoice.
Why? Because when you process them for payment, there is what you called a Control Check. Take note of this one, because ‘di pa kayo nag-AIS,
dito niyo siya makikilala – si three-way match. Tatlo ‘yon e. So ‘yong tatlong ‘yon ang minamatch mo. That what we mean here in the flowchart na
control check. What do we check? We check if the quantity maintains – the blanket provision is that – the blanket means your general provision is that
your PO = GRPO = SUPPLIER’S INVOICE. But there are exemptions to that blanket provision of general provision. (1) the first is that there are
instances wherein your PO quantity is greater than you GRPO quantity that is also greater than your Supplier’s Invoice quantity. For example, your
PO quantity is 1000 units, and ang dumating ang sabi sa SRF is 500 units. ***nawala si ma’am*** lesser do’n sa PO, and then sa Supplier’s Invoice
mo, yung Sales Invoice na nanggaling kay Supplier noong bini-bill ka niya ang nakalagay din is 500 units. Okay. Ang sabi 1000 by 500 by 500. You’re
now going to process it for payment.
*** CHOPPY NA SI MA’AM, I CANNOT DECIPHER ***
PAYABLE PROCESS SERVICE

Control Endorsed to
Supporting Prepare API
Check Print API Finance
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