PURCHASE OF AND PAYMENT OF MATERIALS

STORES CLERK/ MATERIALS DEPT.HEAD

** STOCK REACHES CRITICAL LEVEL

** PRODUCTION REQUEST ITEMS NOT IN STOCK

ISSUES PURCHASE REQUISTION

TO THE ACCOUNTING AND
PURCHASING DEPARTMENT

PURCHASING DEPARTMENT

 Canvasses prices among suppliers

 Bidding process
 Issues a Purchase order to suppliers

PURCHASE ORDER

SUPPLIERS RECEIVES THE GOODS

RECEIVING AND AND INSPECTS IT
INSPECTION
DEPARTMENT

DELIVERS THE GOODS AND ISSUES A RECEIVING AND

SALES INVOICE INSPECTION REPORT

STORES DEPARTMENT
ACCOUNTING DEPARTMENT
GOODS RECEIVED
*Receives copy of Sales Invoice TOGETHER WITH THE
*receives copy of Receiving and Inspection report RECEIVING AND
INSPECTION REPORT
* Validates Purchase Order

* Processes payment to the Suppliers and prepares

Disbursement voucher

SUPPLIERS RECEIVE
PAYMENT