Purchase and Sales Cycle
Purchases Cycle Figure 1-1 Purchases Cycle
Purchasing Review
Purchasing is a process of buying goods and services. It was done by every department of Hup Seng Industries Berhad, when they have the needs, wants, and demands to authorise certain goods and services. The purchases cycle starts with purchase requisition request by various departments. The purchase requisition was sent to the purchasing department. After the related suppliers were reviewed and examined by the purchasing agents, purchase requisition will be approved and approved supplier quotation will be issued.
Purchase order will also be issued and copies will be sent to several related parties. Before the goods are received by Logistic & Warehousing department, the purchase order will be monitored and followed up. The goods will be examine and inspected by the Quality Management department as soon as they are received. Goods received notes will be received right after the examination and inspection were done and it will be given to the Accounts department in order to make a stock recording into relevant accounts for future usage.
Documents Involved
Purchase Requisition
Purchase requisitions were issued by various departments when the departments need certain goods and services. It contain information such as description of items, quantity, price range, payment terms, required delivery date, names and address of suggested suppliers, and other relevant information. Purchase requisitions are often used as a proposal to the purchasing department in order to decide whether the purchase is necessary and worthy.
Approved Supplier Quotation
Approved supplier quotation will be issued by the approved suppliers to the company when the purchasing department inquires them. The content of the quotation includes description of items, exact price, payment terms, delivery date, name and address of the suppliers and other information. These quotations are used as company’s reference for them to decide
Purchasing Review
Purchasing is a process of buying goods and services. It was done by every department of Hup Seng Industries Berhad, when they have the needs, wants, and demands to authorise certain goods and services. The purchases cycle starts with purchase requisition request by various departments. The purchase requisition was sent to the purchasing department. After the related suppliers were reviewed and examined by the purchasing agents, purchase requisition will be approved and approved supplier quotation will be issued.
Purchase order will also be issued and copies will be sent to several related parties. Before the goods are received by Logistic & Warehousing department, the purchase order will be monitored and followed up. The goods will be examine and inspected by the Quality Management department as soon as they are received. Goods received notes will be received right after the examination and inspection were done and it will be given to the Accounts department in order to make a stock recording into relevant accounts for future usage.
Documents Involved
Purchase Requisition
Purchase requisitions were issued by various departments when the departments need certain goods and services. It contain information such as description of items, quantity, price range, payment terms, required delivery date, names and address of suggested suppliers, and other relevant information. Purchase requisitions are often used as a proposal to the purchasing department in order to decide whether the purchase is necessary and worthy.
Approved Supplier Quotation
Approved supplier quotation will be issued by the approved suppliers to the company when the purchasing department inquires them. The content of the quotation includes description of items, exact price, payment terms, delivery date, name and address of the suppliers and other information. These quotations are used as company’s reference for them to decide