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The Procurement Process: From PR to Payment 💼💰 Efficient procurement is key to business success, ensuring that your organization gets the best value while maintaining smooth operations. Here’s a simplified breakdown of the journey from Purchase Requisition (PR) to Payment: 1️⃣ Purchase Requisition (PR): Initiated by department heads, specifying requirements, quantities, and budget. Once approved, the process begins! 2️⃣ Supplier Selection: Research and evaluation of potential vendors based on quality, price, and reliability. A thorough vetting process ensures the best fit. 3️⃣ Purchase Order (PO): A formal order is created, detailing vendor information, prices, and terms. The procurement manager approves it for finalization. 4️⃣ Order Placement: The PO is sent to the selected vendor for confirmation and order acceptance, ensuring a clear agreement. 5️⃣ Goods/Services Receipt: Upon delivery, goods or services are received, inspected, and verified for quality and quantity to ensure they match the order. 6️⃣ Invoice Receipt: Vendor submits an invoice, which is reviewed for accuracy and completeness. 7️⃣ Invoice Verification: Invoice details are cross-checked with the PO and received goods/services. Any discrepancies are resolved promptly. 8️⃣ Payment Processing: Once approved, the payment is processed through the appropriate channels. 9️⃣ Payment: The final step - payment is made to the vendor, and the procurement system is updated accordingly. Each step in the procurement process ensures seamless operation, helping businesses stay efficient and maintain strong supplier relationships. 🌟 #Procurement #BusinessEfficiency #SupplyChain #VendorManagement #ProcessOptimization

Outlined below are the nine essential steps of the procurement process:- 🔍 Identify which goods & services the company needs: Analyze the company's operational needs and identify specific goods or services required for smooth functioning. 📋 Submit purchase request: Prepare a formal purchase request detailing the required items, quantities, and purpose, and submit it for approval. ✅ Assess and select vendors: Evaluate potential vendors based on pricing, reliability, quality, and market reputation to choose the best supplier. 🤝 Negotiate price and terms: Discuss and agree on pricing, payment terms, and delivery conditions with the selected vendor to finalize the deal. 📄 Create purchase order: Issue a purchase order (PO) containing the agreed details as a formal contract between the company and the vendor. 📦 Receive and inspect delivered goods: Upon delivery, verify the quality and quantity of goods against the purchase order to ensure compliance. 🔗 Conduct three-way matching: Match the purchase order, delivery receipt, and invoice to confirm the accuracy of transactions before proceeding. 💳 Approve invoice and arrange payment: Approve the invoice after verification and process payments as per the agreed terms to maintain vendor relationships. 📁 Keep records: Archive all procurement-related documents for compliance, audits, and future reference. #ProcurementStrategy #VendorSelection #ContractManagement #InventoryManagement #SupplierRelationship #PaymentProcessing #OrderFulfillment #BusinessOptimization #AuditCompliance #ProcessEfficiency #LogisticsManagement #OperationalExcellence #BudgetControl #Sourcing #SupplyChainOptimization

Let’s talk about transparency and accountability at every step of a Procurement Process… Recap: 1. **Purchase Requisition (PR)**: - Initiated by department heads, specifying needs, quantities, and budget constraints. - Requires approval from authorized personnel to move forward. 2. **Purchase Order (PO)**: - Created in response to the PR, including detailed vendor information, pricing, and terms of purchase. - Requires the procurement manager's approval. 3. **Supplier Selection**: - Involves researching and evaluating potential vendors based on quality, price, and reliability. - Ends with the final selection of a vendor. 4. **Order Placement**: - The approved PO is sent to the selected vendor, and the order is confirmed. 5. **Goods/Services Receipt**: - Physical delivery and inspection of goods/services for quantity and quality verification. 6. **Invoice Receipt**: - Vendor submits an invoice for the goods/services delivered, which is reviewed for accuracy. 7. **Invoice Verification**: - Cross-referencing of the invoice against the PO and goods receipt to ensure consistency and address any discrepancies. 8. **Payment Processing**: - Once the invoice is approved, the payment process is initiated through internal financial channels. 9. **Payment**: - Payment is made to the vendor, and the procurement system is updated to reflect the transaction. This process helps maintain control over expenditures while ensuring timely and accurate payments to vendors.

Procurement process from PR to Vendor bill: 1. Request for Quotation (RFQ) : - Initiated by department heads or Inventory manager - Specifies requirements, quantity, and budget - Approved by authorized personnel 2. Supplier Selection : - Research and evaluation of potential vendors - Consideration of factors like quality, price, Performance and reliability - Shortlisting and finalization of vendors 3. Purchase Order (PO) : - Created based on RFQ - Includes vendor details, prices with term condition - Approved by procurement manager 4. Order Placement : - PO sent to selected vendor - Confirmation of order receipt / acceptance & Acknowledged 5. Goods/Services Receipt : - Physical receipt of goods or services against PO with DN - Inspection and verification of quality and quantity 6. Invoice Receipt : - Vendor submits invoice for goods/services provided - Invoice reviewed for accuracy and completeness 7. Invoice Verification : - Verification of invoice details against PO and receipt - Resolution of any discrepancies or issues 8. Payment Processing : - Invoice approved for payment - Payment processed through appropriate channels 9. Payment : - Payment made to vendor - Update of payment status in procurement system This detailed process ensures a structured and transparent procurement cycle, from request to payment. 👉 The purchasing and billing method will amend based on product and services

Here are the 10 essential steps of procurement that every organization should follow: 1. Identify the goods and services your organization needs to enhance productivity and efficiency. 2. Submit a purchase request to the finance team for review to ensure purchases are necessary and within budget. 3. Assess and select vendors based on factors like price, quality, availability, payment terms, and capabilities. 4. Negotiate price and terms with chosen vendors for a mutually beneficial agreement. 5. Create and submit a purchase order detailing prices, quantities, and product specifications. 6. Await the arrival of your order after it has been prepared and shipped. 7. Inspect the received order to verify it matches your expectations in terms of product and quality. 8. Conduct a three-way match between the purchase order, goods receipt, and supplier's invoice. 9. Approve the invoice and make arrangements for payment to the vendor. 10. Ensure proper record-keeping by storing and organizing all relevant paperwork for future reference. These steps are crucial for a streamlined and effective procurement process. #Procurement #SupplyChainManagement

9 Essential Steps of the Procurement Process Effective procurement is crucial for businesses to succeed. Here are the key steps to follow: Identify needs: Analyze operational requirements and specify goods/services needed. Submit purchase request: Prepare a formal request detailing required items, quantities, and purpose. Assess and select vendors: Evaluate potential vendors based on pricing, reliability, quality, and market reputation. Negotiate terms: Discuss and agree on pricing, payment terms, and delivery conditions. Create purchase order: Issue a formal contract between the company and vendor. Receive and inspect goods: Verify quality and quantity against the purchase order. Conduct three-way matching: Match purchase order, delivery receipt, and invoice for accuracy. Approve invoice and arrange payment: Verify transactions and process payments as agreed. Keep records: Archive procurement documents for compliance, audits, and future reference. #ProcurementStrategy #VendorSelection #ContractManagement #InventoryManagement #SupplierRelationship #PaymentProcessing #OrderFulfillment #BusinessOptimization #AuditCompliance #ProcessEfficiency #LogisticsManagement #OperationalExcellence #BudgetControl #Sourcing #SupplyChainOptimization

7 Essential Documents in Procurement Procurement teams use various documents to ensure the purchasing process is efficient and transparent. Here are the seven most important ones: 1. Purchase Requisition: An internal request from a department to buy specific goods or services. 2. Request for Quotation (RFQ): A document sent to vendors to gather price quotes for the required goods or services. 3. Purchase Order (PO): The official document that places an order with a vendor after terms are agreed upon. 4. Request for Proposal (RFP): A detailed request for vendors to submit proposals, including pricing, quality, and services. 5. Procurement Contract/Agreement: A legally binding document between the company and the vendor, outlining all purchase terms. 6. Goods Receipt Note: A document used to confirm that goods or services have been received from the vendor. 7. Invoice: A bill issued by the vendor after delivering goods or services, specifying the amount due. These seven documents are critical to a successful procurement process, helping teams manage orders effectively and maintain good vendor relationships.

#Procurement process# from PR to payment: 1. *Purchase Requisition (PR)*:  - Initiated by department heads or managers  - Specifies requirements, quantity, and budget  - Approved by authorized personnel 2. *Supplier Selection*:  - Research and evaluation of potential vendors  - Consideration of factors like quality, price, and reliability  - Shortlisting and finalization of vendors 3. *Purchase Order (PO)*:  - Created based on PR  - Includes vendor details, prices, and terms  - Approved by procurement manager 4. *Order Placement*:  - PO sent to selected vendor  - Confirmation of order receipt and acceptance 5. *Goods/Services Receipt*:  - Physical receipt of goods or services  - Inspection and verification of quality and quantity 6. *Invoice Receipt*:  - Vendor submits invoice for goods/services provided  - Invoice reviewed for accuracy and completeness 7. *Invoice Verification*:  - Verification of invoice details against PO and receipt  - Resolution of any discrepancies or issues 8. *Payment Processing*:  - Invoice approved for payment  - Payment processed through appropriate channels 9. *Payment*:  - Payment made to vendor  - Update of payment status in procurement system #procurement #Prcoess #negotiation #vendormangement #sourcing #payment #purchaseorder #invoice #purchaseorder #Risk #market #trend #Analysis #Stratergy #CostControl#

#Procurement process# from PR to payment: 1. *Purchase Requisition (PR)*:  - Initiated by department heads or managers  - Specifies requirements, quantity, and budget  - Approved by authorized personnel 2. *Supplier Selection*:  - Research and evaluation of potential vendors  - Consideration of factors like quality, price, and reliability  - Shortlisting and finalization of vendors 3. *Purchase Order (PO)*:  - Created based on PR  - Includes vendor details, prices, and terms  - Approved by procurement manager 4. *Order Placement*:  - PO sent to selected vendor  - Confirmation of order receipt and acceptance 5. *Goods/Services Receipt*:  - Physical receipt of goods or services  - Inspection and verification of quality and quantity 6. *Invoice Receipt*:  - Vendor submits invoice for goods/services provided  - Invoice reviewed for accuracy and completeness 7. *Invoice Verification*:  - Verification of invoice details against PO and receipt  - Resolution of any discrepancies or issues 8. *Payment Processing*:  - Invoice approved for payment  - Payment processed through appropriate channels 9. *Payment*:  - Payment made to vendor  - Update of payment status in procurement system #procurement #Prcoess #negotiation #vendormangement #sourcing #payment #purchaseorder #invoice #purchaseorder #Risk #market #trend #Analysis #Stratergy #CostControl#

𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝗳𝗿𝗼𝗺 𝗣𝗥 𝘁𝗼 𝗽𝗮𝘆𝗺𝗲𝗻𝘁: 1. *Purchase Requisition (PR)*: - Initiated by department heads or managers - Specifies requirements, quantity, and budget - Approved by authorized personnel 2. *Supplier Selection*: - Research and evaluation of potential vendors - Consideration of factors like quality, price, and reliability - Shortlisting and finalization of vendors 3. *Purchase Order (PO)*: - Created based on PR - Includes vendor details, prices, and terms - Approved by procurement manager 4. *Order Placement*: - PO sent to selected vendor - Confirmation of order receipt and acceptance 5. *Goods/Services Receipt*: - Physical receipt of goods or services - Inspection and verification of quality and quantity 6. *Invoice Receipt*: - Vendor submits invoice for goods/services provided - Invoice reviewed for accuracy and completeness 7. *Invoice Verification*: - Verification of invoice details against PO and receipt - Resolution of any discrepancies or issues 8. *Payment Processing*: - Invoice approved for payment - Payment processed through appropriate channels 9. *Payment*: - Payment made to vendor - Update of payment status in procurement system #supplychainmanagement #Procurement #Sourcing #Purchasing #SupplyChainManagement #InvoiceProcessing #VendorManagement #ProcurementCycle #BusinessOperations #POtoPayment #Efficiency