Material

1. A presentation
on
PURCHASING

2.  Material is one of the essential element of
production.
 The term “material” refers to raw material.
 Purchasing involve acquiring materials of
right quality in a right quantity at a
reasonable price and at right time.
Material & Material Purchasing

3. Purchasing
requisition
Tenders or
quotation
Purchase order
Receiving and
inspecting materials
Checking and
passing of bills
for payment

4.  It is a formal request initiated by the store
keeper or a specific department for the
purchase of specific items. IT has three
purposes which are as follows:
 To inform the purchasing department about
the need to purchase a material.
 To fix the responsibility of the department
making the purchase requisition.
 To use for future reference.

5.  After receiving purchasing requisition,
the purchasing department has to find
the best source to purchase the material
from.
 Selection of a particular supplier is made
after inviting quotations or tenders from
possible sources of supply.
 Invitations for tender in a prescribed form
are sent to prospective suppliers.

6.  The purchase order is a contractual
agreement with the supplier for the
supply of materials.
 It is prepared in five copies.

7.  The receiving department should
perform the function of unloading and
receiving of materials dispatched by the
suppliers.
 It has to verify the quantity and
condition of materials.

8.  When the invoices are received from the
supplier, they are sent for verification.
 After the verification, the store
department requests the accounting
department to make the payment to the
supplier.
 Payment will be made according to the
terms specified in the contract.

9.  It is the first process set by a manufacture to
control materials.
 Material purchasing process may be different from
one company to another.
 It starts with the issue of material requisition and
ends with the receipt of materials and payment of
the cost of materials.

10. Made By
Rohit Kochhar