Although the details of a purchase procedure may differ from concern to concern, the important procedures in purchasing and receiving of materials are as follows; assuming that purchases are centralised: 1. Purchase Requisition 2. Selection of Suppliers 3. Purchase Order and Follow-Up 4. Receipt of Materials 5. Inspection and Testing of Materials 6. Return of Rejected Materials 7. Passing Invoices [...]
The important methods followed in pricing of issue of materials are:- 1. Actual Cost Method 2. First-In First-Out (FIFO) Method 3. Last-In First-Out (LIFO) Method 4. Highest-in First-Out (HIFO) Method 5. Simple Average Cost Method 6. Weighted Average Cost Method 7. Periodic Average Cost Method 8. Standard Cost Method 9. Replacement Cost Method 10. Next in First Out (NIFO) Method [...]
The normal process of purchasing, storing, control and issue of materials consists of the following documents:- 1. Bill of Materials 2. Purchase Requisition 3. Purchase Order 4. Material Inspection Note 5. Goods Received Note (GRN) 5. Goods Received Note (GRN) 6. Stores Requisition Note 7. Material Transfer Note 8. Material Return Note 9. Bin Card 10. Stores Ledger. Document # [...]