An overview of the purchasing cycle is given as follows:
- Requisition - Raising an internal purchase requisition
- Supplier Selection - Quotations, Contracts, Pre-Suppliers
- Purchase Order - Raise purchase order
- Receipt Goods/Services - Receive Goods and Services
- Payment to Supplier - Purchase Invoice Payment
Although raising a purchase order creates a commitment on UFS, once goods/services have been received then this becomes a legal obligation to pay the supplier. Prior to the month-end we should establish that any incomplete purchase orders are actioned and closed.
Quarter End Guidance
Each quarter-end run Open Purchase Orders Report (UFS) to identify incomplete purchase orders.
Close purchase orders by receiving the goods, matching against the invoice, cancelling the order or manually closing the order.