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.