Our Ordering Process
Orders are placed by approved and authorized purchase orders.
Upon placement of a authorized purchase order.
A Silo is created to include only approved products that are awarded.
This process allows for direct accountability for a specific acquisition item
Only items approved can be requested, eliminating overspend and product consistently
Below is the sequence of Purchase order creation:
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Items being purchased
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The quantity of each item
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The agreed upon price
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Delivery terms
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Shipping information
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Payment Terms (e.g. net30,60,90 etc.)
Supplier Acknowledgement and Fulfillment
Once the supplier has the purchase order, they review it for accuracy and confirm receipt.
After confirmation, the supplier proceeds with order fulfillment which involves:
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1 Purchase order (PO): check details against the original P.O. for consistency.
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Receiving report: Ensure that the items or services received match what is listed on the invoice.
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Invoice: Ensure the pricing, quantities, and terms on the invoice are correct.
Payment Processing
Once the invoice is made, the accounts payable department updates the ledger and reconciles the payment against the original P.O. receiving report and invoice. This ensures that all records are accurate. The payment is recorded in the financial system and a paymrnt confirmation is sent to the supplier.