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Materials Purchasing Forms:

The principle forms required in purchasing are the purchase requisition form and the purchase order form.

Purchase Requisition Form:

The purchase requisition originates with (1) stores or where house clerk who observes that quantity on hand is at a set ordering minimum, (2) a materials ledger clerk who may be responsible for notifying the purchasing agent when to buy , (3) a works manager who foresees the need for special materials or unusual quantities, (4) a research or engineering department employee who needs materials or supplies of a special nature, or (5) a computer that has been programmed  to produce replenishment advice for the purchasing department. For standard materials, little information other than the stock number may be needed, and the purchasing agent uses judgment concerning where to buy and the quantity to order. For other purchases requests, it may be necessary to give meticulous descriptions, blueprints, catalog numbers, weights, standards, brand names, exact quantities to order, and suggested prices. Below is an example of the purchase requisition:

Example/Sample of purchase requisition form:

Purchase Requisition

No. 07615
Mo | Day | Yr

To Purchasing Department
Deliver to _________________ Date Required___________________
      Dept No. ________________
      Acct. No. _______________
Suggested Supplier________________________________________________________________
Qty Item No. Description Unit Price Amount

Budget Control

Allowance for period ____ Balance Available___ Ordered By____  
  Amt This Purchase___ Approved By___  
    Remaining Balance___    

One copy remains with the originating employee, and the original is sent to the purchasing department for execution of the request.

Purchase Order Form:

The purchase order, signed by the purchasing agent or other official, is a written authorization to a vendor to supply specified quantities of described goods at agreed terms and at a designated time and place. As a convenience, the vendors order forms may be used; but in typical practice, the order forms are prepared by the purchasing company, and the form is adapted to the particular needs of the purchaser. As a matter of record and for accounting control, a purchase order should be issued for every purchase of materials, supplies, or equipment. When a purchase commitment is made by mail, telephone, or a sales representative, the purchase order serves as confirmation to the vendor and places the required documents in the hands of those concerned in the purchasing company.

The purchases order gives the vendor a complete description of the goods and services desired, the terms, the prices, and the shipping instruction. When necessary, the description may refer to attached blueprints and specification pages. The original and an acknowledgment copy are sent to the vendor. The acknowledgment copy is a necessary form for contract procedure, because other copies are distributed. The vendor is asked to sign and return the copy to the purchaser, indicating that the order was received and will be delivered according to the specifications enumerated in the purchases order.

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You may also be interested in other useful articles from "controlling and costing materials" chapter:

  1. Purchases of productive material
  2. Purchases of supplies, services, and repairs
  3. Materials purchasing forms
  4. Receiving materials
  5. Invoice approval and data processing
  6. Correcting invoices
  7. Electronic data processing (EDP)  for materials received and issued
  8. Cost of acquiring materials
  9. Storage and use of materials
  10. Issuing and costing materials into production
  11. Materials ledger card - perpetual inventory
  12. First-in-First-Out (FIFO) Costing Method
  13. Average Costing Method
  14. Last-in-First-Out (LIFO) Costing Method
  15. Other Methods-Month end average cost, last purchase price or market price at date of issue, and standard cost
  16. Inventory valuation at cost or market whichever is lower
  17. American Institute of Certified Public Accountant (AICPA) cost or market rules
  18. Adjustments for departures from the costing method used
  19. Inventory pricing and interim financial reporting
  20. Transfer of materials cost to finished production
  21. Physical inventory
  22. Adjusting Materials Ledger Cards and Accounts to Conform to Inventory Accounts
  23. Scrap and waste
  24. Spoiled goods
  25. Defective work
  26. Discussion Questions and Answers about Controlling and Costing Materials



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