Purchases Order created by purchasing dept. based on production dept. requirement. 1st it (Purch. Dept.) invites quotations from suppliers, based on appropriate quotation it order to supplier to supply the goods. it prepares P.O. in four to five copies - 1 is sent to fin.dept. 2nd to suppliers 3 rd to stores and last one keeps itself for ref. P.O includes the info. about the Qty, Qlty, Prce, delivery conditions etc.
Firstly the concerned department sends a requisition to Purchase Department. For that requisition Purchase Department searches for Available Suppliers ( Sometimes from Old Database or by New market research). With this information they discuss the requirement with suppliers and then prepare Comparative Rates Statement and keeping in view the reasonable rate, the lead time available and the terms of payment offered etc the supplier is finalized and then the Purchase Order is prepared for that Supplier.
user creates a purchase requisition(PR) then it must be approved by his head of department(HOD) then PR is directed towards store if they have that material then it will be issued if not , then it direct towards purchase department keeping in mind the budget of that department, purchase department raise quotations - choose the best quotations both quality and rate wise then raise po to that party
