Process of Procurement to pay Life cycle
TYASuite Procurementto Pay Software manage your procurement cycle seamlessly to purchase your
required items/products or services from the external vendors by involving in
the step by step procedure. This process involves in inquire, request, receive
and then pay so, therefore, the complete cycle is called procurement to pay
process
The key process of the
procurement life cycle.
The procurement
process starts with the analysis of the products they demand and when they
required and what is the affordable budget for the company.
Selection of vendors:
In this step, the
company involves in a list of vendors. By comparing them with a list of other
vendors they select one among them who can provide the goods they required from
them.
Requesting a quote
from selected vendors:
The company will
request for the quote with the selected vendor which includes the information
of goods & services, terms and conditions, signature of authority member,
account number, Instructions from an authorized vendor.
Raising the purchase
requisition for selected goods/Products & Services
The purchase request
is the internal process of raising the request to the buyer to provide the
products/goods on a certain date. Then the purchase requested can be created
automatically. The PR includes
• Quantity
• Description of products
• Total Value
• Account Number
• Authorized Signature
• Delivery Instructions
• Attached quote from the vendor
Formal purchase order:
The purchase order is
a formal request to the vendor to supply the products / Goods under the terms
and Conditions which includes incoterms, delivery date, quantity and Price.
IRN verification:
Items received note
(IRN)in terms refers to the Items Received note which explains to you that
goods received from the vendor under the process of PO. Then purchase
department will make a document on Received goods for the company.
GRN verification
Goods Received Note
(GRN) is an important process in this cycle. It involves by Checking and
comparing the goods with the (PO), the products are not damaged and suitable
for usage, Verifying the price and quantity. If the received meets the ordered
Specifications. If not the company will ask for replacements or refund from the
vendor.
Generated Invoice
Once the verification
process (GRN) Completed then the Invoice will be generated with the reference
of PO, IRN and GRN.
Vendor Payments
This is the last
series of action in the Procurement to pay process here the Vendor get Paid by
the company as per payment terms.
TYASuite Procurement Software Will helps you do this process seamlessly and ensures the
esteemed level of satisfaction at every stage of procurement software
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