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Purchases _ procurement

CA Finalist (Article Assitant) (289 Points)

18 August 2011

WHY should Purchase Dept. in an organisation have Approved List of Vendors as a part of their documentation work?

What are the advantages of having the list ???

please reply immediately

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 August 2011

So that in case of any discrepancy a valid and accepted document issued can be always used as an evidence for argument.

Normally it is a policy which almost all organisation follows.

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CA Punit (CA) (1775 Points)
Replied 11 September 2011

In addition to above..........

Purchases cannot be made from any vendor of the choice of procurement department.

With regard to quality & delivery, the vendor should be first approved, after a trial made by the users of materials viz. the operations/plant/factory head and only then regular procurement can be made from that vendor.

This is the scenario, particularly in large and decentralised organisations.

Hence, approved vendors list is important to ensure procurement from right sources and to mitigate risk of substandard quality purchases.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 12 September 2011

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	So that in case of any discrepancy a valid and accepted document issued can be always used as an evidence for argument. Normally it is a policy which almost all organisation follows.