Documentary cycle for purchases and stores

If you want to expand your activity and increase your company's business, you may have to go according to the documentary cycle for purchases and stores, it is an integrated system through which you can determine the needs of your company, and know the volume of exports, imports and goods in stores, the article will address what the documentary cycle of purchases and stores is, its types and importance.

The documentary cycle of procurement and stores is the process of ordering products, goods and tools from suppliers, obtaining, disclosing and storing them in stores, then disbursing and selling them, and this course is shared by several parties inside and outside the institution that go through a set of stages, starting from the department that wants a product, then the procurement management department, then the warehouse management, and finally the suppliers selling this product.

The documentary cycle of purchases and stores is divided into 3 main types, the first is related to purchases, the second is related to exchange and sale, and the third is related to damaged and returned goods, and we can explain these types in the following lines:

Documentary cycle for stores in case of purchases

1- Send a purchase request to the Procurement Department.

The head of the department who wants to obtain a product sends a purchase request of a specific type and in a certain quantity to the procurement department department, and after the department approves the request, he sends another request to suppliers in the quantity they need, to send the best offers for the price of the product they have, and this is the first step of the documentary cycle for purchases and stores in general.

2. Compare bids

This step depends on the management of the procurement department to examine, analyze and compare quotations from suppliers to choose the right price for the company, and the heads of the department can do this step manually, or rely on a program that regulates the accounting process of stores, such as the Capital ERP program for ECPA.

3- Send the sales order

The management of the procurement department sends a request to the suppliers, carrying the required quantities and the items they want to obtain, the appropriate price for them, the date and date of supply, and this step is the third step of the documentary cycle of the stores in the case of purchases.

4- Obtaining a receipt permit

The warehouse department receives the goods requested by the procurement department, and makes sure that they match the data of the goods that have been sent to the suppliers, and after verifying their authenticity, the storekeeper signs the receipt permit, and this step can take place at more than one stage, and therefore there are multiple receiving permissions of course.

5- Get the purchase invoice

Finally, the management obtains a comprehensive purchase invoice for the goods obtained by the company to prove the payment of the amounts due to suppliers, and add invoices to the ERP program of the warehouse accounting system.

1- The second type of documentary cycle for purchases and stores is related to the process of selling and disbursing goods to traders, and the steps are as follows:

2- The General Administration or the Sales Department sends an order to the stores, the request carrying all the items that must be sold to an external party, in addition to the date of disbursement, the name of the recipient and his signature.

3- The Warehouse Department shall send the disbursement permit to the Financial Department, and shall keep a copy thereof.

4- The company disburses the goods to its own sub-warehouses, in preparation for transferring them to the other party.

1- It is the last stage of the documentary cycle for purchases and stores, which is based on the return of damaged and unusable goods to the supplier, and its procedures are as follows:

2- The storekeeper collects, classifies and records damaged goods in the company's inventory statement.

3-The storekeeper shall send this statement to the company's board of directors and financial management, and shall keep a copy thereof.

4- The storekeeper records all information related to damaged goods, such as type, item, and date of receipt.

5-The management of the institution begins to communicate with suppliers to return unused goods.

6- From the above, we note that it may be difficult for the heads of stores and procurement departments to ensure that the documentary cycle of purchases and stores runs successfully without an assistant program, which is provided by ECPA through the warehouse management program from Capital ERP

ECPA is one of the leading companies in the field of accounting and legal consultancy, and the company is unique in providing the Capital ERP program, which includes a set of programs and services, such as the warehouse management program, which includes many features that can be summarized as follows:

1- The program controls the goods inside the warehouses of various types and varieties.

2-Designs an integrated database of goods in stores.

3-Gives varieties certain and different codes to easily find out some information about certain items.

4-Provide a detailed report on the goods in the warehouse, such as inventory, date of arrival, prices, colors and quality, and provide a detailed itinerary for those goods.

5-The program allows more than one product to be displayed at the same time, to facilitate the process of comparison between them.

6-ECPA warehouse management software provides a warehouse transfer document, which can be used when moving a goods from an organization's warehouse to another.

7-It facilitates the inventory process and detects damaged and stagnant goods, as well as goods that have been withdrawn from warehouses.

8-The warehouse management program takes into account the confidentiality of information, and allows it to be viewed by a certain group of individuals within the organization.

What is a buying cycle?

The purchasing cycle is a set of steps, including studying the market situation, making a purchase decision, issuing a purchase order, recording goods and receiving invoices.

What is the importance of procurement management?

The procurement department makes the purchase decision, in cooperation with the management of the organization, sets procurement policies, and records data related to the process.

Who does the procurement department belong to?

The procurement department does not belong to a specific entity, but is an element of the documentary cycle of purchases and stores, with many relationships with the rest of the other departments.

What is the relationship between the documentary cycle of purchases and stores in the accounting cycle?

The accounting cycle depends on receipts and invoices that indicate that the company has paid financial dues, and the documentary cycle of stores obtains those invoices from suppliers, which helps in the success of the accounting cycle of the institution.

What are the factors affecting the documentary cycle of stores and stores?

The documentary cycle varies from one company to another due to the different type of activity of the company and the size of the company itself in the market.

To summarize the above, the documentary cycle for purchases and stores takes place within the framework of a set of fixed steps that are difficult to change or overlook, as it is a specific system according to which many departments within the institution operate, with the aim of improving the accounting cycle and facilitating the role of the financial auditor in determining the volume of expenses and imports, as well as determining the institution's needs of various goods, and the volume of goods in the warehouses.

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