Purchasing is an important activity for every business. Over time, purchasing has become a platform in building and maintaining relationship with other business units like suppliers and distributors. That is why it is important that the purchasing function of every business is well documented. This is when purchasing manual comes into the picture. But what is a purchasing manual? This article will go through the definition and importance of this pertinent document.
Like user manuals, purchasing manual serves as guidelines between the purchasing department and suppliers in completing the procurement process. It provides all the necessary information both parties need to know and consider before engaging into the transaction.
This document provides the processes of the purchase transaction. It includes the request to purchase from the purchasing party, the completion of the request and all the specific and detailed instructions on how the purchase will be conducted.
Any purchase will not be completed if there is no payment need. Hence, purchasing manuals provides the policy payment of the transaction. It states the policy that both parties need to abide. In addition, the representatives from both parties who are responsible for the payment procedure should also be stated.
Delivery and Performance
Lastly, purchasing manuals should also include evaluation parts wherein both parties are given the opportunity to assess each other based on the completed transaction. It answers the questions, was the delivery successful? Was the performance fast and efficient? Simply, this part of purchasing document evaluates the overall purchase transaction.
In general, purchasing manuals guide the purchasing party and the selling party in the completion of a purchase transaction. This document is an essential element of any purchase as this implies as a contract that each party needs to follow and abide. It is an imperative that a purchase transaction is well documented.