Purchase order policy

Purchase Order Policy & Procedures

Introduction

The Purchase Order Policy & Procedures outline a comprehensive and standardized purchasing process aimed at achieving the best value for the organization. This involves evaluating various factors, including price, delivery capabilities, quality, past performance, service capabilities, ease of ordering, and payment. The policy emphasizes the importance of selecting vendors based on the optimal combination of these criteria.

Procedure Overview

Requisition Process

• Requisitioners search for sources and obtain quotes.
• New vendors may be requisitioned when necessary.
• Request for a Purchase Order (PO) is submitted via email to the Accounting department, including detailed information on the item(s) requested, amount, vendor, requestor, and requestor’s location.

Branch Manager Approval

• The branch manager reviews the request, verifies the need, and either approves or disapproves the purchase.
• Upon approval, the requisitioner is notified and can proceed to place the order, having it delivered to the appropriate yard.

Goods Receipt and Verification

• Upon receipt of goods, the requisitioner submits all packing slips and invoices, along with a copy of the original PO, to the Accounting department.
• If a packing slip is unavailable, the PO copy is annotated to indicate the received order.
• The branch manager verifies the delivery, notifying the requisitioner of any missing or damaged items.
• The branch manager ensures the yard inventory is updated accordingly.

Accounting Department Procedures

• The Accounting department uploads the PO, invoice, and packing slip to digital files for record-keeping.

Threshold for Purchase Orders

• Items exceeding $800 in cost require a PO.
• Examples include, but are not limited to, Infared Heater, Infared Heater blankets, Asphalt Recycler, Asphalt Recycler blankets, Rollers, China roller accessories, AC-20 Tack, Tar Kettle, Asphalt, and Administrative/vendor fees.

General Contract Signing

• The policy briefly mentions general contract signing procedures, such as handling shipping manifests, cargo verifications, and the Importer Security Filing (ISF) form.

Conclusion

The Purchase Order Policy & Procedures establish a clear and systematic approach to procurement, ensuring transparency, accountability, and the acquisition of the best value for the organization. Adhering to these guidelines helps streamline the purchasing process while maintaining a focus on cost-effective and efficient procurement practices.