In purchasing cycle, answer if the following is true or false.

Thanks you invited me

My answer is also Yes.

Good luck

Thank you for the great answers

I just need to discuss something with all of you;

Basically we should get offers, at least3, to get the lowest price and best quality , with also best service of delivery and others.

In fact, what do you think about low value purchasing?? And also the same question regarding the type of the product and nature of the field ? Look at these points.. as follows;

for example, products that less than $If we make the same procedures it will takes a lot of time to end every purchase order,  i.e. We  may use immateriality principle in this issue, just to accelerate the process and to put a limit of the need for   offers to make the FEASIBILITY in our consideration.

In Some big companies dealing in the field of Pharmaceutical industries and medical items, they may not need to change the vendor of raw materials every time, because they consumed a lot of time to test the raw materials to produce medicines .In this case they may need the offers ONCE for a year and then to make an “annual contract” to save time

In some companies using the “JIT” or Just In Time system, also “MRP” they may also use long-term contract, after studying offers once only, to proceed with the system.  

I am still waiting for your Answers..and opinions . Thank you  

yes it is true and in ISO required 3 quotation from different supplier if u didn't have agent one 

Thank you for invitation

I think of course True

with my best wishes to you 

True..............................................

The statement is true because the purchase order is used to buy materials between a buyer and seller. It specifically defines the price, specifications and terms and conditions of the product or service and any additional obligations such as offers.

Purchases Cycle

Purchases are often made on credit and so the purchases cycle includes payables. You also need to bear in mind that 'purchases' has a wide meaning in term of the purchase cycle as purchases will include not only inventory items but also all types of expense and  the purchase  of  non-current assets.

To ensure that The internal control objectives:

1-Ask for offersof Purchased goods/services .

2-  Purchased goods/services are ordered under proper authority and using proper procedures. 

3-  Purchased goods/services are only ordered as necessary for the proper conduct of the business operations  and are ordered from suitable, approved suppliers. 

4- Goods or service received are inspected for quality and quantity and description.

5- Invoices and related documentation are properly checked and approved as being valid before being entered as trade creditors .

 6-All valid transactions relating to payables (suppliers' invoices, credit notes and adjustments), and only those transactions, should be accurately recorded in the accounting records.

it is not mandatory but it is better for us to negotiate to get better price.

True ..........................

Yes its true. We should always ask for three or more quotations from different suppliers.

I agree with the answers high

Thank you for invitation

No, In Purchasing cycle from same Vendor is not required offer always.

The Offer is ask at the time of finalisation of vendor as the offer is required from various vendor to make a comparative statement to select a best (Lowest -1) one for all purposes.

Once, the vendor is finalised for a particular period then no need to ask always offer.  Again it is required offer for next cycle.