How To Initiate Internal Check For Purchases Made In A Business Firm?

A huge enterprise definitely requires certain resources and other Crypto Code traded goods for their proper working. There can be fraud plays by staff members while purchasing these items for the company which further requires large business funds. So, it is necessary to devise an effectual control system of the internal check to see if proper purchases are made for the company.

Here is the advised purchase procedure that should be employed by its staff members.

  • The details of the raw material requirement should be precisely noted down by the respective department of the company both in terms of quantity and quality or should be filled in the required application which is further proceeded to the purchasing department.
  • On receiving the requisition, the purchasing department will forward the inquiries to various suppliers seeking for quotation.
  • As soon as the quotations are received, the purchasing department proceeds to place the order from the best vendor by considering the various aspects like the quality of the materials, reasonable prices, delivery period and so on.
  • Further, the vendor provides the order to the company and place it in the respective department.
  • The store department compares the received goods memo with the requisite application and sees if all the orders are delivered at the right time. Further, a communication is made with the accounts department by sending the delivery remark and invoice sent by the supplier along with the confirmation note of the goods received and is taken to the stores.
  • An invoice is proceeded for payment by a head officer after precisely checking the terms and other conditions of goods supply with regard to price and quality referred in the bill.

The internal check initiated for the above purchase procedure goes like

  • There should be a dedicated and authorized purchase department in every business enterprise.
  • The purchase order should be sanctioned only if the respective items needed for the departments are listed clearly in the order.
  • Encourage the printed order form rather than hand-written type and must contain the details of every product required.
  • Further, the approved or company stamped demand copies should be sent to the supplier, the departments, the accounting session and finally, to the purchasing department for any future reference.
  • All the arrived goods should be checked for its quality and quantity and should be sealed with the ‘Goods Accepted Note’.
  • Additionally, each department should send their acknowledgment for fulfilling their duty and should immediately register with the stock book.