Purchases Document - JSS2 Business studies Lesson Note

Preparation:

Purchase documents are prepared by purchasing departments or individuals to initiate and record purchases made by the company. This includes creating purchase orders, requisition forms, and purchase agreements. The preparation involves specifying the items to be purchased, quantities, prices, delivery terms, and supplier information.

 

Uses:

• Order Placement: Purchase documents serve as an official request to suppliers to deliver goods or services.
• Authorization: They provide authorization for the purchasing department to procure goods or services from approved suppliers.
• Record-Keeping: They serve as a record of purchases made by the company for accounting and auditing purposes.
• Supplier Communication: Purchase documents communicate requirements and specifications to suppliers, ensuring the right products are delivered on time.