Concept And Meaning Of Purchasing And Purchase Control

Concept And Meaning Of Purchasing

Purchasing involves acquiring materials of right quality, at the right quantity, at right time from a right source and at a reasonable price. A separate purchase department should be established to perform purchasing activities. The size of purchasing department depends upon the quantity to be purchased by the company. The purchase department determine the quality, quantity, items,price and time of purchase of materials. The function of purchase department is to purchase materials , supplies , machines and tools at the most favorable terms and conditions in a way that helps maintain the quality. It is an important function of material management and control .

Concept And Meaning Of Purchase Control
A manufacturing company is required to invest a huge amount of money in purchasing materials. It is, therefore, essential to exercise a proper material and purchase control. Purchase control refers to the purchase of materials of right quality in a right quantity at a reasonable price and at a right time. It requires a good amount of attention to the purchasing procedures of materials relating to cost, quality, volume, time, and delivery of materials. Purchase control starts with the issue of materials requisition and ends with the receipt of materials and payment of the cost of the materials.