Final Paper

Joe’s Engineering LLC

Procurement Procedures

1. Supervisor completes Purchase Order including the following required information and sends to Accounting Technician for processing:

a. Recommended Vendor

b. Description of item (s) or services required.

c. Quantity

d. Estimated price per unit

e. Budget/Accounting Code

f. Signature and date

2. Accounting Technician

a. Receives Purchase Order

b. Enters Purchase Order Number and date into Purchase Order Journal

c. Determines Verifies inventory isn’t sufficient to meet request

d. Determines purchase process

i. Small purchase under $100 – Non-competitive local purchase

ii. $100 - $499 – Documented price comparison

iii. Over $500 – Financial Manager approval to solicit at least 3 formal competitive bids.

iv. Financial Manager approval signature on Purchase Order

e. Orders item/service via copy of Purchase Order

f. Receives supplies and initials packing slip.

g. Accepts services as completed and initials vendor invoice

h. Files all paperwork in individual vendor file

i. Notes items or services received on office copy of Purchase Order.

3. Posts Accounts Payable

i. Credits account Payable

ii. Debits Asset Account

4. Processes Invoice

a. Compares invoice to packing slip/purchase

b. Processes electronic payment or cash payment (Petty cash fund)

c. Debits Accounts Payable

Credits Cash

(Field Offices require prior approval to use local checking accounts.)