Purchase Cycle in Hotel Industry

Purchase Cycle in Hotel Industry

Defination of  Purchase : A function concerned with the search, Selection, receipt, shortage anbd final ude of a commodity in accordance of with the establishment.

This suggests the person not only purchase but also for the receving, storage and issuing of all commodities as well as being involved with the purpose for which item are purchased and the final use of them.

Purchasing Objectives

11.       The buying practise must supplement a policy of minimum stock holding

22.       It must meet the requirements of all concerned departments.

33.       The buying procedures which provides a food operation with the products should be most suited ot its merchandising policy at the most economical price possible.

44.       It must follow a set of standard specification for different products.

The Purchase Cycle

1.       F & B Department make the store requisition to the stores.

2.       In Stores, if the product is available issues the product to the concerned dept.

3.       When products in inventory reach a predetermined recorder point, the sore room forwards a purchase requisition to the purchasing dept.

4.       The purchasing dept. Orders required products from the proper supplier, by way of purchase order. Purchase personnel send copies of purchase order to the receiving and accounting departments

5.       The suppliers delivers the product to the receiving dept. Along with a deliver invoice.

6.       The receiving clerk places the products in the store room and forwards the delivery invoice, perhaps with other documents, to the accounting department.

7.       After further processing of necessary documents, accounting dept. Personnel send payment to the supplier and file copies of the purchasing. Receiving forms for accounting and or control purposes.

The purchase cycle is repeated every time products are ordered. You can see that purchasing is more than “Picking up the phone and calling in an order”. It is a complex cycle of activites requiring special planning and control procedures that create an audit trail. An audit trail is a series of records, documents, and or reports that trace the flow of resources thought an operation.