Purpose of the Policy
This policy provides guidelines for the purchase of goods, services, equipment and assets for the business.
This policy is applicable for all purchases over $100.
Where items to be purchased are less than $100, then the petty cash policy is to be used.
Procedures
Request for Purchase
All purchases for business items must be requested through a purchase order.
All items over the value of $500 must be supplied by authorised suppliers – refer to the New Suppliers Policy where the supplier is not an existing supplier.
For items over the value of $1000 three quotations must be provided.
A request for purchase must address the following criteria:
- purchasing that promotes environmental sustainability
- value for money
- preference to Australian/ locally produced.
All purchase orders must be authorised within the following guidelines:
Items Purchased Persons Authorised Second Authorisation
Retail Stock CEO CFO
Spare parts, components etc. CEO CFO
Equipment CEO CFO
Assets CEO CFO
All authorised purchase orders are to be copied and one distributed to accounts payable with estimated payment date and to CFO who will check receipt of purchase against the purchase order when received.
Equipment Asset Purchases
All equipment and asset purchases must be entered in the financial system by CFO with the following details included:
- date of purchase
- supplier
- make, model, warranty/guarantee information.
Service Agreements
All agreements for the provision of services to the business in excess of $100 are to abide by this policy.
Receipt of Purchases
All purchases received are to be checked against purchase order and noted as correctly supplied.
Once correct receipt has been recorded, this will be recorded on purchase order and forwarded to accounts payable for payment of purchase.