• # 119096
• Tue 29 Sep 2020 05:40 AM

I have been asked to help draft a purchasing policy for a growing small business. I'm looking for some ideas as to what sort of process people follow. In a previous life, I managed an Accounts Payable , where Purchase Orders were raised for almost everything, and were signed ogg and then matched to a physical invoice when it came in. This was all done with paper copies.

So to transfer this to a digital system, I would have users create a PO in Xero - but there doesnt seem to be an approval process, oher than the user themself. So the approval to spend the money would still need to be done outside of Xero.

O have  thought of having a delegated level of spending per person - but again, this is not possible in Xero

. Otherwise, perhaps an email trail from receptionist to Line Manager to Accounts staff . Accounts staff would enter a PO based on approval from email, and would then create a bill once the invoice was received.

Currently, items are purchased by business credit card, but theres not much control over it. Director soesnt want to stop the flow of business, but does want to manage it a bit better.

Does anyone deal with this? Any ideas?

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• # 119172
• Thu 22 Oct 2020 01:08 PM

A purchasing policy is a collection of rules that control the requisition process. Purchasing policies help procurement administrators implement their procurement strategy by creating a policy structure that is aligned with the organization’s strategic purchasing requirements.

A purchasing policy consists of a set of policy rules. When you define a policy rule, you first select a rule type. You then create a rule for the rule type by defining the settings, the start date, and the end date for the rule.

For example, an administrator creates a policy, selects the Catalog policy rule type, and then adds a catalog policy rule to the policy. This catalog policy rule specifies that the Adventure catalog must be used for internal procurement. After the purchasing policy is associated with a particular organization, employees of that organization see the Adventure catalog when they create requisitions.

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