Purchasing Procedures

Purchasing Procedures
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Project Equipment Schedule Procedures:
1. Purchasing Manager assigns Purchasing Agent to a job
2. Purchasing Person assigned to job attends kick off meeting to understand scope of work
3. Purchasing Personnel meet with Project manager and/or Project Manager Assistant (PMA) and Management to ensure proper cash flow with finance, sales, and review required ship dates to meet revenue and cash flow targets
4. Purchasing Personnel to print a copy of the Sweeneyware equipment schedule as the master copy.
5. Equipment schedule master copy should be color coded.
  1. Blue represents equipment ordered
  2. Green represents equipment transferred from either stock or old project stock.
    Transfer number and date Transferred must be written next to the line item transferred for record keeping and referencing.
6. Purchasing Personnel checks inventory prior to buying equipment schedule
7. Purchasing Personnel discusses equipment release with PMA and /or Project Manager prior to releasing purchase orders.
8. Communication with PMA rather than going direct to the Project Manager.
  The PMA is the hub of communication and should be able to pass on all communication from the Project Manager to the buyers such as project direction, schedule, and equipment.
Change Orders:
1. Project Coordinators create and distribute approved change orders to purchasing
2. Purchasing Personnel review change order(s) for discrepancies in pricing between cost and sell and change order
  MUST HAVE CUSTOMER/CLIENT signed copy attached.
3. Purchasing Agent/Manager to check inventory prior to buying change order equipment.
4. Deletions on change orders must be approved by Purchasing prior to change order being signed by CLIENT.
5. Purchasing Personnel to discuss equipment with PMA or Project Manager prior to releasing purchase orders.
6. Change orders must be color coded.
  1. Blue represents equipment ordered
  2. Pink represents equipment deleted and deletion process in the purchase orders have been processed.
7. Purchasing creates 500 series change order to split item quantities i.e. for transfers etc.
  1. Print in-house copy of change order,
  2. purchasing person signs and dates change order keeps a copy for processing,
  3. then distributes copies to assigned PM, PMA and Andrew Howard in the Accounting Department.
  4. Purchasing person then will merge change order with project equipment schedule,
  5. generate purchase orders from 500 change order and follow change order procedure.
Purchase Orders:
1. Review vendors for best pricing, delivery and re-quote equipment if further discounts and additional terms can be met.
2. Generate PO’s in JDEdwards adding required data- quote number, end user information (only when required by vendor) and any other pertinent information.
3. Fax Purchase order and Acknowledgement to Vendor
4. Purchasing Personnel MUST receive back a faxed or email acknowledgment from vendor to verify receipt of order and schedule date of delivery.
5. When acknowledgement or email is received back from vendor, date must be entered into database for expediting.
6. Purchase orders cannot be filed unless acknowledgement, either faxed or emailed is attached to the back of the purchase order.
Transfers:
1. Purchasing Personnel are responsible for checking stock and old job inventory prior to purchasing equipment.
2. If equipment is in stock or old job inventory a transfer must be written transferring equipment with the appropriate account/job numbers.
3. Transfer number (4-digit) must be entered into the database under the job number.
  This 4-digit number will become a transfer PO number.
4. Purchasing Personnel must keep a copy of transfer until it has gone through all the appropriate departments.
5. Original transfer with all the sections attached must be given to the shipping department for them to receive it correctly.
6. Transfer can be filed in job file once purchasing receives it back from accounting.
Return Authorizations:
1. Purchasing Personnel are responsible for Return Authorizations for credit, warranty repair, and exchanges for their assigned jobs.
2. Purchasing Personnel will negotiate re-stock fee with vendor if applicable.
  If re-stock fee is applicable advise project manager to add to change order.
3. Return Authorizations must be forwarded to Shipping to physically return equipment to the vendor and a copy must be sent to Accounting for an audit trail.
  Each RA is processed using ONE Purchase order number per RA.
4. Purchasing person must ensure all information on the RA is correct for the return of equipment to vendor for proper credit.
5. Purchasing Person’s responsibility is to keep track of all equipment pertaining to their appropriate assigned jobs.
  Follow up to ensure equipment is properly replaced, repaired or credit issued for its return to vendor.
Expediting:
1. Purchasing Personnel are responsible for expediting (via expediting reports) all equipment for their assigned projects.
2. Purchasing Personnel must keep PMA and/or Project Manager informed of all delivery dates especially when lead times are extremely lengthy or time critical.
3. Expediting reports should be given to the PMA or Project Manager on a weekly basis and when requested.
Material Purchasing:
1. Purchasing Personnel are responsible for purchasing materials i.e. cable, connectors, misc. via requisitions pertinent to their assigned jobs.
2. Purchasing Personnel will not purchase materials without the appropriate requisition either by the department head, PMA or Project Manager.
3. Upon processing requisitions for items over $15K we are to notify Andrew Howard for record keeping.
Miscellaneous Responsibilities:
1. Meet with vendors to negotiate and discuss discounts, terms and delivery.
2. Help accounting research invoice and purchase order discrepancies in a timely manner.
3. Help Shipping match part number and purchase orders to packing slips
4. Purchasing Personnel to provide quotes on a case by case basis depending on urgency of the request to department(s).