Transmission of Need (Indent Raising) Purchase Procedure (contd.....)

Once need for a specific item or service has been established the next step shall be to transmit the need to the purchasing people for processing at their end. It may require certain paper work or electronic media to do this job.
Transmission of need to Purchase department is usually done through any one of the following three forms:


1) Standard Purchase Requisition
A Purchase requisition is a document that is used to list down the requirement and is sent to Purchase department for further processing.

Since material requirement is a regular phenomenon for an organization , every organization develops a formatised paper or electronic requisition which is filled up by the user department who has assessed the need for the item.

It is also known as "Raising of an indent" or

"Raising a "Materials Purchasing Requisition"

The indents for purchase of materials/ job contracts is raised by the department concerned or any agency within the organization authorized to raise the indent. These Indents are prepared in the a format designed by the organization. The indent carries a unique identification number and is also checked for its correctness by the higher authorities within the department , usually the the Head of the Department.  Appropriate ways are devised for control purposes.

In the indent , the Indenter gives complete information w.r.t. the description and specification of the material to be procured such as description of the jobs to be executed along with the materials to be supplied and equipment.
For the items to be supplied, the quantity along with detailed specifications and drawing number, etc., are given in the indent.
Similarly, for the equipment to be deployed the desired capacities of the equipment, their ownership, procurement through rent/lease, etc., are specified in


the Indent. The overall quality of the jobs to be executed along with the expected Performance Guarantees are also mentioned in the Indent.

Normally the specifications given are standard ones conforming to national or international standards organisations such as IPSS, PS, ISS or DIN, etc. Wherever required, additional information in the form of Manufacturing Drawings , a check-list ,a certificate on the prescribed proforma, in respect of proprietary items ,  incorporation of special requirement of inspection/check-list for special packing instructions, matching/ complementary parts of an equipment/ assembly , etc are enclosed in adequate numbers with the Indent.

In some organizations , especially bigger ones, the cost estimates also form part of the indent and as such are to be done by the indentor.
Estimated values provide a basis for examining the reasonableness of the prices offered by the parties.

2) Traveling Purchase Requisition (TPR)
Mostly found in manually operated purchase systems , it is usually done by the Inventory control section .


It is a simple printed card that is filed with the inventory control record for an item. Since TPR are a means to communicate and activate purchase it also carries information such as :

  • Complete description of the item to be purchased

  • List of approved suppliers for the items, maintained by the Materials Management department

  • Last Purchased price

  • Past Consumption record

  • Reorder quantity value

Since TPRs are raised for Inventory items , the need of the item arises on the basis of certain forecasting methods employed by the Inventory control section. Popular methods are Periodic Review system , Fixed quantity system or Reorder point system

3) Bill of Materials
In brief, all the parts / components needed to make a product ,when listed along with the individual quantity, are called Bill of materials.

This is basically a list ,structured in the same way a product can be thought of. For example, when a design personal produces design of a new product then he may be needing a number of parts that ultimately when assembled shall produce the item concerned.
List of such parts is called Bill of Materials (BOM).

All other things remain the same as in case of other

forms of transmission of need of an item.

Purchase Procedure (Steps)

Purchase Flow Chart
Recognition and description of need
Transmission of need (Indenting)
Selection of Source to satisfy the need
Contracting with the accepted source
Following up with the source / supplier
Receiving and inspecting material
Payment and closure of the case


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