Lesson 12

• It is a formal statement setting out the estimted cost for a particular job, product or service

  Quotation
• It is the threshold value that indicates the level below which the actual material stock items should not normally be allowed to fall

  Minimum level
• It is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services

  order
• This could be used as a first step in the process of purchasing. This is used to identify a need for an item

  purchase request
• it is generally a document which is made by a user to notify the purchasing department regarding needed items and services

  purchase request
• Allows one to track vendor quotations for items

  purchase quotation document
• can be made manually or out of a purchase requisition

  single quotations
• one of the biggest expenses for most medical institution

  inventory
• plays an important part in refining the quality of healthcare services, since the lives of the people are on the line as well as because medical costs are increasing

  inventory control
• an important activity in tracking medical inventory.

  accurate checking of shipments
• highly vulnerable to inaccuracy

  sales projections
• recurringly unable to cater to the needs of their patients to the best of their interests can be easily put under microscope

  medical institution
• Used for maintenance of the attributes of an inventory item

  item tab
• form specifies inventory levels across all warehouse

  item availability
• the minimum quantity of an item that a company has in stock

  re-order level
• a basic re-ordering method implemented in many ERPs and other inventory management software

  Min/Max Inventory
• the value that prompts a re-order

  Minimum
• the value that is representative of a new trageted stock level that follows a re-order

  maximum
• The main differences between min and max is often interpreted as?

  Economic Order quantity
• Are the starting point of a sale or purchase process

  Enquiries
• Consist of various pieces of vial information of a requirement towards a sale/purchase

  Quotations
• A stated intention, either spoken or written, to engage in a commercial transaction for specific products or services

  order
• From a buyers point of view it expresses the intention to buy and is called?

  purchase order
• from a sellers pov it expresses the intention to sell and is referred to

  sales order
• a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services

  bill
• this needs to be created in order to enable a quotation, order, invoce, tax form, etc.

  documents
• a document for requesting prices and delivery information from a vendor before the purchase order

  purchase quotation
• a document that notifies the purchasing department that certain items, or services need to be replenished

  purchase request
• a document which records a business transaction between the buyer and the seller

  pruchase order
• a unique ID number to trac each business transaction

  Order Number
• details, quantity of goods, cost per unit, and total price of goods

  item description
• location of where the invoice should be sent so the buyer can pay

  Billing address
• The person who creates the document, either a purchase requestor order

  originator
• immediately sent to the first approval stage when the approval process is launched

  internal request
• Whenever possible, the person receiving the product should sign the receiving documents

  signing for deliveries
• whenever possible, departments should refuse to accept shipments if they are unable to confirm that the order was placed by thier department

  refusing delivery
• takes physical possession and legal ownership of the shipment

  receiving department
• whenever a purchase is received partial delivery without acknowledgement or notification from the supplier

  purchasing agent
• can be easily tracked/traced when they are managed by serual or batch

  goods
• Inventory items are sold in the order they are purchased.

  First in First Out