Few departments within a corporation, not-for-profit institution, or governmental entity can have quite as significant an influence on cost containment as Purchasing, since the purchasing function directly affects so many financial statement accounts, among them Cash, Advertising, Insurance, Inventory, Supplies, and Accounts Payables. As a result, in many entities, the policies and procedures for purchasing are typically centralized, meaning that all purchases for all departments are processed by the purchasing department, and quite formal, meaning the documentation supporting each purchase is standardized, explicit, and controlled. In short, much is at stake.

Required: 

Although access to the purchasing department of a real world entity can be problematic, there's much to be learned from how individual entities process purchase transactions. Contact and interview the purchasing manager for a corporation, not-for-profit institution, or governmental entity in your area and:

1. Document the purchasing procedures in a flowchart or a narrative memorandum.

2. Obtain blank copies of forms used in the purchasing function (e.g., purchase requisitions, purchase orders, receiving reports) and explain each form's purpose and distribution throughout the entity.

3. What recommendations would you make to improve the entity's purchasing procedures?