There are four categories of purchases that are made by the buying department. With reference to your selected organisation, describe the four categories of purchases. (16) NB: Your answer should be a minimum of 500 to a maximum of 700 words Markers are to stop marking after the threshold of 700 words has been reached. Please indicate the word count at the end your answer
A purchase order is what a purchaser creates and sends an order to a supplier for goods or services. In a standard purchase order, the buyer will, at a minimum, specify what products have to be ordered, the quantity, the agreed price, and delivery and payment conditions.
A purchase order may arise out of an earlier order, an advertisement or offer by the supplier, or the clients’ negotiation as to the price and quantity. In this respect, a purchase order is a good way to concretely record what the buyer and the supplier have agreed on. Purchase orders are mainly contractual offers. When a supplier chooses to accept a purchase order, that purchase order becomes the basis for a contract between the purchaser and the supplier.
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