HIS FINALS Module 4 Unit 8; 5 Flashcards
it marks the beginning of the purchasing process. These establish the relationship between the entity and the right supplier
Enquiries
they provide information on the availability and price of the required items.
Suppliers
(Under enquiries)
it contain vital information regarding the requirements, which include price, delivery details, payment terms, etc.
quotations
The buyer shows the intention to purchase the required item by issuing a:
purchase order
it is placed to signify intention to engage in commercial operations for a specific product or service.
Orders
it becomes a contract between the health care institution and the supplier.
orders
it is also called a bill
invoices
It is a commercial document that indicates the product, the ordered quantity, and the agreed price
invoices
The supplier issues this to the buyer to show the products and services that were sold or provided to the buyer.
Invoices
these are statutory requirements used during purchase and sales transactions.
documents
These ensure smooth transition and completion of the process.
Documents
it is a document for requesting prices and delivery information
from a vendor before the purchase order.
purchase quotations
It can be created then sent to a vendor
Purchase Quotations
In this way, the complete history of the sourcing process can already be stored in the system.
Purchase quotations
it allows the comparison of offers to pick the appropriate vendor for the purchase scenario.
Purchase qoutation report
Companies typically maintain a list of ——–, from whom inventory items are usually purchased.
preffered vendors
has on-time performance, offers reasonable costs, provides high-quality products and services, offers fully licensed, bonded, and insured products and services, and has business practices.
Preferrred vendors
it is a document that notifies the purchasing department that certain items or services need to be replenished.
purchase request/ purchase requisition
The document stipulates a timeframe and required quantities for the requested items
purchase request / purchase requisition
in certain instances, it also contains authorization to acquire assets
purchase requests
it is a legally binding contract, which shows that the seller has already accepted the order issued by the buyer.
Purchase Orders
It should contain information about the buyer and seller (name, address, contact details, etc.); order number and order date; item description (quantity, unit, and total price); shipping information (shipping date and address); billing address; and the authorized signature.
Purchase orders
The person who creates the document, either a purchase request or order,
originator
adds document/s to the materials management system, the system checks for any approval requirements.
originator
This request is received in the Messages/ Alerts Overview window, and the approver can access the document.
Internal Reuquest when the approval process is launched
it can be done through a mobile phone if the devices are integrated.
approval process
the person who receives the delivery should inspect the delivered items before signing the receiving document and the packing li
signing for deliveries
Then the document should be submitted to the appropriate department for reconciliation.
signing for deliveries
the receiving department should refuse to accept any shipment if the packaging appears to be damaged or if there is any item that does not have a corresponding purchase order.
refusing delivery
the packing list should be provided to the receiving department during delivery to ensure that there is proper documentation since it is are taking possession and legal ownership of the delivered items
record retention
If no list was provided, the department should request a copy from the supplier.
record retention
All files should be kept according to the entity. This helps track partial and staggered deliveries.
record retention
person receiving the items should inspect the goods to ensure that the minimum conditions are met
inspecting a shipment
minimum conditions in inspecting a shipment
1) The received items match the requirements stated in the purchase order (type, description, color, etc.).
2) The quantity is correct.
3) The item has no damage, discoloration, and issues.
4) The quantity per unit of measurement is accurate (e.g., one dozen = 12 pieces).
5) Packing lists, certifications, and other delivery documentation are completely provided.
6) Perishable items should be in good condition and have not reached the expiration dates.
7) The items are functioning properly.
when items are delivered partially without proper notification from the supplier, the receiving personnel should advise the Purchasing department for approval and further instructions.
partial deliveries
This should also be typically noted in the packing list or the receiving document.
partial deliveries
Goods can be easily tracked/traced when they are managed by serial number or batch.
tracking of Goods
Through that, the aging of products can also be monitored based on how long they have been in the warehouse.
Tracking of Goods
Defective or substandard quality goods, incorrect order delivery, and
deteriorated purchased and sold items leads to
Purchase or sales returns
Supplies and
equipment are also sometimes required to be taken out of the department for:
Repairs or consignment
For temporary movement, ——— is issued
Returnable gate pass
for permanent movement, a —– is given.
non-returnable gate pass
In the process of consignment, the ——- issues materials to the receiver or consignee, and these materials are stored in the consignee’s premises
vendor or consignor
The —— maintains legal ownership until such materials are removed from consignment stores.
Vendor
The —– is due at predetermined material after a certain period.
Invoice
they may be sold to other parties at lower costs.
Expired food and medicine
It must be reflected in the financial records, so discrepancies in financial statements will be prevented.
Expiration dates and decrease in values of items
can be used to house them until a final decision is reached temporarily when undecided about how to handle defective goods, whether to be sold as scrap, reworked, returned, or used as it is
quarantine location or warehouse
is put into quarantine if it is initially rejected during production, upon
completion of an operation,
Inventory
Inventory is put into quarantine if it is initially rejected during production, upon completion of an operation, when specified as:
“Move Rejected End Item to Quarantine.”
Inbound inspection upon receipt of:
• Manufactured end items
• Purchased items
• Sold items on sales return orders
• Enterprise planning distribution orders
• Outbound inspection upon the issue of materials to production.
% of hospital charges are attributable to diagnostics, drugs, and consumables, and doctors get only between —– percent.
30 to 50
10 to 20
take up the bulk of expenditure for both hospitals and patients
Medicines and consumables
It is critical for hospitals to optimize investment in these kinds of consumable assets.
Materials management
It provides an overview of the entire institution’s purchasing and inventory control process.
Material management
It is a crucial function for any product-oriented business.
Inventory management
inventory items are sold based on the order they are purchased. This is the most common technique.
First In, First Out (FIFO)
last items to enter the system are sold first. This is common among non-perishable items like petroleum, minerals, and metals
Last In, First Out (LIFO)
materials are sold based on the dates they should be consumed, regardless of when they were purchased.
First Expired, First Out (FEFO)
is a process where a business physically counts its entire inventory.
Inventory count
may be mandated by financial accounting rules or tax regulations to place an accurate value on the inventory, or the business may need to count inventory so parts or raw materials can be restocked.
Physical inventory
provide labor and automation to count inventory and minimize shutdown time quickly.
Inventory services
can speed up the physical inventory process.
Inventory control system software
tracks the receipt and use of inventory and calculates the quantity on hand.
Perpetual inventory system
an alternative to a physical inventory, may be less disruptive.
Cycle counting
offer all of these in addition to the barcode and
RFID capability which are supplementary technologies placed to give the institution more accurate and less burdensome inventory counts.
materials management systems
is a record that lists key information about an inventory item
Item master
This information may include the description, unit of measure, weight, dimensions, ordering quantity, and so forth for an item. .
Item master
is used as an information source for a variety of purchasing and production planning activities (Bragg, 2018).
Item master
