In organisations, depending on the size and its nature of operation, the quantum of purchase varies anywhere between a few thousands of rupees to hundreds of crores of rupees. Naturally, this necessitates some formalised systems and procedures for the ease of operation and accountability. Formal procedures have to be laid down in initiating purchase, selecting suppliers, placing purchase orders, follow-up, receiving materials and so on. in this section, we will deal with various systems that are used in a purchase department. In fact, these systems follow a definite cycle from indent to issue. It is called "material procurement cycle". At the end of the section, this cycle is also illustrated.
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