Office Practice N4 - Purchasing, Office Supplies, and Information Management

Procedure for the Purchase of Office Supplies

• Purchasing is a business's attempt to buy goods or services to achieve its goals.
• The purchasing process varies depending on the size and type of business.
• Most businesses use a check system involving three departments to prevent fraud and corruption.
• Contract workers typically cannot purchase stationery, refreshments, or other items without written consent from the manager.

Procedures and Documents

• List the products and services needed.
• List potential suppliers and re-evaluate them regularly.
• Factors to consider when choosing a supplier:
  • Dependability: How long have they been in business? Are they reliable?
  • Location: Check for additional delivery charges or distance.
  • Price: Lowest price for the required quality. Consider supplier discounts and terms.
  • Quality: Acceptable and consistent for the business's needs.
  • Quantity: Able to deliver the correct quantity, especially for bulk orders.
  • Storage Facilities: What are the business's storage capabilities?
  • Time: Can the supplier meet delivery dates?
• Request quotations from at least three suppliers. List the purchase price, make, and other conditions of sale (cash discount, on account, free delivery, etc.).
• Choose the best quotation based on terms and prices.
• Complete the order form and obtain necessary authorization.
• Send the order form to the supplier, who will deliver the products.
• Arrange payment by cash, cheque, card, business credit card, order, invoice, petty cash purchasing (centralized or decentralized).

Documents Used in the Purchasing Process

• Businesses use their own forms.
• Staff may complete a purchase requisition form for stationery and other supplies, which is sent to the secretary.

Purchase Requisition

• A document generated by an organization to notify the purchasing department of items needed, their quantity, and the timeframe for completion. It may also contain authorization to proceed with the purchase.

Purchase Order (PO)

• A commercial document and the first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
• It is used to control the purchasing of products or services.

Petty Cash Voucher

• Used when money is taken out of petty cash to pay for small purchases such as tea, coffee, or stamps.
• The voucher is completed, the till slip is attached, and kept in the petty cash tin.
• The amount of cash kept for petty cash varies but is normally not more than $R500$. The amount spent is replaced when a cheque is cashed for the value of the vouchers.
• Till slips and money used must always balance.

Delivery Note

• Sent with the delivered items.
• The buyer is required to sign the delivery note to acknowledge receipt of the delivered items.
• Always check that the goods are in good condition before signing, as you cannot claim damages after signing.
• A delivery note does not show price, only quantity.

Invoice or Tax Invoice

• Follows the delivery note and shows the quantity of each item delivered, a short description of the item, the cost of each item, and the total amount payable.
• Payment can only be made against an invoice or tax invoice.

Credit Note

• Issued by the supplier if goods are returned for any reason, for the value of the goods returned. You will owe the supplier less money after the credit note is issued.

Receipt

• Issued as proof of payment.
• Payment can be made by cash, cheque, EFT (electronic funds transfer), etc.
• A till slip is also accepted as a receipt.

Procedure When Ordered Office Supplies Are Delivered

• Get the supplier's delivery note from the delivery person.
• Locate the copy of the order form.
• Confirm the goods to be received (quantity and description) against the delivery note.
• Physically count the goods received against the delivery note and order form.
• Perform a surface check of the condition of the goods being delivered.
• Reject all incorrect deliveries.
• Clearly mark any incorrect or rejected deliveries on the supplier's delivery note and the order form.
• The amended delivery note and/or order form must be signed by the supplier's employee and the person receiving the stock to confirm damages and return of goods to the supplier.
• Accept goods delivered short, but clearly identify such goods (including the quantity actually accepted) on the supplier's delivery note and the order form.
• The amendment delivery note and order form must be signed by the supplier's employee and the person receiving the stock to confirm the shortage.
• Sign, date, and stamp the delivery note with the business's stamp.
• If the order is on account, send the completed documents to the finance department. If it is COD (cash-on-delivery), ensure that payment is available.
• If paid from petty cash, attach the invoice to the petty cash voucher. If paying by cheque, forward the documentation to the finance department.
• Transfer the goods received to the person responsible for the stock received.
• Ensure that the stock received is kept in a safe place and updated on the stock sheet.

Guidelines for the Storage and Security of Office Supplies

• Ensure adequate space for storing large quantities.
• Maintain an accurate stock register to identify overused items.
• Keep storage areas free from dust, strong light, and water.
• Clearly mark shelves for easy identification.
• Hold each employee accountable for the office supplies they take out.
• Keep an accurate stock register to track items coming in and going out.
• Store large, heavy items at the bottom of the cabinet.
• Only buy necessary stationery to avoid tying up money.
• Only open packaging when required.
• Put office supplies in a lockable cabinet, with limited access.
• Place commonly issued stock at eye height for easy access.
• Consider using FIFO (first in, first out) or LIFO (last in, first out) principles for issuing stock.

Stock Control and Stock Records

• Adjust purchases based on stock usage patterns.

Advantages of Stock Control

• Realistic budget for stock.
• Aged articles may be sold to staff at a discount.
• Unnecessary re-ordering is prevented.
• Build a list of reliable suppliers.
• Forecasting when and where which products will be required.
• Money saved when orders are centralized.
• Person in charge knows available stock.
• Timeous orders save money and prevent wastage.

Information on a Stock Control Card

• Date
• Item issued
• Item levels (before and after issued)
• Items received
• Stock balance

Effective Stock Control

• Set a maximum (economic) stock level.
• Set a minimum stock level.
• Set a re-order level.
• Set a re-order quantity.

Maximum (Economic) Stock Level

• The appropriate stock level to minimize costs.
• Factors include cost of insurance, storage, finance, how quickly stock is used, security, storage space, and risk of stock becoming outdated.

Minimum Stock Level

• The minimum amount of an item held in stock, triggering re-ordering to avoid shortages.

Re-Order Level (Point)

• The point at which new stock should be ordered.

Re-Order Quantity

• A standard quantity is automatically ordered when the re-order level is reached to maintain maximum (economic) stock.

Effective Organization of the Office Supplies Room

• Use a questionnaire to determine colleagues' stationery needs.
• Ask relevant questions about stock usage, quantity, and suitability.
• Knowledge of different stationery types, paper sizes, and thicknesses is important.

Guidelines for Issuing Office Supplies

• Assign a specific person for issuing stock.
• The person in control must be reliable and knowledgeable.
• Keep records of what is issued to whom.
• Be aware of persons requesting excessive supplies.
• Stock must only be issued against an official stock requisition form.
• Stock control cards must be kept up to date, and stock taking must be done regularly.
• Place most requested stock within easy reach.

Sources of Information

• Information: The gathering and retrieval system that uses various ways to collect and share business documentation.
• Methods of gathering information:
  • Audio-visual: Videos, DVDs, CDs.
  • Electronically: Computer, email, SMS, BBM, WhatsApp, scanned documents, the internet.
  • In writing: Memorandums, reports, letters, house journals, notice boards.
  • Orally: Conversations and informal communication networks (grapevine news).
  • Telecommunications: Telephone, fax machine.

Sources of Information a Secretary Can Use

• Libraries and Databases (including electronic databases)
  • Libraries are organized collections of sources of information for reference or borrowing.
  • A database contains references to articles from magazines, journals, and newspapers.
• Books
  • Provide in-depth coverage of a subject.
  • Reference books like dictionaries, thesauruses, yearbooks, biographies, directories, and atlases.
• Newspapers and Magazines
  • Provide current events, available both in print and online.
• Journals and Periodicals
  • Published at fixed intervals.
  • Academic journals focus on specific areas or disciplines, supported by references.
• Trade and Industry Magazines and Manuals
  • Targeted towards people who work in a particular trade or industry.
• Yellow Pages (including electronic versions)
  • Telephone directory of businesses, organized by category.
• Telephone Directories
  • Listing of businesses and private persons in a specific region, city, or town.
• Post Office Guide
  • Contains the latest information regarding postal rates, telegrams, delivery changes, postal times, etc.
• Postal Codes Guide
  • Contains a list of all names and postal codes of all post offices.
• Agencies, Bureaux, Information Centers, and Other Organizations
  • Provide up-to-date information about the town.
• Travel Guides, Street Maps, and GPS
  • Navigation tools to get directions.
• Transport Timetables
  • Available from the service provider or the internet.
• Car Hire Brochures
  • Available from car hire agents or the internet.
• List of Agencies and Consultants
  • Obtained through telephone directories, the internet, or networking.
• Operating Manuals for Office Equipment
  • Instructional booklets supplied with technologically advanced products.
• Computer Application Program Manuals
  • Available including help on the computer, online, or though educational institutions.
• Office Manuals on Safety and Security
  • Offices may have their own manuals on safety and security which you need to be familiar with.
• Staff List and Organizational Diagram
  • Staff lists should contain names, job titles, and telephone numbers.
• List of Conference Facilities
  • Obtained through telephone directories, the internet, the local information office, or through networking.
• List of Forms of Address
  • Secretaries need to ensure that titles and dignitaries are addressed correctly.
• List of Business Organizations
  • Available on the internet or from staff within the business.
• List of Recommended Restaurants
  • Sourced through networking.
• Networking (Personal)
  • To find out what is happening, to business opportunities, always have a business card when attending functions.
• Government Publications
  • Official publications issued by the government and government departments.
• Government Departments
  • Can be useful sources of information and often have pamphlets.
• Trade and Industry
  • When the correct word has to be used, it may be searched in various books.
• Information Sources on People
  • Contain the names and photos of people who have excelled in a specific occupation or business.
• Government Gazette
  • The Government Gazette is used by the government as an official way of communicating to the general public.
• The Internet
  • Allows you to access most types of information through a browser, such as Google.

Setting up an Information Dossier

• Dossier: A collection of papers giving detailed information about a particular person or subject.

Guidelines on Setting up a Dossier

• Create a proper format on a program such as Microsoft Word or Excel.
• Have guidelines in place for setting up and updating a business information dossier.
• Have information in a format that makes it easy to retrieve the data you need.
• Whatever information you collect ensure that you have obtained the information legally.
• If your dossier needs to be kept secret, password protect it on the computer or keep it in a safe place.
• A secretary should be a sponge for information and should request a copy of information electronically wherever possible.
• The dossier should include, inter alia, the following:
  • Names and details of people who you interact with
  • Vital information regarding major customers and their businesses/activities
  • Business results and statistics
  • List of buzz words and terminology often used
  • List of frequently misspelled words
  • Travel guides and street maps
  • Transport timetables
  • Car hire brochures
  • Staff list and organizational diagram
  • List of conference facilities
  • Forms of address, etc.

Gathering and Processing of Information

Methods Used to Process Data

• Have the information either in hard or soft copy, you now need to extract the information which you require and put it into a usable format.
• The format you use will depend on what you are going to be presenting and to whom.

Copying and Duplicating

• Copying is a form of document reproduction and a process by which a limited number of copies of an original (master) document is made.
• Duplication is also a form of reproduction and a process by which an unlimited number of duplicates of an original (master) document is made using mechanical equipment.
• Collation is the assembly of written information into a standard order, could be stapled, punched, folded, etc.

Processes and Equipment Used for Copying and Duplicating

• Copies
  • Carbon method
  • Carbonless method
• Duplicates
  • Photocopiers
  • Printers
  • Digital printing
  • Lithographic
  • Fax machines

Factors Which Influence the Choice of Reprography

• The cost involved in purchasing or renting the machine.
• The cost involved in producing a copy.
• The number of copies routinely required.
• The quality of copies required.
• How many people will be using the machine and whether they require any training to use it.
• Is there a need for colour copies?
• The type of paper needed.
• Does it allow for collating documents?

Preparing a Document to Copy/Duplicate

• Font style and size
• Format documents saved in
• Formatting of the document
• Number of copies
• Legibility
• Length
• Paper size

Preparation of Documents

• Pictures have to be clear, spelling and grammar, Making photocopies.

Confidential Information

• Confidential information is not disclosed to everybody.
• Classified information issecret and only disclosed to middle top management, according toinstructions.
• Highly or top secret information is extremely secret and may only be disclosed to a few people, usually top management.

Channelling (Sending) of Information

• When sending out classified information you need to be certain that the information will only reach the person to whom it was intended.
• It is therefore advisable to confirm email addresses etc. before sending such information as the email might be received by the secretary and not the manager.
• Ensure that the word 'confidential' is written on the document itself as well as on the envelope so that the envelope is not opened by mistake and then seen to be confidential.