8. Purchase Goods
Published Online: 9 MAR 2012
Copyright © 2011 Charles K. Coe. All rights reserved.
Nonprofit Financial Management: A Practical Guide
How to Cite
Coe, C. K. (2011) Purchase Goods, in Nonprofit Financial Management: A Practical Guide, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118386064.ch8
- Published Online: 9 MAR 2012
- Published Print: 13 JUN 2011
Print ISBN: 9781118011324
Online ISBN: 9781118386064
- purchase order;
- purchasing policy
The CFO is normally responsible for the purchasing system, which has two principal features: (1) a Board-adopted purchasing policy and (2) a procedures manual that covers the best practices. The governing board should adopt a purchasing policy addressing the best practices. After adopting a purchasing policy, the next step is to order goods, which entails: preparing a specification; preparing a requisition; taking quotations or bids; and approving a purchase orders (P.O.s) and contracts. Goods are received either at a central location or at the program that ordered the good. Goods should be very carefully inspected to ensure they meet the specification. The vendor next sends an invoice to the CFO. To protect against fraud and theft, the duties discussed in the chapter should be separated among personnel.
Controlled Vocabulary Terms
Chief financial officer; Purchase and decision implementation; purchase order