Page 42 - English for Construction 2
P. 42

Purchasing       processes


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                     Reading   1  Read his text  about purchasing. hen  explain in our  own  words the  difference
                                  between  a purchase  order,  a  delivery  note and an invoice.
                                      All contractors have processes which cover the various purchasing needs of a project, for
                                      example, for buying materials or renting equipment. Most systems deal with three main
                                      types of document:
                                      1  Purchase Order
                                      The PO is a written contract between the buyer and the seller. It provides details about
                                      the purchased item and is usually necessary when the amount goes over a pre-arranged
                                      level. The contractor sends a copy to the supplier authorising the delivery.
                                      2  Delivery  Note
                                      Also known as a packing slip, this document gives details of what was actually delivered.
                                      3  Invoice
                                      Invoices are sent from the seller to the buyer and list the products or services supplied,
                                      the amount to be paid and the payment terms. The purchase order number and the
                                      delivery note number may also be included on the invoice.


                     Listening  2          Listen to a ontractor explaining  h o w  his ompany  handled  invoices
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                                   in the past. Complete  the flowchart.
                                         I    Receive



                                               invoice







                                              Return to                                         invoice
                                              3                                            to  project
                                                                                           manager














                     File  invoice in         8                    File  invoice in
                    9       invoice           payment                accounts              into  books
                          file                                     7       file


                                   Answer  these  questions.  Then  listen  again and check  your  answers.
                                   1  W h o sent the  invoice?
                                   2  W h o  matched the invoice  with  the purchase  order?
                                   3  W h o  approved  the  invoice?
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                                   4  W h o entered  the details of the invoice nto the  books?
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                                   5  Who  filed  the invoice n he accounts  payable  file?
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     40          Processes
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