Page 42 - English for Construction 2

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
c
c
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?
i
5 Who filed the invoice n he accounts payable file?
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40 Processes