Non-standard Purchase Process

The great majority of purchases will be standard process purchases, where the invoice is expected to match more or less exactly to the order and receipt (within a small tolerance).  Some purchases will not fit into this category and will be labelled as non-standard processes.

Non-standard processes are those where either:

a) The exact price of goods or service CANNOT be determined in advance – e.g. some legal expenses
b) The exact quantity CANNOT be determined in advance – e.g. conference delegates
c) The time period for delivery is variable or has multiple invoicing points

Types of non-standard processes are:

  1. Where you know the price but cannot determine the quantity in advance, e.g. guests at an event
  2. Where there is no obvious quantity, e.g. a bill for legal expenses
  3. Where the service provided requires the instant issue of an order, e.g. in rare circumstances where an emergency maintenance service supplier will not accept a call-out without an order number (most will) and the user is not able to raise an order on FIS
  4. Where there are goods or services provided at a known price over a period with regular varying quantities, e.g. supply of consultancy days for a 6 month contract period
  5. Foreign currency purchases

For a list of specific types of non-standard processes that have been identified, see below.

Methods of processing non-standard processes:

1. Where you know the price but cannot determine the quantity in advance, e.g. guests at an event.

Raise the requisition / order with the correct price and an estimated maximum quantity, we suggest you over-estimate this so that the order approval will cover the spend. If you underestimate a new order will be required for the excess quantity.  When you know what the expected invoice will have for a quantity (as agreed with the supplier), process a receipt for that quantity and the invoice should match OK.

2. Where there is no obvious quantity, e.g. a bill for legal expenses.

Raise the requisition/order as Goods/Services Billed by Amount with an estimate of the maximum value in the QUANTITY field, the price field should be £1 (this is known as a Service Order). If staged invoices are expected the total value can be put on one order and receipts processed at each stage to match the expected invoices (receipt amounts should always be Net).

When you know the invoiced price (as agreed with the supplier) process a receipt with the Net value of the invoice in the QUANTITY field.  This is possibly the most difficult scenario because intuitively the price should go in the price field, quantity of 1, however, when it comes to receiving and invoice matching it’s easier to handle a quantity of pounds (£) than to receive a fraction of a quantity of 1 if the price doesn’t exactly match.  These are known as SERVICE ORDERS.

3. Where there are goods or services provided at a known price over a period with regular varying quantities, e.g. supply of consultancy days for a 6 month contract period.

Raise the requisition/order with one line for each line of the expected invoices, i.e. 1 requisition line for each week temp expected to work. Use the agreed price for the price on the order line (e.g. cost per hour) and a maximum expected quantity (hours worked). When the supplier completes the work, say it’s a temp and the invoice lines are weekly billings, then either from a timesheet or other agreement, enter the quantity of work done e.g. hours worked. Keep repeating until the contract finishes. NOTE: where agreements span a year the full period should be set up.


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Page last modified on 05 aug 16 13:50