The Buy Line

The Inventory Buyer is responsible for buying enough merchandise to keep inventory up, so customers can buy merchandise they want, when they want it. The Purchasing Manager is also responsible to recognize and purchase when there is merchandise available at a lower price than we would normally pay, so that we may make an additional profit on the merchandise.

Treasury MUST KNOW whether money is available to make these purchases. The Purchasing Manager must FIRST consult with Treasury BEFORE committing to purchase to insure that the money is available for the purchase without putting the financial position of the company in a dangerous situation.

Treasury cannot spend money that is not available. Therefore, Treasury has the right to veto any purchase requested. Therefore, the Purchasing Manager may not commit Treasury to pay for the merchandise. This allows Treasury to keep the company’s reputation with the seller in good standing.

The proper line for buying is this:

1. The Purchasing Manager finds merchandise that he/she wants to buy.
2. He/she gets with Treasury about the amount of money needed for the purchase.
3. Treasury determines whether the money is available for the purchase, and tells the Purchasing Manager to buy or not to buy.
4. This is all done via C.S.W’s and P.O.’s of course.