Purchase Indent is an internal document used by companies to authorize the requisition of purchase of raw materials, consumables, capital items, etc. needed by the company. It is usually prepared by the store-in-charge for the replenishment of stocks or by end-users of the department for new requirements. It provides detailed information about:
- Item number, name with description for acquiring right materials.
- Required quantity along with the unit of measurement (Tons, Kgs, Litre)
- Required by date and whether it is required in one lot or staggered over time.
- Estimated prices may also be mentioned to budget the requirement.
After Purchase Indent is prepared, it is forwarded to concerned approvers, one or many depending on the process of each company, as well as the value of the purchase indent. Usually, relevant department users, stores department, finance authorities, management representatives are involved in the approval of a Purchase Indent. Only when it is validated and approved by the concerned authorities, it is sanctioned for creating a Purchase Order.
Why the need for a Purchase Indent?
- Formal Request & Documentation
- Inventory Management
- Purchase Discipline
- Analysis & Insights
What are the benefits of generating Purchase Indent via ERP?
- Digital Documentation of Item/Material Request
- Buying Discipline
- Approval Workflow & E-Approvals
- Real-Time Tracking
- History & Trends