What is the Purchase Indent? Definition and Meaning …
A company document is used internally in the purchasing process to authorize the requisition of materials prior to initiating a purchase order. Purchase indents are audit documents that are used to track the movement of materials prior to their receipt by the buyer.
Purchase indent is documented by the firms against the required inventory. In major firms; there is a separate department to raise the indent of the inventory. Prior to the Purchase Order, a document is floated internally inside the organization to authenticate the requirement of stock. This is prepared by the Store in charge and later signed and verified by the Finance department. After the approval, the particular product is asked for PO. Indent is a sort of order for selling or purchasing commodities.
Whenever there is any demand for re-filling stock, the stock-in charge from the indenting department makes the list of the required inventory. This list contains details like item required and its specifications, required quantity, quantity available in stock, quantity required, and the estimated prices. On the top of the document is mentioned, the name of the storekeeper or indent department in charge ad below is the justification for the ordered inventory. The complete report is further sent for validation in the accounting department and then is sanctioned for initiating the Purchase Order.
Benefits Purchase Indent
SalesBabu Online Purchase Management Software: Purchase Indent
Purchase Indent is an important department for managing inventory stock. It not only streamlines the inventory management process but also keeps proper information of the ordered quantity, estimated pricing etc. The software makes the work easier. All the details are kept inside the software. Example Supplier name, delivery location, date and others. Being online, the information can be retrieved as and when required .these all documents are kept by the finance department.
