Acquisition and Procurement

(OBJ 4.2)

Entire process of sourcing and obtaining those goods and services, including all the processes that lead up to the acquisition
Exmaple:
- As an organization you can't just go online and buy the service you want even if you have a company credit card. Most orgs, have a structured process in place.
- The Acquisition and Procurement processes needs to be carried out

Understand the different types of purchase options
- Company Credit Card
  - Quick purchase of low-cost items that need to be purchased quickly
  - Transaction limits and item restrictions
  - Organizations often permit employees to use company credit cards for small purchases on the organization's behalf
- Individual Purchase
  - Employee purchases, seeks reimbursement
  - Used in emergencies or when no company credit card is available
  - An individual purchase entails employees buying on he company's behalf and later seeking reimbursement from their employer
  - Often also used for sudden business travels
- Purchase Order (PO)
  - Formal document issued by the purchasing department
  - For larger, more expensive purchases
  - Is not actually a payment, it is just a promise that they're financially obligated to pay us for the amount of that purchase order.
  - Dictates payment terms (NET 15, NET 30, NET 60) - days
    - Indicates how many days they have to actually send us that physical check or to send us the money electronically to cover the amount of that PO.
An approval for purchases ensures alignment with the company's goals and needs. And make sure budget is accounted for it.
ITPR - used in U.S. Navy
- I-nformation
- T-echnology
- P-rocurement
- R-equest