Specimen-1

MOTHERCARE PACKAGING PVT LTD, CHIMBHLI CHAKAN,

PUNE.
A PROJECT SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE DEGREE OF MASTER OF COMMERCE
(COSTING & WORKS ACCOUNTING)

SUBMITTED BY
SAMIKSHA SANDEEP THITE

Roll No-

UNDER THE GUIDANCE OF

PROF. SAGAR BORATE

MCOM
COLLEGE OF COMPUTER SCIENCES
2024-25

1
 Specimen-2

Declaration by the Candidate

I declare that the field Project entitled PURCHASE REPORT ON MOTHERCARE

PACKAGING PVT LTD. submitted by me for the degree of Master of Commerce is the
record of work carried out by me during the period from 2024 to 25under the guidance
of PROF. SAGAR BORATE and has not formed the basis for the award of any degree,
diploma, associateship, fellowship, titles in this or any other University or other institution
of Higher learning. I further declare that the material obtained from other sources has been
duly acknowledged in the project

Date : Signature of the Candidate

Specimen-3

Certificate of the Field Project Guide

CERTIFIED that the work incorporated in the Field project ON
PURCHASE REPORT ON MOTHER CARE PVT. LTD. submitted by
Mr./Ms. SAMISKHA SANDEEP THITE was carried out by the candidate under my
supervision/ guidance. Such material has been obtained from other sources has been duly
acknowledged in the Field project.

Date: (Supervisor/ Research

Guide)

2
 Specimen-4

CERTIFICATE FROM THE COMPANY

(On company Letter Head)
This is to certify that SAMIKSHA SANDEEP THITE of MCOM Part I, SEM 3 , and Roll
No.--------- of-COLLEGE OF COMPUTER SCIENCES has successfully completed the
field work/on the Job training as per the guidelines of Savitribai Phule Pune University in
our organization from 1st of November to 30th of November(Total 120 Hours) During the
work, the student was sincere, hardworking and showed a keen interest learn. The
involvement and sustained efforts put in by the student are highly appreciable. I recommend
this Field Project for evaluation & consideration for the award of credits to the student.
We wish him all the best in his future endeavours.

Authorized Signature and Stamp

3
 Specimen-5

(On College Letter head)

PROJECT COMPLETION CERTIFICATE
This is to certify that the project report entitled “PURCHASING PROCESS OF
MOTHER CARE PVT. LTD.” In the subject “COST AND WORKS ACCOUNTING .
Prepared by SAMIKSHA SANDEEP THITE Class M.COM –I (SEM-3 ) Roll
No--------- under my guidance and supervision for the academic year 2024-25 This project
report is based on original study/field work carried out by him/her. Material/Notes
obtained from sources has been duly acknowledged in the report.
This project is submitted to Savitribai Phule Pune University in partial fulfillment of
requirement of Master of Commerce for the academic year 2024-25.

Project Guide HOD

Exam Seat No: Date of Exam:

Internal Examiner External Examiner

4
 Specimen-6

LIST OF TABLES

Table No Title of the Table Page No

1.2
2.3
So on

The first number indicates the chapter number; the second number following the do
indicates the number of the table in that chapter

Specimen-7

LIST OF FIGURES

Figure No Title of the Figures Page No

1.2
3.2
So on

The first number indicates the chapter number, the second number following the do indicates the
number of the table in that chapter

5
 A

SYNOPSIS
REPORT ON

‘’A STUDY OF PURCHASING PROCESS

WITH REFERANCE TO

MOTHER CARE PACKAGING PRIVATE LIMITED, CHIMBALI-

CHAKAN, PUNE.’’ SUBMITTED TO

SAVITRIBAI PHULE PUNE

UNIVERSITY FOR THE AWARD OF
MASTER DEGREE OF

COMMERCE

SUBMITTED BY

MISS SAMIKSHA SANDEEP THITE

UNDER THE
GUIDANCE OF

PROF. SAGAR
BORATE

THROUGH
COLLEGE OF COMPUTER SCIENCES,
WAKAD, PUNE
(2024-25)
6
 SAVITRIBAI PHULE PUNE
UNIVERSITY A PROJECT
REPORT ON

A STUDY OF PURCHASING
PROCESS WITH REFERANCE
TO

MOTHER CARE PACKAGING PRIVATE LIMITED, CHIMBALI-

CHAKAN PUNE

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
FOR AWARD OF MASTER DEGREE OF COMMERCE

SUBMITTED BY

SAMIKSHA SANDEEP THITE

UNDER
GUIDANCE OF

PROF. SAGAR
BORATE

THROUGH

COLLEGE OF COMPUTER SCIENCE.

7
 INDEX

Chapter No Name of Chapter Page No

1. Introduction of Research & 9 to 16
Methodology
1.1 Introduction
1.2 Objectives
1.3 Hypothesis
1.4 Methods of collection
1.4.1 Primary Data
1.4.2 Secondary Data
1.5 Need od study
1.6 Chapter scheme
2. Conceptual Study Of the Project Ideal 17 to 28
2.1 Introduction of purchasing process
2.2 Meaning & Definition Of
Purchasing Process
2.2.1 Meaning
2.2.2 Definition
2.3 Objectives of Purchasing Process
2.4 Importance of Purchasing Process
2.5 Types Of Purchasing
2.6 Purchase Order
2.6.1 Meaning of PO
2.6.2 Format of PO
2.6.3 Types of PO
2.7 The common Procure of Pay Cycle
3. Profile of Company 29 to 31
3.1 Company Profile
3.2 History of Company
3.3 Product of Company
3.4 Management Structure of Company
4. Analysis of Interpretation of Data 32 to 38
4.1 Comparative Analysis Of Purchase
Procedure Of Mother Care Packaging
Private Limited With Standard Purchase
Procedure.
4.2 Nterpretation Of Comparative
Purchase Procedure.
4.3 Accounting Software And Short Cut
Keys Used In Purchase Procedure
5. Conclusion And Suggestions 39 to 41
5.1 Conclusion
5.2 Suggestions

8
Chapter 1

Introduction Of Research And Methodology

1.1 Introduction
1.2 Objective
1.3 Hypothesis
1.4 Methods Of Collection
1.4.1 Primary Data
1.4.2 Secondary Data
1.5 Need of study
1.6 Chapter Scheme

9
 CHAPTER I

INTRODUCTION OF RESERCH MEATHODOLOGY

1.1 INTRODUCTION

Research is a careful investigation or inquiry specifically through search for new

facts in any branch of knowledge. It is an original contribution to the existing stock of
knowledge making for its advancement. Research can simply be defined a task of
searching from available data to modify a certain result or theory.

Methodology is the systematic, theoretical analysis of the methods applied to a

field of story. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative model. The
methodology should be linked back to the literature to explain why you are using certain
methods, and the academic basis of your choice.

Research Methodology:
The process used to collect information and data for the purpose of making
business decisions.
The methodology may include publication research, interviews, surveys and other
research techniques and could include both present and historical information.
You need to have a good research methodology in place when trying to figure out
new ideas for your company.

1
0
 1.2 Objectives

1. To study the purchasing procedure of the company.

2. To study the purchasing policies of the company.

3. To study the prevailing purchasing due used in purchasing

procedure.

4. To compare the purchasing process and finding out difference.

5. The prime objective of procurement is to save cost and supply

the requirement of the business in the most convenient and
conventional ways.

6. Buying goods and services, sourcing the right products and

delivering on time.

1
1
 1.1 Hypothesis
1. Purchasing procedure of the company follow the standard cycle of purchasing
process.

2. Procure to pay cycle helps to company for smooth and systematic production.

3. ETHICS in procurement management includes fairness to your suppliers but

to your own team as well.

4. Organization entire purchase procedure will be so much easier with

everything centrally located. This also adds to collaboration and team
efficiency, not to maintain easing the pain if any team members leave your
department.

1
2
 1.2 Data Collection Method
Data collection is a process of collecting information from all the relevant
sources to find answers to the research problem, test the hypothesis and evaluate the
outcomes. Data collection methods can be divided into two categories:
Secondary methods of data collection and primary methods of data collection.
1.2.1 Primary Data Collection Methods:

A. Quantitative Data Collection Method

B. Qualitative Data Collection Method

A. Quantitative Data Collection Method

Quantitative Data Collection Method are based in mathematical calculations
in various formats. Methods of quantitative data collection and analysis include
questionnaires with the closed-ended questions, methods of the correlation and
regression, mean and median and others.
Quantitative methods are cheaper to apply and they can be applied within
shorter duration of time compared to qualitative methods. Moreover, due to
comparisons of findings.

B. Qualitative Data Collection

Qualitative research method on the contrary do not involve number or
mathematical calculation. Qualitative research is a closely associated with
words, sound, emotions, feeling colors and other element that are non-
quantifiable.

Qualitative studies aim to ensure greater level of depth of understanding and

qualitative data collection method include interview, questionnaires with
open ended question, focus group, observations game role playing case
studies etc.

Your choice between qualitative or quantitative method of data collection

depends on the area of your research aims and objective.

13
 1.2.2 Secondary Collection Method
Secondary data is a type of data that has already on publish in the books in the
newspaper, magazine, journals online portal etc. There is an abundance of data available in
these sources about your research area in business studies, almost regardless of the nature of
the research area. Therefore, application of a appropriate set of criteria to select secondary
data to be used in the study plays an important role in terms of increasing the levels of
research validity and reliability.
These criteria include, but not limited to data of publication, credential of the authors,
reliability of the source, quality of discussions, depth of analyses, the extent of contribution
of the text to the development of the research area etc.

14
 1.3 Need of study
A youngster interested to start a research career wishes to know whether she has
freedom to do research in the topic of her own interest. The style of research in our country
and various other factors like the infrastructure facility available in a research institute, time
limit, our commitment to family and social set up hardly allow a young researcher to choose a
topic by herself for her PG project however, many research supervisors give complete
freedom to choose a problem in topic.
In other way, after choosing a topic of her own interest she has to find a supervisor
who is working in that topic or interested in guiding her. In his case one has severe limitation
in our country for getting a fellowship and for registering for a research degree. If a student is
not very much particular about fellowship she has a chance to do research in the topic of her
own interest.

15
 1.6. Chapter Scheme

Chapter No:1 Introduction of Research and Methodology

This cover is specific introduction of the project. It highlights that how to
purchase procedure useful in company. It includes primary and secondary data of collection
information.

Chapter No:2 Conceptual study of the Project Data

These selections consist of research and methodology adopted for getting the
data through questionnaire. It gives brief information about significance of the chapter,
purchase procedure.

Chapter No:3 Profile of Company

In this chapter project contains company profile, Activities of the company,
Management structure of the company.

Chapter No:4 Analysis and Interpretation of Data

This gives cortical aspects of chapter selected for the project. It highlights the
fact that how purchase procedure used.

Chapter No:5 Conclusion and suggestions

In this chapter given conclusion and suggestion to company for improvement
in purchasing procedure.

16
 Chapter 2
Conceptual Study of the Project
Data

2.1 Introduction of Purchasing Process

2.2 Meaning and definition Purchasing Process
2.2.1 Meaning
2.2.2 Definition
2.3 Objective Purchasing Process

2.4 Importance Purchasing Process

2.5 Types of purchasing

2.6 Purchase Order

2.6.1 Meaning of PO
2.6.2 Format of Po
2.6.3 Types of PO

2.7 The common procure of pay cyc

17
 CHAPTER 2
INTRODUCTION OF PURCHASING PROCESS

2.1 INTRODUCTION OF PURCHASING PROCESS

Purchasing is the formal process of buying goods and services. The Purchasing
process can vary from one organisations to another, but there some Common key elements.

The process usually starts with a demand or requirements this could be for a
physical part (inventory) or a service. A requisition is generated, which details the
requirements (in some cases providing a requirements specification) which actions the
procurement department. A request for proposal (RFP)
or request for quotation (RFQ) is then raised. Supplier send their quotations in response to
the RFQ and a review is undertaken where the best offer (typically based on price,
availability and quality) is given the purchase order.
Purchase orders are normally accompanied by terms and conditions which form
the contractual agreement of the transaction.

The supplier then delivers the products or services and the customer records the
delivery (in some cases this goes through a goods inspection process). An invoice is sent by
the supplier which is cross-checked with the purchase order and documents specifying which
goods have been received. The payment is then made and transferred to the suppliers.

18
 2.2 Meaning and Definitions
2.2.1
Meaning:
Purchasing is the first phase of Materials Management. Purchasing means
procurement of goods and services from some external agencies. The object of purchase
department is to arrange the supply of materials, spare parts and services or semi-finished
goods, required by the organizations to produce the desired product, from some agency or
source outside the organization.
The purchased items should be of specified quality in desired quantity
available at the prescribed time at a competitive price.

2.2.1 Definitions:
1. Alford and Beauty-
“Purchasing is the procuring of materials, suppliers, machines, tools and services
required for equipment, maintenance, and operation of a manufacturing plant”.

2. As per peoples-
“The modern thinking is that purchasing is a strategic managerial function and any
negligence will ultimately result into decreases in profit

19
 2.3 Objectives of Purchasing
The purchasing objective is sometimes understood as buying materials of the right quality, in
the right quantity, at the right time, at the right price and from the right source. This is the
broad generalization, indicating the scope of purchasing function, which involves policy
decisions and analysis of various alternative possibilities prior to their act of purchase.

The specific objective of purchasing are:

1. To keep inventories as low as is consistent with maintaining production.

2. To develop satisfactory sources of supply and maintain good relation to

them.

3. To secure good vendor performance including prompt deliveries and

acceptable quality.

4. To locate new materials or products as required.

5. To develop good procedures, together with adequate controls and

purchasing policy.

6. Commensurate with good performance.

20
 2.4 Importance of Purchasing

The importance of purchasing are:

1. Purchasing function provide materials to the factory without which
wheels of machines cannot move.

2. A one percent saving in materials cost is equivalent to a 10 percent

increase in turnover. Efficient buying can achieve this.

3. Purchasing manager is the custodian of his firm’s purse as he spend more

than 50 per cent of his company’s earnings on purchases.

4. Increasing proportion of one’s requirements is now bought instead of

being made as was the practice in the earlier days. Buying therefore,
assumes significance.

5. Purchasing can contribute to import substitution and save foreign

exchange.

6. Purchasing is the main factor in timely execution of industrial projects.

21
2.5 The Types of Purchasing
The types of purchasing:

Following are the different types of purchasing or classes of buyers;

1. Personal Purchasing:
Consumers who purchases for their personal consumption come under this
category. They form the most important class of buyers because they ultimately use all
the products of the economy. The whole economy depends upon this group of buyers
for its survival because most of the items to be produced are to be ultimately
purchased by this group.

2. Mercantile purchasing:
This type of purchasing is done for resale. Under this group come middlemen
who purchase not for their own consumption, but to meet.
Others requirements, middlemen can be distributors, wholesalers, retailers and
agents who form the channels of distribution of the manufactured goods from the
manufacturers to the consumers.
3. Industrial purchasing:
This type of purchasing is done for consumption or conversion of material
purchased into finished products. It involves buying of raw materials, components,
consumable stores and suppliers, spares and tools machines and equipment’s, office suppliers
and office appliances. To make industrial purchasing other functions of the organizations.
4. Institutionalized or government purchasing:
Under this group come governmental agencies and institutions who buy for
public utilities. They form an important group of purchasers because they purchase in bulk.

22
 2.5 Purchase order
2.5.1 Meaning
E order (PO) is a commercial document and first official offer issued by a buyer
to a seller, indicating types, quantities and agreed prices for products or services. It is used to
control the purchasing of products and services from external suppliers. The issue of purchase
order does not initiate a contract. If no prior contract exists, then it is the acceptance of the
order by the seller that forms the contract between the buyer and seller. Purchase order can be
an essential part of ERP system orders.
Companies use purchase orders for several reasons. Purchase order allow buyers
to clearly and explicitly communicate their intensions to sellers. They may also help a
purchasing agent to manage incoming orders and pending orders. Sellers are also protected
by PO’s in case of buyer’s refusal to pay for goods or services. Purchase order provide
benefit in that they streamline the purchasing process to a standard procedure. Commercial
lenders or financial institutions may provide financial assistance on the basis of purchase
orders.
There are in the financial institutions allow business people to use against
purchase order such as:

1. Before shipment credit facility

2. Post shipment credit facility
3. Trade finance facility
4. Foreign bill purchase credit facility
5. Bill retirement credit facility
6. Order confirmation
7. Follow-up

The purpose of purchase order is to procure materials for direct consumption or for
stock, procure services, cover customer requirements using external resources, or
procure a material that is

23
 2.5.2 Format of PO
1. Electronic purchase orders:
Many purchases orders are no longer paper-based, but rather transmitted
electronically over the internet. It is common for electronic purchase orders to be used to buy
goods or services of any type online.
There are lots of names/ terms for electronic purchase orders. It is sometimes
known as: E-procurement, E-purchasing, E-purchase requisition. These terms are normally
all referring to Electronic Purchase Orders.

2. Non-electronic purchase orders:

The record of purchase order in most business firms are still on
Paper and thus is need for proper purchase order format. Many users wish to have
professional formatting for purchase orders for several reasons. A company may wish to
have a strong understanding of purchase transactions or to know the basic requirements of
purchase order. It may also make it part of business documentation, which makes the
process easier while keeping record of all transactions and to have good impressions on the
client or customer.

24
 2.5.3 Types of PO
Purchase orders (PO) can be of various types, including:

1. Standard-
A one-time buy.

2. Planned-
An agreement on a specific item at an approximate date.
3.Blanket-
An agreement on specific terms and conditions: date and quantity and amount are
not specified

3.

25
 2.7. The Typical Procure to Pay Cycle
These steps are usually involved in your typical procure to pay cycle:

1. Identification of Requirement
2. Authorization of Purchase Request
3. Final Approval of Purchase Request
4. Procurement
5. Identification of Suppliers
6. Inquiries
7. Receipt of the Quotation
8. Negotiation
9. Selection of the Vendor
10. Purchase order Acknowledgement
11.Goods Receipt
12.Invoice Recording
13.Way Match
14.Payment to supplier

Description of all points of procure to pay cycle.

26
1. Identification of Requirement
If following best practices and the cycle outlined above, when an employee
working in a specific department (i.e. marketing, operation, sales, etc.) wants to
purchase something, they submit a purchase request to a manager (also considered an
approver).

2. Authorization of Purchase Request

The purchase request is either approved or denied based such the type of request,
the cost, the product, and allowable budget. If the request is above the approval
limit the particular approver is authorized to approve, it will be sent to the next
most senior employee for revision (or approval).

3. Final Approval of Purchase Request

After the appropriate department has authorized the respective request, it will
then be sent to the inventory controller. The person will review the other open
purchase order to identify if there are any similar orders in the company. After the
approval of the inventory controller, the purchase request will be available to the
procurement department.

4. Procurement
The buyer (in the procurement department) will identify anything contracts
that may exist with suppliers. If there is such a contract, then a call- off will be generated
and sent to the supplier. In the event no such contract exists, then the buyer will initiate a
supplier search.

5. Identification of Supplier
The buyer may speak with the requester of the products, search on the internet,
use referrals, search databases, etc. to identify potential the suppliers of the requested
materials.

6. Enquiries
Once the suppliers are identified, the buyer sends the request for
quotation/ proposal (RFP)

7. Receipt of the Quote

At this point, the supplier will send the quotes back to the buyer. The buyer
will then the send quotes back to the department for a technical evaluation. Once
reviewed, the buyer will send the changes and requests back to the supplier. Finally, the
supplier sends the commercial quote to the buyer.

8. Negotiation
Short-listed suppliers are invited for negotiations. During the negotiations
27
 period, buyers and suppliers can negotiate various issues that will help maximize their
business position.

9. Selection of the vendor

After negotiations with all the selected vendors, one will be awarded the contract,
according to the selection criteria.

10. Purchase order Acknowledgement

After receiving the purchase order, the supplier will send an
acknowledgment to the buyer for their records. If any software is being used for
procurement functions, the supplier can remotely download purchase orders and can
acknowledge the PO.

11. Advance shipment notes

The supplier can send an advance shipment note to the buyer as soon as
they ship the material to the buying organization. This note normally contains the supplier
can send an advice shipment note to the buyer as soon as the ship date, the transporter’s
name, the tracking numbers, the number of packages, the weight of the packages, the
receiving location address, the PO number and a description of the goods.

12. Receipt of the Goods

When the goods are received at the warehouse of the buying organizations,
the receiving staff checks the delivery note, PO number etc. and acknowledges the receipt
of the material. Quantity and quality are checked and ant unfit items are rejected and sent
back to the supplier.

13. Invoice recording

Accounts payable will then process the invoice and enter it into the
procurement system.

14. 3-way Match

After the supplier account is credited, the payment is released to the vendor.
Managing these processes can seem overwhelming, but over time, as they are introduced
and streamlined into your organizations, they will feel like second nature. Taking the type
now to add these processes can save you valuable time and money.

28
 CHAPTER 3
Profile Of Company

3.1 Company Profile

3.2 Product of Company
3.3 Management Structure of the Company

29
 3.1 COMPANY PROFILE

NAME OF THE COMPANY : MOTHER CARE PACKAGING PRIVATE

LTD
YEAR OF ESTABLISHMENT : 07/08/2015

NATURE OF OWNERSHIP : PROPRIETOR

TELEPHONE NO 9863141792

CONTACT PERSON : MR. TUSHAR

PAWALE

Cell No : 7958581002

BACKGROUND OF PROPRIETOR : He has got vast practical experience of 10 years

In packing line. Then, he started his own

Business in 2015. Now they provide all type of
packing, industrial material, hardware and
stationary material to various firms.

E-MAIL ADDRESS : mothercare097@gmail.com

FACTORY ADDRESS : Gat no.1182, opposite om logistics.

Chimbali Chakan, pune-411062

WEEKLY OFF : Thursday

NATURE OF BUSINESS : Manufacturing and suppliers of corrugated

Boxes, printing boxes, bubble bags, cotton
Waste, handgloves, stationary and material
Supplier.

PAN NO : CYIPM5698G
GST NO : 27CYIPM5698G1ZQ
30
VAT TIN NO : 27161219441V

31
 3.2 PRODUCTS OF COMPANY

1 2

3 4

32
 CHAPTER 4

ANALYSIS AND INTERPRETATION

OF DATA

4.1 COMPARATIVE ANALYSIS OF PURCHASE PROCEDURE OF MOTHER CARE

PACKAGING PRIVATE LIMITED WITH STANDARD PURCHASE PROCEDURE.

4.2 NTERPRETATION OF COMPARATIVE PURCHASE PROCEDURE.

4.3 ACCOUNTING SOFTWARE AND SHORT CUT KEYS USED IN PURCHASE

PROCEDURE.

33
 ANALYSIS AND INTERPRETATION OF THE DATA

4.1 COMPARATIVE ANALYSIS OF PURCHASE PROCEDURE OF MOTHER

CARE
PACKAGING PRIVATE LIMITED WITH STANDARD
PURCHASE PROCEDURE.

MOTHER CARE PACKAGING PROCESS STANDARD

PROCESS

Material requirement planning Market survey

Request for quotation Approving

Purchase requisition Studying

Market

Purchase order Making purchase

decision

34
Goods receipt (GRN ) Placing order

Invoice verification Goods receipt

note

Invoice posting and payment to vendor Receiving invoices and

Making
payments

35
4.2 PURCHASE PROCEDURE OF MOTHER CARE PACKAGING PRIVATE
LIMITED

1. Material Requirement Planning (MRP):

Mother care packaging follows the procedure of material requirement
planning from identifying the needs of business, what needs to buy and how much
money should be spent on it and when it needed for delivery for the production
purpose according to the type of product.

2. Vendor selection:
Vendor selection is one of the most important steps in procurement
process. With the help of previous business experiences, tenority of the vendor
with relationship to the Mother Care packaging, by obtaining quotation from
sources and comparing those, vendors are selected.

3. Request for Quotation:

Requesting vendors to submit their quotation for a material or services
as per the business requirements. Quotation contains the price of material, their
warranties or strength of the material, by which vendor’s selection is taken into
consideration.

4. Purchase Requisition:
In Mother Care packaging requisition is an internal request of
purchasing. Mother Care ask vendor to provide a certain quantity of material. A
business requisition can be created automatically by material requirement planning
or created manually as well.

5. Purchase order:
Purchase order (PO) is a formal request to a vendor for supplying
material services under certain conditions. PO usually contains the information of
payments, income terms and delivery date. PO once used cannot be again, in such
cases vendor is asked by Mother Care packaging to provide new valid PO.

6. Goods Receipt (GRN):

Goods Receipt (GRN) is nothing but a kind of document which is
received by vendor to company, to identifying the goods received from vendors.
Also with the help of goods receipt, we can verify the price of company for a
36
 vendor is 30 days, post that the received (GRN) are rejected and then sent to the
next department which handles the rejects GRNs.

7. Invoice Verification:

Invoice received through the READ SOFT after scanning is then

forwarded to the verification department. To verify the invoice they check all the things
which are mentioned on invoice i.e. Invoice no, invoice date, PO, Amount and Quality
etc.

8. Invoice Posting and Payment to Vendor:

Last step in purchasing procedure of that organization is invoice
posting to vendor. In this step all things are rechecked. The verified invoice are the
received invoices in cockpit. And then invoices proceed or posted in SAP cockpit,
then ready for payment. Payment team then make payment to supplier according
to their currency and payment terms.

37
 4.3 INTERPRETATION OF COMPARATIVE PURCHASE PROCEDURE

From these the research the interpretation of comparative of purchase

procedure drew which is given in following points.

1. Mother care packaging uses Tally ERP. 9 software to record data. Purchase
process
Start with requirement plan and credit note in case of material defect.

2. Standard purchase start with Market Survey and in receiving invoices and making
payments.

3. There are 8 steps in Mother Care packaging purchase process.

4. For processing process going smoothly all steps in P2P cycle play important role.

5. There are 9 steps in STANDARD PURCHASE PROCEDURE.

6. Mother Care Packaging purchasing process is very easy to understand and time
saving.

7. Mother Care Packaging purchase process is effective.

8. In Mother Care Packaging Invoices cross checked in 2 times , so that it is improve

the quality of accuracy in payment.

38
 SHORT CUT KEYS OF TALLY ERP-9 USED IN COMPANY:

Alt + F1 - Select Company

V - Accounting Voucher
F9 - Purchase Voucher
E - Purchase Order
Alt + E - Exporting Report
Alt + B - To check outstanding balance
Alt + C - To create master
Alt + D - Delete Voucher
Alt + R - Remove line on report
Alt + P - Print voucher
Alt + X - To cancel Voucher
S - Look for stock
Ctrl + Alt+ F12 - Advance configuration
Esc + Enter - To exit
P - To go to P & L
B - To go to the balance sheet
Ctrl + Enter - To change the master

39
 CHAPTER 5
Conclusion & Suggestion

5.1- Conclusions
5.2- Suggestions

40
 CHAPTER 5

CONCLUSION AND SUGGESTIONS

5.1 Conclusion

From these researches the conclusion drew which is given in following

points:

1. It is seen that procedure of posting invoices are different, and it is depend on

types of invoices e.g. Material invoices, FI invoices.

2. It is observed that supplier terms & condition related to payments are clearly
mentioned on the invoices. So those agents will not be confusions about it.

3. It is observed that there is no proper evaluation of procedure from time to

time, so it was hampering the purchasing quality.

4. While research on company process of purchasing its noticed the thing that
employee need to give proper training.

5. It is find out after the study that Mother Care packaging follow the standard
process of purchasing with additional own steps.

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 5.2 Suggestions

The researcher would like to suggest following recommendations to the company.

1. The purchasing should be objective.

2. There should be proper suitable methods to be used for purchasing methods.
3. If we get some new update or procedure to related process the documents it
should have clear and perfect knowledge regarding all types of document
payments.
4. Before rejection of any documents details it should be saved in rejection tracker.
So that in the future we get some issue we go through the proper benefits.
5. Employee should have clear and perfect knowledge regarding all types of
document payments.
6. They should motivate to employees to get new innovations and ideas process
benefits.
7. The company should have arranged training programs or sessions time to time so
that employees should have get update & perfect knowledge.

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