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3rd/4th Sem F & B Control Notes

Flow Chart Of Purchasing Procedure

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Last updated: 11 July 2023

Flow Chart Of Purchasing Procedure

 

  1. Recognition of Needs
  2. Description of Needed Items
  3. Authorization of Purchase Requisition
  4. Negociation with Supplier
  5. Evaluation of proposal and Placement of Order
  6. Fellow up
  7. Verification of Invoice and Delivery of Material
  8. Closure of Purchase Records & Payment

 

  • Recognition of needs:- The most obvious place for a need to occur is a production unit. The second location is the storage area in which the objective is to have on hand the right product in the right quantity at the right time. The need is recognized by the H.O.D. based on the daily consumption of the needed item.

 

  • Description of needed items:- The concerned person prepares it, generally the description is taken from the standard purchase specification. It states the name of the item, quantity, unit cost, total cost, sometimes brand names, etc.

 

  • Authorization of purchase requisition:-The third procedure of the purchasing process is authorization. Generally the requisition is authorizes by the H.O.D. or as per the policy status. The purchase requisition is not honored until the concerned person signs it.

 

  • Negotiation/ selection of supplier:- In this step the supplier is selected on the basis of price calculation, performance evaluation and records from the previous purchase. If the supplier is selected already the price of the needed item is negotiated.

 

  • Evaluation and placement of order:- All suppliers’ proposals are evaluated for the compliance with the policy. In the evaluation the quality factor, rates, delivery, performance of the supplied items is evaluated, and then the order is placed for the needed items.

 

  • Follow up of order:- Theoretically the buyer should not have to follow up an order after it has been placed and accepted, the supplier follows it.

 

  • Verification of invoice and delivered material:- The invoice is the supplier statement of what is being delivered or shipped to the buyer. The invoice should be checked against the purchase order for quality, quantity and price. Delivery and condition of the material should be in agreement with the purchase order and invoice.
  • Closure of purchase records and payment for the material:-It consists of the clerical process of assembling the written records of the purchase process. Filling them in appropriate places and authorizing payment for the goods delivered.

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Syllabus BHM205

01 Food Cost Control

  1. Introduction to Cost Control
  2. Define Cost Control
  3. The Objectives and Advantages of Cost Control
  4. Basic costing
  5. Food Costing

02 Food Control Cycle

  1. Purchasing Control
  2. Aims of Purchasing Policy
  3. Job Description of Purchase Manager/Personnel
  4. Types of Food Purchase
  5. Quality Purchasing
  6. Food Quality Factors for different commodities
  7. Definition of Yield
  8. Tests to arrive at standard yield
  9. Definition of Standard Purchase Specification
  10. Advantages of Standard Yield and Standard Purchase Specification
  11. Purchasing Procedure
  12. Different Methods of Food Purchasing
  13. Sources of Supply
  14. Purchasing by Contract
  15. Periodical Purchasing
  16. Open Market Purchasing
  17. Standing Order Purchasing
  18. Centralised Purchasing
  19. Methods of Purchasing in Hotels
  20. Purchase Order Forms
  21. Ordering Cost
  22. Carrying Cost
  23. Economic Order Quantity
  24. Practical Problems

03 Receiving Control

  1. Aims of Receiving
  2. Job Description of Receiving Clerk/Personnel
  3. Equipment required for receiving
  4. Documents by the Supplier (including format)
  5. Delivery Notes
  6. Bills/Invoices
  7. Credit Notes
  8. Statements
  9. Records maintained in the Receiving Department
  10. Goods Received Book
  11. Daily Receiving Report
  12. Meat Tags
  13. Receiving Procedure
  14. Blind Receiving
  15. Assessing the performance and efficiency of receiving department
  16. Frauds in the Receiving Department
  17. Hygiene and cleanliness of area

04 Storing & Issuing Control

  1. Storing Control
  2. Aims of Store Control
  3. Job Description of Food Store Room Clerk/personnel
  4. Storing Control
  5. Conditions of facilities and equipment
  6. Arrangements of Food
  7. Location of Storage Facilities
  8. Security
  9. Stock Control
  10. Two types of foods received – direct stores (Perishables/nonperishables)
  11. Stock Records Maintained Bin Cards (Stock Record Cards/Books)
  12. Issuing Control
  13. Requisitions
  14. Transfer Notes
  15. Perpetual Inventory Method
  16. Monthly Inventory/Stock Taking
  17. Pricing of Commodities
  18. Stock taking and comparison of actual physical inventory and Book value
  19. Stock levels
  20. Practical Problems
  21. Hygiene & Cleanliness of area

05 Production Control

  1. Aims and Objectives
  2. Forecasting
  3. Fixing of Standards
    1. Definition of standards (Quality & Quantity)
    2. Standard Recipe (Definition, Objectives and various tests)
    3. Standard Portion Size (Definition, Objectives and equipment used)
    4. Standard Portion Cost (Objectives & Cost Cards)
  4. Computation of staff meals

06 Sales Control

  1. Sales – ways of expressing selling, determining sales price, Calculation of selling price, factors to be considered while fixing selling price
  2. Matching costs with sales
  3. Billing procedure – cash and credit sales
  4. Cashier’s Sales summary sheet