Procurement and Supply Administration
Purpose
Administration is the documented spine of procurement. It proves what was agreed, who approved it and that money was properly spent. Weak administration produces failed audits, duplicate payments and disputes that cannot be defended.
Records and documents
- Requisition, purchase order, goods receipt note, invoice, credit note, statement of account.
- Contract register capturing dates, values, renewal or termination notice periods and contract owners.
- Supplier master data, price lists and catalogues.
- Tender file: advertisement, ITT, questions and answers, returned bids, evaluation scores, award letter, debrief notes.
- Certificates of insurance, NDAs, SLAs, KPIs and licences.
Controls
- Delegation of authority (DOA) - named individuals may commit spend only up to stated limits, and the approver must be independent of the requester.
- Segregation of duties - the person who orders should not be the person who approves payment.
- Data protection, confidentiality, defined retention periods, version control on templates, and a clear, searchable audit trail.
Traps
Confusing a DOA limit with a budget value; assuming verbal instructions are acceptable; dismissing administration as 'just paperwork'; and confusing an invoice (a demand for payment) with a statement (a summary of the account).
Rule of thumb
If it is not written down and filed, it did not happen. Before signing or paying, confirm four things: an approved requisition, a purchase order, evidence of receipt, and an invoice that matches them.