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2020-02-25 09:19:44
Purchasing requirement
The purchasing plan budget is part of the production / Sales Plan and is part of the company's annual plan and objectives. Usually, the sales department's plan, the sales revenue budget, is the starting point for the company's annual business plan before the production / sales plan is finalized. The production / Sales Plan includes the purchase budget direct raw material / commodity purchase cost, direct Labor budget and manufacturing / sales budget. Therefore, the purchasing budget is a detailed plan for the quantity and cost of raw materials, materials and spare parts needed to meet the annual sales forecast or purchase quantity. Although the procurement plan budget is the core of the entire enterprise budget, if it is prepared separately, it will not only lack the practical value, but also lose the cooperation of other departments.