SayPro Human Capital Purchase Order Procedure SayProP559

Document Code: SayProP559
Approved By: Neftaly Malatjie, Chief Executive Officer
Last Reviewed: 25 February 2025
Next Review Date: 25 July 2025

1. Overview

The SayPro Purchase Order Policy outlines the procedures for purchasing goods and services within the company. The policy ensures all purchases are conducted in an orderly, efficient, and transparent manner, following proper authorisation levels and ensuring budget compliance.

2. Objectives

• To define the processes and approval workflow for purchase orders.
• To ensure that all purchases comply with SayPro’s budget and procurement guidelines.
• To provide a structured and auditable approval process for purchases.
• To ensure transparency and accountability in the procurement process.

3. Scope

This policy applies to:

• All SayPro Employees and Royal Directors involved in purchasing decisions.
• Any department or team within SayPro that requires goods or services through external suppliers.
• External suppliers or vendors providing goods or services to SayPro.

4. Purchase Order Process

4.1 Initiation of Purchase Orders

1. Request Submission: The purchase order (PO) process begins when a Human Capital or Officer submits a request for goods or services required.
2. Approval Request: The request is submitted to the respective Royal Director for review and approval based on budget limits and scope.
3. PO Generation: Upon approval, a formal purchase order document is generated by the requesting department.

4.2 Approval Workflow

1. Initial Review: The Royal Director reviews the purchase order request for compliance with the department’s budget and procurement policies.
2. Authorization: Depending on the purchase amount, the PO may require additional approval from the SayPro Chief Financial Officer (CFO) for financial matters or SayPro Chief Operations Officer (COO) for operational needs.
3. Final Approval: If the purchase exceeds a predetermined threshold, it must be approved by the SayPro Chief Executive Officer (CEO).

4.3 Vendor Selection

1. Supplier Identification: The department identifies potential suppliers and obtains quotes or proposals for comparison.
2. Contractual Agreement: After approval, a contract may be signed with the chosen supplier, based on the terms outlined in the purchase order.

5. Roles & Responsibilities

5.1 Royal Directors

• Approve or reject purchase order requests from their respective departments.
• Ensure that purchases align with departmental budgets and objectives.

5.2 Officers

• Ensure the purchase order requests align with the operational requirements of the team or department.
• Submit purchase requests for approval.

5.3 SayPro Chief Financial Officer (CFO)

• Approve purchase orders related to budget compliance and financial capacity.
• Monitor spending and procurement activities to ensure cost control.

5.4 SayPro Chief Operations Officer (COO)

• Approve purchase orders for operational needs, including resources, infrastructure, and external services required for operations.

5.5 SayPro Chief Executive Officer (CEO)

• Grant final approval for high-value or critical purchases that exceed the internal thresholds set for other approvals.

6. Purchase Order Templates and Documents

• Purchase Order Request Form (SayProF001-01)
• Supplier Contract Template (SayProF001-02)
• Purchase Order Tracking Sheet (SayProF001-03)
• Budget Compliance Checklist (SayProF001-04)

7. Compliance and Review

• The SayPro Compliance Team will periodically review purchase orders to ensure compliance with internal policies and external regulations.
• Any unauthorised purchases or non-compliant activities will be subject to investigation and corrective actions.
• The policy will be reviewed annually to ensure alignment with the company’s financial health and procurement standards.

8. FAQs

Q1: What is the maximum amount a purchase order can be approved for without CEO authorisation?

A: Any purchase exceeding $50,000 requires approval from the SayPro CEO.

Q2: Can I place an order without a purchase order?

A: No, all purchases must be initiated through the purchase order system and must be approved according to the internal authorisation workflow.

Q3: How do I request a purchase order?

A: Complete the Purchase Order Request Form and submit it for approval to the Royal Director.

Approved By:
Neftaly Malatjie
Chief Executive Officer