purchase order

The purchase order is to recognize expenditure on the system and credit the relevant general ledger or cost centre account. It is generated internally after deployment letter and invoice submission to enable payment authorization within the City.

“the purpose of the purchase order is to now recognise the expenditure on the system , credit the relevant GL . GL , I mean the general ledger or cost centre account ... The deployment letter is a manual letter that is signed by an individual issued outside the system ... The only form which will enable a payment in the form of a document that recognises or authorises a payment is purchase orders . So what happens , Chair , is that the user department uploads the necessary documents , which would include the invoice , that deployment letter , the appointment letters , the SLA ' s of these particular service providers to the system . They then generate those purchase orders in conjunction with the City ' s Supply Chain Management function”

Normally a purchase order would be issued before an invoice, typically within 30 days, but in this instance, purchase orders were generated after receiving invoices, due to standing off budget availability over several months.

“On that explanation, a purchase order would be issued before an invoice... ordinarily, a purchase order must be issued within 30 days... The invoice will be received, it will then be captured in the system, and a purchase order will be generated... in this instance, we had to do all seven months at once... ideally, it could have happened in May, June, July... all of this happened at once, as a result of it not happening throughout the six months of the financial year.”

Ad hoc security services with a purchase order can be stopped at any time as they are procured services; purchase orders allow quick initiation and cessation of these services.

“adhoc services with a purchase order are to procure these services of adhoc services. That can be, in terms of the SLA, it can be stopped any time. It can be very quickly initiated, and it can be very quickly stopped.”