LARGE 3.1 - Purchase of Inventory Items

A method that is used to record the purchase of S&M for inventory purposes.

• Perpetual Inventory Method

• Periodic Inventory Method

• Accrual Method

• Cash Basis

The following are the requirements for the payment of supplies and materials, except:

• Dealer’s Invoice

• Inspection and Acceptance Report

• Purchase Request

• Evidence of Public Bidding/Price Quotations/Result of test/analysis

• All of the aforementioned are the requirements

Procuring Entities shall adopt Public Competitive Bidding as the GENERAL mode of procurement which is not the exception.

• In highly exceptional cases

• To promote economy and efficiency 

• Justified by conditions specified in IRR

• To ensure quality-driven actions

• GPPB approval as required under EO 423, S. 2005 (as amended)

The BAC will post-qualify and negotiate, beginning with the second LCB or HRB at the bidder's original offer price and moving on to the next if the negotiation fails. The authority to negotiate contracts for projects under this modality must be approved by the HoPE beforehand. If the negotiations fail, the BAC may:

• Invite a short list of at least three (3) vendors, contractors, or consultants to submit bids and begin negotiations with the LCB or HRB, or use any other appropriate alternative procurement technique.

• Invite a short list of at least three (5) vendors, contractors, or consultants to submit bids and begin negotiations with the LCB or HRB

• Submit the lowest possible bid and gather everyone to begin negotiations with the LCB or HRB

• All of the above

Is sub-contracting allowed for the Negotiated Procurement: Agency to Agency?

• Yes, sub-contracting is allowed

• No, sub-contracting is not allowed

• Unsure, clarification needed

• Not applicable

These are expendable commodities acquired or purchased and held for sale in the ordinary course of business, for distribution, for manufacturing, and for consumption in connection with government operations. It also includes Semi-expendable Machinery and Equipment costing less than P50,000

• Small Value Procurement 

• Inventories 

• Properties

• All of the above

It is used in the Supply and/or Property Division/Unit for each type of supply to record all receipts and issues made. It shall be maintained by the fund cluster and reconciled regularly with the SLC maintained by the Accounting Division/Unit. 

• SUPPLIES LEDGER CARD 

• Inventories Card

• Stock Cards 

• None of the above

It is used to request supplies/goods/ equipment/property carried in stock and by the Supply and/or Property Division/Unit to issue the items requested

• REQUISITION AND ISSUE SLIP 

• Stock Cards 

• Inventory Custodian Slip 

• REPORT OF SUPPLIES AND MATERIALS ISSUED 

It is where the semestral physical inventory of supplies is reconciled with the SLCs and controlling accounts and Supply and/or Property records. Any discrepancies shall be immediately verified and adjusted.

• REQUISITION AND ISSUE SLIP 

• Stock Cards 

• SUPPLIES LEDGER CARD 

• None of the above

It is used to report and summarize all issues of inventory during the day by the Accounting Division/Unit, and they shall conduct together with the Supply and/or Property Division/Unit a periodic reconciliation of the SLC and SC to identify and adjust any discrepancy

• Inventory Custodian Slip 

• REPORT OF SUPPLIES AND MATERIALS ISSUED 

• LIMITED SOURCE BIDDING 

• REQUISITION AND ISSUE SLIP