Procurement Lifecycle: From RFQ to 3-Way Matching & Payment

Effective procurement prevents uncontrolled spending, secures favorable supplier pricing, and ensures that businesses only pay for goods they actually received. BIZA provides a structured procurement pipeline connecting requests, purchase orders, warehouse receiving, and accounts payable.

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1. Request for Quotation (RFQ) & Supplier Bidding

When sourcing materials or services:

• Create RFQ: Define required SKUs, quantities, specifications, delivery location, and submission deadlines.
• Multi-Supplier Dispatch: Send the RFQ simultaneously to multiple approved vendors via email directly from BIZA.
• Supplier Quotation Comparison: Enter vendor bids to view side-by-side comparison tables evaluating price per unit, delivery lead times, payment terms, and minimum order quantities.

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2. Purchase Orders (PO) & Approval Gates

Once the preferred supplier quotation is selected:

• PO Generation: Convert the accepted quotation into a Purchase Order with one click.
• Threshold Approval Rules: Configure automated approval routing based on company financial controls (e.g., POs under SAR 10,000 approved by department manager; POs over SAR 50,000 require CFO / General Manager sign-off).
• Vendor Confirmation: Transmit the finalized bilingual PO (PDF/Email) to the supplier.

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3. Goods Receipt / Purchase Entry

When goods physically arrive at the destination warehouse:

• Warehouse Receiving: Staff create a Purchase Entry / Goods Receipt against the open PO.
• Quantity Verification: Record received quantities vs. ordered quantities. Handle partial deliveries, damaged items, and backorders cleanly.
• Stock Ledger Update: Increases on-hand stock quantities at the designated warehouse location and debits Inventory Stock In Hand.

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4. 3-Way Matching & Supplier Bill Verification

Before finance releases payment, BIZA facilitates rigorous 3-Way Matching:

1. Purchase Order: Validates agreed unit price and approved order quantities.
2. Purchase Entry / Goods Receipt: Validates actual physical items received into the warehouse.
3. Supplier Invoice: Validates supplier billing totals, VAT calculation, and payment terms.

Discrepancy Safeguards

If the supplier invoice charges a higher price than the PO or bills for more items than the warehouse received:

• BIZA flags the line item with a Variance Alert.
• The voucher requires explicit management approval before it can be scheduled for payment.

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5. Settlement & Supplier Statement of Account (SOA)

• Payment Voucher: Generate payment entries against single or multiple bills (cash, cheque, bank transfer).
• AP Aging: Real-time visibility into supplier obligations across aging buckets (Current, 1-30 days, 31-60 days, 60+ days).
• Supplier SOA: Generate complete statements of account in Arabic and English for periodic vendor reconciliations.