When does the purchasing process begin?

• A. When needs are determined
• B. When a delivery is received
• C. After bids are opened
• D. When a purchase order is issued

Answer: (A)

The purchasing process starts when needs are identified and defined. When a department or user spots a gap and specifies exactly what is required—quantity, quality, timing, and budget—the purchasing function can begin its work. This clear need drives the rest of the cycle: creating a requisition, refining specifications, and planning how to source the item. Only after the need is known do activities like evaluating suppliers, soliciting bids, and selecting a vendor occur, and a purchase order is issued to fulfill that defined need. Receiving goods arrives after the supplier fulfills the order, not at the outset.