IKEA Purchasing Process Flowchart

This report presents a flowchart illustrating IKEA's purchasing process. The process begins with a buying request from the procurement department, which requires approval from the department head. Upon approval, a purchase order is generated and sent to the vendor. Once goods are received, a GRNI (Goods Received Not Invoiced) accrual is created and matched with the invoice in the finance system. After matching, the GRNI accrual is removed, and the invoice is released for payment. Finally, payment is made to the vendor, completing the process. The report includes a description of each step and references relevant literature on process flowcharts and operational management.

Operational management

Table of Contents
Question 13..................................................................................................................................3
REFERENCES 5

Question 13:
Process flow chart of Purchasing Process of IKEA
Y
N
Y
N
Start
Creating request to buy products
Approve
Purchase order created
Order fulfilment
Goods received
GRNI Accrual created Matched
Invoice sent
Invoice input into Finance system
GRNI Accrual removed
Invoice released for payment
Payment run prepared
Payment received
Finish

Description:
The above approval flow char has related to purchasing process of IKEA Furniture.
Under this process, buying request creates by procurement department of the organization. It has
send for department head to get the approval. If request approve by manager then next step will
proceed otherwise request will reject. After approval of purchase order request, a Purchase Order
has generated. On the basis of this, it has sent tom vendor to purchase the goods and then goods
have received (Alias, C. and et.al., 2010). By considering received materials by suppliers, GRNI
(Goods Received Not Invoiced) Accrual has created which should be matched with the Invoice
Input Finance System. If it will match with it then GRNI Accrual will be removed otherwise
inverse process will be carried out. After GRNI Accrual remove, invoice has sent for payment to
finance department of IKEA. On the basis of this, payment has made to vendor with
confirmation. The above process has showed the approval flow chart of purchasing of material of
IKEA which has explained how the request to buy the material place, how supplier receive
orders and how the payment has made by the organization to its vendors (van Eck and et.al.,
2010).

REFERENCES
van Eck, C.F. and et.al., 2010. Anatomic single-and double-bundle anterior cruciate ligament
reconstruction flowchart. Arthroscopy: The Journal of Arthroscopic & Related
Surgery, 26(2), pp.258-268.
Alias, C and et.al., 2010, September. Multi-dimensional rankings, program termination, and
complexity bounds of flowchart programs. In International Static Analysis
Symposium (pp. 117-133). Springer Berlin Heidelberg.