What follows the negotiation step in the purchasing process?

The purchasing process involves a series of steps that lead to the acquisition of goods or services. After the negotiation step, which is focused on discussing terms, prices, and conditions with suppliers, the next logical step is to issue purchase orders. A purchase order serves as a formal agreement that outlines the specifics of the transaction, including quantities, prices, delivery dates, and any other contractual terms.

This step is crucial because it provides both the buyer and supplier with clear documentation of the agreed-upon terms, helping to prevent misunderstandings and disputes later on. Once the purchase order is issued, the supplier can then prepare to fulfill the order, leading to the next phases in the purchasing cycle, such as accounts payable and receiving.