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Project management invoice template for Procurement

project procurement management and knowledge area dealing with procurement related activities if you need a help from an external party or from a vendor in order to get your project executed you may want to Outsource part of your work to him this is the knowledge area which will tell you how to manage this particular relationship the procurement management is all about buyers and sellers so let's look at a relationship between a buyer and seller buyer is the one who is buying the service or a supply from A supplier so we have a seller who is selling to us now in this particular knowledge area you need to think like you are a buyer and somebody else is selling or somebody else is executing part of your work in rest of the knowledge areas you think like a seller and you have some customer to take care of but in this particular knowledge area you are are the customer and you need a vendor who will take care of your need so you need to focus on managing that vendor in this particular knowledge area now the relationship between a buyer and seller should be formalized should be documented should be legally approved and this is called with various in sometime we use a term called contract so contract is a document which defines the relationship between buyer and seller it tells us who is responsible for what what exactly the seller is expected to do when he will get paid for those kind of details are written in this contract it could also be in some cases it is also known as agreement or purchase order or an understanding whatever name we give to it depending upon Upon Our organization culture and the industry we are working in but it has to ensure that it provides a legal framework to manage this particular seller since it's a legal relationship it has to be mutually agreed on the contract or this relationship cannot be one-sided both of the parties must agree to it so it it is a mutual agreement also remember since it's a mutual agreement it can be changed with the mutual understanding only one party cannot change it do remember because in exam you may get some questions where the option might be talking about one party unilaterally changing the contract this is not possible now the buyer buyer can also be termed as customer or client or purchaser or primary contractor or a contractor or service receiver or acquiring organization we can have a multiple name and these name may vary depending upon your industry or type of projects you are working in the seller may also can be known as supplier vendor in contractor also subcontractor service provider in case of a service so these are the possible terms which you can see in your exam and these all refers to the seller now let us look at our procurement project procurement management knowledge area the project procurement management knowledge area has four processes and these processes are distributed in four process GRS so in that way the procurement management has good spread the first process is about planning the procurements the second process is all about conducting the procurement third process is all about controlling the procument and finally it is all about closing it now the planning is all about making and identifying which type of work you you need to Outsource when can you Outsource what type of terms and condition you should use who are the eligible vendors suppliers who can participate in your activities so how should you conduct remaining activities is usually defined in our the first process which is plan procurement now the second process conduct procurement this is the execution process here here we invite people for a bit and finally as an output we select the person or the organization and if you are a buyer because in this you need to think like a buyer you are executing these four processes but your seller just to give you a visibility in an exam you need to think like a b buyer but the seller will get a trigger once he get an order from you so he may execute his project develop project Charter here but this is separate project when you are talking about knowledge area you are worried about your own project which is here but just for an understanding this conduct procurement is triggering a project in some other organization and this organization will execute that project and the execution would be controlled by control procurement you would be controlling by asking the performance report you would be uh confirming by checking the deliverables by doing inspections and Audi you would be raising change request or approving change request you would be conducting or managing payments so this all the complete here that the monitoring and execution is happening in that particular project project and your conduct procurement sorry control procurement is ensuring that the execution happens as per your requirement finally once your goals are met you close the procurement and the closing procurement of this process will trigger a project closer in other company so this is how these two projects are linked in the way of pinok language so in rest of our videos we will get into the details of project procurement management processes