Purchase goods and services

This unit specifies the outcomes required to determine purchasing requirements, and make and receive purchases.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.


This unit applies to individuals who conduct low risk, low expenditure purchasing for an organisation using established and documented purchasing strategies. The unit may be undertaken by someone working in a small organisation who has general responsibility for conducting purchasing within an organisation, or by a purchasing specialist working in a large organisation.

Some judgement may be required to make decisions in the implementation of purchasing strategies and work is generally conducted under the supervision of others.

Elements and Performance Criteria



1. Understand purchasing and own requirements

1.1. Read, understand and clarify organisation's purchasing strategies as required

1.2. Determine own role and limits of authority in consultation with relevant personnel

2. Make purchases

2.1. Receive purchase specifications from relevant personnel and clarify as required

2.2. Select purchasing methods most appropriate to particular purchases within limits of own role

2.3. Obtain approvals for purchases as required

2.4. Obtain quotations from suppliers as required

2.5. Select suppliers, place orders and make purchases

3. Receive purchases

3.1. Receive goods or make arrangements to receive services

3.2. Advise relevant personnel of receipt of purchase

3.3. Ensure goods received are checked for compliance with specifications

3.4. Take action to resolve non-compliance with specifications

3.5. Facilitate registration of new assets

3.6. File and store purchase records

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

communication skills to liaise with suppliers and end users of purchases

literacy skills to document purchases and write reports on purchasing activities

information management and research skills to analyse and assess purchasing options and offers

technology skills to use of software to keep records of purchases made

data collection skills to keep records related to purchasing.

Required knowledge

codes of ethics and conduct

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

consumer protection legislation

contract law

import of goods and services, where relevant

sale of goods legislation

Trade Practices Act

organisation policy and procedures relating to:

purchasing strategies

record-keeping systems related to purchasing and assets

standard contracting arrangements

product knowledge about the goods and services being supplied

purchasing and procurement principles for:


probity and transparency

risk management

value for money.

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

obtaining quotes from prospective suppliers for a low risk, low expenditure good to be purchased

selection of appropriate purchasing methods for a low risk, low expenditure purchase

receipt, checking and documentation of a low risk, low expenditure purchase.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

organisation's purchasing strategies and relevant purchasing records.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

assessment of written reports documenting purchasing requirements and records of purchases made

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

observation of obtaining quotes form suppliers

oral or written questioning to assess knowledge

review testimony from team members, colleagues, supervisors or managers.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other purchasing units.

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Purchasing strategies may include:

criteria for making purchasing decisions

legal requirements and policies and procedures that underpin strategies and that are relevant to role

policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers

Limits may include:

approval processes for purchases

expenditure approval limits

Relevant personnel may include:






other persons authorised to commit the organisation to purchases

internal users of purchased goods and services


Board members

specialist personnel involved in purchasing, asset maintenance and finance

Purchasing methods may include:

credit card purchases

direct purchases from retail outlets

online purchases

petty cash

purchases using standing agreements or accounts with suppliers

written and/or verbal quotations

written and/or verbal supply agreements

Purchase records may include:

corporate credit card transaction documentation

invoices, statements and payment requests

petty cash vouchers

purchase requests and orders

receipt advices for goods and services

records of supplier performance


Unit sector

Competency Field

Administration - Purchasing and Contracting

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.