This information is vital for them to obtain better products at better prices, increasing the professionalism of the purchasing functions of your government. Automate, automate, automate. We can't say this enough. Automation is great for increasing efficiency among departments to systematically collect and process financial information. Monitoring of purchasing and more accurate accounting of available funds becomes even easier if you can tap into the financial accounting system.
Automation is a big help if the chart of accounts incorporates commodity codes.
Commodity codes are those portions of the account numbers that identify the types of goods and services being bought. When these are sorted, the purchasing agent is able to determine how much has been procured and serves as a safety net for when the bidding level is being exceeded. A computerized system also allows the user departments to electronically route requisitions to department heads for approval. Accounts can be encumbered automatically when a purchase order is issued and encumbrances can be reversed automatically when an invoice is paid. This way, the approach is more conservative and ensures that no purchase is obligated beyond available funds.