Published policy

Vendor Purchase and Procurement Policy (v2.0)

Procurement standards, purchase order controls, goods receipt verification, stock ledger posting, vendor returns, and warranty pass-through rules.

Slug: vendor-purchase-policyEffective: 2026-08-20Published: 8/20/2026Statutory & Rulebook Codified

Vendor Purchase and Procurement Policy

This policy governs the acquisition of furniture, raw materials, components, and appliances from manufacturers, wholesalers, and vendors supplying Subidha Furniture.

1. Vendor Onboarding and Commercial Eligibility

**Vendor Verification**: All suppliers must complete commercial verification, providing valid GSTIN (where applicable), PAN, trade license, MSME certificate, and registered workshop/factory address.
**Commercial Contracts**: Purchases are executed solely under approved Purchase Orders (PO) establishing unit pricing, quality standards, transit responsibility, and warranty commitments.
**Invoice Separation**: Vendors invoice Subidha Furniture directly. Vendors have no legal privity of contract with Subidha Furniture's retail or subscription customers.

2. Purchase Orders & Stock-on-Hand Invariant

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**Mandatory PO Requirement**: No inventory unit may enter showroom or warehouse premises without an approved, system-generated Purchase Order.
**Stock-on-Hand Verification**:

All furniture intended for Direct Sale, Lucky Plan delivery, Rent, or Lease must be physically received, inspected, and posted to the Stock Ledger.
Fictitious or speculative inventory entries are strictly prohibited.

**Goods Receipt Note (GRN)**: Upon arrival at the central warehouse, receiving staff inspect shipments against the PO and generate a Goods Receipt Note verifying SKU, quantity, finish, and packaging condition.

3. Stock Ledger Movement & Billing Entry

**Inventory Posting**: Verified shipments post an immutable `PURCHASE_IN` transaction to the Stock Ledger, incrementing inventory valuation.
**Purchase Bill Verification**: Receiving staff match the vendor invoice against the PO and GRN. Valid bills are entered into the purchase ledger with mapped accounting heads.
**Quality Hold & Non-Conforming Items**: Units failing visual or structural inspection are flagged with `QUALITY_HOLD` status and segregated in quarantine stock.

4. Vendor Purchase Returns

**Eligibility and Quantity Controls**:

A purchase return is strictly linked to an existing posted purchase bill.
Return quantity cannot exceed the purchased quantity minus quantities already returned.

**Mandatory Return Reason**: Every vendor return must specify an approved reason (e.g., Transit Damage, Structural Joinery Defect, Specification Mismatch, Quality Rejection).
**Ledger & Accounting Effects**:

The returned items trigger a `PURCHASE_RETURN_OUT` movement in the Stock Ledger.
An audited Vendor Debit Note is generated, adjusting vendor payables and tax records.
The original purchase bill remains immutable for historical audit trails.

5. Manufacturer Warranty Pass-Through & Service SLAs

**Warranty Pass-Through**: Vendors must honor agreed warranty terms for structural woodwork, hardware, hydraulic mechanisms, and foam density.
**Replacement Turnaround**: For non-repairable manufacturing defects reported within thirty (30) days of receipt, the vendor is obligated to provide unit replacement or credit note within fourteen (14) business days.
**Spare Parts Availability**: Vendors supplying modular and mechanical furniture must guarantee functional spare parts availability for a minimum of twenty-four (24) months post-procurement.

Legal usage note

Published policy text is for customer clarity, operational governance, and statutory compliance.
Contracts, tax invoices, receipts, and audited delivery records remain the canonical transaction source.
For contract-specific clarifications, contact the Subidha Furniture showroom administration.