Purchasing Record or Buy Card

A Purchasing Record—often referred to operationally as a Buy Card—is one of the most overlooked tools in a disciplined procurement environment. When designed correctly, it gives organizations a controlled, auditable method for handling low-dollar purchases without weakening approval discipline, spend authorization, or internal controls.

For start-ups and small businesses, the Purchasing Record often begins as a manual solution. That’s not a flaw; it’s a bridge. Until a full procure-to-pay system or ERP is implemented, this document forms the backbone of purchasing documentation and establishes early financial controls that scale later.

The risk shows up when small purchases are treated as harmless. Employees bypass formal requests [i.e., Purchase Requisitions (PR)], invoices arrive without context, and accounting is left reconstructing who approved what—if anyone did. The Purchasing Record exists to close that gap and restore traceability before bad habits harden into policy violations.

You can see an example of a Purchase Requisition form by clicking on the link below.

https://getyourpurchasingdocuments.com/product/complete-purchase-requisition-form/

What Is a Purchasing Record and How a Buy Card Works

A Purchasing Record is a standardized document used to authorize and document purchases below a defined spend threshold where issuing a full purchase order would be inefficient. Internally, many organizations call this process a Buy Card, but clarity matters: a Buy Card is not a corporate credit card and not a workaround to procurement policy.

Instead, it is a structured spend authorization record that captures the minimum data required to support audit readiness and downstream reconciliation, including:

• Requestor and department
• Business justification
• Approved spending limits
• Authorized approver
• Supplier details
• Proof of receipt

This creates a defensible procurement audit trail while still allowing speed for operational needs. You can see an example of Approval Limits in Purchasing by visiting the link below.

https://getyourpurchasingdocuments.com/product/approval-limits-template/

Why Purchasing Records Strengthen Procurement Controls

Low-value purchases are where procurement controls quietly erode. Individually, these transactions seem insignificant. Collectively, they create exposure through unauthorized spending, budget leakage, and reconciliation delays.

A Purchasing Record enforces discipline by ensuring every transaction—regardless of size—has documented approval, alignment with approval limits, and clear records of authorized purchases. Without this structure, organizations invite non-PO spending to accumulate outside visibility until an invoice forces the issue.

This is where many companies lose control without realizing it.

Purchasing Record Alignment with Internal Controls and Compliance

From an internal control’s perspective, undocumented purchases are a flashing warning light. A Purchasing Record creates a repeatable, consistent process that aligns procurement activity with financial controls and audit expectations.

Auditors are not chasing perfection; they are looking for consistency and traceability. A documented Buy Card process demonstrates:

• Defined approval authority
• Segregation of duties
• Transaction traceability
• Evidence of spending control

This is especially important for organizations subject to SOX requirements, internal audits, or external financial reviews, where informal purchasing is often the first area challenged.

When to Use a Purchasing Record Instead of a Purchase Order

A Purchasing Record is intended for low-dollar, non-recurring, or time-sensitive purchases where issuing a purchase order would add friction without reducing risk. Typical use cases include maintenance items, operational supplies, emergency purchases, or one-time services.

It should never replace purchase requisitions or purchase orders for recurring, contractual, or high-risk spend. Instead, it functions as a controlled exception within the procure-to-pay process.

In some cases, such as ‘emergency purchases,’ company policy may still require after-the-fact purchase order issuance for system completeness. You can find an example of a Purchase Order Form by clicking on the link below.

https://getyourpurchasingdocuments.com/product/purchase-order-form/

How Purchasing Records Prevent Unauthorized and Non-PO Spend

Non-PO spend is not inherently dangerous. Undocumented non-PO spend is.

A Purchasing Record captures transactions that would otherwise surface only when an invoice arrives in accounts payable. By recording these purchases upfront, organizations gain visibility into buying patterns, enforce approval limits, reduce invoice disputes, and improve budget accuracy.

This is how informal spending becomes structured data instead of noise.

Purchasing Record Integration into the Procure-to-Pay Process

When properly implemented, the Purchasing Record is not a loophole—it is a formal step within the procure-to-pay workflow. It complements purchase requisitions for planned spend, purchase orders for sourced material, approval limits tables for governance, and receiving documentation for validation.

This alignment allows procurement to support operations without surrendering control, even when speed is required. You can find an article that discusses the Procure-to-Pay Process (P2P) at length by clicking on the link below.

https://getyourpurchasingdocuments.com/uncategorized/procure-to-pay-process/

Standardizing the Purchasing Record Template for Consistency

Standardization is where the real payoff happens. A uniform Purchasing Record template removes ambiguity, shortens training time, and ensures consistent application of internal purchasing controls across departments and locations.

Organizations that standardize this document experience fewer policy violations, faster approvals, cleaner audits, and better control of spending. The result is a procurement process that balances agility with accountability—and scales without chaos.