In which stage of purchasing is the payment schedule established?

The correct answer is established during the vendor contracting stage. This phase involves formalizing the agreement between the purchasing organization and the vendor. During this process, key details such as payment terms and conditions are negotiated and documented. This includes specifying when payments are due, such as upon delivery, after invoicing, or on a set schedule. Establishing a clear payment schedule is crucial for effective cash flow management and helps ensure that both parties understand their financial commitments, which fosters a reliable business relationship.

The other stages—vendor analysis, vendor selection, and vendor ID process—do not focus on the contractual aspects of the relationship. The vendor analysis is primarily concerned with assessing potential vendors based on various criteria such as quality and capability. Vendor selection focuses on choosing the most suitable vendor based on the analyses conducted. The vendor ID process is about creating a unique identifier for the vendor in the purchasing system. None of these stages involve finalizing payment terms, which is why they do not represent the establishment of the payment schedule.