Hi Abdullah,
Let me use an example, and hopefully this will answer your question:
The project I am managing is to host a bachelor party for my brother.
Since I am not going to make everything from scratch, I am going to procure 3 things:
1. House rental - No one can offer their home for the party, therefore I am going to rent an AirBnB to host all the guests
2. Food - I am going to get service from a meal catering company
3. Entertainment - since all of our guests like ballet dancing, we asked a group of dancer to fly over from Russia to perform for us.
Before the party:
- Suddenly a friend offers us his mansion for us to party, therefore we have no need for the AirBnB. I run the close procurement process to terminate the AirBnB booking for convenience.
During the party:
- The food arrives hot and tasty, every guest is satisfied. I pay the food caterer in full and close the procurement
- Due to schedule conflict, only half the dance crew arrives. I dispute the contractual terms with them, they offer 50% off in payment as resolution. I then perform the close procurement process.
(At the same time, the dance crew can perform their Close Project process, because all the scope (Practice, get on plane, perform) have been completed and I (as the client) confirm all the deliverable have been accepted.)
Now that all the activities in my party are done, brother is happy, and I can finally close my own project.
I hope this gives you a better understanding of the processes, cheers
Joe