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Procurement Functionality

Purchase Order

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Procurement Functionality


Introduction

Procurement is the acquisition of goods, services or works from an external source. It is favorable that the goods, services or works are appropriate that they are procured at the best possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and location.

    • Purchase Order
    • Goods Receive Note
    • Goods Return Note
    • Purchase Invoice
    • Tax Master
    • Charge Master
    • Term Master
    • Margin Rule
    • Party Master
    • Print Barcode

Purchase order

Purchase order is usually raised by the customer that helps to read their intentions. It acts as a template to place an order but cannot be proceeded for purchase. The purchase order includes the purchase details such as purchase order number, purchase type and the information about the items ordered. It is used to control the purchasing of products and services from external suppliers. Creating a purchase order is typically the first step of the purchase to pay process in an ERP system. It is necessary to have a Supplier in order to create a Purchase order or a Goods Receive Note. Raising a Goods receive Note against Purchase Order is also possible.
Purchase order form
Procurement-> Purchase Order
The purchase order form will look like this and it creates a detailed account of all the suppliers who deals with business.

PO No-It is the purchase order number assigned to the particular request to buy something for each buyer. If the request is approved, a purchase order is created and is assigned a purchase order number. At that point, the order is placed with another company, which often records the buyer's PO number for inclusion on the order detail. The PO no is set as auto and it is taken automatically.

PO Date-It is the date in which the purchase order was created. The date is also default based on the system date.
PO Type- Purchase order types can be specified to suit business requirements. The purchase order provides the following types:

  • Standard: This PO is created for one time purchase of material.
  • Consignment: When buying goods on consignment, the ordered goods still belong to the vendor, even after delivery. Stocks can be refilled for every Batch sale.
  • Drop on Site:For an industry have multiple sites, this type serves best to drop the stock at the Site point.
  • Blanket: PO is raised wholly but the stocks are dropped partially till it reaches the PO quantity.
  • Blanket Drop on Site:It is a combination of Drop on Site and Blanket types.

Vendor Name - This is a mandatory field. When materials or services are required to be purchased for the business, the Vendor should be created.  It is the name of the supplier and the vendor name can be selected by pressing F2. The new supplier can register on clicking the vendor name link that opens the party master form that specifies the details.

Doc No - It is document number that is displayed on the PO.
Date- This field indicates the date, the order is placed.
Valid From- Enter the period of time under which the PO will remain valid. It is the date that specify from when the purchase order is valid.
Valid Till-Enter the period of time under which the PO will remain valid .It is the date that specify how long the purchase order is valid and it should be maximum than the valid from date.
Stock Point -This is a mandatory field. It is the place where the goods are dropped. The default stock point specified flows here automatically. It is mandatory to select stock point to receive goods.
Transporter Name- Name of the transporter through which the goods have been reached. Tagging a transporter to the purchase or sales made helps to identify the better service and the cost spent for transportation by the end of the year.
Agent Name - An Agent is a person who works as an intermediate between the customer and the supplier. The agent can be tagged to a Supplier in this form. Agent name can be selected from the drop down by pressing F2.
Buyer Name-It is Optional to enter the supplier name.
Remarks- Enter the description of PO or any other information that you wish to add.
Scan Barcode- Barcode assigned to a given product will be displayed here.Place the cursor here and use a barcode scanner to enter the barcode of a particular product.
Create item- To create a new item click on create item. This opens a new window item master. Barcodes are generated here.
Search item- To search the created item click on search item or press f5. This opens a new window search item.
Edit item - To edit the item details click on edit item.
Charge Details – It may be a cost incurred for that purchase, or any reduction in purchased value. Click on charge details opens a page with basic and net cost.
Import excel- To import excel sheet click on import excel or press f4.
Save - To save the entered purchase order details.
Clear - To clear the entered purchase order details.
Exit – To close the purchase order window.
Print - To print the purchase order report.

Item master

After giving Purchase Order entries,Create itembutton is clicked. Item Master form opens up to select the department, division, section and item name to purchase.
Click on Create item button -> Item master form.
General tab
This tab allows to select the department, category and to enter the quantity and price of the item. The general tab of item master window will look like this.

This tab allows to select the department, category and to enter the quantity and price of the item. The general tab of item master window will look like this.

1. To select the department

  • Division- The field should be disabled and can be selected from department. For eg: Division can be men, boys, kids, and women.
  • Section- The field should be disabled and can be selected from department. For eg Section can be tops, bottom etc.
  • Department- This field is mandatory. It contains the details of division, section.
  • Item name- The field should be disabled and can be selected from department. For eg item can be MT-formals, casuals.
  • Short name- It is the short name of the item. For eg it can be MT.
  • OEM code- It is the original equipment manufacturing code. When the item possess a code already, the same can be used as the Barcode by the Buyer.
  • Department- Check box. Select after entering the above details.

To select the category


SI NO

CATEGORIES

DESCRIPTION

1

Brand

It can be selected by pressing F2.

2

Colour

It can be selected by pressing F2.

3

Size

It can be selected by pressing F2.

4

Pattern

It can be selected by pressing F2.

5

Design

It can be selected by pressing F2.

6

Category

It can be selected by pressing F2.

7

Category

Check box. Check it after entering above details. (Optional)

All Catergory Names grouped under each Category in the Category Group Form will be displayed in the respective dropdown.

3. To select the category from the group

  • Select Category –Category is displayed. Eg Brand, Colour etc.
  • Select Group-The Group Name for the Category is selected here.
  • Select Items- The Items grouped under each Category are listed here.
  • Split Price – The field should be selected to enter the rate and disc%.
  • Rate- Rate represents the cost price of the item and it is mandatory.
  • Disc%- To enter the disc% of the item.
  • Standard Rate- It will be calculated automatically. If the discount is applied then the standard rate will be calculated accordingly.
  • Split Price –After entering the above details click on split price. This defines the amount to be segregated for items of different sizes and colours, etc.
  • Group- Check box filed. Select after entering the above details.

4. To enter the quantity and price details

  • QuantityThis field is mandatory. It specifies the number of items to purchase. For eg quantity can be 4, 5 etc.
  • Rate- This field is mandatory.This is the Vendor Rate and on scanning an item, the rate must flow through the item master.
  • Discount% - This field is usable when there is discount for the item you buy.
  • Standard Rate – Standard rate represents the rate or the discounted rate. It represents the Cost Price of the product.
  • Option – Default, Mark up and Mark down are the three options available. This defines the product margin wise.
  • WSP% - Whole Sale Price % calculates the margin % for WSP based on the Standard Rate.
  • RSP% - Retail Sale Price % calculates the margin % for RSP based on the Standard Rate.
  • WSP – On selling items to wholesalers, this field is used. WSP should be lesser than RSP.
  • RSP – Retail Sale Price denotes the price targeted to the direct Consumers.
  • Listed MRP- It is the price at which the product shall be sold in retail. This
  • shows a difference between the RSP and listed MRP.
  • Round off–On clicking Round Off checkbox, the decimal values are eliminated and the whole number is displayed.
  • Combination- An item can be created based on a specific combination using the Combination option. Rates for the new combination can be defined here itself.
  • Create Item –After entering all the above details click on create item to create the Item with its barcode.
  • Populate Item –Click on this field to populate the items and the item details will be listed with barcode.
  • Clear – This field is used to clear the details entered.
  • Expiry Date- It the date field that specifies the expiry date of the newly generated item.
  • Scan unit- It shows the number of items that have been scanned in the current session.
  • UOM- It is the unit of measurement. For eg it can be PCS, MTS.
  • Vendor Name- It is mandatory. It is the name of the supplier and the vendor name can be selected by pressing F2. If the vendor is not available in the list, it can be registered by clicking the vendor name link that opens up the party master form.
  • Tax Name- Tax Name is defined in the Tax Master form and linked in Create Group form to each department. When an item is created fro a department, the respective tax name automatically flows in the Item Master.
  • Vendor –It can be selected after entering the above details.
  • 5. To select category from combination

    This is another way to define an item’s category. Once the Department is chosen, the item can be created with different combination like color and size. Rates can be defined here for different combinations.

    In Item master->Click on Combination

    1

    Brand

    It can be selected by pressing F2.

    2

    Colour

    It can be selected by pressing F2.

    3

    Size

    It can be selected by pressing F2.

    4

    Pattern

    It can be selected by pressing F2.

    5

    Design

    It can be selected by pressing F2.

    6

    Category

    It can be selected by pressing F2.

    7

    Qty

    Mandatory. Enter the quantity.

    8

    RSP

    Enter the RSP

    9

    Listed MRP

    Enter the MRP

    10

    Calculate for

    Select from drop down

    11

    Option

    Select from drop down

    12

    WSP

    Enter the wsp.

    13

    Round off

    Check the field to round off

    14

    Apply

    Button field. Click to apply the entered value.

    15

    Generate items

    Button field. Click to create items.

    After entering the above detailsGenerate Itemsis clicked so that new items are generated and listed in the created item list. To populate items in the Purchase Order page click on populate item to display the item details with the barcode on the main page. Additional tab
    The Additional tab allows entering the additional details of the item. The description field is used to enter the description of the items and the numeric field to include the numeric values. The image details allow uploading the image of the items.
    The additional tab window will look like this.

    SI.NO

    FIELD NAME

    DESCRIPTION

    1

    Description-1

    To include description of item. (Optional)

    2

    Description-2

    To include description of item. (Optional)

    3

    Description-3

    To include description of item. (Optional)

    4

    Description-4

    To include description of item. (Optional)

    5

    Description-5

    To include description of item. (Optional)

    6

    Description-6

    To include description of item. (Optional)

    7

    Details

    Check box. (Optional)

    8

    Numeric-1

    To include numeric values.(Optional)

    9

    Numeric-2

    To include numeric values.(Optional)

    10

    Numeric-3

    To include numeric values.(Optional)

    11

    Numeric

    Check box. (Optional)

    12

    Upload

    Button field. Click to upload image.

    13

    Image

    Check box. (Optional)

    Search Item

    To search a created item on the basis of its Department, Search Item button is helpful. It opens a window to enter details regarding the item to be searched.
    Purchase order->Click on Search item.
    The search item window will look like this.

    SI.NO

    FIELD NAME

    DESCRIPTION

    1

    Division

    To be selected from drop down

    2

    Section

    To be selected from drop down

    3

    Department

    To be selected from drop down

    4

    Vendor name

    Mandatory. Selected from PO details

    5

    Stock Point

    Mandatory. Selected from PO details

    6

    Tax Name

    To be selected from drop down by pressing F2.

    7

    Brand

    To be selected from drop down by pressing F2.

    8

    Colour

    To be selected from drop down by pressing F2.

    9

    Size

    To be selected from drop down by pressing F2.

    10

    Pattern

    To be selected from drop down by pressing F2.

    11

    Design

    To be selected from drop down by pressing F2.

    12

    Category

    To be selected from drop down by pressing F2.

    13

    Barcode

    Enter the barcode.

    14

    Document type

    To be selected from drop down by pressing F2.

    15

    Doc no

    To be selected from drop down by pressing F2.

    16

    Date

    Enter date.

    17

    Expiry- From, To

    Enter date.

    18

    Generated-From, To

    Enter date.

    19

    Group name

    To be selected from drop down by pressing F2.

    20

    Search

    Button field. Click to search.

    21

    Barcode

    Enter the barcode of the item.

    22

    Select all

    Check box. To select all the items listed in the item details.

    23

    Apply stock

    Check box.

    24

    Clear

    To clear the item details.

    25

    Populate

    To populate the items in the PO details.

    26

    Exit

    Button field. To close the search item window.

    On entering any of the above details the search item window will list the item details like this.

    Charge Details

     Charge Details define the charges other than the Purchase Order. The details provided in the charge master are grouped in the term master which will get populated in the charge details automatically. Charge may be a cost incurred for that purchase, or any reduction in purchased value. Charge Details flow the names of the Charges created in Charge Master form.
    The charge details window will look like this.

    Import excel

    It allows importing data from external files. Instead of creating items one by one, items already available can be pulled in from external sources. The import excel window will look like this.

    End