Purchasing Module

Purchasing Module

Stock and Non-Stock Purchase Orders track purchasing in the system

1. Purchase orders can be created based on sales history and expected sales 
2. Purchase orders can be for multiple warehouses or stores
   1. Received by one Warehouse from the supplier
   2. Distributed to the other warehouses by automatically created move orders

Entering Purchase Orders is made easy:

• The system remembers all items this supplier has provided for you previously and provides them in a drop down list.
• Lead time and quarantine time are looked for on the Article and if no value then Supplier defaults are used
• History is available on the supplier and also on the Article
• Previous price or standard price can be used to default to the price

Purchase order Status

Track your Purchasing cycle using a number of statuses.

• Plan - entered but not yet committed
• Sent - has been sent to supplier
• Confirmed - is a confirmed order with supplier (track also Inco Terms 
• Shipped - Supplier has told us they have shipped the goods (tracks also the Broker/Transport company, the Container number, vessel, departure port and date etc)
• Received - we have received the goods. Note that we may not have received all the goods yet
• Closed - No longer active
• Cancelled Status changes are created in a number of ways in the system and each change is flagged on the back of the purchase order with the date or time and user

IncoTerms

Track the Inco Terms you have with your supplier. International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC)

There are certain terms that have special meaning within Incoterms, and some of the more important ones are defined below:^[12]

• Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer
• Arrival: The point named in the Incoterm to which carriage has been paid
• Free: Seller has an obligation to deliver the goods to a named place for transfer to a carrier
• Carrier: Any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes
• Freight forwarder: A firm that makes or assists in the making of shipping arrangements;
• Terminal: Any place, whether covered or not, such as a dock, warehouse, container yard or road, rail or air cargo terminal
• To clear for export: To file Shipper’s Export Declaration and get export permit

See https://en.wikipedia.org/wiki/Incoterms#Rules_for_any_mode_of_transport

Purchase Order Reporting

Reports provide notification of when funds will need to be paid using payment terms that may be based on a number of days from a combination of Production Start, Production Complete, Collection, Bill of Lading, Arrival into Port, and Receipt

Purchase Order Reports highlight overdue, delayed and changed Purchase orders, count vs ordered discrepancies and indicate those received and counted but not yet paid.  The reporting also provides an indication of Foreign Exchange requirements.

Landed Costing

When the stock is to be marked up by transport, duty and other costs

• use Simple Landed Costing if there are few costs and they are applied based on value only - you can enter this after the stock is received.
• use full Landed Costing if you have many costs and wish to apply them using value, weight, volume or a manual spread of costs - enter a estimate before the stock arrives, later link it to actuals.

Forecasting

There are a couple of methods of doing forecasting

1. Simple time based  Forecasting using flat sell rates, existing orders and estimating the time your stock and purchases will last
2. Complex Clothing Seasonal Sales Forecasting
3. Complex Product Forecasting Based on Sales History

Inter-company

When trading between your own companies - the Host Company (your business/s) is the Debtor and hence is automatically eliminated from consolidation reports.  

An inter-company Purchase Order will auto-create a matching sales order when the status moves from Plan Status.  An inter-company Creditor invoice will create a matching (and locked) inter-company Debtor invoice.