Purchase Module Planned Flow of the Software # 002 = Purchase Order How to Create.. Steps & Questions.
Post on 13-Dec-2015
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File # 002 Covers the Third cell of this flow chart
Purchase indent
Indent Approval
Purchase Order
PO checking
PO Approval
Gate Entry
Quantity MRRQA – QC
Bill Passing Paymentx
Questions at this stage
• Make PR compulsory for PO ?– Recommended “YES” by Finsys, if actual users can
make PR. Reduces work for Purchase dept, reduces errors.
• Allow to copy , previous PO ?– Ok, only if PR is compulsory.– IF PR is compulsory, remove this option– If PR is not required, then take this option
Questions at this stage
• Allow PR Quantity change ?• If PR is for 1000 kg, I can make PO for 4000 kg ?– Recommended that don’t allow, for better control– You can reduce in PO, but, not increase
Questions at this stage
• Rates for the PO : fill here manually or auto fill, from approved vendor list ? – – Idea : make one more step, approved vendor price list. Fix
prices there. Fix taxes there, fix discounts there. Approve that list
– Now, in the future PO’s, the rate + tax are automatically from that table.
– Good = • for additional control
– Demerit = • Some companies don’t like to have one more step. • Not ok for highly fluctuating prices
As Purchase department person select PR No. half of the columns filled automatically rest need to fill by Purchase department Like, Rate, Vendor, Fright if any, taxes for one time etc. He is authorised to change the quantity if company wants…
Finalising a Purchase Order
Questions at this stage• Should we allow Printout of “Draft Purchase order” ? • Or is that “Not allowed” ?
– Best Business Practice (BBP) : don’t allow– Reason : if draft PO is printed, / or made PDF, it can be misused, – That draft printout can be sent without permission to the vendor, vendor
may supply the goods, and then you end up receiving the goods, even if they were not required.
– Ideal situation = The Approving authority must approve “online. And then it must be sent as PDF to the vendor. With “authorised-by” auto printed on the PO.
– Good = for additional control– This control is “Not suitable” for companies where Directors don’t approve
“online”.
Questions at this stage• Should we print the made by, checked by, authorised by ? At
the bottom of the PO , automatically ?– Best Business Practice (BBP) : Yes– Reason : proof that it is authorised by them.– Good = for additional control– This control is “Not suitable” for companies where Directors don’t approve
“online”.
Another Lock ?
• Don’t allow Multiple Open Purchase orders for same item to same party ….
• Finsys Recommends = YES• Benefit = – Prevents errors at Gate, which PO ? Only 1.– Prevents multiple Rates for same item – Controls the vendor– Proper stock valuation
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