Purchase Module Planned Flow of the Software # 002 = Purchase Order How to Create.. Steps & Questions.

Purchase Module

Planned Flow of the Software# 002 = Purchase Order

How to Create.. Steps & Questions

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

PO entry PO terms and conditions

PO editingPO Printing

Topics Covered

NOW , LET US MAKE THE PURCHASE ORDER

.

After PR approval now make Purchase Order PO via General PO

Select the type of from different “PO Types”

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

Decisions required

• Which cells are compulsory ?

Fill the second Tag of PO Terms and ConditionsHere you can attach the picture or required item

Some Additional features in Purchase Order entry screen

Excise, VAT, Terms and conditions popups

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Ready

Decisions required

• Which cells are compulsory ?

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Decisions

• Which popups are compulsory ?• What information to come as “choices” in

those popups ?

Test Certificate required ?

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Benefit of Standard packing instructions, if possible

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Facility to Edit ?

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Option for Excisable Packing Charges ?

Excisable trader and ADI

Now, this is a “DRAFT 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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