Purchase orders module

Goal

This functionality is used to order items (catalog, inventory or generic (free text)) from a supplier or from a storage location (inventory). Within the purchase order processes, mandate/additional approvals can be executed depending on the settings. Also the receival of goods (delivery) can be registered in order to keep track of all items ordered and all items delivered.

Register the stock of all inventory items and managing the different storage locations is part of inventory management. More information about the inventory management can be found via Inventory management module.

Workflow used

This process uses workflow version: FMB-WF-2104001-01 & FMB-WF-2103001-01.

Description

Introduction

Throughout this wiki the terms POI and POO will be used.

A POI stands for "Purchase Order Incoming" and refers to an order that does not go to an external supplier, but is directed towards the internal organization (either since it is an order to take from the (internal) stock or to order catalog items from different suppliers in one order and have that order be split into external purchase orders per supplier. So in a POI, there is no supplier relevant.

A POO stands for "Purchase Order Outgoing" and refers to orders that are send towards a external supplier.

POI

A POI is used for internal purchase orders. POIs can be used in two different ways:

Order items from inventory: The user can order items from the inventory. For example, the client has a small storage area where items like printing toner, laptops, keyboards, etc. are stored. The items in stock can be purchased via the POI. In this case, the user orders internally from the purchasing/inventory department.

Order items from supplier: The user can select items from a catalog of orderable items. These orderable items can be from multiple suppliers. The user creating the POI does not have to check which item is from which supplier. After submitting and approvals, the POI will be divided into multiple POOs (one per related supplier based on the items). For example, the user orders printing paper from supplier A and a printer from supplier B in the same POI. After approving the POI, a purchase order for supplier A and a purchase order for supplier B will be generated (or manually created).

POO

A POO is an outgoing purchase order. POOs can be used in two distinct ways:

Order inventory items from supplier to restock the inventory: When inventory items aren't in stock anymore or they are below the minimum stock, the inventory items need to be ordered from the supplier in order to refill the stock. The purchasing/inventory department checks if inventory items need to be restocked. An automatic order advice (POO) can be generated, for all inventory items where the stock is below minimum (more information about this via inventory management)

Order catalog items from supplier: The user can order items from the selected supplier. The POO can be created manually as a regular purchase order, automatic from a POI or manually as a collective order, where POI items to be ordered can be added manually. The ordered items will not be kept as inventory.

POI & POO, which to use

If the client chooses to use purchase orders and inventory management, the POI is used for the end user to order from available inventory and the POO is used (by the purchasing/inventory department) to order from supplier, to refill the inventory. So both POIs and POOs are used.

If the client doesn't have inventory but only orders catalog- and generic items from a supplier, the client has two options:

1. Only use POO: The user selects a supplier and adds the items. This can be used if the purchasing is done by one department or users know which items come from which supplier. It can become unnecessarily complex if the same department/person needs to create POIs and then has to generate POOs from those POIs.
2. Use POI and POO: The (end) user selects items from a total catalog and the POOs are generated per supplier. This can be used if end users may order items, but you don't want them to search per supplier. Usually the end user doesn't care which supplier the items come from and by bundeling all items in one total catalog, the end user doesn't have to search through all individual suppliers. After the POI is approved, the individual POOs are (automatically or manually) generated per supplier. Using POIs can also be desired to avoid delivery costs by manually generate POOs (collective orders) and add multiple POI (items) together in one POO per supplier (By uses with the group "4. purchasing" (FMB-G104))

In the next chapters the processes of an internal and an outgoing purchase order is described for inventory items and catalog-/generic items.

Purchase order types

As mentioned above, there are multiple configurable options within the complete purchase order process. These options are configured via a purchase order type. Each purchase order that is created is related to a purchase order type that determines (among other things) the approval options, type of items that can be selected and steers the workflow based on these options.

It is possible to created multiple purchase order types per client and (for instance) use a different mandate process for different types of items. If only one purchase order type is used, it is set automatically and not shown to the users.

More information about the purchase order types can be found via Purchase order types.

Catalog- and/or generic items

N.B: Whether a user can order catalog/generic or inventory items within a purchase order, depends on the purchase order type that needs to be selected (or is automatically set if only one applies) as one of the first fields in a new purchase order (both POI and POO). Its either Catalog/ generic or inventory. Never both, due to the difference in deliveries and the different relationship between POI and POO for catalog vs inventory

POI

Users with the group '1. Create internal purchaseorders (POI)' can create purchase orders via het StartBoard (preCreate). Purchase orders can also be searched and created via the navigation menu.

After creating a new purchase order the subject and description can be entered. Also the purchase order type must be selected. If the client only uses one purchase order type, the purchase order type will automatically be selected and will not be visible for the end user. Depending on the settings within the several purchase order types, only the purchase order types relevant for the process will be shown. For example a inventory item and POO purchase order type will not be shown within a POI.

After selecting the purchase order type, all the settings from the purchase order type will be activated within the process. The fields on the page become visible depending on the settings (supplier information, delivery information, financial information). Also depending on the purchase order type, the user can add catalog- and/or generic items to the purchase order.

After submitting the purchase order, the approval tasks will be generated according to the purchase order type settings. Depending on the mandate approval type, the relevant user receives the task to mandate approve the purchase order. After that, the relevant user receives the task for the additional approval. If the purchase order is rejected (via the mandate approval or additional approval), the purchase order will go back to the requestor. If no approval is necesarry, the tasks will be skipped.

After the purchase order is approved, the purchase order needs to be divided per supplier. On the purchase order type the setting 'Processing internal purchase order' determines if the POOs are generated automatically after approving the POI or POI items need to be manually assigned to POO(s).

When the items need to be assigned manually, users with the group "4. purchasing" (FMB-G104) can create a new POO for a specific supplier and mark it as a collective order. Within this collective order, the not yet assigned POI items from the same supplier can be added. It is also possible to use includes on the purchase startboard (see startboard templates) to view all POI items that still need to be assigned to POOs (and also assign them via the same startboard includes)

The items within the POI will be linked to the items in the corresponding POO. After the POO(s) are/is sent to the supplier, the corresponding POI will go to the status 'Awaiting counter purchase order'.

The delivery can be registered in both POO and/or POI. This is also depending on the settings within the purchase order type. Deliveries possible:

• No goods receival: The purchase order will be closed automatically.
• Order completely delivered: With one click, the complete order is delivered and closed.
• Partial delivery: On the Deliveries tab, the delivered quantities can be registered for each ordered item. After all items are delivered correctly, the purchase order status will be updated automatically.
• Close order (no more deliveries): The purchase order can also be closed manually, without receiving any more items. In this case the ordered quantities do not match the delivered quantities.

If the deliveries are registered in the POI, the counters purchase orders (POO(s)) will also be delivered automatically. If the deliveries are registered in the POO(s), it is optional to also register the deliveries in the POI or not.

POO

Users with the group '1. Create outgoing purchaseorders (POO)' can create purchase orders via het StartBoard (preCreate). Purchase orders can also be searched and created via the navigation menu.

This purchase order is the order which is send to the supplier. The POO can be created:

• Manually as a regular purchase order to the supplier
• Automatic from a POI
• Manually as a collective purchase order, where the items to order can be added manually based on items in POIs

If the purchase order is created manually, a similar process to the POI is used: Create - Add items - Submit - Mandate and/or additional approval -> Send order -> Delivery. Instead of searching within all possible items to order independent from supplier, in the POO the supplier must be set first. After that, the items from that supplier can be added.

If the POO is automatically created from a POI or used as a collective order (and thus, all items come from POIs), several steps will be skipped. For example the mandate and/or additional approval which are already executed in the POI(s).

Within the POO the same delivery options are available as mentioned above. A difference with the POI process, is that the purchase order can be corrected after closing by the group which also registers the deliveries.

Side note: When the client doesn't use inventory management, but wants to register the receival of the goods (delivery), a dummy storage location needs to be added.

Inventory items

N.B: Whether a user can order catalog/generic or inventory items within a purchase order, depends on the purchase order type that needs to be selected (or is automatically set if only one applies) as one of the first fields in a new purchase order (both POI and POO). Its either Catalog/ generic or inventory. Never both, due to the difference in deliveries and the different relationship between POI and POO for catalog vs inventory

POI

Users with the group '1. Create internal purchaseorders (POI)' can create purchase orders via het StartBoard (preCreate). Purchase orders can also be searched and created via the navigation menu.

The process is similar to the POI (catalog- and/or generic items) process. A difference between the two POIs is that a storage (Warehouse) has to be selected, before adding items. The items in this case aren't catalog- or generic items, but inventory items.

When the POI has been delivered, the stock of all inventory items will be updated (since it is a internal order, the quantity deliverd will be subtracted from the stock).

POO

In order to refill the stock, inventory items need to be ordered at the suppliers. Again similar to the POO (catalog- and/or generic items) process mentioned above, the storage has to be selected as well as the supplier. All available inventory items can be added to the purchase order. It is also possible to generate an order advice, based on the minimum and maximum stock of the inventory item. See inventory management for details about that.

After registering the deliveries in the purchase order, the delivered quantity will be add to the stock of each inventory item.

Authorizations

The following groups can be assigned or are assigned automatically to users:

Configuration options

The configuration of the purchase orders process(es) is done in the purchase order types. More information about the purchase order types can be found via Purchase order types.

Data imports

The following standardized imports are available:

• FMB-F-087 Import orderable catalog items

Dashboards and reports

For Purchase orders there are default reports and dashboards available.

The 'Purchase orders' module has a management dashboard available. Users with the group '7. Management dashboards purchase orders' (FMB-G122) have access to the contract management dashboard via the navigation menu option 'Purchasing'.