Can Purchase Process be a Pleasing Experience?
In an Organization setup whenever we talk about purchase process it sends jitters to almost
everyone for different reasons which could vary from wrong requisitions, to inordinate
procurement delays, to weak tracking of procured items, to poor visibility/ communication
leading to inter department friction, mistrust and blame game. So the question is, can the
purchase process be ever smooth and tension free? Can it become a source of collaboration
rather than a reason for dispute?
The answer lies in
- How comprehensive, detailed and aligned is the process to the business?
- What provisions and support systems are enabled for it to help in adherence
- Are there any Bells and Whistles to ensure that Violations are brought to the book
The first point mentioned above with respect to the design of the purchase process is to be
dealt with at a Business Leadership level and the next two are related to all support systems
including IT which serves as an enabler of the Process.
Posibolt the leading business process ERP software provides various mechanisms, and tools
to ensure the right definition and effective implementation of the purchase process
The following are the salient features
- Purchase Intend and/ or Requisition
- Purchase Order Process
- Approval Mechanism and Tracking of Requests
- Product and Vendor Management
Purchase Intend and Requisition (PR)
PR is a formal internal requisition document created to request for purchasing items from
vendors. In POSibolt, Requisition Management is a process that employees, managers and
purchasers can use to enter and approve purchase requests. PR which are requests for
items, are routed to the appropriate users/authorities for review and approval, and then line
items are transferred to new purchase orders.
Requisition Management can cut down the lengthy process and gives employees an easy
way to enter purchase requests. It also automates the routing of purchase request information
from creators to approvers, and ultimately to purchase orders.
You can use Requisition Management to:
- Create, approve, or reject purchase requests.
- Route purchase requests to a supervisor for review.
- View the status of a purchase request and its history information
- Transfer line items to new purchase orders.
- Create new purchase orders to Vendors from a Requisition containing multiple Vendors.
Purchase Order (PO)
Purchase order as we all know is a legally binding contract, with specific terms and conditions between buyer and the vendor hence the need to have all the pre-requisites and enablers in place to create the right PO. When all parties have fulfilled their obligations outlined on the purchase order, the buyer is obligated to pay the vendor.
In POSibolt, Purchase Order Management integrates and brings employees, managers and purchasers on a single platform to enter, approve and track purchase orders. PO, which are orders for goods, are routed to the appropriate users for review and approval, and then eventually transferred to Vendor Invoices for payment.
It also automates the routing of purchase order information from creators to approvers, and ultimately to Vendor invoices.
You can use Purchase Order Management to:
- Enter, approve, or reject purchase orders.
- Route purchase orders to a supervisor for review.
- View the status of a purchase order and its history information
- Allow addition of Change Orders to approved purchase orders.
- Once received, create invoices from RGs
When shipments arrive the creator or other authorized person can mark each line item with
Quantity received. Wait until Vendor Invoice arrives then check against
Purchase Order. Make minor changes to PO with Change Orders if required. When PO matches the Vendor Invoice a user can convert to AP Invoice. After the AP Invoice is created it must be approved before being submitted for payment to your Cash Management personnel
Discount: – Discount for a purchase order are provided through this option, if that the role has the privileges to do so.
Quick Discount: – Discount for a single item or give a discount on the totals, you can use the option quick discount
Edit Price: – When a product is added, the prices displayed is that of the default purchase price-list. You can override this default purchase price by clicking on the Edit<span”> Price button and by entering a new purchase price for each item line. Note that this process will not modify the default purchase price.
Edit Payment Term: – To edit payment term from purchase order screen itself, From role configuration enable the option allow edit payment terms.
- This will display a Edit Payment term button , you can choose the payment term from the dropdown and click on Ok
- New Payment term will be saved for the purchase order.
View Purchase Order: – View purchase order will take you the history of purchase order. It built will different type of filters, to filter out the report as per the user requirements.