Next»

«Previous

Purchasing

Purchase orders are used to procure the raw materials and components needed by jobs. The purchasing workflow also includes PO receipts, PO invoice matching, and AP voucher transfer to your accounting system.

Purchasing Guide »

Purchasing spans four workflow phases

Purchasing is not its own phase within the "Total Control" process workflow.  Instead, purchasing spans across four phases of the process workflow:

  • POs are generated during the MRP phase.
  • POs are received during the Inventory Control phase.
  • PO costs are integral to the Product Costing phase.
  • PO invoices are converted into voucher style invoices and are transferred to your accounting system during the Financial Transfer phase.

Item sources include suppliers and manufacturers

Each stock item is assigned to a default supplier, against which you maintain the supplier price, description, unit of measure, and conversion multiplier.   Alternate suppliers can be defined as well.  When an item must be sourced from a particular manufacturer part number, you can assign the item to a default manufacturer and manufacturer part number.

Item MRP settings determine PO planning

Item MRP settings determine PO planning.  The Lead Days allocates time to account for procuring the item from the default supplier.   The item Order Policy determines if the item is purchased to order or to a monthly forecast.   If purchased to a forecast, the Supply Days determines how many days of forecast demand is to be covered by each PO quantity.

POs are generated by MRP

POs are generated by MRP in response to net demand from jobs and sales orders relative to stock on hand.  PO due dates are time-phased so that material is available to meet dependent job start dates.

POs can be augmented manually as needed

Each set of POs generated by MRP represents a minimum action profile.  After POs are generated, they can be augmented manually if needed in the Purchase Orders screen to fill a truck or container, meet volume commitments, or other purposes.

Inventory is updated at PO cost when POs are received

PO items are received to inventory at PO cost through the PO Receipts screen, which updates inventory value and makes items available for jobs and sales orders.

Supplier invoices are matched with POs

Supplier invoices are matched with POs in the PO Invoices screen so that any variances between PO cost and invoice cost are accounted for and to close POs when they are fully invoiced.

Invoice totals are transferred to your accounting system for AP processing

Matched PO invoices are converted into voucher style invoices and are transferred in the AP Voucher Transfer screen to your accounting system for AP processing.