Tel: +64 9 522 4228
Fax: +64 9 522 4229
sales@serenade.co.nz
 
 
  Modules    
 
 
 
 
<<Prev Page

PURCHASE ORDERS

SERENADE'S purchase module allows you to keep track of all outstanding orders, from whom, when due, the amendments made to them and receipts. If will retain quotations from supplier and maintain pricing and discounts receivable on order items. It also compares the received data against the required date to access the supplier's performance.

Overview

You must have the Stock/Inventory module.If you do not require the Creditors module you can still use the Purchase Ordering module, the dealer will supply the creditors file maintenance program so that you can list your suppliers, but the system will not update the Creditors accounts even if you do the invoice matching process.

The Purchase Order module allows you to:

  • Select which items to order from a 'Potential Orders' list generated from the Stock/Inventory module
  • Print Purchase Orders
  • Process Inwards Receipts against the orders
  • Compare the vendor's invoice with the items received.
  • Allocate additional costs over the items in a receipt based on value, size or weight.
  • Receive stock from other branches or from a central distribution centre as Transfers
  • Do Variable key analyses of purchases
  • Receive multiple orders as a container delivery from different suppliers.
Features
  • Maintenance of Purchase Quotations
  • Ability to add/delete/change an order (including the vendor)
  • Unique 6 character Alphanumeric code for each Vendor and 8 character look-up code
  • Immediate print options of Purchase Orders
  • Items may be purchased from any vendor, not juts the primary vendor shown in the Stock/Inventory system
  • Purchase Units does not have to be the stock or selling unit.
  • Variable key analyses are optional (similar to Sales Analysis)
  • Overseas currencies may be used
  • Free format purchase order prints (as far as possible)
  • Matching of receipts to purchase orders (individually or in bulk)
  • Matching or Purchase Order items with Sales Back Order items.
  • Receipt value held in local and foreign currency
  • Cost uplifts for (included) freight or extra importation costs.
  • Change retail prices based on creditor invoice item value
  • Last 8 lead times store for re-supply purposes
  • Import costing facility
Creating Orders

Purchase orders may be created from the stock/Inventory stock shortage process. This creates a file of 'potential orders' that may be amended before being placed on the supplier. The supplier on an order item may be changed and orders may be made up to a minimum value for a supplier. Orders may be placed with out regard to shortages, which allows for new stock lines or parts required in WIP for prototype production or one-off specials.

Stock Shortage

There are facilities in the Stock/Inventory system that are used to decide if more stock should be ordered. This facility is capable of generating potential orders or WIP jobs if the shortage is a manufactured product or sub-assembly.The stock shortage process has two ways of deciding if an order should be placed:

  • Compare Potential stock position against the 'potential minimum'.
  • Check against the minimum stock setting

To set the 'potential minimum' the system uses:

  • The Lead time for deliveries of the part (in days).
  • The Safety time (in days).
  • The Frequency with which orders should be placed for this part.
  • Demand for the product over the last 3 months and over the equivalent of the next 3 months from last year.

This setting is done in the Stock/Inventory module for individual items or in bulk but is described here as it relates more to purchasing.

Lead Time

The lead time for a product is usually set as the average of the last 8 delivery lead times. It is not a problem for the lead time to be greater than the order frequency. In fact in some test cases it has been found that it can take up to 90 days to obtain some products (lead time) and it is required that orders be placed monthly.

This can be amended on an item by item basis if necessary.

Safety Time

The safety time is an allowance (in days) to cover any delays in obtaining stock or to cover any situations created by large fluctuations in demand. It is also useful in the early stages of the sales of a new product to set the product requirement at a fairly high level.

Minimum Potential

The 'minimum potential' is usually set (by the system) as the stock that will be needed to cover the lead and safety times. If an order is needed then the required order quantity is increased to cover the number of days of order frequency. Thus if an item is delivered in (say) a week but ordering is required monthly then the order will be placed when the weekly level is reached but the order quantity will be for the month.

Low Demand

The 'minimum potential' covers the normal products but where an item has a low demand the setting of the 'minimum potential' will be very low. If the setting is less than one item per order frequency the system will set the 'minimum potential' to 0 so that it becomes a 'demand order' item, in that we do not stock it but will get it in when a sales order is placed. If it is required that the item is stocked (basically for customer convenience) then the minimum stock quantity should be used.

Minimum Stock

Minimum stock allows you to indicate how you want to hold the stock of low demand items. Setting it to 1 will result in 1 item being on the shelf to meet demand. When that is sold another will be purchased. If it is set to 2 then when 1 is sold there is still another to meet any demand while waiting for the replacement to arrive.

Order Quantity

The quantity that the system suggests you order will be influenced by the re-order minimum quantity and the purchase factor for the part. If there is a purchase quotation then this may over ride the re-order and multiples.

Re-Order Minimum

The quantity of a part that the system suggests that you order will be equal to or greater than the re-order minimum quantity.

Multiples

Any suggested order will be taken to the next integer above of the purchase unit/factor.

Pricing and Discounting

Purchase orders will be priced from the standard, average or last cost of the part. If there is a purchase quotation then that may be used for pricing and discounting. There may be discounting (percentage discount) based on discount groups.

Quotations

The system is capable of holding quotations received form suppliers and applying them to order items when the orders are placed. In association with these can be special pricing and discounting based on quantity breaks. This last feature can be applied to specific parts or to groups of parts.

Inwards Receipts

Processing of inwards receipts will update stock records, including average cost but will NOT create an entry for the Creditor. To account for inwards receipts in the General Ledger the system posts to 'Inventory Control Account' and a 'Received not Invoiced' account and reverses these when the Invoice is received and then posts correctly as supplied.

Invoice Matching

When you receive the invoice from the supplier, you:

  • Match it against the order items, in a process that:
    • Clears the invoice for eventual payment;
    • Processes the order items that matched;
    • Generates a posting to the vendor's account;
    • Calculates the actual cost of each item and compares it with the cost used for the inwards receipt;
    • Amends the average cost shown in the stock record (if applicable), if the inwards receipt and invoiced costs differ;
    • Generates a variance entry to adjust the sales analysis if there is a cost difference and the received quantity exceeds the present stock quantity. It is possible that the stock has been transferred to another location rather that been sold, the system is unable to detect this so the Sales Analysis may be amend erroneously.
  • Amend the General Ledger disbursement.
Variable Key Analysis

This feature is very similar to the Sales Analysis equivalent and like the Sales Analysis is optional. The analysis data is updated by the Stock/Inventory module audit listing process.

The main points being:

  • You may retain up to 12 different sequences of the data and change these as required
  • Each sequence may have up to 5 elements
  • The elements are:
    • Vendor Type
    • Vendor Code (Alphabetic)
    • Vendor Code
    • Location/Branch of delivery
    • Part Number
    • Analysis group
    • Sub-Analysis group
    • Special Analysis code
  • The elements may be in any order with-in a sequence
  • The elements in the sequences may be changed interactively
  • 36 periods of Quantity and Value are retained
  • Reports may be produced at any time
Deletion

Order items are deleted when they are completely received and the invoices matched. The order headers are deleted when there are no more order items on them.It is not essential to do invoice matching. You can configure SERENADE to process vendors' invoices in the Creditors module, instead. The control record contains an indicator that the programs examine to determine if the system is to hold the receipt details for invoice matching. If this is NOT set the system will set all receipts as already invoiced and delete the order items when there are no more to be received.

Foreign Currency

The system allows foreign currency to be used on orders. It will convert this to local currency (at the time of receiving the stock) for reporting purposes and retain both values on postings to the Creditors Ledger. Payment made through the Creditors Ledger can show these payments in the vendor's currency on the remittance advice.

Additional Charges

The system can not fully cater for importation costs and duties that the goods attract. However, when you receive the invoice you may supply or calculate the cost of duty and other likely charges. This cost is spread across the items in ratio of each ones value to the invoice total.

This allows you to cater for:

  • Any local delivery and freight charges that appear on the invoice concerned, and
  • Future importation costs that will be on other invoices but associated with these particular items.
'Container' Deliveries

If multiple orders are received in one delivery, you need to define them to the system as a 'container delivery.' To do so:

  • Specify the order items that are in the delivery/container under a container code; and
  • Use the container code rather than the purchase order number when you process receipts and invoices.

You can use the same container code when the creditors invoice is received so that it may be spread across the multiple orders in the container.

 

Copyright © 2002
Serrata Systems & Software Limited
Created by: Alchemy Pages