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ERP 2.50:Functional Documentation/Procurement Management



Procurement Management entitles the activity of handling and request of required goods to the moment of arrival and payment of the goods.

Procurement Management ties in with Warehousing , Financial Management and Project and Service Management.



Functionality available in version 2.40

Users can initiate the procurement flow by entering requisitions rather than purchase orders. This enables a clear separation of roles and duties between:

Purchase Order

A ‘Purchase Order’ is a document that specifies products and/or services ordered from a specific vendor, as well as the price, terms and conditions.

Purchase Orders are usually delivered according to contractual agreements with a supplier, specifying payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions.

A ‘Purchase Order’ can be entered manually or easily created by copying an existing Purchase Order. An automated method to create Purchase Orders is by running a program to convert the proposals from a ‘Purchasing Plan’, generated by MRP, to ‘Purchase Orders’.

Purchase Order Attributes

Document number: The ‘document number’ for the ‘Purchase Order ‘can be automatically generated or filled out manually if required

Order Reference: An external reference number of the Supplier can be displayed in this field for reference purposes.

Price List: Per ‘Purchase Order’ a specific ‘Pricelist’ can be selected for the Supplier that will apply to all lines on that ‘Purchase Order’.

Document Status: Different statuses can be selected to indicate in what phase of Procurement the Purchase Order currently is. Examples of document statuses are ‘Draft’, ‘Not Accepted’, ‘Underway’, ‘Completed’, ‘Closed’, etc.

Form of Payment: Different ‘Forms of Payment’ can be selected to indicate the invoice payment. Examples of ‘Form of Payment’ are ‘Bank Deposit’, ‘bank order’, ‘bank remittance’, ‘cash’, ‘credit card’, ‘cash shipment’, ‘money order’, ‘promissory note’.

Payment terms: ‘Payment terms’ is defined to indicate when an invoice needs to be paid

Apart from the above attributes the ‘Purchase Order’ also specifies many other attributes, for example:

The ‘Purchase Order’ indicates the ‘Summed Line Amount‘ (the sum of the amounts on the Sales Order without taxes being added) and the ‘Grand Total Amount’ (the sum of the amounts on the Sales Order including taxes).

Goods Receipt

‘Goods Receipt’ is a document that states the products or goods received from a vendor.

A ‘Goods receipt’ can be generated either manually or automatically. The automatic method can generate ‘Goods Receipt’ based on a ‘Purchase Order’ or a ‘Purchase Invoice’.

Multiple Purchase Orders can be copied to a goods receipt.

A ‘Purchase Invoice’ can be generated automatically from a ‘Goods Receipt’.

Goods Receipt Attributes

Movement Date: Indicates the date when the product moved into inventory, as a result of a receipt of the ‘Purchase Order’ from the Supplier.

Storage bin: The location in the warehouse where the product that was received from the Supplier will be stored.

Attribute Set Value: The products being purchased may have different attributes such as size and colour.

Relationship to Warehousing

When the ‘Goods Receipt’ document is generated and completed, the stocked quantity of the product is updated.

Purchase Invoice

A ‘Purchase invoice’ is an itemized statement or written account of goods delivered by a Supplier. The ‘Purchase Invoice’ received from the Supplier will be checked against the expected invoice.

A ‘Purchase Invoice’ can be generated either manually or automatically. The automatic method can generate a ‘Purchase Invoice’ based on a ‘Purchase Order’ or a ‘Goods Receipt’.

It is also possible to copy from an existing invoice.

‘Goods receipt’ can be automatically generated from a ‘Purchase Invoice’.

Relationship between Purchase Invoice and Goods Receipt

The way Openbravo handles the relationship between both documents is through the window Matched Invoices. In that window you can see the relations between lines but not headers.

This window allows us to check whether an invoice is partially received or fully received and whether a goods receipt is partially invoiced or fully invoiced

The info is display like this:


There are two different flows and based on these flows several scenarios.

First flow: Create purchase invoice based on a goods receipt

In this flow you invoice a goods receipt, partially or fully. This explanation

In the purchase invoice header exists a button named Create lines from that allows you to copy lines from an existing goods receipt. The invoice line has a field Goods Receipt line which is populated whenever you select the receipt line. At the moment you complete the invoice an entry in the window Matched Invoices is performed. This way both lines are matched. Once the invoice is completed and matched the quantity of the line cannot be changed even if you reactivate the document. This is the message you will see:


If for any reason you want to add or reduce more items then you have to create a new invoice line specifying the new quantity. But what you can do is to delete the line after reactivating the invoice and start from scratch. Be carefully when removing the line because the related entries in the matched invoice window might be posted so first you need to unpost them

You can also void the invoice and since a new voided invoice is created but with negative quantities then corresponding negative entries will be populated into the Matched Invoice window. So the final result will be that the goods receipt that was previously invoiced now it's again pending to be invoiced and you will be able to select it again from the Create lines from button.

Let me explain it with a simple scenario:

Invoice line Receipt line Qty
2000 1000 5
Invoice line Receipt line Qty
2000 1000 5
R-2000 1000 -5

You could also void the goods receipt so finally you wouldn't have either the receipt nor the invoice pending for anything. So once you void the receipt and assuming the document no is R-1000, the situation in the Matched Invoice window would be:

Invoice line Receipt line Qty
2000 1000 5
R-2000 1000 -5
2000 R-1000 -5
R-2000 R-1000 5

Second flow: Create goods receipt based on Purchase invoice

The way you can create a goods receipt based on a purchase invoice is similar to the one explain above. In the header exists the button Create lines from where you can copy invoice lines.

Here it is very important to distinguish between a partial receipt or a fully receipt. Then two scenarios:

Scenario 1: Create several goods receipts

Invoice line Receipt line Qty
2001 1001 10
Invoice line Receipt line Qty
2001 1002 8
Invoice line Receipt line Qty
2001 1001 10
2001 1002 8

Now the purchase invoice is not pending to be received anymore

The reason why the ERP does this step in a different manner is because the goods receipt number 1002 cannot be directly linked with the invoice line because the field Goods receipt line was already filled with the value of document number 1001.

Scenario 2: Create one goods receipt

This situation is exactly the same as the one from first step in scenario 1 but without modifying any quantity

Relationship to Financial Management: Payment and Payment Monitor

The ‘Payment’ is automatically generated with the Payment and Invoice Rule defined for the Supplier and with the amount of the ‘Purchase Invoice’. Thus, when a ‘Purchase Invoice’ is completed, Accounting is updated automatically.

Payment Monitor allows users to track the invoice payment status. In this section it is possible to know whether an invoice is fully paid or not. If the invoice has not been fully paid then the Payment Monitor informs the user how much has been received, how much is pending, the due date of the next payment and the amount that is expected to be received on that date. The status can be updated automatically by a background process or manually for each invoice. The date when the payment status was last time calculated is displayed in the form. Filter pop-up window allow the user to filter invoices based on fully paid or not criteria (display all option is also available).


Purchase "Financial" Invoices

For those cases when a purchase invoice do not related to a product, good or service but to a "G/L account" needs to be entered and posted in the system, there is a flag called "Financial Invoice Line" in the Purchase Invoice Line, end-user can set as "yes" in order to enter a "G/L Item" linked to a "G/L Account" instead of a Product, Good or Service.

G/L items above mentioned, can be created as rest of G/L items but need to be set up as "Enable in Financial Invoices" which means that just those G/L items will be linked to a "Tax Category" and therefore shown in a purchase line like a product.

User Story

Business Intelligence (BI)

Business Intelligence (BI) consists of a broad category of applications and technologies for gathering, storing, analysing and providing access to data to help users make better business decisions.

BI applications include the activities of decision support systems, query and reporting, statistical analysis, forecasting and data mining.

The configuration of most reports is multidimensional. The user can select which type of information to use, in order to group and filter results.

Also, a comparative analysis can be made, for example looking at purchase trends over a length of time (e.g. one year) or the same period in previous years.

The reports can be displayed in HTML or PDF format.

Purchase Dimensional Report

This report shows registered Purchase Orders during a selected time period. With this report it is possible to show which Supplier is bought from most frequently and what products have been bought during the selected time period. Parameters for this report are the filters: dates, ‘Supplier’, ‘Product’.

A comparative report can be run to compare data between two different date ranges.

A grouping can be selected for the output of the Report.

Goods Receipt Dimensional Report

Similar to the ‘Purchase Dimensional Report’, but related to ‘Goods Receipt’.

Purchase Invoice Dimensional Report

Similar to the ‘Purchase Dimensional Report’, but related to ‘Purchase Invoice’.

Purchase Order Report

This report shows a list of all Purchase Orders grouped by Supplier. The report can be filtered by ‘Time Period’, ‘Warehouse’, ‘Project’, and ‘Business Partner’.

Vendor Invoice Report

Similar to the ‘Purchase Order Report’, using the same filters, but related to ‘Vendor Invoice’.

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