Toolbox

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

The Requestor who expresses a demand for goods or services through a requisition.
The Purchasing Specialist who selects the most appropriate supplier based on the organization strategic procurement objectives and generates the purchase order, either manually or automatically based on rules.

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:

what goods need to be purchased
the name of the Supplier
ordered quantity
prices of the goods
when the products were ordered
when they are promised to be delivered
which warehouse the products must be received in
who and where the invoice needs to be received
what tax needs to be applied
which project the products are required for

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:

We have the goods receipt with document no: 1000 (qty=5)
We create the purchase invoice with document no: 2000 (qty=5)
We complete the invoice so in the Matched Invoice window we have:

Invoice line	Receipt line	Qty
2000	1000	5

We void the invoice so a new voided invoice is created, for example, R-2000 (qty=-5)
So in the Matched Invoice window we will have:

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

An invoice with document no=2001 is created with one line of quantity 18. Then a partial goods receipt with document no 1001 is created based on the invoice using the button Create lines from with quantity 10 . For this case the field Goods receipt line that exists in the invoice line is populated with the value of the goods receipt line when completing the invoice. At the same time a new entry is created in the window Matched Invoices but just when completing the invoice. So the result would be

Invoice line	Receipt line	Qty
2001	1001	10

Another partial goods receipt with document no 1002 is created based again in the invoice using the button Create lines from. The invoice is selected and the quantity is changed to 8. In this case when pressing the OK button a new entry is populated in the Matched Invoices window. Please note the difference with was done in previous goods receipt (1001) where the entry was created when completing the document. So at this moment the result would be:

Invoice line	Receipt line	Qty
2001	1002	8

Then complete the goods receipt. Now the invoice 2001 is completely received having this situation in the Matched Invoices window:

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

John knows that in two weeks a production of product C needs to start but there is not enough raw material A and B in stock.
He opens the Requisition window and creates a new requisition. He does not need to insert additional data in the header as the Document Number is automatically generated.
- He creates a line for Product A, sets the Due Date for a day before the production starts and fills out the desired quantity. He does the same for Product B.
- After inserting all the products he completes the requisition.
Mary reviews all freshly arrived requisitions and sees that there is a new one.
- After checking all requisitions, she clicks the Create Purchase Orders button and runs the process.
- The process ends with a message showing the created Purchase Orders numbers. The system then closes the completed requisition.
Mary navigates to the newly created Purchase Orders and checks them.
- She notices that Product A could get a volume discount for purchasing a slightly larger quantity, so she puts the PO back in draft status and changes the quantity of Product A to get the desired discount.
After a couple of weeks the vendor ships the goods and Mike in the warehouse uses a Goods Receipt to document what goods have arrived and the inventory gets updated (Warehouse Management).
Mike also creates a Purchase Invoice based on the invoice that the vendor sent. Upon completion of the Purchase Invoice a Payment gets generated to alert Accounting that the vendor needs to be paid (Financial Management).
After all goods have been received, Mary closes the Purchase Order.

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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