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Procurement Management

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Contents

Introduction

Procurement Management deals with all the activities related to the purchase of goods and services from external suppliers and the corresponding reporting.

This application area of Openbravo covers Requisition to Receipt and Invoicing parts of the Procure To Pay business flow and Supplier Returns business process.
For Payments Management of Procure To Pay see Financial Management // Receivables & Payables application area.

Procure to Pay Business Flow

Procure to Pay workflow manages the life-cycle of a procurement process.

Due to its complexity and different roles involved it is convenient to split Procure to Pay down into two main sub-processes:

1. Requisition to Receipt process starts by the creation and management of purchase requisitions and corresponding purchase orders to the moment the warehouse staff receives the merchandise.

2. Supplier Invoice to Payment continues previous sub-process by registering the supplier invoices and closes it by paying supplier invoices.

Procure To Pay

Configuration

The following setup needs to be done before performing the process:

Products need to be configured prior any purchase requisition is issued.
Each product that is being purchased needs to have a price in the purchase price list in order to be selectable in any transactional document like a purchase order or a purchase invoice.
Please refer to Product Setup, Product and Pricing for more information.

Above configuration is part of the overall Business setup flow within the "Master Data Management" setup.


The cost of an input transaction such as a "Goods Receipt" can be calculated by using the product's purchase price excluding taxes.

Besides that, the cost of the products included in a Goods Receipt can be adjusted as a result of allocating different types of Landed Costs in the receipt.

The "Costing Server" process is the new Openbravo "Costing Engine" process that calculates and adjusts product's transactions cost.
This process requires that the legal entity/organization has a costing rule configured and applied to the products configured as "Stocked".


Business Partners need to be configured prior any purchase requisition can automatically turns into a purchase order.
Please refer to Business Partner Setup and Business Partner for more information.

Above configuration is also part of the overall Business setup flow within the "Master Data Management" setup.


Note: You are not required to perform any additional setups for the Procurement Management application area if you are going to explore it based on Food & Beverage (F&B) sample client shipped with Openbravo by default.
The sample data set already contains the roles, business partners, products, warehouses and prices pre-configured.

Execution

In Procurement Management the Procure to Pay business process is executed as follows:

Any member of the organization allowed to do so can directly issue a Requisition as a result of an organization or business unit need.

Requisitions notify the purchase staff of products to order, their quantity and the time frame for its delivery. Purchase staff is then in charge of managing already created purchase requisitions or even create new ones if required.

Purchase staff:

Warehouse staff:

Finance staff:

Additionally:

Purchase expenses can be recognized in different ways:

Finally, the finance staff is in charge of making and managing the supplier payments:

Supplier Returns Business Flow

This workflow manages the return of purchased goods back to the supplier. Due to the consequences of returning it is convenient to split Supplier Returns down into two main sub-processes:

  1. Supplier Return to Debit: This process manages the return of goods back to the vendor and the request of a debit.

SupplierReturnDebit 3 0.png

  1. Supplier Return to Replacement: This process manages the return of goods back to the vendor and the request of a goods replacement.

SupplierReturnReplacementWKflow.png

Configuration

Nothing special needs to be configured before performing the process but the window Return reasons

Execution

In Procurement Management the Return to Vendor business process is executed as follows.

Procurement staff:

Warehouse staff:

Finance staff: To invoice these documents go to Purchase invoice window. All scenarios are covered:

Relationship with other application areas

Procurement Management has a relationship with other application areas:

Application Menu

Please find below detailed description of all windows and reports of the Procurement Management application area.


Transactions

Openbravo Procurement Management provides a flexible and automated procurement workflow.
Starting from here you will learn how to operate Openbravo procurement management.

Analysis Tools

Starting from here, you will learn how to analyze "Procurement Management" related data in Openbravo.

Advanced

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