Requisition to Receipt

Contents 1 Introduction 2 Abstract Business Process 3 Roles Involved 4 Configuration 5 Step by Step 5.1 Enter a Requisition 5.2 Request Quotations 5.3 Receive Quotation Proposal 5.4 Analyze Quotation Proposal 5.5 Create PO (Purchase Order) 5.6 Creating a PO from a Requisition 5.6.1 1. Create a PO from the Manage Requisitions form 5.6.2 2. Create a PO from the Requisition To Order form 5.6.3 PO information in the Requisition 5.7 3. Creating PO from Scratch 5.8 4. Retrieving Lines from a Previous Purchase Order 5.9 5. Creating Lines from Purchase History 5.10 Send Purchase Order 5.10.1 Sending Paper Copy by Mail or Fax 5.10.2 Sending Email 5.11 Manage Pending Orders 5.12 Receive 5.12.1 1. Creating the Goods Receipt Automatically 5.12.2 2. Creating the Goods Receipt Manually 5.12.3 3. Creating the Goods Receipt lines copying the Purchase Order or Purchase Invoice lines 5.12.4 Attaching Supplier Shipment Information 5.13 Inspect 5.14 Update Inventory 5.15 Register Asset 5.16 Purchase Invoice 5.17 To be reviewed later

Introduction

This workflow manages the life-cycle of a purchase process, from the moment the Purchase Manager places the Purchase order for products to the supplier, to the moment the warehouse staff receives the products in stock.

Abstract Business Process

The abstract Procure to Pay business process is defined by the following diagram:

The process can be summarized in these steps:

• Entering and Managing requisitions
• Requesting and managing quotations
• Ordering the goods
• Receiving the goods
• Updating inventory

Roles Involved

The following roles are required to be used in order to complete this process:

• Purchase Management - in charge of ordering required goods
• Material Management - in charge of receiving ordered goods and placing them into storage
• Company Admin - role used for configuring various elements

Configuration

Some configuration needs to be done before various parts of the process can be fully executed:

• Taxes
• Payment terms
• Payment methods
• Vendors
• Product categories
• Purchase products and prices

Please refer to the Configuration Manual.

Step by Step

Enter a Requisition

Any role except for the System Administrator role can be used.

A Requisition is a document that specifies a request to order products. The requisition can be entered by anyone in the company when a user detects a low stock level or is expecting a high demand. The Requistion is reviewed by the Purchasing department and as a result, a Purchase Order can be created automatically by the Purchase Management.

Using the Procurement Management || Transactions || Requisition window create a new record:

Fields to note:

• Business Partner - optional field that can be filled out if the user knows the vendor that will supply the products for all the lines.
• Price List - optional field that can be filled out if the user knows the Price List that needs to be used for the products on the lines.
• Requester - the system will populate the information of the user that enters this requisition here.

Go to [Lines] tab and add one line per product:

Fields to note:

• Need by Date - date that the products need to arrive in our warehouse
• Product - products that need to be purchased
• Business Partner - optional field that can be entered if the Business Partner entered at the header level or the default vendor information should be overwritten for a particular line
• Price List - optional field that can be entered if the Price List entered at the header level or the default Price List information should be overwritten for a particular line
• Unit Price - optional field that can be entered if the default price should be overwritten for a particular line

Back in the [Header] click the Complete button.

Request Quotations

Managing requests for quotations to the supplier is not directly supported by the Openbravo ERP. The options offered are:

• Manage the quotation process outside Openbravo ERP
• Create a new document type in purchase order window, and manage quotations as separate purchase order documents (a consultant's assistance will be required in this case)

Receive Quotation Proposal

See Request Quotations section of this document.

Analyze Quotation Proposal

See Request Quotations section of this document.

Create PO (Purchase Order)

The Purchase Management role should be used.

A Purchase Order is a document that specifies products ordered from a specific vendor with the related prices, terms and conditions.

Creating a PO from a Requisition

The Purchase Management role has access to two screens to manage requisitions:

• Manage Requisitions
• Requisition To Order

1. Create a PO from the Manage Requisitions form

In the Manage Requisition form all Requisitions apppear. From the grid view a certain requisition can be selected and reviewed:

From the Manage Requisition form a Purchase Order can be created by clicking the Create Purchase Order button:

Select the Order Date, Organization and Warehouse that need to appear on the Purchase Order. If there was no Business Partner and Price List selected in either the header or the Lines of the Requistion, these values have to be selected in the popup. Click the Ok button to create the Purchase Order.

The message appears with the Purchase Order number and the Requisition is in closed status:

2. Create a PO from the Requisition To Order form

In the Requisition to Order all Requisitions in completed status appear. There is a filter option to just see requisitions for a certain Vendor or for a certain product. This way multiple requisitions can be reviewed and managed from this screen:

Lines can be selected by clicking the checkboxes in front of the lines and by clicking the 'Add' button.

The selected lines on the Requisition are now in locked status, meaning that they can not be changed until the purchase management unlocks them. During the time that the lines are locked, the purchaser has the opportunity to review the stock and contact different vendors if required to negotiate a price for the products. If there is no activity during 3 days, the system removes the lock from the lines. The requisition can be unlocked manually by the purchase manager by moving the requisition line back to the upper part of the Requisition to Order screen with the remove button.

When the Purchase Order needs to be created, select the lines for which you want to create the Purchase Order and click on the Create button.

Select the Order Date, Organization and Warehouse that need to appear on the Purchase Order. If there was no Business Partner and Price List selected in either the header or the Lines of the Requistion, these values have to be selected in the popup. Click the Ok button to create the Purchase Order.

In the popup the created Purchase Order information appears. Click Ok to get out of the popup screen. The selected Requisition(s) are in closed status.

PO information in the Requisition

After the Purchase Order has been created for the Requisition, either in the Manage Requisitions form or in the Requisition to Order form, the results can be seen:

• the requisition is in closed status.
• the [Matched PO Lines] tab displays the Purchase Order information as read only:

3. Creating PO from Scratch

In order to enter a purchase order, use the Procurement Management || Transactions || Purchase Order document to create a new one:

Fields to note:

• Document No. - Automatically generated purchase order document number that can be changed by hand. Until the document is saved, the preliminary number is displayed in '<>'. If the document type has no automatic document sequence defined, the field is empty when a new number is created. This is for documents which usually have an external number (like vendor invoice). If the field is left empty, the system will generate a document number automatically.
• Order Reference - Suppliers order number. Update it when you receive this data from the supplier.
• Delivery Notes - Any note to the supplier you would like to appear in the printing form.
• Business Partner - select the vendor to order goods from
• Order Date - date of the purchase order
• Scheduled Delivery Date - date that you expect the goods to arrive
• Warehouse - receiving warehouse for this order
• Payment Method - how you will pay the vendor
• Payment Terms - the timing of the paymnent for the transaction, whereas the 'PO Maturity Date(s)' in the Vendor setup indicates the day of the month that invoices are due.

Then, move to the [Lines] and enter the products that are being ordered. In this example the form view is used. Please note that lines can also be entered in grid view.

Fields to note:

• Product - the product to be ordered
• Ordered Quantity - quantity of the product ordered
• Net Unit Price - the price charged per product unit. This information will be automatically retrieved from the Standard Price in the purchase price list inherited by the [Header] from the vendor selected. It can be manually changed.
• Tax - tax rate automatically set according to product definition. It can be manually changed.
• Line Net Amount - Quantity time Unit Price calculation before taxes

Create additional lines if needed.

When finished entering lines, switch back to the [Header] and complete the purchase order. Note the Total Net Amount (order price before taxes) and the Total Gross Amount (order price after taxes):

4. Retrieving Lines from a Previous Purchase Order

Create a new record inside the Procurement Management || Transactions || Purchase Order window:

Once the required information is filled, save the record. Click the Copy from Order button:

In this new window, open the search by clicking the icon next to the Order field and use the filters to select any historical purchase order and press OK:

Note: This search shows both sales and purchase orders so notice the Sales Transaction column that specifies if a line is a sales transaction or a purchase one.By going to the [Lines] you will notice that the lines of the selected purchase order were inserted there. You can now manually change any information (quantity, amount, unit price) or add more lines.

5. Creating Lines from Purchase History

Use the Procurement Management || Transactions || Purchase Order document to create a new one:

Once the required information is filled, save the record. Click the Copy Lines button to bring up the following window showing products that have been purchased from the supplier in the past:

 Select the lines/products to be copied into the purchase order, change the Last Price that will become the Unit Price and the Quantity to required ones and confirm with OK.Finally, complete the sales order by clicking the Complete button. See that the Document Status changed to Completed.

Send Purchase Order

The Purchase Management role should be used.

Sending Paper Copy by Mail or Fax

Print the purchase order to a PDF file by clicking the printer icon in the toolbar. Print it and send it by fax or mail to the supplier.

Sending Email

Click the e-mail icon inside the toolbar.

Fill in the receiver's e-mail, and the e-mail data. Attach another file if required and send the email:

Manage Pending Orders

The Material Management role should be used. To review pending orders to be received, go to Procurement Management || Transactions || Pending Goods Receipt form, and use the filters to narrow down the search for pending orders. The orders that are pending and match the criteria entered will be shown:

Note: Pending order lines are grouped by business partner and purchase order document number.

Receive

The Warehouse role should be used.

Upon reception of goods, a Goods Receipt document is filled out and there is several ways of doing so.

1. Creating the Goods Receipt Automatically

To create a goods receipts from a pending purchase order, go to Procurement Management || Transactions || Pending Goods Receipt form, and use the filters to find the correct purchase order:

Select the lines received, correct the quantity of individual products if required and enter mandatory fields as the Reception date and the Destination Warehouse Bin:

Click on the Process button.

If the product(s) selected do not require an attribute (color, size, lot...) the system will create a goods receipt document in Completed status and will show the user the corresponding document number:

If the products selected do require an attribute (color, size, lot...) the system will create a goods receipt document in Draft status and will show the user that document number asking the user to navigate to that goods receipt and enter the attributes for those products before completing the document:

If this is the case, navigate to the document in Procurement Management || Transactions || Goods Receipt window, and in [Lines] tab, insert the attribute for the required lines. Save the edited lines and complete the document back in the [Header] tab.

2. Creating the Goods Receipt Manually

Imagine we have a pending order of a supplier called Obelix. We receive the goods and we want to enter the information in the system so the warehouse inventory count is updated.

Go to Procurement Management || Transactions || Goods Receipt and create a new record.

Fields to note:

• Business partner - the vendor from whom we have received the goods
• Movement Date - date when the goods enter the warehouse
• Order reference - vendors shipment document number
• Warehouse - warehouse that is receiving the shipment

In the [Lines] tab enter the lines for the products that arrived with the quantity that was received and the storage bin where the products are booked into. Remember to fill the attribute set value field if applicable.

Complete the document back in the [Header].

3. Creating the Goods Receipt lines copying the Purchase Order or Purchase Invoice lines

In the case that there is a Purchase order or Purchase Invoice in the system for the products that are received in the warehouse, these documents can be used to automatically create the Goods Receipt.

Enter the Header information for the Goods Receipt and click on the Create Lines From button in the toolbar.

In the popup select either the Purchase Order or Purchase Invoice to see the lines. Select the line(s) you want to enter in the Goods Receipt, select the warehouse position and storage bin where the goods will be stored and, if applicable, attribute value information. Click Ok to add the line(s) to the Goods Receipt.

Going to the Lines tab, you can see that the line(s) have been added accordingly. Multiple Purchase Orders or Purchase Invoices can be copied to a Goods Receipt.

Attaching Supplier Shipment Information

While creating the Goods Receipt document or after it is completed, you can enter the supplier's shipment number into the Order Reference. This way both the internal document and the supplier reference number will be linked.

The supplier's shipment document can also be scanned and attached to the goods receipt document in Openbravo ERP by clicking the paper clip icon and adding the scan file.

Inspect

There is no specific process in Openbravo ERP that supports inspection. We advise the following:

• Use document and line Description fields to enter any notes regarding arrived goods
• Use storage bins to separate goods that are ready for use from the faulty ones or the ones waiting for inspection. Note: in Openbravo inventory information there is no distinction between nettable stock (stock that can be shipped to customers or used in production) and non-nettable stock (defective stock and stock awaiting inspection).

See Wall to Wall Accuracy Physical Count chapter of the user manual for more information on how to create storage bins and move goods.

Update Inventory

Inventory is automatically updated upon completion of the Goods Receipt document explained earlier.

Register Asset

Please refer to the Asset Acquisition to Dispose chapter for information on this process. Once the asset is registered in the application link it to the product using the Product field inside the Financial Management || Assets || Asset window. This step is not mandatory, but will help the user as navigating from the asset to the actual product used for procuring the asset.

Purchase Invoice

For the creation and management of the purchase invoices, please refer to the Supplier Invoice to Payment chapter of the user manual.

To be reviewed later

4. Creating the Goods Receipt directly from the Purchase Invoice