Purchase Module in ERP

A purchase department of an organization aims the given below responsibilities:

• Purchasing objectives.
• Purchasing responsibilities.
• The purchasing process and role of procurement.
• Types of purchases.
• Improving the purchasing process.
• A world-class purchasing module must provide cost-reductions, improve supply chain quality, gain access to new sources of technology, improve cycle time, involve suppliers in product and process development, and streamline processes. ERP does support the above.

The Purchasing Process as a Cycle consists of six  major stages:

• Identify user need.
• Evaluate potential suppliers.
• Bid, negotiate and select supplier.
• Purchase approval.
• Release and receive purchase requirements.
• Measure supplier performance.

ERP Purchasing module aims for procurement of required raw materials. Automates the processes of identifying potential suppliers, negotiating price,  awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules. Purchasing module is often integrated with supply chain management software.

• Streamlines purchase and process cycles.
• Detailed Supplier / Subcontractor / Service Provider database.
• Capturing materials requirement.
• Automatic firing of purchase requisitions based on MRS.
• Quotations from various suppliers.
• Recording Payment terms in PO.
• Excise consideration in Purchase and Process Orders.
• PO authorization.
• PO amendments with complete amendment history.
• Order cancellation and order closing.
• Multiple delivery schedules.
• Quality inspection of goods.
• Quotation validity.

Insurance Management:

• MIS for vendor evaluation based on quality, price & delivery time.
• Subcontracting generation of process orders.
• Multiple indents for multiple items in a single PO.
• Purchase order processing.
• Purchase order entry with item details and other details like taxes, discounts, extra charges like freight, P&F, octroi etc.
• Flexibility to generate Purchase Order in domestic and foreign currency.
• Advance adjustments.
• Purchase bill with updating of GL and purchase book.
• Service contracts, Service Bills, Service indents and PO.
• Value based approval of indents.
• Bill of Entry.
• Complete import functionality with handling of custom details – Purchase Bill for import, Excise consideration in imports.
• Reports for Order tracking for complete control on the procurement cycle.
• ERP Purchasing module aims for procurement of required raw materials. Automates the processes of identifying potential suppliers, negotiating price, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules. Purchasing module is often integrated with Supply Chain Management software.