Purchase Orders

Overview

Purchase orders are the contract initiated by an organisation with it's suppliers (vendors). Since, purchase orders commit the business to expenditure it is important to ensure that the committment is not made without the proper authority. webERP forces certain procedures to be followed to ensure proper authorisation. The sequence is:

Adding a New Purchase Order

To add a new Purchase Order, Click on Main menu. The purchase order date, delivery date, Requisition Ref, warehouse name, Address lines 1 to 4, telephone number, and the deliverers ) Then the supplier information that need to be entered include the address line 1to 4 that needs to be entered , the phone number, the payment terms , and there is a field to type in any comments if necessary. A success report should display showing that you have created a purchase order.

If the configuration setting to automatically authorise the purchase order is enabled, then if your authority allows you to authorise purchase orders in the suppliers currecny and your authority level exceeds the amount of this order, then the order should automatically be authorised.

If you have authority to authorise purchase orders but the configuration setting to automatically authorise purchase orders is not set, then you will need to do another step to authorise it. There is a special screen to allow selection of pending orders for authorisation, alternatively it is possible to modify the order and change it's status manually to authorised.

If you do not have the authority to authorise purchase orders in the currency of the supplier, to the value of the order, then a duly authorised person will be required to authorise it before it is possible to print the order.

Authorising Purchase Orders

Here the directors and authorising officials will log into webERP to look for purchase orders that have been raised and they will either cancel, reject, or authorise these purchase orders.

Below are the steps of authorising purchase orders This will enable the person who created purchase orders to print and receive them. In order to Receive a purchase order, it has to be printed first and sent or emailed to the supplier. (N.B this can't be done unless the purchase order is authorised)

Once a purchase order is authorised it can then be printed as follows: After printing this purchase order you can send it to the supplier through an email or print it out and post it. If the order is being shipped by the supplier and there are additional costs to take into account, then you should use shipment costing and add the order to a shipment. Using shipment costing ensures that the costs of shipping and transport are apportioned between all the items on the shipment. See shipment costing section of the manual.

Recieving Purchase Orders

  • When the supplier delivers the goods to the warehouse , the stock manager will log into webERP
  • Click main menu -> Purchasing Module
  • Clik Purchase orders and enter criteria to select the purchase order you require
  • Assuming the order is authoirsed and printed there will be an option to "Receive" - click Receive
  • The Goods Received screen shows and allows the quantities received to be entered. This quantity will show in the businesses units of measure but the conversion and the quantity in the suppliers unit of measure will also show.
  • If the item being received is a controlled item, the batches/rolls/lots/serial numbers being received need to be specified individually and the system keeps track of how many in total are being received.
  • Only the quantity received should be entered, this may well be different to the original order quantity because the supplier might not deliver all the ordered items at the same time, and at this point we need to record exactly what has been delivered, and not what has been ordered. He might deliver in parts. So these changes are supposed to be effected at this point before processing a Goods Received Note.
  • Then click update.
  • Click on Process a Goods Received (GRN), finally click on Print a Goods Received Note (GRN).
  • The goods received note should signed off by the person who received the goods - optionally a copy to the supplier's driver.