Purchasing Overview
Purchasing supports your company in managing its expenditures
and reimbursing vendors promptly for services or goods provided. Through
Purchasing, you create purchase requisitions for requesting items or services.
Once an authorized employee in your company approves the requisition,
it becomes a purchase order. Your company can use the purchase order to
authorize payments and ensure that the correct items are received.
Purchasing Functionality
- Using Purchasing, you can enter, generate, monitor, and receive
purchase orders to improve material movement and inventory level management.
- A vendor contract function allows you to store and track information
about a particular item from a specific vendor. You can also store
and track vendor item pricing.
- You can also access vendor performance information, vendor interactions,
and a listing of vendor information for items purchased regularly.
In this manner, you can ensure that you have selected the best vendor
for each purchase.
- You can set up parameters to set default values for purchase orders,
including tolerance factors for purchase order receiving and vouchers.
- Purchasing also allows you to view the planned costs, actual unit
costs, promise dates, and due dates for each line item.
- Using the payment hold feature within Purchasing, you can place
vendors on payment hold if their goods or services are unacceptable.
- Because a purchase order represents a contract with a vendor, Purchasing
provides you with a utility for changing purchase orders and tracking
the changes you make.
- Purchasing also includes the Purchase Order Receiving form, through
which you enter whether you are receiving a whole/partial order or
a whole/partial line/release.
- Using the Master Buy Agreement option and the Purchase Order Builder
form, you can group like items from POs at different sites in order
to get the best quantity cost breaks.
- You can use the Purchase
Orders Quick Entry form to quickly create, view, and maintain
purchase orders.
Purchasing Interfaces
Purchasing eliminates redundant transaction entries
by interacting with the following areas of the system:
| Interface |
Description |
| Customer - Order Entry |
You can create a purchase order to satisfy a customer order
line item requirement. |
| Material - Inventory |
When you create a purchase order, the system uses information
from the Items form. |
| Material - Planning |
You can create purchase orders to satisfy material planning
purchase requirements. |
| Production |
You can create a purchase order to satisfy a job material requirement. |
| Finance - General Ledger |
The Purchase Order Ledger Distribution journal within General
Ledger tracks the material transaction costs created in Purchasing. |
| Finance - Accounts Payable |
You can generate Accounts Payable vouchers and adjustments
from within Purchasing. |
| Data Collection |
Purchasing posts the PO receiving and return transactions provided
from a data collection solution. |
Related Topics
Creating
Multi-Site Purchase Orders with the Purchase Order Builder
Creating
and Approving a Purchase Order Requisition
Making
Changes to Ordered PO Lines
Purchasing Steps
Returning
Material After Receiving a Purchase Order
Reversing
a Voucher Generated from Purchasing
Automatic Vouchering
Purchase
Orders Quick Entry
Creating
Purchase Order Lines Change Logs