Purchase

Market

• Vendor : Inventory admin can view vendor added by purchase admin.
• Manufacturing Company : Add new company, edit existing details, delete a brand. This data is required during adding of product we need to specify the brand. For Camel – Pen or Renyold – Pen
• Vendor Feedback – Inventory admin, stock admin and purchase admin can give rating and feedback for vendor. These ratings can be considered while giving order to that vendor.

• Base Product

• Base Products example stationary, electronic items, computers.
• Corresponding to each Base Product, ledgers or groups can be created.
• Base Products details can be viewed. Reports for stock of each product, for e.g stationary and how much amount worth stationary is available can be seen.
• Purchase details of each product within base-product can be viewed.
• When depreciation is applied,  the depreciated amount on each base product can be viewed.

Product Category and Products

• Within Base Products, Categories can be created for example Stationary is base product and categories can be pen, staple pins, A4-papers, Pencils, white-board pen-marker etc.
• Within Category – actual products can be registered for e.g. within Pen category products can be Reynold-pen, Camel Pen, Parker Pen etc.
• Within Base Products, Categories can be created for example Stationary is base product and categories can be pen, staple pins, A4-papers, Pencils, white-board pen-marker etc.
• Within Category – actual products can be registered for e.g. within Pen category products can be Reynold-pen, Camel Pen, Parker Pen etc.

1. Each Product has options to view products detail – base product wise. Facility for adding, deleting, editing etc. is provided.
2. For each Product Purchase Unit, Stocking Unit, Conversion Factor can be registered. Depreciation percentage for each product can be recorder and viewed.
3. Stock for the product, and purchase details can be viewed when performing transactions on the product.

Overview

• Asset and stock  and inventory issue request can be made by employees.
• Approval Authority configuration will decide who all will sanction which employees request.
• After approval, the requisition is forwarded to the stock/inventory admin. If stocks are available, issues are made to the employees. Or else all requisitions and needs are compiled and material indent is raised and forwarded to the purchase admin.
• These indents for purchase received by Purchase admin can be handled in two ways

1. Request for Quotation process can be started and full fledged quotation analysis and raising of purchase order process can be initiated.
2. Pre-approved rate lists can be stored and orders can be directly placed for these items, once sanctioned in the rate list.

• After the purchases are made the GRN (Goods receipt note) is indicated to stock/inventory admin for up-dation of stock quantities and barcoding purposes.
• Post that the issues of stock/inventory is done to the employees who requested for the same.

Purchase Admin Role Mapping

• A Matrix role mapping  for Purchase Admin Role is offered
• Y axis lists all the Base products (Product types)
• X axis lists all major milestone in purchase process.
• For ant subset of base product, any number of milestones can be assigned to a employee
• Mapping can also be done for different purchase admin to be able to approve P.O. upto a certain amount.

For ex.

•   More than 50k sanctioning authorities can be different.
•   Below 1 lac sanctioning authorities can be different.
• Above 1 lacs a committee would sanction the purchase

 Purchase admin role can be assigned Product Wise

• Computer Hardware
• Stationary
• Furniture

Budgetary restrictions

• For each base product, group head /ledger head (account head) is configured.
• For each group/Ledger head – budget for purchase needs to be defined for every financial year.
• When purchase orders are raised, appropriate alerts are raised if the purchase amount exceeds the budget.

Approval Authority Configuration

Requisition approval

• Any employees request needs approval of authorities against the request he has made for Asset / stock / inventory
• Authority approval hierarchy can be configured.
• Only on approval of all authorities (who also have the right to change the requested quantities), his request is forwarded to purchase admin.

Purchase amount wise authorities

• Depending on the purchase amount – different authorities can be nominated for sanction.

Purchase Approval

• After comparative quotation analysis, approval of purchase order is to be given by authorities

Signing Authorities

• Who all will sign the purchase order can be defined.

Purchase Committee

Committee Formation and Negotiating Meetings with vendors

• A purchase committee can be formed. After quotations are received, purchase committee can call for negotiation meeting with vendors. The minutes of meeting can be recorded and associated with a quotation, based on which revised quotation with different rates can be saved. Further after comparative quotation analysis, on revised quotation purchase orders can be generated.
• Committees also take decision on Approval of Rate List. For a list of items, Quotations are invited from the vendor.
• These Quotations are compared by the Purchase Committee, and for each product, one vendor is decided according to rates and other criteria's. These decisions are applicable with a validity period, which is defined by an end-date.
• Within the validity period any requisition for the item which has a fixed rate approval, PO is automatically generated for such items

Requisition Rate List

• For consumables, Quotations are invited for a list of items from different vendors.
• Purchase Department gets a Rate List approved by the Purchase Negotiation Committee, which is valid for a certain period of time.
• All the future POs that are generated during that particular period for the items listed in Rate List are generated as per the Approved Rate List price.
• Purchase related steps such as inviting quotations to reaching negotiated price is not done while generating POs for the items listed in Rate List during that period.
• While generating POs for items mentioned in the Rate List, a copy of approved Rate List is given to vendor with the PO.
• If an item is in the rate list, then system should proceed towards preparation of PO rather than starting again from RFQ.
• Items not in Rate can be separated and different purchase orders can be given to different vendors based on competitive price.
• There can be different Rate Lists for different type of items.
• System should alert in case if rate period expiry for an item is near by.

Raising Requisitions

• Asset and stock  and inventory issue request can be made by employees. Approving authorities are alerted for approval
• Approval Authority can change reject the request, change the quantity, or simply accept the request
• After approval, the requisition is forwarded to the Purchase admin, who decides if it is to be issued from stock or new purchase is to be made.
• Purchase admin consolidates all requisitions of similar products in one and ..
• Request for Quotation process is started and full fledged quotation analysis and raising of purchase order process can be initiated.

Request for Quotations

• Consolidating all employee and departmental requisitions and generating RFQ process is initiated for Purchase
• RFQ signing authorities receive alerts for signatures
• The  RFQ can be send to selected vendors to invite them for quotations.
• Vendors and their details are recorded in the system, along with their rating and feedback.
• Vendors are associated with products. RFQ can be sent to vendors for those products, additional vendors, or all vendors.
• Detailed terms and conditions for requirement and delivery can be stated.

1. Late delivery clause
2. Performance Clause
3. Bank Guarantee Clause
4. Retention Money Clause
5. Penalty Clause
6. Wave Off Process Clause
7. Terms and Conditions
8. Delivery Period
9. Penalty
10. Approval of Sample
11. Payment Conditions
12. Submission of Bills
13. Test Certificate
14. Guarantee / Warrantee
15. On-Call-Service
16. Termination of contract
17. Other Stipulations
18. AMC