- Automatically Manages Purchase Requisition Approval Process
- Eliminates Purchase Order Entry for Approved Requisitions
- Simplifies Manual Purchase Order Entry
- Enhances Vendor Relationships
- Accelertes Dock-to-Stock Process
This module provides Purchasing Management with the necessary mechanisms to efficiently release, maintain, and track Purchase Orders in the DMACS system. Ship direct Purchase Orders generated via the Order Entry Module are maintained by Order Entry.
In addition to on-line Purchase Order release and maintenance, requisition maintenance transactions are available for amending the recommended purchase plan that is generated by the Requirements Planning run. Purchase requisitions that are released are then eligible for inclusion in the Purchase Order consolidation and release process, which automatically consolidates and releases those requisitions as live Purchase Orders. All of the inventory transactions processed against a Purchase Order can be reviewed through the on-line Purchase Order audit trail inquiry.
A user can control the default assignment of purchasing parameter information recorded for each item master, vendor, or vendor item master record stored in the system. These default assignments are used in the automatic purchase order release process and in the Requirements Planning process. Some of the information that can be maintained are:
Item Master Parameters This includes item lead times, unit costs, buy Unit of Measure, primary vendor, commodity code, buyer, additional notes, etc.
Vendor Master Parameters Vendor information can be predefined for each vendor that supplies an item. This information can then be automatically recorded on the Purchase Order when the item is ordered. Some of this information includes the vendor’s item number, description, Unit of Measure, minimum order quantity, setup charge, packaging requirements, country of origin, import tariff tax percentage, and unit price.
Multiple vendor sites can also be defined for each vendor. This allows you to identify each of the vendor’s shipping location’s along with each site’s unique parameters, including lead time, pricing, and more. By identifying specific vendor site within the purchasing function, the Requirements Planning process will provide more accurate replenishment schedules since vendor lead times should be more accurate.
The price breaks offered by the vendor can also be defined for an item. The correct price will then be placed on each purchase order for the item, even if multiple purchase order documents are printed. This prevents the loss of the price break due to ship direct purchase orders.
Vendor Item Master This allows the definition of a vendor’s item number and cross-referencing to the corresponding in-house number. Included are the description, lead time, packaging requirements, miscellaneous notes, country of origin, minimum order quantity, tariff code, tooling code, and up to five price and inquiry breaks.
Buyer Group and Individual Identification Individual buyers can be identified then classified into major groups for reporting and control purposes.
If an item is supplied by another site within the company, an intracompany requirement can be automatically generated for the supplying division when a Purchase Order is printed. The requirement will then become input to the Requirements Planning function of the supplying division to ensure a timely replenishment schedule.
Ship direct purchases are easily accommodated either directly from the Order Entry module or manually through the Purchasing Control module. Each ship direct purchase order is linked to the customer sales order. The purchase order can then be printed using the ship-to address information on the sales order.
In this situation, multiple purchase order documents may be generated for the same item. The purchase order price calculation routines will then determine the price for each Purchase Order based on the total quantity being ordered to ensure application of the proper price break.
The Requirements Planning module can generate a purchase plan for a specific time frame. The generated purchase requisitions are for a given quantity and due date and include demand generation for component items supplied to a vendor.
Some of the variables used by the Requirements Planning function to offset the due date in order to determine the vendor’s recommended ship date include the internal clerical time needed to release requisitions, Purchase Order mail time to the vendor, transit time from the vendor, and internal put a way time.
The recommended purchase plan can be reviewed and amended through any of the requisition maintenance browse and update transactions. Purchase requisitions that are released are then eligible for inclusion in the Purchase Order consolidation and release process.
All purchase requisitions are planned purchases for a specific item and vendor. When the Requirements Planning process creates a purchase requisition, it will assign the item’s primary vendor as the vendor on the requisition. If a primary vendor has not been defined for the item, then the vendor will be left blank on the purchase requisition. A Purchase Order Consolidation and Release program will reject any planned requisitions that have not been assigned a vendor.
The Purchasing Control module provides browsing and update screens for maintaining purchase requisitions by item, by vendor, and by release date. Each of these Purchase Requisition Maintenance screens allow you to add, change, and delete a requisition. Each screen provides the option to display either planned or released requisitions. As you brows through the requisition, you can perform the following maintenance on each:
- Add a new requisition
- Firm the requisition to prevent changes by the Requirements Planning run
- Release the planned requisition for Purchase Order Consolidation
- Both firm and release the planned requisition
- Delete the requisition
Purchase orders can be manually entered into the system or existing requisitions can be released on-line to a Purchase Order. Purchase requisitions can also be consolidated and released to a live Purchase Order via the Purchase Order Consolidation and Release program.
An automatic consolidation and release program provides an efficient interface to the requisitions generated by the Requirements Planning module. The consolidation and release program generates an error report to highlight the requisitions that need special attention. This may arise because either a prime vendor has not been assigned to the item and an override vendor has not been assigned to the requisition, or vendor pricing information is not available for the item and an override cost has not been assigned to the requisition.
Vendor acknowledgments can also be entered for a Purchase Order to reflect the vendor’s actual ship date and ship quantity (in-transit). This information is then used to more accurately reflect the due date for planning purposes.
A variety of line item entry screens are available for entering line item information for each purchase order. Each of these screens can be used interchangeably during the line item entry process.
Purchase Order Amendments
Changes to open purchase orders can optionally initiate the printing of a Purchase Order amendment. The amended Purchase Order can also be printed for line items that are cancelled.
Purchase order cost changes are recorded in an audit trail for subsequent inclusion on a purchase order cost change report. The cost change to the Purchase Order can optionally change the unit cost for the item. This will also be recorded in the audit trail and on the report along with the adjustment amount and percentage change.
Purchase orders can be optionally received to dock and inspected via transactions within the Inventory Control and Quality Assurance modules, respectively. Purchase Orders can then be received to stock via a very powerful receipt to stock transaction within the Purchasing Control module. This transaction provides several data entry options as it has been designed to minimize the data entry effort.
All line items can be optionally received complete except for any line item exceptions that are entered, or you can simply enter the quantities for those select line items received.
Every inventory and Quality Assurance transaction affecting a Purchase Order is recorded in the inventory audit trail and is available for immediate viewing by Purchase Order number.