Purchase Module In CISERP Evolving Purchase Management In Businesses
Business refers to the sales and purchase of various things including raw material, plant, equipment, tools, and finished goods. To manage all of these operations businesses need systems to keep records of the transaction and other data associated with the operations.
Businesses use sales management systems to manage their sales operations. CISERP also has a productive sales module which we will discuss in some other articles in the future. Today we are going to discuss the purchase module of CISERP that is designed to manage the purchases of a business. Purchase management includes various angles and sections that we will discuss in the article later. Let us first discuss the importance and need of a purchase management system for a business.
Importance Of Purchase Management In Business:
Purchase management or purchase module are systems that have all the necessary tools required by a business to manage the purchase section of a business. The purchase module keeps the record of every purchase made and all the necessary details including the items, quantity, price, supplier, and other specifications mentioned in the purchase order.
The module helps businesses to track their purchase order and monitor the purchases made by the company. The purchase module keeps all the associated departments updated about the status of the purchase to make payments, receive deliveries, and make a purchase return. Prior to these systems all that stuff was performed manually causing a lot of trouble in managing the operations of a business.
Purchase Module In CISERP:
CISERP being a dynamic ERP software has all the necessary modules to run the operations of a business. The purchase section is an important section that needs to have integration into the software. That is the reason CISERP is integrated with an advanced purchase management tool that has some very useful tools a business must have to run its purchase operations.
When the user logs in to the CISERP he will set the module bar on the upper section of the software. There he will have all the modules of CISERP aligned one after another for the user to use. Among all those modules is the purchase order. Once the user clicks on the module a drop-down menu appears that shows all the tools in the purchase section. Below are all the tools in the purchase module.
- RFQ (Request For Quote)
- Vendor Quotation
- Quotation Approval
- Purchase Order
- Purchase Return
All these tools are sequenced into a purchase procedure that includes the above-mentioned steps.
RFQ (Request For Quote):
The RFQ section which stands for request for quote is the first step for the purchase order. The RFQ is a request that a business sends to its vendor to ask for the price and quantity of a product that the company wanted to purchase. In CISERP, the RFQ section will help the user to request the vendor for a quote.
The tool asks for the following details before sending the RFQ.
- Doc Type: which is a request for a quote
- RFQ Date: the data on which the RFQ is sent
- Requisition: the specific stock that needs the requisite
- Ref No: reference number is the unique identification number for reference of the quote
- Due Date: the date at which the request must be answered
- Delivery Date: the date at which the company needs the deliver
- Comments: any additional comments for the request
- Current Status: the status of the request is either in process or released for approval
Once the user filled all the above-mentioned sections the are below it that include the details regarding the request details are as follow:
The category of the item the user wanted to request, the CISERP already has some product categories in the system. The user can also add other categories from the setup settings to make them appear here.
the item you wanted to request, the name of the item is also fetched from the data so the user has to add the item from the setup of the software.
UoM refers to the unit of measure used for that item. UoM is also fetched from the database, the user has to add any new UoM if he wants to.
Quantity of items the user wanted to purchase
Name of the supplier the user wants to purchase from.
Once the user has sent the RFQ using the CISERP purchase module the module will update the next tool which is the vendor quotation section. The vendor quotation section has the replies of vendors with the quotation for the products the user has asked for.
In this section, the user can see all the quotations. The quotations include the prices, quantity, and other comments regarding the quotation. To add a vendor quotation in the CISERP system logs system asks for the following details.
- RFQ Ref No: the reference code of RFQ
- Requisition No: the number allocated for the requisition of stock
- Doc No: document number to identify the quote
- Quoted Date: the date on which the business receives the quote
- Delivery Date: the date on which delivery will be made
- Delivery Period: time period required to make the delivery
- Cost Center: the costing head in which the purchase will fall
- Ref No: reference number of the quote
- GST%: percentage of general sales tax applicable on the purchase
- Freight Detail: the detail regarding the freight (Transportation)
- Payment Term: the terms of mode and type of payment
- Total Amount: the total amount that needs to be paid for the purchase
Once the company receives the vendor’s quotation then it is forwarded for approval. For that purpose, the quotation approval section is used. In this section, the data of every quotation that is forwarded for approval is stored. The user can edit and add the approval details.
The section will ask for the following details to be added in the section.
- RFQ #: the request for quotation reference number
- Supplier: name of the supplier/ vendor
- Stock RQ No: stock requisition number
- Total Amount: Total amount of purchase order
- Image: scanned image of the quotation received from the vendor
- Comments: any comment or specific instruction added to the system
The purchase order section is the finalized section where the purchase orders are created. The system generates the purchase order from this section by complying with all the necessary information.
- P.O Type: P.O type refers to the type of purchase order
- P.O No: it refers to the purchase order number (for identification)
- P.O Date: date at which the purchase order is created
- Direct PO: in case the purchase order is direct without any RFQ (enable the check)
- RFQ No: RFQ number from the RFQ section
- Quotation: amount quoted to the business
- Requisition No: requisition number allotted at the time of RFQ generation
- Supplier: Name of the supplier
- Payment Terms: payment term determined at the time of quotation approval
- Delivery Period: the time required till the delivery of the purchased items
- PO Due Date: The due date at which the purchase order is valid
- Note To Vendor: any specific note or instruction to the vendor
- Advance %: percentage of the amount that needs to be paid in advance at the time of booking
- Including GST: the amount of general sales tax included
- Total Amount: the total amount that needs to be paid including the GST
- Comments: Any comments on the purchase order
- Purchase Terms: any purchase terms that need to be met for the order
- Current Status: Current status of the order (in process/ complete)
With all this information entered into the data, the system asks for the details regarding the purchase order.
- Category: Category of the product that the business ordered.
- Item: Name of the item ordered
- UOM: Unit of measure for the product
- Price: Price of the product quoted by the vendor
- Note To Vendor: Any note to the vendor
- Discount%: Percentage of discount offered by the vendor
- Disc Amt: Amount of discount offered by the vendor
- Taxable: Select whether the amount is taxable or not
- Tax Amt: Amount of tax payable on the purchase
- Amount: The total amount of the purchase order that needs to be paid.
The purchase return section is another section of the purchase module which deals with the purchase return of the purchase orders. If due for whatever reason the purchase order faces any issue with damage, missing item, or wrong item delivered then this section is used to file the details of its return.
When the user gets into this section he will see the following details in it.
- Document Type: type of the document user is generating (In this case purchase return)
- Document Date: the date on which the document is created
- Document No: the identification number of the document
- Location: location from where the purchase return is made (inventory store/finished goods warehouse)
- Return Date: date at which the return is made
- Supplier: name of the supplier
- Purchase Order: purchase order number
- GRN Number: goods received note number
- Invoice: invoice number of the purchase order
- Gross Amount: gross amount paid to the supplier
- Amount: total amount paid to the supplier
- Current Status: status of the progress of purchase return
Once these details are entered in the required section the user will be asked to fill in the product details for the purchase return order.
- Item: the item released for purchase return
- UOM: unit of measure for the item due for purchase return
- Unit Price: the per-unit price of the item
- Quantity: number of items returned to the supplier
In this article, we have discussed the tools and features of the purchase module operational with CISERP. These features evolve the purchase management with their automated fetching features and database reconciliation for every data entered into the system.
With CISERP, businesses can keep a detailed record of their purchases along with quotation requests, and purchase returns. In this modern era when businesses are moving towards technological means and tools to manage operations of their business CISERP is helping businesses with advanced affordable ERP software equipped with state-of-the-art software.