Video - Purchasing in a Foreign Currency
Purchasing spans four workflow phases
Purchasing is not its own phase within the “Total Control” process workflow. Instead, purchasing spans across four phases of the process workflow:
•POs are generated during the MRP phase.
•POs are received during the Inventory Control phase.
•PO costs are integral to the Product Costing phase.
•PO invoices are converted into voucher style invoices and are transferred to your accounting system during the Financial Transfer phase.
Item sources include suppliers and manufacturers
Each stock item is assigned to a default supplier, against which you maintain the supplier price, description, unit of measure, and conversion multiplier. Alternate suppliers can be defined as well. When an item must be sourced from a particular manufacturer part number, you can assign the item to a default manufacturer and manufacturer part number.
Item MRP settings determine PO planning
Item MRP settings determine PO planning. The Lead Days allocates time to account for procuring the item from the default supplier. The item Order Policy determines if the item is purchased to order or planned for strategic inventory. If purchased to stock using the Demand Driven Order Policy, a Monthly Potential Demand rate is entered to replenish stock and a Supply Days target is entered to determines how many days between purchase orders.
POs are generated by MRP
POs are generated by MRP in response to net demand from jobs and sales orders relative to stock on hand. PO due dates are time-phased so that material is available to meet dependent job start dates.
POs can be augmented manually as needed
Each set of POs generated by MRP represents a minimum action profile. After POs are generated, they can be augmented manually if needed in the Purchase Orders screen to fill a truck or container, meet volume commitments, or other purposes.
PO Prices are verified as POs are converted
Verify and update supplier prices during PO conversion
To ensure the integrity of the costing system, always verify and update supplier prices before converting planned POs.
Mass update your Estimated Purchased Costs based on Default Supplier Price
After any changes to your default purchase prices, you should go to the BOM>Estimated Purchase Costs screen and Mass Replace estimated costs using the Default Supplier Price. You should then go to the BOM>Cost Rollup screen and perform a batch rollup and apply the changes to your NEW status Jobs. It is important to actively manage your estimated purchase costs to improve your overall inventory value and cost of goods sold.
Inventory is updated at PO cost when POs are received
PO items are received to inventory at PO cost through the PO Receipts screen, which updates inventory value and makes items available for jobs and sales orders.
Supplier invoices are matched with POs
Supplier invoices are matched with POs in the PO Invoices screen so that any variances between PO cost and invoice cost are accounted for and to close POs when they are fully invoiced.
Invoices are transferred to your accounting system for AP processing
Matched PO invoices are converted into voucher style invoices and are transferred in the AR Voucher Transfer screen to your accounting system for AP processing.
