In this guide, we'll go over the core steps involved in the purchasing flow, from raising a purchase requisition to processing goods received notes (GRNs), credit notes, and making payments.
Let’s explore the process step-by-step to provide you with a foundation before diving into each action in more detail.
The Purchasing Flow in Buy Module:
1. Create Purchase Requisition
The purchasing process begins with the creation of a Purchase Requisition (PR). Users fill out a requisition form under the "Purchase Requisition" tab, selecting from options like "New Blanket PR" for bulk purchases or "New Requisition Request" for individual needs. The PR must then be approved by the relevant authorities.
2. Quotation/Tender Process
Once the PR is approved, the quotation or tender process begins. Invitations are sent to one or more vendors, who will provide their pricing via the quotation form. Vendors are required to input their unit prices, attach formal quotations, and submit them before the tender period ends.
3. Vendor Selection
After the quotations are received and the submission window closes, you can evaluate the vendors using predefined criteria, such as price, quality, and terms. Once the evaluation is complete, select the vendor by using the “select this vendor” button.
4. Purchase Order (PO) Issuance
Once the vendor is selected, the system automatically converts the requisition into a Purchase Order (PO). The PO is reviewed and then sent to the vendor for fulfillment.
5. Vendor Invoice
The vendor submits their invoice, which is captured in the system's "Suppliers Invoice" section. This invoice will be referenced during the payment process.
6. Goods Received Note (GRN)
The next step is creating a Goods Received Note (GRN). The GRN verifies that the goods or services have been received, and it enables a three-way matching process between the PO, the vendor invoice, and the GRN. Any discrepancies are noted here.
7. Supplementary GRN (SGRN)
If there are discrepancies, such as shortages in the delivery, the system allows you to create a Supplementary GRN (SGRN) when the vendor fulfills the remaining items. This ensures accurate tracking of goods received.
8. Credit Note
If any goods are rejected or if there’s an overcharge, a Credit Note can be requested from the vendor. The credit note, once received, is logged in the system, adjusting the overall procurement and enabling completion of the three-way matching process for final payment.
9. Make Payment
After the three-way matching between the PO, GRN, and vendor invoice is successfully completed, you can proceed to make payment. The system allows you to initiate the payment from the "Suppliers Invoice" table. Clicking the "Make Payment" button will confirm the three-way match, and you will be directed to the Pay Module to complete the payment process. No payment can be made unless the three-way matching is successful.
With this understanding of the purchasing flow, you’re now ready to dive deeper into each step and learn how to perform each task efficiently in the Buy Module.