The Purchasing process covers the business processes required for the creation of requisitions, purchase orders, receipt of vendor invoices, and payment processing. The functionality is tightly integrated with Materials Management.
Requisitions may automatically be created from Material Replenishment Reports or alternatively entered manually. A sample workflow implementation is delivered with the standard product that requires Requisitions in excess of $100 to be approved. Upon approval, a report of approved Requisitions is prepared and purchase orders may be created.
This workflow is provided as an indication of the way that a Document Workflow can be setup. In Compiere, approved Requisitions automatically generate Purchase Orders.
Purchase Orders
Purchase Orders can be generated (and consolidated, if required) from Material Replenishment Reports, Requisitions, Sales Orders, projects, or manually entered. Compiere supports two-way and three-way matching with receiving and invoicing documentation. Following matching, Purchase Orders are automatically closed to minimize overhead on the PO screens but remain accessible via reports.
Material Receipts
Material Receipts are processed by creating a material receipt record. Material Receipt records are then matched to the Purchase Order or Vendor Invoice. Material Receipt records can be auto-created and auto-matched, from Purchase Orders or Vendor Invoices to avoid the overhead of additional data entry.
Return to Vendor
Compiere can automate your return to vendor processes through Vendor Return Materials Authorization (RMA). Vendor RMAs are linked to the original Purchase Order and Material Receipt. The Vendor Return Policy can be used to control whether the goods are eligible for return. Any violations to the return policy can be overriden by users with the “Override Return Policy” privilege. Vendor RMAs can be matched to Return to Vendor transactions and Credit Memos. Return to vendor transactions can be entered directly as new documents, or created from a Vendor RMA. If they are created from a Vendor RMA, all the details of the Vendor RMA are automatically copied over to the Return to Vendor. The Generate Credit Memo process can be used to generate the Credit Memo. Alternatively, the Credit Memo can be manually entered and matched to the Return to Vendor transaction.
Vendor Invoices
Vendor Invoices are entered based on the vendor's invoice document or may be created from (and matched with) Purchase Orders or Material Receipts as Recipient Created Tax Invoices. Material Receipts can also be created automatically from the vendor invoice when the invoice and shipment are received concurrently.
Payments
Payments are generated based on payment terms, which allow payment discounts to be optimized. Payments can be made by direct debit transactions or Compiere's check printing facilities. Payments can also be made by credit card and details can be recorded when entering the Purchase Order or Invoice.
