# Purchasing/Receiving Overview
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Data Entry Procedures | Reports and Inquiries | Update Processes
The Purchasing module provides the ability to enter and maintain purchase order information, and to make receipts and debits against these orders. A vendor rating system is also incorporated into the purchasing module. The module contains several reports to assist the user in the management of the procurement process.
The Engineering and Inventory modules must be installed before using this module if the purchase orders are to reference part numbers destined for inventory. Otherwise the module may be operated independently.
There are five primary data files and three cross-reference files which maintain the data directly associated with the module.
The Purchase Order file (PO) maintains one record for each purchase order in the system. The records are keyed by the purchase order number which may by assigned automatically by the system or manually by the user. Each record contains a header section which maintains information about the vendor and terms of payment, and a line item section which contains all of the line item data which includes part numbers, cost, scheduled dates and quantities, and receipts information.
The DMR file (Discrepant Material Report) maintains information entered about purchased parts that are rejected. The records are keyed by a sequential number, and are used as part of the basis for the vendor rating system.
The Receipts file (RECEIPTS) maintains one record for each receipt / debit transaction processed. The records are keyed by the purchase order number followed by a dash (-) and a sequential number maintained in the purchase order record. The sequential number for debit records is preceded by the letter "D" and is maintained as a separate sequence of numbers. Each record contains information about all of the items received including the receipt date, packing slip number, part number and quantity.
The Vendor file (VENDOR) maintains one record for each vendor used in the procurement process. The records are keyed by a user defined number and contain descriptive information about the vendor such as name, address and telephone number. The records also contain default information used by the purchase order entry procedure such as payment terms and contact.
The Terms file (TERMS) contains the records which define the terms of payment wich may be included on the purchase order. These records are keyed by a user defined code and contain the parameters which define the terms.
The Purchase Order to Parts cross-reference file (POPART) is keyed by part number and contains the numbers of all of the purchase orders which reference the part number. It is used by several of the reporting procedures to provide direct access to purchase orders by part number.
The Purchase Order to Vendor cross-reference file (POVENDOR) is keyed by vendor number and contains the numbers of all of the purchase orders which reference the vendor. It is used by several of the reporting procedures to provide direct access to purchase orders by vendor number.
The Vendor Name cross-reference file (VENDNAME) maintains an index to all vendor records for each word of the vendor name. Anywhere within the system where the vendor number is prompted the user may elect to enter a word from the vendor's name instead to obtain the vendor number. Each word is processed by a soundex algorithm so that even misspelled words can be cross-referenced accurately.
This module contains interfaces to the Engineering, General Ledger, Inventory and Accounts Payable modules. It validates part numbers with the Parts Master file in the Engineering module, and validates account numbers in the General Ledger chart of accounts. The receipts processing creates inventory transactions, and also creates accrual records for Accounts Payable.
The user interface to the module consists of data entry procedures to enter purchase orders and receipts, reports and inquiries, and batch update procedures. Access to these procedures is controlled by the user's security profile. For example, some users may be allowed to enter new purchase orders while others may only be allowed to make changes to existing records. Some users may only be allowed to look at the data without the ability to change it, and some may not even be able to access the procedure. Access to batch procedures is usually restricted to use by only the system administrator since these are usually run overnight.
There are three setup processes which must be performed prior to beginning the normal flow of activities. The first is the definition of the terms codes ( TERMS.E ). While additional codes may be added at any time, the codes you intend to use immediately must be available. Vendor records must also be entered ( VENDOR.E ) for at least the vendors which you intend to use immediately, the rest may be added as required. The purchase order control record ( PO.CONTROL ) must also be setup before normal activities may begin.
Flow of Activities
The flow of processing for the purchasing module begins with the entry of the purchase order in the PO.E procedure. All items which are purchased should be entered in the purchase order file, this includes items which are not for production use or do not have a part number. The decision to enter multiple items on one purchase order or to create separate orders for each item is an internal procedural decision. The procedure allows the user to delete purchase order records provided that there have been no receipt transactions posted against the order. The purchase orders may be printed with the PO.F1 procedure for pre-printed forms or the PO.F2 procedure for blank paper or letter head forms. There is also an option in the PO.CONTROL procedure which allows you to print a purchase order directly from the PO.E procedure when it is filed.
After a purchase order is in the system receipts may be posted against it. The RECEIPTS.E procedure provides this capability. Multiple items on the same purchase order may be posted on the same receipt transaction. If an error was made when the receipt was entered it may be reversed with the RECEIPTS.E3 procedure provided that no additional receipts have been entered against the purchase order, and the associated accounts payable accrual record has not been changed. Debits for rejected receipts may be entered with the RECEIPTS.E2 procedure. A full or partial debit of the items may be entered. All of the receipts procedures automatically create inventory transactions for items with a part number assigned.
If you are using the vendor rating system, you will want to enter any information about rejected items with the DMR.E procedure. This may be at the point of receipt or at a later time.
The maintenance of the Vendor file ( VENDOR.E ) and the Terms file ( TERMS.E ) should be done as new items are required or changes need to be made.
At some point in time it may be appropriate purge some of the older purchase order and receipt records from the system. This is done with the PO.P4 and RECEIPTS.P2 procedures.
While all of the cross-reference files in the purchasing module are maintained automatically, it may be necessary to rebuild these files with the batch procedures provided. This would normally be done after a file purge, but may also be done on a regular basis by setting up the rebuild procedures in a batch queue.Version 8.10.57