Purchasing

Overview

In this document, we will discuss the four primary ways to manage purchasing in Savance Enterprise.

Spot Buying With Stand-Alone Purchase Orders

Overview

In some cases, regardless of how you handle centralized vs. per warehouse purchasing, you will need to make a spot buy to one of your vendors. In this case, you will simply create a stand-alone purchase order (PO).

Creating a Stand-Alone PO

• Order -> New -> RFQ/PO (If you spend most of your time in purchasing you can set a default that will open a new RFQ/PO when you use the “New” button).

  

• A new RFQ will be opened

• Add your vendor name and contact as needed

• Add a contact name and verify delivery method email address if emailing PO.

• A PO # will be added in sequence upon conversion or you can also add a custom PO # if applicable

• Next add items and quantities to the items grid

  

• E-mail the RFQ to vendor if you want current prices in the case of a commodity item or special buy

  

• Save RFQ for later conversion select Save

  

• If the RFQ is complete and ready to place select Covert.

  

• Warehouse takes over at this point when the PO is received.

Linked Purchase Orders

Overview

In some cases, you will want to generate a PO that is linked directly to a sales order. Perhaps there is a special order item that needs to be purchased ASAP, or the salesperson knows they need to fulfill a backorder for a given sales order and has the authority to put it in an order to the vendor at the time of order entry. The benefit of this method of purchasing is that items on a linked RFQ/PO will be allocated exclusively to the order in which they are linked to.

Creating a Linked RFQ/PO

As Sales Person who does not have Purchasing authority

• Enter a sales order as is described in the sales management process document

• Convert

  

• Click Links tab, and select the Create RFQ/PO

  

• You will be prompted to choose RFQ/PO generation options

  

• The RFQ options are as follows:

  • Create one RFQ per Lot project Item - If you have an order with several lot projects you can create one RFQ for all those projects within that one specific lot.

  • Create one RFQ per Vendor - The system will look at all items and if there are more than one vendor a RFQ will be created for each one.

  • Create one RFQ for the info specified below - Will only create an RFQ for the items liste below

  • Create one RFQ per MFG - The system will look at all items and if there are more than one MFG a RFQ will be created for each one

  • Create one RFQ for All - The system will create a RFQ no matter on how many vendors/mfgs you have on the order.

• Once you make your selection and verify the delivery method and select OK a RFQ will spawn off from the sales order.

  

• Vendor name & items to be ordered will automatically be added to the RFQ

• Next select Save and you can close the RFQ tab.

• After the RFQ is saved, the linked order will appear in the links tab in the RFQ & the linked RFQ/PO will appear in the links tab in the Order.

  

• Use the Send To function to send the RFQ/PO to the purchasing department

  

• Choose internal contact, add a message and click OK

  

• The RFQ will now appear in the purchasing agent’s in-basket and/or e-mail inbox

As Sales Person who does have Purchasing authority

You will follow the same steps as above to create the hard link, however once the RFQ has been created you wil:

• Add contact information, and verify the PO delivery method and either let the system generate the PO number or enter your own.

  

• Once everything has been verified select Covert

  

• You will see in both the PO and Sales order Links tab both have the hard links for one another.

  • Sales Order View
  
  • PO View
  

Using the PO Now functionality

There is an item level checkbox called PO Now that can be used to signal the software to create linked POs for just the line items with the PO Now checkbox flagged in the scenario you have some instock and nonstock items on a single order.

• Once you enter your order, on the sales grid find the PO Now column and select the items that apply

  

• When the order is completed select Covert

  

• You will be prompted to choose RFQ/PO generation options

  

• The RFQ options are as follows:

  • Create one RFQ per Lot project Item - If you have an order with several lot projects you can create one RFQ for all those projects within that one specific lot.

  • Create one RFQ per Vendor - The system will look at all items and if there are more than one vendor a RFQ will be created for each one.

  • Create one RFQ for the info specified below - Will only create an RFQ for the items liste below

  • Create one RFQ per MFG - The system will look at all items and if there are more than one MFG a RFQ will be created for each one

  • Create one RFQ for All - The system will create a RFQ no matter on how many vendors/mfgs you have on the order.

• Once you make your selection and verify the delivery method and select OK a RFQ will spawn off from the sales order.

  

• Finally follow the steps mentioned above based on your Purchasing permissions. .

As Purchasing Agent

From The In-Basket

• If you received a RFQ to convert from one of the sales personnel via in-basket, double click the RFQ in the in-basket and follow the process explained earlier in this article to convert to a PO.

  

From Open Screen

• Find the RFQ in the Open search utility and follow the process described above in “Create a Stand-Alone PO” section to convert the PO

  

Direct/Drop-Shipped PO

The process of creating a direct PO always originates with a sales order. In other words, there must be a sales order in the system marked as direct in the software in order to create a direct PO. Once you generate said sales order, you can generate the direct PO in two separate ways described below.

Via Sales Order - Generate Linked RFQ/PO

• Set the Direct flag in the sales order header and convert the order

  

• Generate Linked RFQ/PO as described in the section above (Links -> Generate Linked RFQ/PO)

  

• A direct RFQ/PO will be generated and linked back to the sales order

  

• Ensure the proper Ship To address is set in the Ship To tab

  

• When everything is verified select Convert

  

You will now wait to until the customer receives the material, so it can be updated in the system as such to make the order invoiceable and the PO payable upon receipt of the vendor invoice as is described in the AR/AP process document

Via Critical Purchasing

If you handle all of your purchasing through the critical purchasing module (described in detail later on in this document) you will be able to filter and generate direct PO’s based on the direct flag set at the sales order level

• Purchasing -> Create Critical Purchase Order

  

• Filter on Direct Orders & Line Item Directs -> Search

  

• A list of direct sales orders that need direct POs generated will be displayed

  

• At this point, based on the order numbers or manufacturers that you check you will be able to generate the direct POs which will then be linked directly to the corresponding sales order.

• For more information see the Critical Purchasing section below.

Internal Purchase Orders

In a multi-warehouse operation, should you want to move inventory from one warehouse to another, you can generate an internal purchase order following these steps:

• Open a new RFQ/PO

  

• Check the internal Flag

  

• Change the warehouse to the warehouse you intend to take stock from

  

• Make sure the Warehouse you want the material shipped to is reflected in the order header combobox and the Ship To tab

  

• Convert RFQ to a PO

  

• Check the links tab and you will notice that there is now a linked order for warehouse 2 to fulfill

  

• At this point warehouse 2 will have an order in the releases section of Warehouse Management -> Shipping and a PT will print

• WH staff in warehouse 2 will now ship and deliver the material to WH 1 at which point WH 1 will receive the material

• The internal PO process is now complete

Critical Purchase Orders

Overview

This will be the most utilized purchasing utility in the software. Critical Purchase Orders help you intelligently determine what you need to purchase from order fulfillment and stock replenishment standpoint separately or together. It also helps you note freight and order minimums and will display data per item such as Reorder point and Reorder quantity.

Creating a Critical Purchase Order

• Purchasing -> Create Critical Purchase Order

  

• Critical Purchasing Dashboard will open

• Choose the type of PO you will be creating as well as the buyer & warehouse where applicable

  

• Click Search and the MFRs & Items suggested to be purchased will be presented in an interactive form

  

• Expand one manufacturer at a time to drill down and show need based on order vs. stock fulfillment

  

• And again to drill down to an item level detail

  

• At this point, you will click the box(es) to select what you would actually like to create RFQs for

  • You can click the master vendor box which will select all items associated to all orders and stock fulfillment needs for the vendor

  • You can click the master orders box, which will select only the items for all the orders needing fulfillment

  • You can click the master stock check box which will select only the items for all stock needs

  • You can click a mixture of master and individual item level check boxes to pick and choose which items you want to put on RFQs

  

• Once you have gone through and selected the items & orders you want to put on order -> Generate RFQs

  

• One or multiple RFQs will be created in the background depending on how many manufacturers you selected

  

• At this point, you will send the RFQ’s out for updated pricing or Convert them to Purchase Orders accordingly.

  

Assigning Buyers Purchasing Dates & Lines

Some organizations will want to assign purchasing dates and line responsibilities to individual purchasing agents which will drive what is seen per user in the critical purchasing screen. For instance, maybe you buy GE on Monday, SQD on Tuesday, Southwire on Wednesday AND purchasing agent 1 is only to buy for GE & SQD while purchasing agent 2 is to only buy Southwire. Follow the steps below to set these types of conditions which all impact what is viewable by default for each individual purchasing agent in the critical purchasing module.

Assigning Purchase Days Per Line

• Purchasing -> Manage Vendors -> Search for Vendor -> Account Info

  

• Beside “Normal Ordering Days” uncheck “All” and check the day you’d like this line to be ordered on

• Now when you filter on a proper day in Critical Purchasing, you will see only the vendors that are assigned to all days or the day you are filtering on. In the example below, we are filtering on a Monday so SQD is appearing accordingly.

  

Assigning Lines To Specific Buyer

• Purchasing Manager -> Manufacturer/Vendor Relationships

  

• Click the “Buyers” tab

• Find the Vendor/MFR you are looking to assign a buyer to and double click it

• Assign “Specific Buyer” from drop-down

  

• Note that when you filter on the correct ordering date and buyer, SQD will now appear

  

Helpful Metrics/Tools

Reorder Point/Reorder Quantity

Reorder Point and Reorder Quantity can be found in a few different places, most notably in the Critical Purchasing Screen as well as the RFQ/PO itself. This value can be set per item manually by a purchasing agent or automatically based on usage and demand by the software. See below for where to find the value.

• Critical Purchasing Screen

  

• RFQ/PO (Note that where the ROP/ROQ cells fall in the RFQ/PO is customizable per user

  

• If you need to change the ROP/ROQ or any other purchasing metrics like lead time or target fill rate on a per-item basis go to Inventory -> Inventory Manager -> Item Manager -> Search for the item -> Warehouse Tab -> Inventory Control

  

• At this point, you will be able to set user values by typing the preferred value in the applicable cell and unchecking the “S” checkbox to set it as a user-defined value.