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Purchase process


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Supplementary document for education on Purchase process, F

Supplementary document for education on Purchase process, F

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  • 1. Syddansk Universitet, Technishe Fakultet10Purchase Order flowBased on Microsoft Axapta 3.0Kiril Iliev<br />Table of Contents<br /> TOC o " 1-3" h z u Preliminary Information PAGEREF _Toc259099644 h 2<br />Information about the databases PAGEREF _Toc259099645 h 3<br />Purchase order PAGEREF _Toc259099646 h 3<br />Planned purchase orders PAGEREF _Toc259099647 h 3<br />Vendors PAGEREF _Toc259099648 h 4<br />Integration with other databases PAGEREF _Toc259099649 h 4<br />Case study – part one PAGEREF _Toc259099650 h 4<br />Case study – part two PAGEREF _Toc259099651 h 5<br />Case study – part three PAGEREF _Toc259099652 h 5<br />The Sales Order PAGEREF _Toc259099653 h 6<br />MRP method PAGEREF _Toc259099654 h 6<br />Period method PAGEREF _Toc259099655 h 7<br />Min/Max method PAGEREF _Toc259099656 h 8<br />Preliminary Information<br />In the Purchase module the operator can make any purchases for required items, review planned purchase orders, and vendor lists.<br />The module is accessible as shown on the picture below:<br />As you can see there are three functionalities in this module – Purchase order, Planned purchase orders, and Vendors.<br />Information about the databases<br />Purchase order<br />“Purchase order” has Simple and Advanced view.<br />In simple view, the operator views the parameters of the currently selected order – these parameters can be changed, but not all of them (for example order number or status cannot be changed since they are automatically generated by the system).<br />With the “Create lines” button located on the right, the operator can add items to the order, specifying the item by number, requesting quantity. In addition there are other columns for information such as available items in the inventory at the moment (“On hand” button).<br />In advanced view the operator can review the same options but in addition to review all the current orders and their status. (NOTE: In order to add new order – click CTRL + N simultaneously)<br />Above there are several tabs where additional information can be reviewed including Delivery, Postings, Price/Discount and other.<br />In order to process a purchase order, the operator has to (selecting order with status ‘Open order’, using the Setup button on the right):<br />
    • Post Purchase order -> Post
    • 2. Delivery note -> define ID -> Post
    • 3. Invoice -> define ID -> post
    IMPORTANT: It is very important to “Print” the Purchase order document in real working environment (ticking the Print option). You can either save a digital copy in PDF, or print a hard copy on a local printer.<br />In real environment the Delivery note is sent by the vendor to confirm the order – it is a list of the items for the blue-color workers who can confirm or reject the items are received.<br />After this procedure each purchase order is invoiced and considered paid and accounted in the system.<br />Planned purchase orders<br />Planned purchase orders are generated automatically by the system, when a new sales order is put in the system. The system suggests what needs to be bought and put the order as a Planned Purchase order, after that a human operator has to review and firm/approve the order in order to process it, after making any necessary changes (for example the system might suggest to buy more components than needed)<br />Vendors<br />A list of all current vendors and information about their current status – if they are available, discontinued contact, etc. In addition, selecting a vendor and then Transactions button the operator can review all the current transactions (such as open orders, orders, etc.) between the company and the vendor.<br />In addition, from here the operator can inquiry process of a purchase order, delivery note, invoice, and statistics. Also review purchase prices and special trade agreements with a specific vendor.<br />Integration with other databases<br />
    • Items that can be purchased are retrieved from the Items database
    • 4. Vendors that are needed to be specified in the newly created order are retrieved from the Vendors database
    • 5. From “Planned purchase orders” the operator can firm the orders
    Case study – part one<br />The engineering department sent you an inquiry for a new batch since they need to finish the production of 10 pieces of “Bike Touring” product, so you would need to inspect the BOM of the item and make a purchase of the needed products.<br />After a short talk with Josh from the marketing department, you understand that you should make the order for all items from vendor 3029.<br />Also Josh tells you that the order should be processed in EUR currency, and the language of the documents must be English. Why there is difference between the prices in the Item master and the purchase order?<br />At which step of the purchase order flow the items are available in the inventory?<br />Your task is considered completed once you have on hand all the required components for 10 pieces of “Bike Touring”.<br />Case study – part two<br />Josh from marketing asks you to make changes for item 9020, try to change the multiple purchase order size to 5, and the minimum order size to 15 (HINT: these properties are accessible from the Items database in the “Stock management” module).<br />After changing the basic data, make a new purchase order.<br />How many will the system suggest you to buy?<br />What does the system tells you, if you try to buy 17 or 18 pieces?<br />Case study – part three<br />In your company you are assigned to work in teams of two (the list with the login information contains info who is in your company) – choose a partner from your company. Each team has been assigned to work on a particular item as follows:<br />Front Wheel, Shimano Dura Ace – Team One<br />Rear Wheel, Shimano Dura Ace – Team Two<br />Front Wheel, Shimano Ultegra – Team Three<br />You have to talk with your company peers to distribute the items among the teams.<br />The Sales Order<br />The management asks you to make a new sales order for your item, ordering the following quantity in the upcoming weeks:<br />In one week – 10 pieces<br />In two weeks – 15 pieces<br />In three weeks – 15 pieces<br />In four weeks – 30 pieces<br />MRP method<br />Before processing the sales order, make sure the Coverage method group is set to MRP (HINT: this property could be found in the item master of the respective item, under General tab)<br />Run MRP and check the results. In order to calculate the MRP for an item, choose the item number in stock management->items, you want to calculate. Choose Inquiries – gross requirement and you will have the following picture:<br />To run the MRP calculations choose Plan – MP-1, then choose update - master scheduling. What results do you expect to see considering the MRP is a lot-for-lot?<br />Finally, check the “Planned Purchase Orders” database and see what the results are.<br />Period method<br />After processing the sales order, change the Coverage method of your item to Period and put in the Coverage period – two weeks, as shown in the picture below (in the system this means 12 days if we include the Saturdays). <br />HINT: Select the item and then click Setup->Item Coverage<br />Process the same sales order as described above, and check the MRP. What results do you expect to see this time?<br />Finally, check the “Planned Purchase orders”. What do you expect to see?<br />Min/Max method<br />Go to your item and change the Coverage method to Min/Max, also go to Item coverage, and you will see the following window:<br />Click CTRL+N and set Min 10 and Max 40, and coverage group to min/max (selected from the drop-down menu).<br />Make a new sales order with the same parameters. Run MRP for the item and review the “Planned purchase orders”. What results do you expect to see?<br />