Purchase Module of ERP

Introduction

Purchase also plays a very important role in a manufacturing organisation. Purchase procures all sorts of items or products required by the organisation, provides all departments with their necessary item requirements, keeps a ready count of the quantity of the different items and deals with the suppliers in an endeavour to procure new stock.

Purchase always pumps store with oxygen and keep it alive. So that store can keep the other departments alive. Purchase Module is fully integrated with related functional processes including automated inventory replenishment, sales requests for non-stock and direct-ship items.

The Purchase module controls the inventory purchasing side of your business. You can track Purchase Orders, supplier prices, and quantities on order. When used in concert with the Inventory and the Invoicing/Order Entry modules, the Purchasing module can calculate quantities to order to meet customer commitments. Built-in lead times will ensure that your purchasing meets your customer or production due dates. With the usage of Purchase module you will increase your inventory efficiency and eliminate costly shortages.

Overview of the Purchase Department 

The function of purchase begins with Material Indent. The Indent generation can be several folds. One is as per demand by a department. Their requisition will be routed through store. The purchase can see that the Indent is attached with a definite requisition. The second is auto-generation of Indent. A Re-Order Level can be given to all materials in the store. When the stock goes below the Re-Order Level an Indent will be generated. A separate information sheet will be attached with every indent. That sheet will show if the material is at all lying with any department, un-consumed. If the department finds that the purchase order is to be made, it will first ask for Supplier quotation. We encourage user to do this practice through Internet. If the supplier mail number is provided the request for quotation can be passed to the supplier. We also suggest that Suppliers should put their quotation through Web. In that case any kind of manipulation or data tampering can be handled. On receipt of quotations a comparative statement should be generated by the system and the statement should be forwarded to the higher authority for finalisation. On approval the purchase order will be made. We have found that in some cases direct cash purchases are made. It is better to stop that practice. But if it is required to continue it is better that at the Gate the material in should be recorder as Cash Purchase. Later a list of similar kind of purchase can be generated. All figures will be protected under password. Only authorised person will be eligible to access information from this module.