Purchase Module

Planned Flow of the Software# 003 = Purchase Order Checking

& Approval

File # 003 Covers the 4th – 5th cell of this flow chart

Purchase indent

Indent Approval

Purchase Order

PO checking

PO Approval

Gate Entry

Quantity MRRQA – QC

Bill Passing Payment

PO Checking Info available while checking PO Approval

Info available while checkingAuto Email

Sub-Topics Covered

PO Approvals on your Mobile Phone

Finsys on your Mobile Phone

It is easy andmost of the Finsys Client Directors today,

approve the PO’s regularly, via Mobile phone

it is so easy

NOW , LET US “APPROVE” THE PURCHASE ORDER

.

Next Step

Now , let us approve the Purchase order

To approve, Go to this menu & Press this icon

(( a short cut available, on the main desktop, for Directors, and CEO ))

Select the desired date

Select the desired type, party, item, if desired

Press click in the “tick-box” on the rightHere, 3 rows approved.

You can reject the PO request And also give the “specific reason”This makes the message clearAuto email shoots, if desired.

As soon as the Directors approve the PO, an email goes automatically to the vendor as shown above** Note : this auto email desires a dedicated “in-house mail server”

Take printout of approved PO if required for your record that is also available in the system

Question : Do you need PO Approval ?• Do we need online “PO Approval” ?

– Best Business Practice (BBP) : Yes– Reason : proof that it is authorised by them.– Good = for additional control– This control is “Not suitable” for companies where Directors don’t approve

“online”.

• What happens if the PO is not approved online– PO process in the ERP becomes a formality / typing job– Decision makers are not seeing the

• past rate history• Stock in hand in that plant – LIVE position• Stock in hand in other plants – LIVE position• Pending PO position ( PO raised for same item and pending to be received from vendors)• Pending In QC stock = what if already goods received , but pending in QC for 10 days,

hence production facing problem, thinking they are not available, making a PO again

Question : “PO checking” ?• Do we need online “PO checking ” ?

– Best Business Practice (BBP) : Yes– Reason : proof that it is authorised by one more person before the final

approval.– Good = for additional control– This control is “Not suitable” for small companies where staff is less, and all

decision taken by the Director himself.

• If you want this facility ?– Screens and options similar to PO approval screen – Usually given to HOD Purchase, or the HOD Accounts– He/she can see the following before the PO is checked

• past rate history• Stock in hand in that plant – LIVE position• Stock in hand in other plants – LIVE position• Pending PO position ( PO raised for same item and pending to be received from vendors)• Pending In QC stock = what if already goods received , but pending in QC for 10 days, hence

production facing problem, thinking they are not available, making a PO again

Some options during PO checking / Approval ?

Colm for “Marking URGENT”See , who checked it before me. Here…. Empty means “None”

Last ratesPR , date and who made it……

If I reject a PO

I can mark a row as “rejected” == RED colmAndThen give reasons as shown above

Approval Limits

There is a facility for fixing the approval rights “monetary” limits. Mr Tyagi, Purchase Manager = Approval Rights Rs. 0 to Rs. 10000Mr Bhansali, Plant Head = Approval Rights Rs. 10001 to Rs. 75000Mr G K Ahuja, Director = Approval Rights Rs. 0 to Rs. 1,00,00,000Mr B S Ahuja, Chairman = Approval Rights Rs. 0 to Rs. unlimited, ( and compulsory for all capital goods )

Click on Quantity colm

To get useful information

Click the “Quantity”

To see the stock in hand of that itemIn that plantAnd in all the plants, live on the Finsys ERP

Click on Rate colm

To get useful information

Option to see and verify the Rate History of this item 3 options available

When, I click, same item-all vendors, it Shows

I was purchasing this item from which vendor in past ?At what price ?For what lot quantity ?

At which plant ? Which PO, and date ?

Color Coding = Yellow & Blue

To get useful information

Color Coding = YELLOWYellow = Shows, it is an “amendment” Purchase Order >> extra caution required

Color Coding Yellow = AmendmentWhy did you amend it ??

See the reason here

Color Coding BLUEBlue = Shows, it is an “Rate Variation” Purchase Order >> Again >> extra caution required

Click the rate colm It Shows

I was purchasing this item from which vendor in past ?At what price ?For what lot quantity ?

At which plant ?Which PO, and date ?

This colm Shows

Reason for “Rate Difference”Whatever, justification, your staff member gave

Whenever there is a “Blue mark”you will ask your staff member, the reason why he is allowing a higher price to this vendor ?

Opinion Colm

Shows the opinion of the ERP, in this PO

Can I see the PR and POwhile approving ?

Click the P R number to see the Soft copy of the Purchase requisition immediately

Click the Purchase Order Number column

You can see the Soft copy of the Purchase Order immediately

NowWe have approved the Purchase Order

Next step, next file

Over to Next Powerpoint