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The Purchasing
Control System provides the means to reduce inventory investment and ordering
costs. Because of the direct interface to the Inventory Management System,
a buyer can determine future inventory requirements in a timely way. The
system responds to changing buying requirements whether they are for routine
inventory replenishment based upon maintaining inventory levels or purchases
for special customer orders. Since cost changes can be recorded immediately,
expected impact on profit can be anticipated in advance and appropriately
controlled. Purchasing costs can be optimized by knowing all items that
could be bought from a given vendor. This provides the opportunity to lower
cost of goods by reducing freight costs, gaining volume buying discounts,
and better predicting the timing of purchases aids in knowing what has
been bought from whom, what was paid, and in what quantities. Trends of
prices are thus known to the buyer, further aiding timely buying decisions
and lowering costs.
System Features
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System store all items bought
from all suppliers or selected suppliers (a user option).
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A worksheet can be printed by
individual supplier, showing all items and prices that could be bought
from them. This is a useful working document for the buyer preparing a
purchase order.
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All open purchase orders are
tracked and show order date and due date.
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All purchase orders can be maintained
and/or changed by line item.
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A receiving authorization control
form can be produced for all purchase orders showing all quantities and
items incoming. This insures accurate receiving.
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Receipt of partial shipments
is allowed.
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Cost changes can be posted during
receiving (if invoice present) or separately when invoice arrives from
vendor.
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System produces both internal
purchase order and formal purchase order to supplier as needed.
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System may provide cross-reference
capability to alternate suppliers.
Audit Features
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Purchase order entry and maintenance
verifies vendor information, inventory description, and pricing on-line.
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Receiving entry verifies correct
purchase order items to prevent error.
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The receiving authorization
shows receiving personnel what they are allowed to receive and when approximate
arrival time can be anticipated.
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Cost changes are auditable at
time of receiving on the terminal and then printed on a report.
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Receiving report provides a
final audit trail of all purchases received into inventory.
Inquiries
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Item Inquiry - Shows all outstanding
orders for that item.
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Open Purchase Order Inquiry
- Shows all items on a purchase order.
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Purchase History Inquiry - Shows
prices and dates of previous buys of a given inventory item. (Also see
Item inquiry in Inventory Management System.)
Reports
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Inventory Ordering Review Report
- Shows by vendor, all item sales velocity statistics and lead times.
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Selected Vendor Purchasing Worksheet
- Shows all information a buyer needs to selectively order and negotiate
a purchase.
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Open Purchase Order Report
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Inventory Cost Change Report
- Shows new price, old price, and net change per unit.
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Vendor Name and Address List
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Receiving Report - Shows all
items received since last report.
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Hot List - Shows items in critical
need of ordering attention.
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