Although purchasing can take many forms, every purchase follows approximately the same established pattern, from looking for goods or services to buy to making payment for them to a vendor. The pattern suggested by Codejig ERP is a typical and widely recognized purchase process which involves 4 distinct steps from issuing a purchase quotation to creating a purchase order to receiving goods or services to receiving a purchase invoice from a vendor for goods or services bought. Each stage in the process is represented by a separate purchase document, such as a purchase quotation or a purchase order. In the Codejig ERP purchase process, the suggested document flow is the following:
Purchase quotation ⇒ Purchase order ⇒ Goods and Services receipt ⇒ Purchase invoice.
It is easy to move along the purchase process as Codejig ERP can copy and transfer all the appropriate information from one purchase document to the next document in the flow.
However, it is not obligatory to take each step in a sequential order. If necessary, you can create a purchase invoice directly in response to a purchase order to your vendor without creating the preceding three purchase documents before that. Or, you can skip certain documents in the purchase process and, for example, create a receipt document based on a purchase quotation without creating a purchase order prior to that.
Purchase Process Documents
The following documents comprise the purchase process in Codejig ERP:
- Purchase quotation
A purchase quotation is a document that offers to purchase goods or services from a vendor at a certain price and under specified conditions. It allows your company as a customer to review prices and other details before making a purchase. The document and its postings do not have any inventory or accounting impact.
2. Purchase order
A purchase order is a document that confirms the purchase of certain items or provision of specific services at approved prices, quantities and dates. The document results in a posting that affects the Inventory journal.
3. Goods and services receipt
A goods receipt document indicates that goods have been delivered to your company as a customer or services have been received. It does not regulate or oversee the transportation of goods. It just reflects the fact that you have received the goods and/or services. The goods receipt cancels the goods reservation in Inventory journal with the status “Expected”, alters the total quantity of items in stock by the number of goods received and indicates that the goods were received from a vendor without a purchase invoice. It also impacts the transaction journal and inventory journal.
4. Purchase invoice
A purchase invoice is a document sent by a seller to a customer indicating the costs and quantities of the products or services provided by the seller. The purchase invoice is the request for payment from the vendor. It affects the transaction journal, inventory journal, the vendors journal and the VAT journal.
Document Creation Approaches
There are three approaches how to create purchase process documents.
- You can manually create a purchase document as a standalone document.
For information about the manual approach to the creation of purchase documents, see Create Purchase Process Documents.
- You can create purchase process documents based on the preceding purchase documents using the standard copying functions in Codejig ERP.
For more details on this approach, see Copy Purchase Documents.
- You can create purchase process documents based on the preceding documents in the purchase flow using the Document flow line.
For information about the Document flow line, see Document flow line.
Besides the documents that constitute the described purchase process, there are the following purchase-related documents in Codejig ERP:
- Make payment - used for recording purchase invoice payments made to a vendor. The document results in a posting that closes the open purchase invoice which was paid. The document belongs to the Codejig ERP Banking module.
- Debit note - is issued by a seller to reduce the amount that a customer owes from a previously issued purchase invoice. It is created in the event of a product return, a purchase invoice error, damaged products, and so on. It affects Transaction journal, Vendors, VAT and Inventory journals.
The purchase module includes the following directories:
- Purchase order generator - enables you to check the stock for minimal and sufficient quantities of goods and to repurchase positions which have amounts below the minimal recommended quantity by generating the purchase orders.
- Purchase invoice import - allows you to convert e-invoices received from your forwarding service provider into Codejig ERP purchase invoices in the XML and PDF formats.
- Vendor - allows you to add new vendor and keep track of all your existing and top vendors as well as spendings associated with them.