Human Resource Management

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Introduction

ToDo.

This application area of Openbravo covers Requisition to Receipt and Invoicing parts of the Procure To Pay business flow and Supplier Returns business process. For Payments Management of Procure To Pay see Financial Management // Receivables & Payables application area.

HR Business Flow

Procure to Pay workflow manages the life-cycle of a procurement process.

Due to its complexity and different roles involved it is convenient to split Procure to Pay down into two main sub-processes:

1. Requisition to Receipt process starts by the creation and management of purchase requisitions and corresponding purchase orders to the moment the warehouse staff receives the merchandise.
2. Supplier Invoice to Payment continues previous sub-process by registering the supplier invoices and closes it by paying supplier invoices.

Configuration

The following setup needs to be done before performing the process:

• Employee
• Overtime Rules
• Business Partners (Vendors & Suppliers).
• Tac Rate

Products need to be configured prior any purchase requisition is issued. Each product that is being purchased needs to have a price in the purchase price list in order to be selectable in any transactional document like a purchase order or a purchase invoice.

Business Partners need to be configured prior any purchase requisition can automatically turns into a purchase order. Please refer to Business Partner Setup and Business Partner for more information.

Execution

In Procurement Management the Procure to Pay business process is executed as follows:

Any member of the organization allowed to do so can directly issue a Requisition as a result of an organization or business unit need.

• The requestor creates a new document in the Requisition window, enters a "Need by date" and then looks for the product or service needed. If the product does not exist it can be entered at that time in the Product window.

• Purchase staff manages requisitions in the Manage Requisitions window.
• Purchase staff can change any data of the requisitions created in draft status, and besides can look for the supplier to be used in the Business Partner field. if the Business * * Partner does not exist, it can be entered at that time in the Business Partner window.
• Puchase staff can also enter the purchase net unit price and discounts if any, once known.
• Once the requisition is ready, it is completed. The Document Status of the requisition changes to Completed and can then turn into a purchase order.

BR staff:

• can massively create Purchase Order/s for the Completed Requisitions in the Requisition to Order window by searching and then adding requisition lines do not linked to an order yet. The purchase order/s created that way are shown in the Purchase Order window in Booked status.

Finance staff:

• Registers supplier invoices in different ways:
  • With the Goods Receipt window, Finance staff can generate an invoice from a Receipt in status Complete.
  • With the Purchase Invoice window, Finance staff can enter supplier invoices:
    • in a manual way
    • or by retrieving purchase orders or receipts lines pending to be invoiced
    • or by copying invoice lines from existing purchase invoices.
• Registers landed cost invoices and match those "invoiced" landed costs with the landed costs:
  • booked directly in a receipt(s)
  • or booked through a landed cost document.
• Processes and Posts landed cost matching.
• Once a Purchase Invoice is Processed a Payment Plan of the invoice is created based on the payment terms agreed with the supplier and the purchase invoice can be posted to create the accounting entries of the invoice. Afterwards, the payment plan can be modified.

Additionally:

• The Matched Purchase Orders view helps Finance staff to have a look at the order or receipt lines which have not been invoiced yet by a supplier.
• Finance staff is able to review past supplier invoicing information in the Purchase Invoice Dimensional Report

Purchase expenses can be recognized in different ways:

• In most cases companies would recognize the expense as soon as the purchase is made. For instance a company buying consumable products that are not capitalized. In Openbravo, in this situation, the expense is generated as part of the accounting of the purchase invoice corresponding to the transaction.
• Under some circumstances, however, it is required to defer the expense recognition. For instance a company purchasing a business insurance for the duration of a year would want to distribute that expense over 12 months. In Openbravo, in this situation, the expense can be deferred within a given number of periods by entering an expense deferred plan in the purchase invoice lines.

For a full description of this functionality please review the How to manage deferred revenue and expenses article.

Finally, the finance staff is in charge of making and managing the supplier payments:

• Supplier payments can be made in the Purchase Invoice window by using the Add Payment button. It is also possible to made a prepayment against a Purchase Order.

Detailed payment management documentation is available in the Financial Management // Receivables & Payables application area and in the How to manage prepaid invoices in payables article.

Supplier Returns Business Flow

This workflow manages the return of purchased goods back to the supplier. Due to the consequences of returning it is convenient to split Supplier Returns down into two main sub-processes:

1. Supplier Return to Debit: This process manages the return of goods back to the vendor and the request of a debit.

1. Supplier Return to Replacement: This process manages the return of goods back to the vendor and the request of a goods replacement.

Configuration Nothing special needs to be configured before performing the process but the window Return reasons

Execution In Procurement Management the Return to Vendor business process is executed as follows.

Procurement staff:

• Creates a new document in the Return to Vendor window and looks for the vendor name in the Business Partner field.
• And continues by adding lines clicking the button Pick/Edit lines
  • It is possible to pick goods receipt lines and edit the quantity you want to return, price
• Once the Return Material document is accepted by the Vendor you can process it clicking the button Book. The status of the document changes from Draft to Booked
• Only Booked documents can be shipped to the vendor

Warehouse staff:

• Creates a new document in the Return to Vendor Shipment window and looks for the vendor name in the Business Partner field.
• And continues by adding lines clicking the button Pick/Edit lines
  • Return to Vendor lines are picked
  • It is possible to edit the quantity to be shipped
• Once the document is ready process it by clicking the button Complete. The status of the document changes from Draft to Completed
• Completed shipment updates stock information (product levels go down)

Finance staff: To invoice these documents go to Purchase invoice window. All scenarios are covered:

• If the vendor sends an invoice just for that specific document you need to select a Reverse purchase invoice document type and then select the lines through the Create lines from button
• If the vendor sends an invoice with the original purchase order plus the return materials order you need to select a Purchase invoice document type and then select * the lines through the Create lines from button
• If the vendor doesn't send an invoice for the return materials order but wants to keep it as credit so you can use it later you have to:
  • Create a Reverse purchase invoice for this return materials
  • Leave it as credit to be used later through the Payment out window
  • A new purchase invoice based on the original purchase order can consume that credit

Relationship with other application areas

Procurement Management has a relationship with other application areas:

• Warehouse Management as Goods Receipts changes items quantity on hand and its value.
• Financial Management in terms of managing account payable payments.
• MRP Management as purchase planning allows the creation of purchase orders based on material necessities

Application Menu

Please find below detailed description of all windows and reports of the Procurement Management application area.

Payroll

Openbravo Procurement Management provides a flexible and automated procurement workflow. Starting from here you will learn how to operate Openbravo procurement management.

• Salary Payment
• Incidental Earning
• Incidental Deduction
• Purchase Order
• Import Incidental Earning
• Import Incidental Deduction
• Reimbursement
• Salary Back Payment

Analysis Tools

• Generate Pay Slip

Setup

• Salary Formula Library

Loan

• Installment

Jamsostek

• Installment

Insurance

• Installment

Overtime and Emergency Call

• Installment

Business Trip

• Installment

Income Tax

• Installment

Leave

• Installment

Time and Attendance

• Attendance Entry
• Shift Exchange Request
• Employee Shift
• Import Attendance
• Employee Manual Schedule
• Import Employee Manual Schedule

Analysis Tools

• Attendance Report
• Shift Report
• Attendance Summary Report
• Attendance Performance Report
• Individual Attendance Performance Report

Setup

• Shift Rule
• Manual Schedule Group

Performance Management

• Installment

Employee Administration

• Installment

People Development

• Installment

Termination and Retirement

• Installment

Recruiment

• Installment

Case Management

• Employee Case

Advanced

Background Processes

• Background Processes Setup

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