Procurement Management

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Introduction

Procurement Management deals with all the activities related to the purchase of goods and services from external suppliers and the corresponding reporting.

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.

Procure to Pay 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:

• Products
• Costing rules
• Landed Cost Types
• Business Partners (Vendors & Suppliers).
• Price configuration

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. Same way each product that is being purchase needs to be defined in a unit of measure ("UOM"), and in alternative unit of measure (AUM) if required. Please refer to Product Setup, Product and Pricing for more information.

Above configuration is part of the overall Business setup flow within the "Master Data Management" setup.

The cost of an input transaction such as a "Goods Receipt" can be calculated by using the product's purchase price excluding taxes.

Besides that, the cost of the products included in a Goods Receipt can be adjusted as a result of allocating different types of Landed Costs in the receipt.

The "Costing Server" process is the new Openbravo "Costing Engine" process that calculates and adjusts product's transactions cost. This process requires that the legal entity/organization has a costing rule configured and applied to the products configured as "Stocked".

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.

Above configuration is also part of the overall Business setup flow within the "Master Data Management" setup.

Note: You are not required to perform any additional setups for the Procurement Management application area if you are going to explore it based on Food & Beverage (F&B) sample client shipped with Openbravo by default. The sample data set already contains the roles, business partners, products, warehouses and prices pre-configured.

Transactions

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

• Requisition
• Manage Requisitions
• Requisition To Order
• Purchase Order
• Goods Receipt
• Pending Goods Receipts
• Purchase Invoice
• Matched Invoices
• Return to Vendor
• Return to Vendor Shipment
• Landed Cost

Analysis Tools

Starting from here, you will learn how to analyze "Procurement Management" related data in Openbravo.

• Purchase Order Report
• Purchase Dimensional Report
• Goods Receipts Dimensional Report
• Purchase Invoice Dimensional Report
• Matched Purchase Orders

Advanced

• Vendor Invoice Report

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