Skip to end of metadata
Go to start of metadata

INTRODUCTION TO PURCHASING

The Purchasing Process in Compiere covers the business processes required for the creation of requisitions, purchase orders, receipt of vendor invoices, and payment processing. The functionality is tightly integrated with Material Management. In traditional systems, this functionality is typically found in modules entitled purchasing and accounts payables.

REQUISITION TO INVOICE

Compiere supports several purchasing functions which are included in the Requisition-to-Invoice procedure.

 

 
Requisitions may or may not be used. If you have enabled commitment account (also known as encumbrance accounting), then Requisitions will be the first step of your purchasing process.

You can generate a Purchase Order from a Requisition or Sales Order and then create an Invoice or a Receipt from it without entering all the information again. For this functionality, Compiere provides a 'Create from' feature.

Note that the Purchase Order is optional, since you can still create an Invoice or a Shipment without a Purchase Order. Matching to a Purchase Order is also optional. The only Matching which is required is the Matching between the Shipment and the Invoice. If you use the "Create from" feature, the Matching is done automatically. If you do not match, certain accounting transactions will not be carried out such as the movement of amounts from un-invoiced receipts to invoiced receipts.

The Purchase Order is a control document in terms of Receipts and Invoices. A Purchase Order is not required for Receipts. Depending on your company policy the creation of Purchase Orders may be mandatory, but in Compiere it is optional. The important aspect is that you are able to enter your Receipts (whether you have a Purchase Order or not) and business can go on. Note that only Products can be received.

You can create a Vendor Invoice from the Receipt you created. (Note that the Invoice price is based on the price list of the business partner.) It is also possible to do it the other way around and enter the Invoice first (if you receive it together with the Shipment) and create the Receipt from it. When processing the Receipt the Inventory is updated accordingly.

Expense Invoices are created for items which are not based on a price list, for example telephone/utility Invoices. In these cases you would create a Charge. A Charge is linked to a GL account, i.e. the account that will be charged. That allows you to set up your different cost items. You also have the option to differentiate between debit and credit transactions. You might call a Charge "Interest" and the correct account is used whether it's an interest you pay or an interest you receive.

The Matching can be done automatically (with the 'Create from' or Generate features) or manually.

If you are using a Costing Method other than Standard Cost, matching of documents is required.

For additional information on Costing, refer to the Costing Chapter.

Important: Note that unmatched Receipts are accounted but all accounting transactions do not occur as mentioned above.

CREATING REQUISITIONS

Requisitions are used to show the intent to Purchase an item. They can be set up in a Work Flow for approvals before a Purchase Order is created. An example of this is discussed in the Common Functions and Commands Chapter.

To create Requisition in Compiere, click on Requisition from the Main Menu. The icon in front of the Requisition menu item indicates that it is a window.


 
Select an Organization for this Requisition.

Enter Document No or let the System assign one for you.

Select a User/Contact to represent the Requisitioned.

Enter a Description and Comment if desired.

Select a Priority of High, Medium or Low.

Enter the Date Required to indicate when the items in this Requisition are needed.

Enter a Document Date to indicate the date for this Requisition.

Select the Warehouse the items will be received into.

Select a Price List for this Requisition.

The Status area contains fields that are System maintained.

Click on the Requisition Line tab to enter the items to be requisitioned.

Enter a Product or a Charge.

Enter a Quantity.

The Unit Price will be populated based on the Price List selected, but it may be modified.

Enter a Description if desired.

Note: If a Charge is entered it must have a Business Partner defined.

For additional information on Charges, refer to the Utilities Chapter.

Click on the New Record button to add more lines.

When you have finished adding lines, click on the Requisition tab to return to the Requisition header.

The Total Lines field has been updated to reflect the Total of all lines for this Requisition.

Complete the Requisition by selecting the "Complete" button.

Click on the OK button to "Complete" the Requisition.

The Document Status is now marked "Completed" and the "Not Posted" button is displayed.

Note: Depending upon your system set up, Requisitions may require an approval. If that is the case, then the document status will be set to "Suspended."

For additional information on approvals in Workflow, refer to the Common Functions and Commands Chapter.

If a Purchase Order has been created from a Requisition you can view the details by selecting the Purchase Order tabs. Refer to the following section for details on creating a PO from a Requisition.

Requisitions- Accounting Consequences

The following outlines the accounting transactions generated for a Requisition if Commitment Accounting with Reservations has been indicated in the Accounting Schema. The account used for Product Expense is defined in the Product window. The account used for Reservation is defined in the Accounting Schema. The Posting type for the document is Reservation.

Requisition

    DR: Product Expense    

           CR: Commitment Offset

If Commitment Accounting is not indicated, then no transactions are generated.

CREATING PURCHASE ORDERS

Purchase Order

Purchase Orders may be created in 3 ways, from a Requisition, from a Sales Order or manually.

To create a Purchase Order from a Requisition in Compiere, click on Create PO from Requisition from the Main Menu.

Select a Requisition to use as the source for this Purchase Order. Only Requisitions that have been completed may be used.

Select an Organization and Warehouse.

Enter a Document Date range to limit the number of Requisitions selected as the Source (this would be used only if you did not select a specific Requisition).

Enter the Date Required range to limit the number of Requisitions selected as the Source (this would be used only if you did not select a specific Requisition).

Select a Priority to limit the Requisitions selected as Source (this would be used only if you did not select a specific Requisition).

Select a User/Contact to limit the Requisitions selected as Source (this would be used only if you did not select a specific Requisition).

Select a Product to limit the Requisitions selected as Source (this would be used only if you did not select a specific Requisition).

Select the Consolidate to one Document check box is you want all Requisitions selected to result in a single Purchase Order for each Vendor.

Click the OK check box to start the process.

A message dialog is displayed that specifies the Purchase Order(s) created with the amount and Purchase Order number.

Note: Purchase Orders will only be generated for those products which have a Current Vendor defined.

To generate a Purchase Order from a Sales Order in Compiere, click on Generate PO from Sales Order from the Main Menu.

Select a Date Ordered range for the Sales Orders you want to use for generating the Purchase Orders.

Select a Business Partner to limit the Sales Orders selected to those for a specific Business Partner.

Select Vendor to limit the Purchase Orders generated to those Sales Orders with products with this Vendor defined as the Current Vendor.

Select a Drop Shipment flag of Yes or No.

Select an Order if you want to Generate Purchase Order(s) for a specific Sales Order only.

Click the OK check box to start the process.

A message dialog is displayed that specifies the Purchase Order(s) created with the Purchase Order number.

Note: Purchase Orders will only be generated for those products which have a Current Vendor defined.

For additional information on Sales Orders, refer to the Sales Chapter.

To manually create Purchase Orders in Compiere, click on Purchase Order from the Main Menu.

When the Purchase Order window is opened any Purchase Orders entered or updated today and those Purchase Orders that are not Completed or Closed will be displayed.

To view Historical records, select the History button on the toolbar.

Then you may choose to see records for the current Day, Week, and Month, Year, or All records.

You can also view historical records by using the standard record Search.

The Purchase Order window defines a purchase order for an organization. The Purchase Order tab defines the parameters of an order. The field values defined will determine how the Order Lines are processed.

 
The Order Reference field allows you to enter a reference number.

The Target Document Type defaults to Purchase Order, which is the only option here. If you have defined additional document types for Purchase Orders, they can be selected.

The Date Ordered and the Date Promised fields default to the current date, but can be changed.

You need to select the Business Partner for this Purchase Order by clicking on the icon in the field. Or you enter the entire search key (or the first characters that make it unique) and hit Enter, so the field will be filled automatically.

In this case the Business Partner would typically be a Vendor. Now the following fields are defaulted from the Business Partner information: User/Contact (if any), Bill To, Partner Address, and Price List.

The Currency field displays the Currency to be used.  This is based on the Price List selected.

Optionally you can select a Warehouse / Service Point. This is the unique location where the products are stored.  By default, it will display the Warehouse selected when logging into Compiere.

In the Company Agent field you need to enter the person who purchased the products or services. If the User logged in is also a Sales Representative, that user will default here.

You can optionally select a Project and a Campaign. The Campaign defines a unique marketing program. Projects can be associated with a predefined Marketing Campaign. You can then do your reporting on the basis of a specific Campaign.

Note: Project and Campaign will only be displayed if they have been activated as elements of the Client's Account Schema.

The Payment Term and Payment Rule for this Purchase Order default from the Business Partner Vendor attributes.

Select the Discount Printed check box to indicate that the discount is to be printed on the purchase order.

The Document Status indicates the status of the Purchase Order at this time. If you want to change the status, use the Document Action button.

This will call the Document Action window.

After entering your PO lines, you have the option to Complete, to Void or to Process the Purchase Order.

The Document Type determines the document sequence and the processing rules that are invoked for each Document Action. For example, Process will update the Ordered Quantity and recalculate taxes if required. Complete will update the Document Status to Completed which prevents lines from being added, deleted or modified. Also Completed Purchase Orders can be used in the Create From process which will be discussed later in this chapter.

The Total amount displays the total of all lines in the document currency.

The Grand Total displays the total amount including Tax in the document currency.

Purchase Order Line

Click on the Purchase Order Line tab to enter the Line information for the Purchase Order.

The Order Line tab defines the individual items of a Purchase Order.

Select a Product by clicking on the icon in the Product field. The Product Info window appears. Press Return or enter the wildcard to display all products listed.

Select the desired Product by double-clicking on the corresponding row to enter the Product into the Product field on the Purchase Order Line.

You can also enter the search key in the Product field and hit Return to enter the Product into the Product field. Enter a Description if you like.

The Date Ordered and the Date Promised fields default dates on the Purchase Order Header, but can be changed.

The Line No specifies the unique line of the Purchase Order. It will also control the display order of the lines within the Purchase Order.

The Charge specifies a type of Charge (Handling, Shipping, Restocking, Bank Charges etc.). The Charge cannot be selected if you had selected a product. You can only have one price, so the price is either for a Product or a Charge.

In the Quantities area, enter the Ordered Quantity. The UOM defaults from the Product definition. If a UOM Conversion is defined for this Product you may select a different UOM from the drop down list box. You may Order in one UOM and Receive and Invoice in a different UOM if the appropriate conversions are defined.

For additional information on UOM Conversions, refer to the Products Chapter.

In the Amounts area, Unit Price, List Price, Tax, and Discount default from the Price List for the Product, but can be changed. The Discount will automatically be updated if the Price is modified and the Price will be automatically updated if the Discount is modified.

You can enter a Cost Price if you want the Purchase Price Variance (PPV) calculation to use a price other then the Unit Price (e.g. to include special handling or other costs). This cost is also used for the accounting transactions associated with the Material Receipt matched to this PO if no other costing values are defined (e.g. the first time a product is purchased).

For additional information on Matching and PPV, refer to the next section in this chapter.

For additional information on Costing, refer to the Costing Chapter.

In the Status area, the Line Net Amount (Quantity * Actual Price) without Taxes and Charges is displayed. It specifies the line net amount based on the quantity and the actual price. Any additional charges or taxes are not included.

Matching

The Matching tab is a view only tab which displays information regarding the matching of this Purchase Order Line to a Material Receipt Line and Vendor Invoice Line. Matching is discussed in the Matching section of this chapter.

Purchase Order Tax

To display the tax information for the Order Lines switch to the Order Tax tab. Confirm the displayed dialog box to save your Order Line data if you have not already done so.

The Order Tax window displays the tax associated with the Order Lines. You associated the Tax with the Product in the Purchase Order Line tab.

The Tax field specifies the type of tax for this order line. The Purchase Order field displays the Purchase Order ID. The Tax Amount field displays the total tax amount for all Lines in the Purchase Order. And the Tax base Amount field shows the base amount used for calculating the tax amount.

Return to the Purchase Order tab.

Select the Complete button to Complete this Purchase Order.

The Complete process updates the On Order value for the product(s) in this Purchase Order.

Printing Purchase Orders

You can Print the Purchase Order by selecting the Print button from the Tool Bar.

The document that prints contains the Information from the Purchase Order.

Note: The Print Preview will only display if you have selected this option in Tools/Preferences.

The format used is determined by the format defined for the Document Type. The language and date format used is determined by the Multi Lingual Documents feature and the language of the Business Partner.

For additional information on Print Formats, refer to the Info and Reporting Chapter.

For additional information on Multi Lingual documents, refer to The Multi's Chapter.

Purchase Order - Requests

You can enter a Request directly from a Purchase Order or you can access existing requests for this Purchase Order.

In this example you can create a new Request. If there were existing Requests defined you could view them as well.

For additional information on Requests, refer to the Requests Chapter.

Purchase Orders- Accounting Consequences

The following outlines the accounting transactions generated for a Purchase Order if Commitment Accounting has been indicated in the Accounting Schema. The account used for Product Expense is defined in the Product window. The account used for Commitment is defined in the Accounting Schema. The Posting type for the document is Commitment.

Requisition

    DR: Product Expense    

           CR: Commitment Offset

If Commitment Accounting with Reservations has been indicated, the following transactions are generated in addition to the ones previously detailed. The Posting type for these transactions is Reservation

Requisition

    DR: Commitment Offset 

           CR: Product Expense

If Commitment Accounting is not indicated, then no transactions are generated.

CREATING RECEIPTS

Material Receipt

To create Material Receipts in Compiere, click on Material Receipt from the Main Menu. The icon in front of the Material Receipt menu item indicates that it is a window.

When the Material Receipt window is opened any Material Receipts entered or updated today and those Material Receipts that are not Completed or Closed will be displayed.

To view Historical records, select the History button on the toolbar.

Then you may choose to see records for the current Day, Week, and Month, Year, or All records.

You can also view historical records by using the standard record Search.

The Material Receipt window defines the Receipt of a product or material from a Vendor. The Receipt may be manually entered or may be generated from a Purchase Order or Vendor Invoice. The Material Receipt tab allows you to generate, maintain, enter, and process Receipts from a Vendor.


 
The Order Reference field allows you to enter a reference number. The Document Type is defaulted. It determines the document sequence and processing rules.

Select the Business Partner by clicking on the icon in the Business Partner field. The Business Partner Info window appears. Press Return or enter the % wildcard to display all or a subset of your Business Partners.

Select the Only Vendors check box to display your Vendors only. If you unselect it, all your Business Partners appear.

Select the desired Vendor by double-clicking on the corresponding row to enter the Vendor into the Business Partner field in the Material Receipt window. The Partner Address and the User/Contact (if there is one defined) will be filled in automatically.

Optionally, you can select a Warehouse / Service Point. This is the unique location where the products are stored.

You can select a Priority to indicate the importance (high, medium, low) of this Receipt.

The Freight Cost Rule indicates the method used when charging for freight. In the current release only Freight Included is supported.

Material Receipt Line

To enter your Receipt Lines manually, click on the Receipt Line tab and on the New Record button.

Select a Product by clicking on the icon in the Product field. Press Return in the Product Info window, which appears, to display all Products listed. Double-click on the desired Product to insert it into the corresponding field.

If the Product selected is defined as having an Attribute Set Instance, you define it at this time. Select the Attribute Set Instance button and a dialog window displays.

This dialog allows entry of the Lot No for this product. Lot No is displayed because the Attribute Set for this Product is defined as a Lot.

If Lot Control is enabled, you can select the New Record button to automatically assign the Lot No. Otherwise, enter a Lot No in the field and select the OK button.

If this Material Receipt is for an existing Lot select the Select existing record button to display all Lots for this Product. The list will be restricted to the Warehouse defined for this Material Receipt.

Select the appropriate Lot by selecting the row and clicking the OK check box.

Select the Show All check box is your want to see Lots that are past the Guarantee Date or have 0 On Hand Quantity.

You can also select an existing Lot by using the drop down list box.

The Guarantee Date is automatically calculated based on the current date and the Guarantee Date defined for this product. You can accept the default date or enter another date.

The dialog closes and the Attribute Set Instance field is updated.

Lot Numbers are prefixed by L', Serial Numbers are prefixed by #' and if there are multiple attributes they are concatenated based on the sequence defined in the Attribute Set, separated by a -. IF you are receiving products for multiple Lots or Serial Numbers they must be entered on separate Material Receipt Lines.

For more information on Product Attributes, refer to the Products Chapter.

Enter a Movement Quantity. The UOM defaults from the Product definition. If a UOM Conversion is defined for this Product you may select a different UOM from the drop down list box. You may Order in one UOM and Receive and Invoice in a different UOM if the appropriate conversions are defined.

For additional information on UOM Conversions, refer to the Products Chapter.

Enter as many Lines for Products as you receive.

Confirmations

The Confirmations tab is a view only window that displays the related Confirmation(s) for this Material Receipt line. Confirmations, if enabled, provide the ability to do an additional check on the product receipt, quality, etc. prior to making it available in Inventory. Confirmations are discussed in detail later in this chapter.

Matched Purchase Orders

The Matched Purchase Orders tab is a view only window which displays information regarding the matching of this Material Receipt Line to a Purchase Order Line(s). Matching is discussed in the Matching section of this chapter.

Matched Invoices

The Matched Invoices tab is a view only window which displays information regarding the matching of this Material Receipt Line to an Invoice Line(s). Matching is discussed in the Matching section of this chapter.

Create Receipt From Invoice or Purchase Order

If you do not want to enter all these values manually, you can use the 'Create from' feature.

If you have already received an Invoice and created a Vendor Invoice for this Receipt, you can easily create the Receipt from this Invoice. Or if you ordered these items via Purchase Order, you can create the Receipt from the Purchase Order. To do this, simply click on the Create from button after selecting a Business Partner on the Material Receipt tab.

In the window that appears, select the Purchase Order or the Invoice on which your Receipt is to be based. Select the line items for this shipment (you can create a partial shipment) and you need to select a Locator. Click OK and all fields of the Receipt will be populated based on the information in either the Purchase Order or Invoice. This process can be repeated if the Material Receipt contains items from multiple Purchase Orders or Invoices. This method of creating a Material Receipt automatically matches the Material Receipt to the Purchase Order or Invoice it was created from.

Note: If you are receiving products with Instance Attributes (e.g. Lot or Serial Numbers), you must update those Receipt Lines with the appropriate Attributes Set Instance.

Regardless of the method used to generate the Material Receipt, you must process the Receipt to move the items into Inventory. Return to the Material Receipt header and select the Process Shipment button. A corresponding dialog box displays.

Select the OK button to start the Process.

When the Process is completed, Inventory will be updated based on the Warehouse selected on the Material Receipt Header and the Locators selected for each Product in the Material Receipt Lines. If the Material Receipt was created from a Purchase Order (using the Create From feature), the count in On Order Quantity for the product will be decreased and the On Hand Quantity will be increased.  If the Material Receipt was not created from a Purchase Order, the On Hand Quantity for the product will be increased. The On Order Quantity will be adjusted when the Purchase Order and Material Receipt are manually matched.

Printing Material Receipts

You can Print the Material Receipt by selecting the Print button from the Tool Bar.

The document that prints contains the Information from the Material Receipt.

Note: The Print Preview will only display if you have selected this option in Tools/Preferences.

The format used is determined by the format defined for the Document Type. The language and date format used is determined by the Multi Lingual Documents feature and the language of the Business Partner.

For additional information on Print Formats, refer to the Info and Reporting Chapter.

For additional information on Multi Lingual documents, refer to The Multi's Chapter.

Material Receipt - Requests

You can enter a Request directly from a Material Receipt or you can access existing requests for this Material Receipt.

In this example you can create a new Request. If there were existing Requests defined you could view them as well.

For additional information on Requests, refer to the Requests Chapter.

Create Invoice from Receipt

When the Receipt has a status of "Complete" and you can create the corresponding Vendor Invoice by clicking on the Generate Invoice from Receipt button. This creates and processes an Invoice from the Receipt you entered. Note that the Receipt should be correct and completed. The new Invoice will be matched to the Receipt it was created from.

If you click on the Generate Invoice from Receipt button, you will be asked if you want to start the Generate Invoice from Receipt process. Click OK and select a Price List Version from the following drop down-list.

To display the Invoice created, open your Invoice (Vendor) window by clicking on Invoice (Vendor) from the Main Menu.

The newly created Invoice will be listed in the Data Grid and can be selected, modified if necessary, completed and printed.

Material Receipts- Accounting Consequences

The following outlines the accounting transactions generated for a Material Receipt. The account used for Product Asset is defined in the Product window. The account used for Not Invoiced Receipts is defined in the Business Partner Group.

Material Receipt

    DR: Product Asset        

           CR: Not Invoiced Receipts

CREATING VENDOR INVOICES

Invoice (Vendor)

To manually create an Invoice, open the Invoice (Vendor) window by clicking on Invoice (Vendor) from the Main Menu.

When the Vendor Invoice window is opened any Vendor Invoices entered or updated today and those Vendor Invoices that are not Completed or Closed will be displayed.

To view Historical records, select the History button on the toolbar.

Then you may choose to see records for the current Day, Week, and Month, Year, or All records.

You can also view historical records by using the standard record Search.

In the window, click the 'New Record' button to continue.

The fields on the Invoice tab are similar to the fields on the Purchase Order.


 
The Order Reference field allows you to enter a reference number.

The Target Document Type defaults to AP Invoice. You can convert document types (e.g. from Offer to Order or Invoice). The conversion is then reflected in the current type.

The Date Invoiced and the Account Date fields default to the current date, but can be changed.

You need to select the Business Partner for this Purchase Order by clicking on the icon in the field or by directly entering the search key and hitting the Return key. In this case the Business Partner would be a Vendor. Now the following fields are defaulted from the Business Partner information: User/Contact (if any), Partner Address, and Price List.

The Currency field displays the Currency to be used.

Optionally you can select a Warehouse / Service Point. This is the unique location where the products are stored or the services are provided.

In the field Company Agent you need to enter the person who purchased the products or is responsible for this Invoice.

You can optionally select a Project and a Campaign. The Campaign defines a unique marketing program. Projects can be associated with a predefined Marketing Campaign. You can then do your reporting on the basis of a specific Campaign.

The Payment Term and Payment Rule for this Invoice default from the Business Partner but they can be changed.

Select the Discount Printed check box to indicate that the discount is to be printed on the Invoice.

Click on the Create from button to create the Invoice from a Purchase Order or a Receipt. Click on the Generate Receipt from Invoice button to create the Receipt from your Invoice. For more information on the 'Create from' features refer to the relevant section in this Chapter under Material Receipt.

The Document Status indicates the status of the Invoice at this time. If you want to change the status, use the Document Action button. This will call the Document Action window.

After entering the Invoice lines, you have the option to Complete, to Void or to Process the Invoice. Completing the Invoice prepares the Invoice for Posting and processes the Matching if the Create from feature was used. Void will reverse any actions that had occurred.

The Document Type determines the document sequence and the processing rules.

The Total amount displays the total of all lines in the document currency.

The Grand Total displays the total amount including Tax in the document currency.

Invoice Line

To enter your Invoice Lines manually, click on the Invoice Line tab and on the New Record button.

The fields on the Invoice Line tab are similar to fields in the Order Line tab.

The Line No indicates the unique line of the Invoice. It will also control the display order of the lines within the Invoice.

The Charge specifies a type of Charge (Handling, Shipping, Restocking, Bank Charges etc.). The Charge could not be selected if you had entered a product. The Charge is also used for Vendor Invoices where there is no product, like rent, utilities, or association dues. Using a Charge you can ensure the transactions are booked to the correct GL Accounts. You can only have one price, so the price is either for a Product or a Charge.

For more information on Charges, refer to the Utilities Chapter.

In the Quantities area, enter the Invoiced Quantity. The UOM defaults from the Product definition. If a UOM Conversion is defined for this Product you may select a different UOM from the drop down list box. You may Order in one UOM and Receive and Invoice in a different UOM if the appropriate conversions are defined.

For additional information on UOM Conversions, refer to the Products Chapter.

In the Amounts area, Unit Price, List Price, Tax and Discount default from the Price List for the Product, but can be changed according to the prices actually invoiced. Unlike the Customer Invoice, you can override the Tax calculated on a Vendor Invoice so it matches the actual invoice from your vendor.

In the Status area, the Line Net Amount displays the value of (Quantity x Actual Price) without Tax. It indicates the line net amount based on the quantity and the actual price. Any additional charges or freight are not included.

Note: Regardless of the method used to create the Vendor Invoice, you must complete the document. Then the document can be posted and payments generated for it.

Matched Purchase Orders

The Matched Purchase Orders tab is a view only window which displays information regarding the matching of this Vendor Invoice Line to a Purchase Order Line(s). Matching is discussed in the Matching section of this chapter.

Matched Receipts

The Matched Invoices tab is a view only window which displays information regarding the matching of this Vendor Invoice Line to a Material Receipt Line(s). Matching is discussed in the Matching section of this chapter.

Allocation

The Allocation tab is a view only window that displays information for the Payment(s) that have been allocated to this Invoice.

Payments and Payment Allocation are discussed in the Payments, Receipts, and Open Items Chapter.

Printing Vendor Invoices

You can Print the Vendor Invoice by selecting the Print button from the Tool Bar.

The document that prints contains the Information from the Vendor Invoice.

Note: The Print Preview will only display if you have selected this option in Tools/Preferences.

The format used is determined by the format defined for the Document Type. The language and date format used is determined by the Multi Lingual Documents feature and the language of the Business Partner.

For additional information on Print Formats, refer to the Info and Reporting Chapter.

For additional information on Multi Lingual documents, refer to The Multi's Chapter.

Vendor Invoices - Landed Costs  

There are instances when an additional Invoice for a Product or Material Receipt may be received after the original invoice. These additional charges can be allocated to the product(s) or Material Receipt(s) by using Landed Costs.

Landed Costs are discussed in detail in the Costing Chapter.

Vendor Invoices - Requests

You can enter a Request directly from a Vendor Invoice or you can access existing requests for this Vendor Invoice.

In this example you can create a new Request. If there were existing Requests defined you could view them as well.

For additional information on Requests, refer to the Requests Chapter.

Vendor Invoice- Accounting Consequences

The following outlines the accounting transactions generated for a Vendor Invoice. The account used for Product Expense is defined in the Product window. The account used for Tax Credit is defined in the Tax Rate window. The account used for Vendor Liability is defined in the Business Partner, Vendor Accounting window.

Vendor Invoice

    DR: Inventory Clearing

    DR: Product Expense

    DR: Charge Expense     

           CR: Tax Credit

           CR: AP Trade

           CR: AP Services

Note: If Cash based accounting is selected, Vendor Invoices will not generate any accounting consequences. These accounting consequences would be generated in the Payment allocation.

For additional information on Accounting method options, refer to the Performance Analysis Chapter.

For additional information on Payment Allocations, refer to the Payments, Receipts, and Open Items Chapter.

Matching

To match an Invoice or Receipt to the corresponding document, open the Matching PO-Receipt-Invoice window by clicking on Matching PO-Receipt-Invoice from the Main Menu.

Select a Match From document, for example, Invoice if you want to match an Invoice to a Receipt.

Only documents (Purchase Order, Material Receipt, and Invoice) that have been processed will be available for Matching.

Note: An Invoice can only be matched to a Shipment/Receipt. A Purchase Order can only be matched to a Shipment/Receipt. But a Shipment/Receipt can be matched to an Invoice OR to Purchase Order.

Enter the desired Search Mode, which can be Not Matched or Matched.

To narrow your search, enter a certain Business Partner, Product, or a Date Range. If you have made your selections, click on the Search Records button to call all records which match your criteria.

Use the following check boxes (Same Business Partner, Same Product, And Same Quantity) to indicate that documents can be matched only when they have the same business partner, product or quantity. Deselect the relevant check box if you want to allow other Products (such as Substitutes), other Quantities (for partial shipments) or another Business Partner (maybe an alternate supplier).

Click on the Receipt you want to match. If there's an Invoice for it, it will be displayed in the lower half of the window. Select the Invoice to check if the amounts and prices are correct. In the bottom line the quantity To be Matched, the actual Matching, and the Difference (if any) will be displayed. Click on the Process button to do the matching. If everything is okay, the Receipt and the Invoice will disappear from the screen, since they are Matched now.

Note: Matching is done automatically if the 'Create from' process was used to generate the documents.

Auditing on Matches

There are two display only windows which can be used to audit the matches that have occurred.

To review Matched Purchase Orders, open the Matched Purchase Orders window by clicking on Matched Purchase Orders from the Main Menu.The icon in front of the Matched Purchase Orders menu item indicates this is a window.

This read only window displays the Purchase Order Line, Invoice Line, and Shipment/Receipt Line along with the Product, Quantity, and Transaction Date for this match.

This same information may be viewed in the Purchase Order, Material Receipt, and Vendor Invoice windows.

Similar information is displayed in the Matched Invoice window.

This same information may be viewed in the Purchase Order, Material Receipt and Vendor Invoice windows.

Matching- Accounting Consequences

The following outlines the accounting transactions generated for the Matching transactions. The account used for Purchase Price Variance is defined in the Product window. The account used for the Purchase Price Variance Offset account is defined in the Accounting Schema, General Ledger window. The account used for Not Invoiced Receipts is defined in the Business Partner Group window. The account used for Product Expense is defined in the Product window.

Matched Purchase Orders (PO price greater than Standard Cost)

    DR: Purchase Price Variance     

           CR: Purchase Price Variance Offset

Matched Purchase Orders (PO price less than Standard Cost)

    DR: Purchase Price Variance Offset       

           CR: Purchase Price Variance

Matched Vendor Invoices (Invoice price greater than Current Cost)

    DR: Not Invoiced Receipts         

    DR: Inventory Clearing

    DR: Invoice Price Variance         

           CR: Product Expense

Matched Vendor Invoices (Invoice price less than Current Cost)

    DR: Not Invoiced Receipts         

    DR: Inventory Clearing

           CR: Invoice Price Variance  

           CR: Product Expense

If Commitment Accounting has been indicated in the Accounting Schema additional transactions would be created. The account used for Product Expense is defined in the Product window. The account used for Commitment is defined in the Accounting Schema. The Posting type for the document is Commitment.

Matched Vendor Invoice

    DR: Commitment Offset 

           CR: Product Expense

VENDOR INVOICE BATCH

Compiere provides the ability to enter Invoices for multiple Vendors in a single window. When the batch has been completed, Invoices are created for each of the Vendors based on the lines entered in the Batch. This is most often used for those Vendor Invoices that do not involve the receipt of Material or a Purchase Order, like utility, rent or lease Invoices.

To create an Invoice Batch, open the Invoice Batch window by clicking on Invoice Batch from the Main Menu.

Enter a Document No for this Invoice Batch or let the system assign one.

Enter a Description if desired.

Enter a Document Date for this Invoice Batch. This will be the default date used on all lines for this Invoice Batch but you can change the date at the line level.

Select the Sales Transactions check box if this Invoice Batch will generate Customer Invoices. Leave the check box unselected if this Invoice Batch will generate Customer Invoices.

Select a Company Agent to be used on the generated Invoices.

Select a Currency for this Invoice Batch.

You can optionally enter a Control Amount. If a Control Amount is entered, you cannot Create Invoices unless the total of the document lines equals the Control Amount.

Click the Batch Line tab to enter the lines for this Invoice Batch.

Select a Document Type for this Batch Line.

Note: Invoices and Credit Memos may be included in the same Invoice Batch.

Enter a Document No or use the Document No from the Invoice Batch header.

Note: If you enter a different Business Partner but do not enter a different Document Number, Compiere will increment the Document No to prevent duplicate Invoice numbers.

Enter a Description if desired.

Select a Date Invoiced and Account Date if they are different from the one selected in the Invoice Batch header.

Select a Business Partner, Partner Location and User/Contact.

Enter a Quantity and select a Charge account.

Enter the Price for this Invoice line and select the Price includes Tax check box if appropriate.

Select a Tax and Tax Amount if appropriate.

Save the record.

Continue entering Batch Lines until you are finished.

Return to the Invoice Batch header.

Note that the Document Amt field has been updated with the sum of the Batch Lines.

Click the Create Invoices button to generate the Vendor Invoices for this Invoice Batch.

Select a Document Action of Complete or Prepare and select the OK check box to start the process.

The message dialog indicates that two invoices were created, Invoices 10000 and 10001. One is dated Oct. 4 and the other is Sept. 4. This is because a different invoice date was entered for one of the lines.

Because the Document Action selected was Complete, no further action is necessary. If Prepare had been selected as the Document Action, the next step would be to open the Invoices in the Invoice (Vendor) window, make any desired changes, additions, or deletions, and Complete the document.

MATERIAL RECEIPT CONFIRMATIONS

In Compiere, you may require that a Material Receipt be Confirmed before the product appears as available in Inventory. In this confirmation, you can note the difference between what the vendor ordered was shipped and what was actually received. A credit memo is created for the difference between the shipped quantity and the confirmed quantity. Optionally, you can move what was confirmed into available stock and have the remainder 'In Dispute' until the difference is resolved. This allows for accurate stock numbers if the difference cannot be resolved immediately. If in the end the difference is confirmed, Compiere will generate a Credit Memo for the items not received.

Document Type

The first step in using Confirmations is to define a Document Type as requiring a Confirmation.

To create or modify a Document Type, open the Document Type window by clicking on Document Type from the Main Menu. The icon indicates that this is a window.

Document Types define how documents are processed and what processing occurs. To indicate that a Material Shipment or Receipt requires a confirmation, select the Pick/QA Confirmation or the Ship/Receipt Confirmation check boxes. These options allow for Confirmations to occur at multiple levels. In a Material Receipt scenario, you may want a Receipt Confirmation so that you can verify that the product the vendor indicates was sent was actually received. You can also have a QA Confirmation so you can verify the condition or quality of the items received.

If there is a discrepancy between what was shipped and what was received a Credit Memo will be generated for the difference. If it is common that differences must be investigated, you may select the Split when Difference check box. When this is selected and the Material Receipt is processed it will create a second Material Receipt and indicate that it is In Dispute. This allows inventory to be updated for the Confirmed quantities while still resolving any outstanding differences. The document created during the split is the document type defined as the Difference Document.

Material Receipt / Confirmation

When a Material Receipt has been defined as requiring a Confirmation, the Material Receipt cannot be completed until the Confirmation has been completed. The Material Receipt is entered as described in the previous section of this chapter. The difference is that when you attempt to Complete the document, a Confirmation document is created and the Material Receipt is set to an In Progress status.

For example a Document Type of MM Receipt with Confirmation has been defined as requiring Ship/Receipt Confirmation.

The Shipment has been entered and the document action that was selected was Complete, but the Document Status is 'In Progress'. In the message area at the bottom of the window it indicates that the Ship/Receipt Confirmation is Open and the Confirmation document number is listed.

While there is a Confirmation tab on the Material Receipt window, it is view only. It can be used to see the confirmations that have been completed for a Material Receipt line; however, the Confirmation must be completed in the Confirmation window.

To complete the Confirmation, select the Zoom Across Icon on the Tool Bar.

Select Ship Receipt Confirm from the list and this will open the Confirmation window.

The Confirmation Document is created referencing the Shipment/Receipt and with a Document Status of Drafted.

Select the Line tab to Confirm the quantities.

The Target Quantity is the Quantity from the Material Receipt. The Confirmed Quantity defaults to the Target Quantity. If necessary, update the Confirmed Quantity with the actual number received.

For example, the Ordered Quantity is 15 but the Confirmed Quantity is 10. When the Line is saved, the Difference field is updated with a quantity of 5.

Note: If there is a Difference Quantity a Physical Inventory record is created for the source (from) warehouse. If there is a Scrapped Quantity a Physical Inventory record is created for the target (to) warehouse.

Return to the Confirmation tab to complete the Confirmation.

Select the Complete button to complete the Confirmation.

The Document Status is now Completed.

The message text indicates that a Split Shipment/Receipt and Ship/Receipt Confirmation were created. This is because the Split when Difference check box was selected for the Document Type of MM Receipt with Confirmation.

Return to the Material Receipt window and Complete the document. This will updated the Inventory moving 10 of the product out of Unconfirmed Quantity and into Available.  5 will remain as Unconfirmed.

A new Material Receipt document has been created.

The Description field indicates that this was Split from the previous document, providing an audit trail. 10000514. The Document Status is In Progress and the In Dispute check box has been selected.

Once the discrepancy has been resolved, Zoom to the Confirmation.

As with the Material Receipt, the In Dispute check box has been selected.

Move to the Line tab to update the Confirmed Quantity.

Unlike the original Confirmation, the Confirmed Quantity defaults to 0. If the product had been located you would update it as appropriate. In this example, the product was short shipped and we in fact received only 10. Therefore, the Confirmed Quantity remains at 0.

Return to the Confirmation tab to complete the Confirmation.

Select the Complete button to complete the Confirmation.

The Document Status is now Completed.

The message text indicates that the Invoice (Credit Memo) was created with document number of 10000012.

To view the Credit Memo, open the Vendor Invoice window.

The Description is updated with the Confirmation document number that generated the Credit Memo.

The Document Status is Drafted.

This Invoice can be updated and processed as detailed in the previous section of this chapter.

REPORTING ON PURCHASING

Compiere provides a number of predefined reports for analyzing your Purchase Orders and Invoices. Like all reports in Compiere, you can modify the layout and content to meet your needs.

Purchase Order Reports

The available reports on Purchase Orders can be found in the Menu under Quote-to-Invoice.

Open Orders: This report displays Orders for which Invoices have not yet been generated. You may select a Business Partner and Product. Unselect the Sales Transaction check box to generate a report on Purchase Order transactions. Select the Sales Transaction check box to generate a report on Sales Orders transactions.

Order Transactions: This report displays detail information on Purchase Orders along with associated documents (material receipts, invoices, payments and cash lines). You select the "To and From" Order Date. Unselect the Sales Transaction check box to generate a report on Purchase Order transactions. Select the Sales Transaction check box to generate a report on Sales Orders transactions.

Invoice Reports

The available reports on Invoices can be found in the Menu under Quote-to-Invoice > Invoice Inquiry.

Invoice Transactions (Acct): This report displays information on Invoices based on their Accounting Date. You may select an Organization, the "To and From" Accounting Dates. Unselect the Sales Orders check box to generate a report on Vendor Invoice transactions. Select the Sales Transaction check box to generate a report on Customer Invoice transactions.

Invoice Transactions (Doc): This report displays information on Invoices based on their Document Date. You may select an Organization, the "To and From" Document Dates. Unselect the Sales Orders check box to generate a report on Vendor Invoice transactions. Select the Sales Transaction check box to generate a report on Customer Invoice transactions

Invoice Detail: This report displays detail information, including Margin, Discount Percent and Pricing, for Invoices. You may select a Business Partner Group, Business Partner, to and from Invoice Date and Payment Rule. Unselect the Sales Orders check box to generate a report on Vendor Invoice transactions. Select the Sales Transaction check box to generate a report on Customer Invoice transactions.

For more information on customizing reports, refer to the Info and Reporting Chapter.

REQUEST FOR QUOTATION

There may be times when you need to purchase specific items for a customer. In those instances, you may want to receive quotations from various vendors before making a Purchase. Compiere provides a Request for Quotation (RFQ) functionality to fulfill that need.

Compiere's RFQ functionality allows you to create a list of product or products, and request quotations from different Vendors, receive the quotations, compare the quotations and then issue Purchase Orders and create Sales Orders.

RFQ Topic

The first step in using RFQs is to define the RFQ Topic(s). To create or modify an RFQ Topic, open the RFQ Topics window by clicking on RFQ Topic the Main Menu. The icon in front of the RFQ Topic menu item indicates this is a window.

The RFQ Topic tab defines the Topic for this Request for Quotation.

Enter a Name and optionally a Description.

Select the Active check box to indicate that this RFQ Topic may be referenced on a Request for Quotation.

Select the Self-Service check box if you want to allow users to subscribe to this Request for Quotation Topic via the Web.

Select a Print Format for this RFQ Topic. When a Request for Quotation is printed, the Print Format defined for that RFQ Topic is used. This allows you to define how the printed copy will be formatted and allows for different formats for different RFQ Topics.

Select the Subscriber tab to create, modify or review the Subscribers for this RFQ Topic.

Subscribers to an RFQ Topic will be allowed to provide a quotation for any RFQs that refer to this Topic.

Select a Business Partner and Partner Location. The Partner Location will be used if a Purchase Order is created for this Business Partner.

Select a User/Contact for this Business Partner. The E-mail address for this User/Contact will be used for sending E-mails regarding specific RFQs.

Select the Active check box to indicate that this Subscriber is active and should be considered for RFQs.

The Subscribe Date and Opt-out Date are system maintained fields. They are updated if the Business Partner subscribed to this Topic via the Web.

Select the Restriction tab to create, modify or review any restrictions to be used when sending an RFQ to a specific Business Partner.

In the Restriction tab you may define the specific Products or Product Categories that a Business Partner may respond to. If there are no Restrictions defined, then the Business Partner may quote on all products.

Select a Product or Product Category that this Business Partner may Quote on. When RFQs are created and sent only the Products listed here will be included for this Business Partner.

If desired enter a Description for this Restriction.

There may be multiple Restriction records for a single Business Partner.

The next step is to create the actual Request for Quotation. This is where you define the Request, the type of Request, how the Quotations should be submitted along with the product(s) and quantities. It contains all of the details for the Request and the parameters your Business Partners should use when responding.

RFQ

To create or modify an RFQ, open the RFQ window by clicking on RFQ from the Main Menu. The icon in front of the RFQ menu item indicates this is a window.

Enter a Document No for this RFQ or allow the system to assign a default value.

Enter a Name for this RFQ. Enter a Description and Comment/Help if desired.

Select the Active check box to indicate this RFQ is Active.

Select a Sales Representative for this RFQ.

Select an RFQ Topic for this RFQ. This will determine the Vendors who will be invited as well as the Print Format to be used when printing this RFQ.

Select an RFQ Type of Quote all Lines, Quote Selected Lines or Quote Total Only to indicate the types of responses to be accepted. If the "Quote all Lines" option is indicated, then responses will not be marked as complete until all lines or the complete quote are updated. If Quote Total Only is selected then each RFQ Line may have only one quantity.

Each line in an RFQ may have multiple Quantities (for indicating possible price breaks). Select the Quote all Quantities check box if you want the response to include amounts for all quantities for each item.

Select the Quote Total Amt check box if you want the response to be a single amount. If this check box is not selected, then the responses must be per line.

Select the Invited Vendors Only check box if you want responses to this RFQ to be from only those Subscribers to this RFQ Topic. Only those Vendors will be able to see and respond to this RFQ on the Web. If this check box is not selected then any Vendor will be allowed to enter a response via the Web.

Select the Self Service check box if you want to accept responses to this RFQ via the Web. If this is not selected, responses must be entered via the client.

Select the Responses Accepted check box if this RFQ is currently open to Vendor responses.

Enter a Response Date and Work Start Date to indicate the date for Vendors to respond by and the date that the work will start respectively.

Select a Currency for this RFQ. All responses will be based on this currency.

If desired, enter a Delivery Days to indicate the planned number of days between Order and Delivery.

If desired, enter a Work Complete date to indicate the planned completion date.

Select the Create and Invite button after all lines and quantities for the RFQ have been completed to create shell responses for all invited Vendors.

When all Responses have been received, select the Rank Responses button to compare and rank all responses to this RFQ from Vendors.

The Business Partner section of this window is used if you will be creating a Sales Order based on this RFQ. This may be used if you are requesting quotations for a specific customer project.

Select a Business Partner, Partner Location, and User/Contact to be used on the Sales Order.

Enter a Margin % for the Sales Order. The system will generate the selling price for the items quoted based on the awarded vendor(s) prices and the margin % entered if Margin % or Offer Amount are not specified on the RFQ Line.

The Offer Amount field is not used at this time.

The Sales Order field is a system maintained field that is updated when a Sales Order is created for this RFQ.

The Create Sales Order button will create a Sales Order for this RFQ based on the Business Partner information entered above.

The Create Purchase Order button will create a Purchase Order or multiple Purchase Orders based on which Vendor(s) quotations were awarded.

The Copy Lines button will copy the lines and quantities from an existing RFQ to this RFQ. This can be helpful if you have recurring RFQs or similar RFQs.

The Close RFQ button will close the RFQ and prevent any updates, responses or any other actions to occur for this RFQ.

Select the Line tab to enter the Products for this RFQ.

Enter a Line No or select the system default.

Select the Active check box to indicate that this line is Active.

Select a Product and Attribute Set Instance if appropriate.

Enter a Description and Comment/Help if desired.

Enter a Work Start date, Delivery Days, and Work Complete date for this line if desired.

Select the Quantity tab to enter the Quantities for this line that you are requesting quotes on.

You can request quotes on different quantities of the same product. This allows Vendors to quote on different quantity breaks.

Use the tool bar button to toggle to the single record view.

Enter a UOM and Quantity of this product that you want a quote on.

The Best Response Amount field is system maintained and is updated when all RFQ Responses are received and you run the Rank Responses process.

Select the Purchase Quantity check box if this quantity line will be used for a Purchase Order and select the Offer Quantity check box if this quantity line will be used on a Sales Order. This allows you to purchase items for this quotation where some will be for a specific customer and some will be put into stock for other customers or for this customer at a later time.

If Offer Quantity has been selected, the corresponding fields will display.

Enter either a Margin % or Offer Amount for this item. It will override any Margin % entered on the RFQ and will be used when determining prices for a generated Sales Order. The system will use the Best Response Amount and add either the Margin % or use the Offer Amount for the Sales Price.

Return to the RFQ tab to Invite Vendors to this RFQ and create the Response shells for these Vendors.

Select the Create& Invite button to start the process.

The following message dialog displays.

Select the Send RFQ Invitation to Vendors if you want to send an E-mail to invited Vendors regarding this RFQ.

When the process is completed, RFQ responses will have been created for each Vendor that was subscribed to this RFQ Topic.

RFQ Response

RFQ Responses contain the prices and quantities of the requested products from each Vendor. If the RFQ has been designated as Self Service, the Vendors may enter this information directly via the Web Store or Response may be entered via the standard interface.

To respond via the Web the Vendor would log into the Web Store

When the Vendor logs into the Web Store, they can select the menu item of My RFQs. Once selected the corresponding screens displays.

Any RFQs that this Vendor has been invited to or any RFQs that are open to all will be displayed. The Vendor selects the RFQ that he wants to respond to by clicking on the Name. The Response Screen displays.

The Vendor then enters the Prices and Discounts for each Item and Quantity on which they want to offer a Quotation. When all entries have been made, select the "Submit" button to update the RFQ Response for this Vendor.

The other option for updating RFQ Responses is via the RFQ Response menu item.

To create or modify an RFQ Response open the RFQ Response window by clicking on RFQ Response from the Main Menu. The icon in front of the RFQ Response menu item indicates this is a window.

Responses are created for all invited Vendors when you select Create and Invite on an RFQ. You may also enter new Responses for other Vendors, if this RFQ is open to all vendors.

To complete an existing Response, enter a Response Date.

Optionally enter a Work Start, Delivery Days, and Work Complete.

Ranking is a system maintained field that will be updated when you select the Rank Responses button on the RFQ.

The Invite & Remind button allows you to send an E-mail to the Vendor on this Response to indicate that a Response has not been completed.

The Selected Winner check box may be selected if, after all responses have been received and ranked, you determine that this Vendor will receive the entire quotation. We will see on the Response Line that you may also select a Line as the Selected Winner, thereby dividing the quotation among two or more Vendors.

A Line Winner is selected if the RFQ Line Quantity is set as the Purchase Quantity. The Total Winner is selected if the RFQ Type is Quote all Lines or Quote Total only.

Select the Check Complete button when the Response from this Vendor is completed. The system will verify that the Response conforms to the RFQ Type (Quote all Lines, Quote Total, Quote Selected Lines).

Select the Response Line tab to update each Response Line.

RFQ Line is a protected field that displays the product for this Line (in this graphic it is Azalea Bush)

If desired, enter a Work Start, Delivery Days, and Work Complete for this product.

Optionally you may update the Description and Comment/Help fields.

The Selected Winner check box if after evaluation of all Responses for this product the Ranking for this line is 1 (e.g. the best price). You may change the Selected Winner if there is another business decision for doing so (e.g. Reliability, Delivery).

Select the Response Quantity tab to update the Prices for each Quantity of this Product.

The RFQ Response Line field is protected and displays the Product for this quotation (in this graphic Azalea Bush)

The RFQ Line Quantity is protected and displays the Quantity for this quotation (in this graphic 10 each)

Enter a Price and optionally a Discount %. This what the Vendor is offering as a price for purchasing this quantity of the selected Product.

Ranking is a system maintained field that is updated during the Rank Responses process.

When all Response Lines and Quantities have been completed, return to the Response tab and select the Check Complete button. This process will verify that the Response conforms to the RFQ Type (Quote Total, Quote all Lines, Quote Selected Lines) and determine if this RFQ Response is complete.

When you select the Check Complete button the corresponding dialog box displays.

Select the OK button to start the process.

If the RFQ Response is complete the system will update the Complete check box.

Only those Responses that are Completed will be included in the Ranking process.

Ranking Responses and Selecting Winners

When all Responses have been entered and completed, return to the RFQ window, to Rank Responses.

Select the Rank Responses button and the corresponding message dialog displays.

When we review the RFQ Response we will see that Seed Farm had the best ranking for all products so they have been designated as the Selected Winner for the entire Quotation.

The Ranking is 1 and if you return to the Response the Selected Winner check box is selected.

If, the RFQ response resulted in different Vendors being ranked 1 for different RFQ Lines, then the individual lines would be marked as Selected Winners. The total winner would be determined by adding together all of the rankings for each line. The Vendor with the lowest number would be the total winner and the Selected Winner on the RFQ Response tab would be selected for that Vendor.

Also, on the RFQ the Best Response Amount field on each RFQ Quantity is updated.

In this example, the Best Response Amount for the Purchase Quantity of 10 each is 10.00.

While the Best Response Amount for the Offer Quantity of 5 each is 12.00.

Creating Orders from RFQs

When the Winners have been selected you can now create Purchase Orders and Sales Orders based on this RFQ.

In the RFQ window select the Create PO button to generate a Purchase Order(s) for the Selected Winner(s).

When the button is selected, the corresponding message dialog displays.

The system first checks for a Response marked as Selected Winner. If it finds one, which is the case in our example, then that Response is used for creating the Purchase Order. If no Response is marked as Selected Winner, then each Line that is marked as the Selected Winner is used. In this way, you may generate multiple Purchase Orders, one for each Vendor that has a line marked as Selected Winner.

The System will always select one Vendor as the Selected Winner. This is determined by adding the rank of all RFQ Quantities indicated as Purchase Quantities. The Vendor with the lowest total is the Selected Winner. If you want to create more than one Purchase Orders, based on the rank of 1 for each line, then deselect the Selected Winner check box on the RFQ Response.

When the Purchase Order has been created, the message box at the bottom of the window will display the Purchase Order number(s) created.

The Purchase Order created uses the prices from the RFQ Response as opposed to the prices that may exist on the default price list for the Vendor.

Lines may be added or modified on the Purchase Order and you process the Purchase Order as described in the previous section.

You may also want to create a Sales Order based on this RFQ. For example, perhaps this is a special purchase and therefore you want to charge your customer special prices for this Order.

The first requirement is that you complete the Business Partner section of the RFQ.

Enter the Business Partner and Partner Location.

Optionally you can enter a Margin %. This value will be used to compute the selling price for each item if a Margin % or Offer Price is not specified on the RFQ Quantity.

Select the Create Sales Order button and the corresponding message dialog displays.

A Sales Order will be created for the entered Business Partner. Each RFQ Line that is marked as Offered Quantity will result in a Sales Order Line. If an Offer Amount is entered for a product, that price is used. If a Margin % is entered for that line the best response amount is increased by the specified percentage. If there is no Offer Price or Margin % on the Line then the Margin % entered for the RFQ is used. If all of those fields are 0 then the best response amount is used.

If we look at one line in our example:

The Best Response Amount for the Azalea Bush for the Offer Quantity of 5 is 12.00. The Margin is 25%. When the Sales Order is created the selling price will be 12.00 + (12.00 * .25) = 15.00.

When the process has completed, the Sales Order field on the RFQ window is updated with the Sales Order number and date.

The create Sales Order is a Standard Order. Lines may be added or modified. It is processed as all other Standard Orders.

For more information on Sales Orders, refer to the Sales Chapter.

Reporting on RFQs

Compiere provides two standard reports for displaying information on Responses to RFQs and Responses to RFQs that are Unanswered.

To run the Answered RFQs report, open the RFQ Response window by clicking on RFQ Response from the Main Menu. The icon in front of the RFQ Response menu item indicates this is a report. The Report parameter dialog box displays.

Select an RFQ Topic from the drop down list box.

Select an RFQ on which to report. Only those RFQs that are Active and have not been Closed may be reported on. If this field is left blank then all RFQs for this RFQ Topic are included.

Select the OK button to generate the report.

The report displays with the Report Parameters at the top and the data in the body of the report. This is a quick and easy way to display information on all responses to an RFQ.

Note: The format of this report has been modified to eliminate a number of available fields.

For more information on modifying reports, refer to the  Info and Reporting Chapter.

The second report contains data on Unanswered RFQs. To create an Unanswered RFQ report, Open the RFQ Unanswered window by clicking on RFQ Unanswered from the Main Menu. The icon in front of the RFQ Unanswered menu item indicates this is a report. The report parameter dialog box displays.

Select an RFQ Topic from the drop down list box.

Select an RFQ on which to report. Only those RFQs that are Active and have not been Closed may be reported on. If this field is left blank then all RFQs for this RFQ Topic are included.

Enter a Response Date range if desired to limit the number of RFQs returned.

Select the OK button to generate the Report.

The report displays with the Report Parameters at the top and the data in the body of the report. This is a quick and easy way to display information on those Business Partners from whom you are awaiting responses.

Note: The format of this report has been modified to eliminate a number of available fields.

For more information on modifying reports, refer to the Info and Reporting Chapter.

Labels
  • None